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Vitalik Buterin Says Social Recovery Wallet Is A Solution To Wallet Hacks

Theft via digital assets is not something that anyone, especially the regulators that chase after the malicious actors can wish away. Despite the crypto sector showing potential over the years since it was established, governments and regulators worldwide have avoided legalizing crypto due to the number of illegalities carried out in the industry.

Crypto exchanges have now taken the initiative and have developed sophisticated security for their respective platforms and wallets. Still, the move has not yet deterred the bad actors in the sector. Buttressing this issue and giving his two cents is the CEO of Ethereum, Vitalik Buterin, has given an ideal solution to tackle the menace.

Wallet hacks were rampant in 2020

Without a doubt, crypto wallets need maximum security because that is where most traders store their crypto holdings. According to Chainalysis, major crypto exchanges are now running to cold wallets to keep funds belonging to their customers because of the lack of security that has plagued hot wallets on respective exchanges. Experts believe that crypto has not hit the level that it was expected to hit at present due to various theft that has occurred in the crypto market in which wallets with fewer securities were involved.

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Hugh Karp, the CEO of blockchain firm, nexus mutual, announced that he last about $8 million to suspected hackers who gained access to his hardware wallet after tricking him into surrendering his private keys. This and many other cases were rampant over the last year as hackers gained back door access to various exchanges, carting away funds belonging to their customers. Even though multiple wallets that are adjudged as secure made their entry into the market, various entities have noted that the wallets in question are not secure as hackers have found a way to exploit the wallets.

Buterin open to a more secure wallet in the future

Buterin has advised that members of the crypto market switch to what he described as social security wallets. In his statement, he notes that the wallets in question will provide users with maximum security because they are smart contracts wallets that are better than most wallets that exchanges offer to their customers. In his argument, Buterin claims that the wallets are embedded with some smart contracts technology, which would help users delay transactions, pushing a claim for security on the wallets.

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Finally, Buterin noted that if the crypto community begins to adopt such wallets, they can kiss the theft of digital assets via wallet hacks goodbye. Making a case for the security of wallets, Buterin noted that crypto exchanges should never toy with wallets’ security on their platforms because it presents them in a bad light to clients who will what to sign up on their platforms. Even though he believes that social wallets could be a solution to the attacks, Buterin says that developers would develop a more secure wallet for users as the day progresses.

Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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