Secure Self-Custody In Light of Solana Hack
131 sats \ 2 comments \ @frostdragon 3 Aug 2022 bitcoin
Yeah, we can all have a laugh about shitcoin going to shit, but…
It appears as though this kind of hack could happen to any software wallet company, including wallets that hold bitcoin. When Celsius went down we all recognized that it wasn’t a problem with bitcoin. “Not your keys not your coins” is common knowledge. Same here - this most likely had to do with bad implementation rather than the currency itself.
This is a good opportunity to realize self-custody needs a higher standard.
For storing long term wealth/net worth/life and family savings, your private keys need to be airgapped with a hardware wallet.
New hacks are developed every week. Literally anything and everything you have that’s touching the internet is at risk. That’s the world we live in. That’s one reason why bitcoin is such a revolutionary innovation. Your private key never has to touch the internet.
I would also take it a step further to say that most of us are going to lose funds by losing our keys if we stop there.
This is where collaborative custody multisig comes in.
If you want to store your coins long term without risk of being lost or stolen, get 2 hardware wallets, 2 metal backups, and set up a free multisig vault with Unchained or someone similar. Zero chance of hacks, and almost completely foolproof with it comes to losing your keys.
imo, fully airgapped 2 of 3 multisig with a secure third party acting as backup is the default wallet of the future.
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0 sats \ 1 reply \ @allark 3 Aug 2022
No thanks. Hard Wallet with Trusted family.
Trusting strangers and "3rd parties" is just an indication of Societal Decay.
Trust your fam and your hard wallet.
Everything else is just shilling, scammers and noise. :)
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0 sats \ 0 replies \ @frostdragon OP 3 Aug 2022
I’d respectfully disagree. Functioning society is built around mutual trust, unless you have expertise in every area of life (medical, mechanical, financial, judicial, etc etc). Unless you’ve reviewed every bit of source code of bitcoin, you’ve got a level of trust in those who have.
Multisig isn’t necessarily for everyone, but I’d argue it’s the best solution for most (and family is a great place for your portion of back ups). But if you have the technical expertise and confidence to construct a 2 of 3 wallet w/ xpubs and can manually generate new public keys to receive deposits, then by all means, go for it!
If not, here’s what you’re trading off for ease of set up, transaction tracking, etc:
  • a single backup that can’t be used to access your funds by itself.
Not really sure what there is to lose there.
I definitely wouldn’t make the blanket claim that all “trust” is inherently bad for society. Just don’t think that holds much water.
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