V God: Individuals and the Ethereum Foundation both use multi signature wallets to store most of their funds

On March 17th, Vitalik Buterin, co founder of Ethereum, stated on social media that self hosting is very important, and social recovery and multiple signatures are good ways to achieve this goal. I personally use a multi signature wallet to store most of my funds, as does the Ethereum Foundation. Once social recovery wallets become mature enough, my recommendation is to use social recovery for hot wallets that store a small portion of an individual or organization’s funds, as well as multiple signatures for cold wallets that store individual or organization savings.

Interpretation of this information:

In a tweet on March 17th, Vitalik Buterin emphasized the importance of self-hosting for individuals and organizations who want to secure their digital assets. To achieve this goal, he recommended using social recovery and multiple signatures.

Self-hosting refers to the practice of storing one’s digital assets on a personal device, rather than relying on third-party services. This approach offers greater control and security, as it eliminates the risk of hacks or data breaches on centralized platforms. However, it also requires individuals to take greater responsibility for managing their own keys and backups.

To address this challenge, Buterin proposed the use of social recovery wallets and multiple signatures. Social recovery involves delegating access to trusted friends or family members who can help recover lost or stolen keys, without giving them access to the assets themselves. Multiple signatures require multiple authorized parties to sign off on any transactions, thus adding an additional layer of security.

Buterin recommends using social recovery for hot wallets, which store small amounts of assets that are frequently used for transactions. This can help prevent the loss of these assets due to user error or hacks. Meanwhile, he suggests using multiple signatures for cold wallets, which store larger amounts of assets that are meant for long-term storage.

Overall, Buterin’s message emphasizes the importance of individual responsibility and decentralized solutions in securing digital assets. By using tools like social recovery and multiple signatures, individuals and organizations can ensure greater protection for their assets while still remaining in control.