Thread by @joshuaa_eth

#Crypto is primed to be transformative. But until it's uncommon for people to lose their wallets due to human error, it may never achieve widespread adoption.
Here's a thread on the problem, and a possible solution.
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I personally know multiple people who have lost life-changing amounts of money due to losing access to a wallet. (I won't @ you for privacy reasons... but you know who you are).
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In a private-key controlled system, you are a single point of failure. Human error, kidnapping (rubber-hose cryptanalysis, anyone?), hacking, a fire, or hardware/software failure could compromise a copy (or all copies) of your keys.
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The risk of theft increases each time you store a separate copy of your keys in another place (or give a portion of a private key to a friend, in a horcrux fashion). A partial key makes brute force attacks possible. A full copy is game over, of course.
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But no or few copies means that you risk total asset loss through a single or chain of unlikely events (i.e. your paper copy burns in a fire, and you forget your hardware wallet PIN).
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This is where social recovery wallets come in. (Thanks, @VitalikButerin).
vitalik.ca/general/2021/0…
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The idea is that it is the next step of the evolution of wallet security. It provides the distributed security of a multisig safe, while also providing the ease of use of a single signing key.
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If you lose your signing key, your guardians (who don't need to know who the other guardians are, to prevent collusion) can generate a new one for you!
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This protects people who are new to #crypto, while also providing full security.
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I haven't checked out the wallets Vitalik mentioned yet, but the Argent and Loopring wallets have already implemented this concept.
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@dominic_w, @ICPfan8, @kylelangham, are there plans to implement something like this in the #ICP ecosystem? If not, could we make it happen? I think socially secured wallets could help onboard the next wave of people into crypto.
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TLDR: Social recovery wallets could solve the problem of lost keys and single points of failure for crypto wallets.
@charliedavis, @AKenamorado, I think you guys would find value in this thread.

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