In his statement on the X platform today, Ethereum co-founder Vitalik Buterin shed light on the importance of decentralized security when it comes to managing cryptocurrency assets.
Ethereum Co-Founder Vitalik Buterin Advocates Decentralized Security in Cryptocurrency
He highlighted the use of multisig wallets, a method he personally uses to protect over 90% of his own digital funds.
The above is why I use a multisig (@safe) for >90% of my personal funds 🙂
M-of-N, some keys held by you (but not enough to block recovery), the rest held by other people you trust. Don't reveal who those other people are, even to each other.
Decentralize your own security.
— vitalik.eth (@VitalikButerin) May 1, 2024
Multisig, short for multi-signature, refers to a wallet that requires more than one key to authorize a transaction.
In Buterin's case, he uses an M-of-N setup in which he has some of the keys, but not enough to prevent the funds from being recovered. The remaining keys are entrusted to other people he trusts.
Buterin emphasized the importance of maintaining confidentiality in this installation. He recommended that the identities of those holding other keys not be revealed, even to each other. He believes this approach is a way to “decentralize your own security.”
This advice comes at a time when the use of hardware wallets and the risks associated with them are under scrutiny. Buterin's method offers an alternative approach, emphasizing the importance of decentralization and trust in increasing security in the cryptocurrency space.
As digital currencies continue to gain worldwide attention, such insights from industry leaders like Buterin are invaluable in guiding users on how to safely manage their digital assets.
*This is not investment advice.
