The recent spate of hacks, bankruptcies and lost seed phrases has given rise to a range of crypto wallet applications to securely store private keys associated with cryptocurrencies. As users seek to maintain full control and ownership of their digital assets, many are embracing the self-custody mantra — taking security into their own hands with a permissionless wallet security infrastructure. But this comes with a new set of challenges, including the complexity of managing private keys and the potential for loss or theft that has made many users hesitant to fully embrace the approach. Unfortunately, these concerns are not unfounded. Additionally, the different storage options available, such as hot and cold cryptocurrency wallets, as well as enhanced security techniques such as those provided by multi-signature wallets, can be overwhelming for users. Compounding these challenges is the alarming surge of attacks and exploits in the past year, which have compromised the security of users’ digital assets. What’s come to be known as the Ronin hack is particularly notable. In March 2022, the North Korean-linked Lazarus Group successfully hacked the Ronin Network, a key platform powering the popular Web3 mobile game Axie Infinity, stealing over US$600 million worth of ETH and USDC.
Full story : Can crypto wallets be both accessible and hacker-proof?
