Crypto wallets are joining the caravan of decentralized services thanks to blockchain technology.. In the near future, we may start to hear the term social recovery wallet more often.
Russian-Canadian origin Vitalik Buterin, one of the founders of Ethereum, said that social recovery wallets (social recovery wallets) strong>), explained that it will help new entrants feel safe in a world where everyone wants to have their own bank.. Ethereum founder Vitalik Buterin is aware of the responsibility of developing a product that has the potential to revolutionize world finance.. Especially if the business is on the way for people to create their own bank…
In a January 11 Blog post, Vitalik expressed his opinion on the importance of developing methods that allow users to recover the private keys of their digital wallets in case of emergency.. This is impossible today without the help of trusted third parties.
What happens if you lose your key password?
What is a Social Recovery Wallet?
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Social recovery wallets work just like a regular digital wallet, but these wallets also use parents for syncing. Parents are a group of people. If the original owner of the wallet somehow forgets or loses his key, they are able to allow access again at his request.. How? Nice idea, isn’t it?
These third party parties can ideally be set up to be anonymous to each other. This may pose a risk for the original wallet owner and may prevent parents from communicating with each other.. The original wallet owner can contact each of the parents separately, and none of them will ever know the real key.
How does a social wallet work? Original graphic was taken from Vitalik.ca and edited.
According to Vitalik Buterin, this solution is simpler and safer. Even from the use of multi-signature wallets.
If a user loses their signing key, that’s where social recovery comes into play.. The user somehow reaches his parents and asks them to create a new public key specific to the current private transaction, which is recorded in the contract in his wallet.. This is actually very easy: They will just visit a web page such as security.loopring.io, log in, see the recovery request and sign it. It will be as easy as doing a Uniswap for each one.
Why Do We Need Social Recovery Wallets?
Due to the nature of decentralization, the storage and use of any cryptocurrency must be the sole and exclusive responsibility of the individual.. Although this means that every person has their own bank, in the end, the existence of these conditions poses a risk for most users, especially new users.. New users are more prone to lose their keys.
There are many things before us, from novices to Peter Schiff, to experts like Stefan Thomas, CEO of Coil, forgetting her password. there are many examples. So much so that Stefan Thomas has only two rights left to access his wallet containing 220 million Bitcoins without losing them all forever.
See: If he enters the wrong password, 220 million dollars of BTC will be lost!
This is unacceptable, according to Buterin.
“Despite loss and theft of passwords, the 12-step tutorials are lightweight, not very secure. A system that includes precautionary measures and solutions that sarcastically answer “we apologize for your loss” should not be adopted this much anymore”
Will these wallets be a part of the future?
Despite the promises, social recovery wallets are still not very popular in the crypto-universe. Major manufacturers and developers are still not convinced of the functionality of this solution.
After all, perhaps only one major company relies on this technology: HTC. The company’s Zion Wallet solution allows its users to select a certain number of parents and to communicate via e-mail in case of emergency.
The social recovery feature of Zion Wallet
Vitalik Buterin recommends Argent Wallet and Loopring applications. Because among others, it means that the user experience is more comfortable.
In this case, it may not be a bad idea to at least try these applications.. At least, as long as Bitcoin users continue to feel comfortable having their own bank before they have a problem.
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