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Crypto Wallets

Crypto wallets are at the forefront of digital identity innovation.

One of the most important decisions when starting out with crypto/web3 is choosing the right wallet to protect your assets and faciliate common exchanges of value.

Context​

Wallet Types​

Which wallet is best for your needs?

  • Burner Wallets
  • Browser (Hot) Wallets
  • Hardware (Cold) Wallets
  • Multisig Wallets
  • Social Recovery

Burner Wallets​

Great for onboarding and batching transactions.

Generated on the fly in the browser.

Browser (Hot) Wallets​

Hardware (Cold) Wallets​

Multisig Wallets​

Interface Packages​

Account Abstraction intends to smooth onboarding exerience into Web3. Which blockchain does it best?

Wallet Best Practices​

Dev Ops Course

Wallet and Key Management​

  • Private Key Security Tips

Browser Hot Wallets​

(MetaMask, Phantom, etc)

Hardware Wallets​

(Ledger, Trezor, etc)

  • Air Gapped
  • Medium Value
  • Not good enough for a protocol dev
  • Prone to wrench attacks

Multisig​

Using Multi-signature (MultiSig) wallets is critical if deploying a Smart Contract to secure digital assets under your trust.

Safe Example

Actionable Insights: Continuosly evolve and follow best practices

  1. Diversify risk: Use MultiSig wallets to distribute authority and eliminate single points of failure.
  2. Choose the right setup: Select a suitable M-of-N setup, such as 2-of-3 or 3-of-5, based on your security needs.
  3. Use multiple hardware wallets: Store private keys in different locations and use multiple hardware wallets from different vendors to enhance security.
  4. Segregate access: Keep private keys on separate devices and avoid storing all keys on a single device.
  5. Implement robust backup and recovery processes: Ensure secure backups of seeds and wallet configuration files.
  6. Monitor transactions: Regularly review transactions to detect any suspicious activity.
  7. Use secure communication: Employ encrypted communication protocols between authorized signers and the MultiSig wallet.
  8. Conduct regular security audits: Perform security assessments and penetration testing to identify vulnerabilities.

Risk Checklist:

  1. Single point of failure: Using a single hardware wallet or storing all private keys on one device.
  2. Compromised key holders: Losing or misplacing private keys or having key holders become uncooperative.
  3. Inadequate backup and recovery processes: Failing to securely back up seeds and wallet configuration files.
  4. Insufficient security measures: Not implementing robust security protocols, such as encryption and secure communication.
  5. Lack of diversification: Using the same hardware wallet or vendor for all signers.
  6. Inadequate monitoring: Failing to regularly review transactions and detect suspicious activity.
  7. Poor key management: Not securely storing and managing private keys.
  8. Inadequate security audits: Failing to perform regular security assessments and penetration testing.

Wallet Vendors:

Social Recovery Wallets​

Setting up a Safe

Build your own Wallet​

Post Deployments​

https://github.com/Cyfrin/evm-wallet-and-post-deployment-course

Best practices for managing contracts post deployment.

Start with solid pre-deployment preparation to be attacked.

  • Monitoring
  • Forta Bot
  • Incident Response
  • Handling Bugs
  • Blockchain Sleuthing

Post​

Wallet Architecture​

What are fundamentals to wallet architecture?

Need to connect the dots across:

  • discovery
  • decision routing
  • game loading