Recent hardware wallet security incidents have renewed debate over whether self-custody is suitable for beginners, as multisig and seedless designs carry their own risks.
Crypto executives are divided over whether self-custody was ever designed for beginners, while approaches such as multisignature wallets and seedless backups come with their own security and usability trade-offs.
“We don’t expect every driver to be a mechanic, and we shouldn’t expect everyone who wants to own their assets to become a security expert,” Safe Labs CEO Rahul Rumalla told Cointelegraph.
Making self-custody easier to use could be critical to Bitcoin’s broader adoption, as the ability to “be your own bank” remains one of its defining features.
Recent incidents involving Ledger and Coldcard have exposed weaknesses in hardware wallets, widely recommended as one of the safest ways to hold crypto because they keep private keys offline.
Implants in some Ledger devices stole recovery phrases, while a Coldcard firmware bug allowed attackers to recreate private keys and steal funds.
Michael Tanguma, CEO of Bitcoin custody provider Onramp, compared Bitcoin custody to personal computers in the 1970s, when users needed technical skills to assemble and operate them.
He said simpler designs helped computers reach a wider audience and that Bitcoin custody now faces a similar challenge.
Rumalla disagreed, saying self-custody was “always meant for everyone” and that “being able to own and control your assets is the whole point of crypto.”
Multisignature, or multisig, wallets require multiple keys to authorize transactions, but managing them can be difficult for beginners.
Source link
