Why Vitalik Buterin chooses multi-signature wallets

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

Buterin highlighted the critical issues for crypto holders around the world to keep their assets safe.

Multi-signature wallet with hardware wallet

Buterin emphasized the importance of employing multi-signature wallets to protect private funds. He stated that he uses this method for more than 90% of his property.

In multi-signature wallets, control of funds is distributed among multiple parties, known as “keys.” Therefore, Buterin supports the M-of-N approach. This creates a decentralized security network where the user holds some of the keys while delegating the rest to other individuals.

In addition, Buterin advises not to disclose the identity of these trusted parties to ensure an additional layer of privacy and security.

Read more: 9 Crypto Wallet Security Tips to Protect Your Assets

In addressing the problem of hardware wallets, Watershed founder Peter Watts highlighted the potential risks of human error. Watts warned against situations where users could inadvertently compromise their security, such as misplacing pedigrees or hastily transferring important wallet components without accessing them.

“The biggest risk when using a hardware bag is yourself,” Watts said.

This reflects the need for user vigilance and responsible storage practices, as even the most secure hardware wallets are subject to user-related vulnerabilities.

Buterin and Watts' support for multi-signature wallets is in line with a broad industry consensus on improving security protocols. Indeed, prioritizing strong security measures is fundamental to disaster prevention and asset protection.