Vitalik Buterin Affirms Multi-Signature Wallets Are Safer Than Hardware Wallets

Ethereum co-founder Vitalik Buterin emphasized the security advantages of multi-signature wallets over hardware wallets.

Buterin highlighted crucial considerations for crypto holders worldwide to keep their assets secure.

Multi-Signature Wallets Over Hardware Wallets

Buterin stressed the significance of employing multi-signature wallets to safeguard personal funds. He revealed that he utilizes this method for over 90% of his assets. 

With multi-signature wallets, the control over funds is distributed among multiple parties, known as “keys.” Therefore, Buterin advocates for an M-of-N approach. This entails the user holding some keys while the remainder is entrusted to other individuals, forming a decentralized security network. 

Buterin also advised against disclosing the identities of these trusted parties to each other to ensure an added layer of privacy and security.

Read more: 9 Crypto Wallet Security Tips To Safeguard Your Assets

Addressing the potential pitfalls of hardware wallets, Peter Watts, founder of Reservoir, highlighted the inherent risks posed by human error. Watts cautioned against scenarios where users inadvertently compromise their security, such as misplacing seed phrases or hastily relocating without access to essential wallet components. 

“When using a hardware wallet, the biggest risk becomes yourself,” Watts said.

This reflects the importance of user vigilance and responsible storage practices, as even the most secure hardware wallets are susceptible to user-related vulnerabilities.

Buterin and Watts’ endorsement of multi-signature wallets aligns with the broader industry consensus on enhancing security protocols. Indeed, prioritizing robust security measures is fundamental to risk mitigation and asset protection.