critical vulnerabilities in crypto wallets

Vitalik Buterin recommends smart contract wallets like Gnosis Safe for cryptocurrency security.

Critical Vulnerabilities In Crypto Wallets

In recent days, Vitalik Buterin, co-founder of Ethereum, shared his thoughts on the security and flaws of different types of crypto wallets. According to Buterin, externally owned accounts (EOAs) known as multi-party computation (MPC) based crypto wallets can be fundamentally flawed due to the non-revocability of their keys, and smart contract wallets emerge as the only viable option. However, as the most secure choice, Buterin recommends Gnosis Safe, a multi-signature wallet.

Gnosis Safe is a smart contract wallet that allows users to create vaults with countless addresses and choose the required ownership count for transaction authorization. It enhances security with a multi-signature approach, protecting against phishing attacks and hacking attempts. Additionally, it is useful in joint financing scenarios, such as a DAO or investment club, where members can vote on proposals using a 10 out of 6 scheme. Gnosis Safe can also store ERC-721 and ERC-20 tokens and offers a user-friendly interface for easy traceability.

However, some experts have pointed out the limitations of smart contract wallets, such as their inability to manage currencies other than Ethereum and the high costs associated with setup and recovery processes. Acknowledging these issues, Buterin argued that second-layer solutions and on-protocol support are needed for smart contract wallets.

In addition to discussing wallet security, Buterin also shared his thoughts on potential existential threats to humanity, such as artificial intelligence and engineered pandemics. He also acknowledged the dangers of nuclear war and the possibility of AI-assisted invulnerable totalitarianism.

Buterin continues to maintain his commitment to delivering positive impacts to society and emphasized that he has continued to donate to Ukraine throughout this year.