Unchained What’s Next for Wallets After Ledger Recover Outrage? - Ep. 502
Jun 6, 2023
Itai Turbahn, Co-founder and CEO of Dynamic Labs, collaborates with Ouriel Ohayon, CEO of ZenGo, to tackle the hot topic of crypto wallet security. They discuss the recent Ledger Recover controversy, emphasizing that while management of keys is crucial, misunderstanding hardware wallets could lead to fear. Multi-party computation as a solution is delved into, alongside the trade-offs of security versus user experience. They also explore how innovations like Dynamic Wallet and account abstraction could revolutionize user interactions with crypto.
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Self-Custody Challenges
- "Not your keys, not your coins" is often a user experience problem.
- Self-custody is hard because users must protect their seed phrases, which requires technical expertise.
Ledger Recover Disconnect
- Ledger Recover exposed a disconnect between user perception and hardware wallet reality.
- Many believed hardware wallets prevented private key extraction, but firmware updates can enable this.
Two-Man Rule
- Distribute security and recovery responsibility rather than solely relying on the user.
- Use a "two-man rule" instead of a "one-man rule" to mitigate the risk of single points of failure.
