PREVENT METAMASK FROM BEING HACKED WITH MULTISIG WALLET
Have you ever wondered how to prevent your MetaMask from being hacked? This is the question most people ask when using MetaMask. There are already several tips for users for optimal MetaMask Security such as learning private keys by heart, not clicking on strange links, ect; but not all tips are useful. Today, 1Shield will show you an effective way to get rid of your concern about being hacked - by using a Multisig Wallet. Let's discover how Multisig Wallet can secure Metamask Wallet!
1. What is a Multisig wallet?
Basically, multisignature wallets (or multisig) are cryptocurrency wallets that require two or more private keys to sign and send a transaction. The number of signatures required to sign a transaction is dependent on the kind of wallet.
2. How can Multisig help you?
In general, one of the most common reasons causing Metamask wallets to be hacked is the exposed or stolen secret recovery phase (without it, MetaMask can’t help you recover your wallet and your funds will be lost forever). If you fail in storing your recovery phase, you will face the high risk of losing all your funds once the phase is revealed.
However, Multisig Wallet will serve as a form of second factor authentication, protecting your wallet from unwanted risk when exposing the recovery phase. To be specific, in a Multisig wallet, besides your secret phase; two, three or even more private keys from different sources are required to create a signature of a transaction. Therefore, even if your phase is hacked, no transaction from your wallet can be authorized without other confirmation.
Commonly used types of MultiSig wallets:
n-of-n: Transactions require more than one key to be authorized. All keys need to be used to create the signature.
For example: 2-of-2 Multisig wallet means the transactions can only be authorized with 2 signatures which are stored in 2 different devices.
n-of-m: Transactions require some of the keys, but not necessarily all of them, to be authorized.
For example: 2-of-3 Multisig wallet requires 2 out of 3 existing private keys to authorize transactions.
3. Advantages
High security
The use of a multisig wallet enables users to create an additional layer of security for their funds. If one of the keys is compromised, the user can be assured that their funds are still safe.
Control access
In case of a business partnership between several individuals, a multisig wallet can be used to control access to their joint company funds. Therefore, only decisions that are unanimously agreed upon by the majority will be made.
4. Disadvantages
Transaction speed
Multisig is often slower than single-sig because it relies on another party, device, or location to access the wallet to authorize a transaction
Technical Knowledge
The process of setting up a multi-signature wallet address requires a certain level of technical expertise.
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About 1Shield
1Shield provides Audit & KYC services to help build trust in the Blockchain industry. With expertise in formal verification and fast audit process, 1Shield ensures your project will get invaluable credibility.
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