#ETH #Ethereum #ethereumshanghaiupgrade #eth2.0 #selfcustody
Cryptocurrencies are known for their self-custody feature, which puts the responsibility of managing funds solely on the users. While this provides users with complete control over their assets, it also means that any mistake can lead to the loss of funds. Unfortunately, this has happened on a large scale in the case of Ethereum (ETH).
According to a recent report, more than USD $1.1 billion worth of ETH has been lost forever due to human error. The report estimates that at least 636,000 ETH, which is about 0.5% of the current circulating supply, is now completely inaccessible. However, this figure is only an estimation of the losses caused by human error.
The majority of the funds were lost due to an error in the Parity crypto wallet, which affected about 178 addresses and resulted in the loss of about 514,000 ETH in 2017. In addition, over 12,619 ETH was lost due to typing errors made by users, affecting about 2,638 wallets that made mistaken transactions.
There are also funds housed in wallets that have become inaccessible and assets sent to burn addresses. About 85,476 ETH was lost in the former group, while the latter saw about 24,187 ETH lost.
It's important to note that the actual amount of ETH lost is likely much higher than the reported figures. Conor Grogan, the Director of Product Strategy and Commercial Operations at Coinbase, who shared the report, believes that the estimated losses are just a small portion of the actual losses incurred due to human error.
The report only covers instances where Ethereum is permanently blocked, meaning that the actual losses may be much higher. Additionally, the ETH documented in the report did not have the high dollar value it does now at the time of loss.
This loss of ETH is not an isolated incident. A previous report estimated that around 1.6 million bitcoins, worth around USD $44.8 billion today, have been lost forever. The lesson here is clear: users must be extra careful when handling their cryptocurrency funds, as any mistake can lead to significant losses.
In conclusion, the loss of over 636,000 ETH due to human error is a stark reminder of the responsibility that comes with managing cryptocurrency funds. As the popularity of cryptocurrencies continues to grow, it's essential to be vigilant and take necessary precautions to ensure that you do not fall victim to similar losses.