Ethereum’s Vitalik Buterin Calls For Enhanced Privacy and Security in Web3 Wallets
Ethereum co-founder Vitalik Buterin has called on Web3 wallets developers to prioritize improving security and privacy in decentralized wallets. In a blog post on December 3, 2024, Buterin stressed that wallets should be designed to enhance decentralization and privacy.
He argued that users can only fully benefit from the privacy, security, and censorship resistance offered by Ethereum if their wallets are built with these same principles.
Vitalik Buterin Advocates for Enhanced Wallet Security and Privacy in Web3
In a recent blog shared on X, Vitalik Buterin emphasized that privacy should not be a separate feature, but an integrated part of all Web3 wallets. Currently, users who wish to make private transactions must rely on specialized “privacy wallets.” Buterin pointed out that this approach adds inconvenience and limits the number of people willing to engage in private transfers.
His proposed solution is to integrate privacy features directly into Web3 wallets, allowing users to enjoy privacy without complex setups.
Buterin suggested to have wallets store some portion of a user’s assets in a “private balance” or privacy pool. These assets would fund private transfers without requiring separate infrastructure. He believes this integration would encourage greater adoption of privacy features.
More so, this call comes barely a month after Buterin outlined plans to improve the Ethereum network, where he emphasized the importance of decentralization.
Simplifying Cross-Layer-2 Transfers: A Push for Easier Interoperability
Another major point raised by Vitalik Buterin in his blog is the need to simplify transfers across Ethereum’s top Layer-2 (L2) networks, such as Optimism and Arbitrum. Web3 wallets currently face challenges when transferring tokens between different L2s. This is due to the complexity of the process and the lack of standardized wallet address formats.
Consequently, Vitalik Buterin proposed Web3 wallets to adopt a standardized address format for users to send tokens to wallets on different L2 networks. This would reduce friction and enhance the overall user experience when dealing with multi-L2 transactions.
In light of ongoing concerns in the Web3 space, Vitalik Buterin also drew attention to the need for better security features to combat malicious activities. The Ethereum co-founder proposed a two-layer security system for wallets, combining social recovery and multisig with graded access control.
Users have a primary key for low-value actions and guardians for high-value operations, requiring a majority for critical changes. This system can include timelocks for added security, ensuring secure account recovery while minimizing theft risks.
Meanwhile, ZKasino, a decentralized betting platform, has faced severe allegations of misappropriating user funds for high-risk crypto trading. According to on-chain data, the ZKasino team used over 15,000 ETH from user deposits for speculative trading, resulting in a profit of $3.22 million. The project has also been linked to money laundering through chain-hopping activities.
Zkasino team is also in progress of laundering funds by chainhopping rn:
1). 111.4 ETH transferred from 0x0ab to 0xae02
0x080f1ff3c7e39745b11d2bdcf77d8298ed1b5ecc906da8388e57b1328850f6ac2). ~111 ETH transferred to 5 addresses…
— ZachXBT (@zachxbt) December 3, 2024
Blockchain analyst ZachXBT reported these activities, raising alarms about the need for better security and oversight.
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