Why Vitalik Buterin Doesn’t Use Hardware Wallets
Ethereum founder Vitalik Buterin has raised concerns about the reliance on hardware wallets for crypto security. He believes that hardware wallets can introduce human error risks, such as losing or forgetting seed phrases.
Buterin’s Multisig Approach
Buterin prefers to use a multisig configuration, which requires multiple keys to authorize transactions. This spreads the risk and reduces the chances of theft or loss.
Shamir’s Secret Sharing: An Alternative
Some have suggested using Shamir’s Secret Sharing, which divides a secret into multiple parts. However, Buterin cautions that this method is more complex and prone to errors.
Importance of Hardware Wallets
Despite Buterin’s concerns, hardware wallets remain an important part of crypto security. They provide protection against online threats.
For Large Crypto Holdings: Consider Multisig
For investors with a significant portion of their net worth in crypto, a multisig wallet is recommended. This requires multiple keys, including hardware and hot wallets, to authorize transactions.
