Vitalik Buterin suggested Guardians as a key factor to push the self-custody crypto wallets use among crypto investors, which will help to recover funds under Private Key lost situations.
In 2022, the crypto industry saw the downfall of several centralised crypto companies. The main reason behind the downfall of those crypto companies was bad business models or exposure to bad companies. The whole situation resulted in a very bad situation for crypto investors, as they lost their funds on the failed exchanges. The downfall of the reputed crypto companies forced crypto Investors to move toward non-custodial or say self custody wallets, to remain away from similar kinds of risk in the future. Reports noted that the majority of the self-custody wallets grabbed a huge user base over the last few months, especially after the bankruptcy of the FTX exchange.
On 17 March 2023, Ethereum co-founder Vitalik Buterin shared a Reddit post, written by himself, to point out the significance of Guardians in the non-custodial multi-signature crypto wallets.
Vitalik noted that multi-signature crypto wallets will play an important role in the future and that they will replace the hot wallets, which are risky & companies use to store small funds on a daily basis.
Ethereum co-founder confirmed that the Ethereum foundation also holds crypto assets in multi-signature wallets, where wallets can’t be recovered easily via the security check questions but surely needed to get mature.
Earlier this, around a week ago, this Ethereum co-founder sold almost $700k worth of crypto assets that he received in the past as a part of airdrop & some crypto projects for free.
A few days later, Vitalik allocated his 500 Ethereum on a Defi protocol Reflexer and swapped it into USDC & Dai stablecoin.
Read also: Former Belgian minister suggests blanket ban on the crypto industry