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Amid the hype surrounding the Ethereum Shanghai upgrade and the Arbitrum airdrop, co-founder Vitalik Buterin recommends crypto investors using social recovery wallets and multi-signature wallets to achieve self-custody of crypto funds. He also uses a multisig wallet personally to store his funds, as does the Ethereum Foundation.
Vitalik Buterin in a tweet on March 17 said self-custody is important in the crypto space. It has become even more crucial amid recent events experienced in the last year period. He suggests using social recovery wallets for normal daily activities and multisigs wallets for long-term savings.
“Self-custody is important. And social recovery and multisig is a great way to do it. A quick reddit post on how I think about choosing guardians for social recovery and multisig wallets.”
Vitalik Buterin on Using Multisig and Social Recovery Wallets
According to the post, Vitalik Buterin recommends using multisig wallets such as Gnosis Safe to easily and securely store funds. He claims central entities that seemed trustworthy, but should not be trusted as they have significant risks such as regulatory pressure and human or system errors.
Social recovery wallets are easier to use than multisig wallets. With the ERC-4337 account abstraction and upcoming smart contracts wallets like Soul Wallet, wallet security will improve. Vitalik Buterin proposes to use social recovery for hot wallets that store a small portion of a person or organization’s funds, and multisigs for cold wallets that store a person or organization’s savings.
Moreover, he also gave interesting suggestions on selecting guardians to improve the security of crypto funds by minimizing the chances of guardians losing keys, stealing money, and having shared risks with other guardians.
Replying to a comment that says it is important to have guardians that know how to use a hardware wallet, which is better than storing keys in Metamask or Google Drive, Vitalik Buterin said:
“Some should use a hardware wallet but no need for all of them to imo. You don’t want to freak out if you discover tomorrow that there’s a serious issue with that one hardware wallet company that most of your friends buy from. But yeah, all your guardians using google drive or metamask is definitely something to avoid.”
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Shanghai upgrade and Arbitrum Airdrop
Two events related to Ethereum, the Shanghai upgrade and Arbitrum airdrop are creating a massive hype in the community.
Ethereum core developers revealed that the Shapella (Shanghai and Capella) upgrade on the mainnet is scheduled to happen at epoch 6209536 on April 12 at 10:27:35 PM UTC. It will make validators remove staked Ethereum from the Beacon Chain.
Meanwhile, Ethereum Layer-2 blockchain project Arbitrum announced the airdrop of the ARB governance token on March 23. Here’s how to claim the Arbitrum airdrop, eligibility, and process.
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