Protect Your Crypto Assets with Vitalik Buterin’s Guardian Recommendations

Protect Your Crypto Assets with Vitalik Buterin’s Guardian Recommendations

Time Stamp: March 18, 2023 6:57 AM
Source Node: 2018936

SNEAK PEEK

  • Vitalik Buterin emphasizes the importance of self-custody in cryptocurrency.
  • Guardians should be decentralized and not know each other to reduce the risk of collusion.
  • Wallet guardians must contend with challenges, such as the absence of technology that can safeguard financial privacy from guardians.

In the face of increasing cryptocurrency scams and hacks, the co-founder of Ethereum (ETH), Vitalik Buterin, has stressed the importance of having a diverse group of guardians to ensure the safety of self-custody of digital assets through multisig and social recovery wallets. Buterin recommends that guardians should be decentralized and should not know each other to reduce the risk of collusion.

He also advises that guardians should ask security questions and be able to respond quickly to suit the needs of traders who are making short-term transactions. Buterin’s advice highlights the importance of maintaining wallet safety procedures in the current crypto landscape.

Vitalik Buterin, one of the co-founders of Ethereum, recently tweeted about the significance of self-custody in cryptocurrency. He emphasized that social recovery and multisig are effective ways to achieve this.

A multi-signature wallet, also known as a “multisig wallet” for short, is a type of cryptocurrency wallet in which the signing of a transaction requires the use of at least two separate private keys.

According to Buterin, “the decentralized wallet guardians are that one of the guardians should not know and also trust each other in order for them to enhance security. However, by doing so, you are also concentrating more power into yourself, which can create a risk if you are hacked, coerced, incapacitated, or pass away.”

He went on to say that the guardian should have a set of questions that he or the person carrying out the operation should be able to answer, and that once the guardian has answered the question correctly, the operation should continue because it is an indication that the operation is being carried out by the right person.

However, the guardians are also challenged in their daily lives. One of the challenges that guardians must contend with is the absence of technology that can safeguard your financial privacy from your guardians.

ETH token is currently trading in a bullish trend, with a price increase of 5.73% to $1,816.66, with support and resistance levels of $1,707.95 and $1,818.20, respectively.

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