Buterin Takes A Dig At Sam Bankman, While He Shares His Vision For Crypto Wallets

The post Buterin Takes A Dig At Sam Bankman, While He Shares His Vision For Crypto Wallets appeared first on Coinpedia Fintech News

Vitalik Buterin, in a recent post, has noted his vision for the ideal wallet. At the same time he also took a slight dig at Sam Bankman-Fried, the former FTX CEO whose actions led to the collapse of the exchange and the wiped out billions in user funds. Buterin portrays Sam Bankman-Fried as the ultimate choice for crypto villains, highlighting their actions that put users’ funds at risk.

Buterin believes that wallets are the window between a user and the Ethereum world, and a user only benefits from any decentralization, censorship resistance, security, privacy, or other properties that Ethereum and its applications offer to the extent that the wallet itself also has these properties.

Emphasis Placed on Privacy And Security

While he noted that there has been a lot of progress on improving user experience, security and functionality of Ethereum wallets, this post, particularly focuses on the ideal properties of an ideal Ethereum wallet, emphasizing security and privacy.

While Security lies at the forefront of his vision, he advocates for social recovery mechanisms using multi-signature wallets. He noted that a good wallet should simultaneously be good in two areas: protect users from hacking or malicious activities by the wallet developer and from their own mistakes.

His preferred solution to this has been social recovery and multisig wallets, with graded access control. He noted that more complicated guardian architectures, such as having multiple timelock durations at different thresholds, can help maximize the chance of successful legitimate account recovery while at the same time minimizing the risk of theft.

But who or what should the guardians be?

Experienced crypto users can use friends and family’s keys to create a fresh address, eliminating the risk of collusion. However, he also noted that this option is not available for most new users.

A second option he noted was institutional guardians, that is firms that only sign transactions if they receive confirmation of the request, such as a confirmation code or video call for high-value users. However, these services have been attempted for a long time, but have not been successful thus far.

Multiple personal devices can be challenging for inexperienced users and risky for theft or loss. Passkeys, backed up on devices or in the cloud, provide a hybrid of password security and hardware assumptions. While passkeys are valuable, they alone aren’t strong enough to protect life savings.

ZK-SNARKs offer an option for converting centralized IDs like zk-email, Anon Aadhaar, and Myna Wallet into Ethereum addresses. These addresses can only be used for transactions if a ZK-SNARK proves ownership of the centralized ID.

Privacy, an Everyday Feature

He places emphasis on privacy as an everyday feature rather than an afterthought. He suggested that wallets should natively support multiple addresses per user, with each tied to specific applications. This would prevent activities from being traced across platforms. Integrated private transfer systems, powered by zero-knowledge technology, would make separate privacy-focused wallets redundant.

Buterin’s essay suggests artificial intelligence could transform wallets into intuitive companions, analyzing patterns and propose preventive measures against threats, and help the crypto space grow beyond its current vulnerabilities.