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This is a solved problem in crypto and having even a billion in a single wallet is fine. That’s why multi-sig were created, it’s used more as a redundancy mecha

by csomar 3y ago

This is a solved problem in crypto and having even a billion in a single wallet is fine. That’s why multi-sig were created, it’s used more as a redundancy mechanism than a voting one.

MaxwellKahn 3y ago
Even with multisig, each individual key holder has to manage their device, and the steel backup for that device. And there exists possibility of collusion between n of m of the multi sig holders against the other holders. Seems like it would still keep me up at night (though with SVB, standard bank accounts are starting to look shaky too). Having not worked for a crypto company, curious what the standard best practices are for securing the "keys to the kingdom" (literally).
- csomar 3y ago
  There is no collusion, that’s the point of multi-sig, it’s akin to voting powers. You can use multisig yourself too: ie you can use a key you remember, or the one in your safe. Along with a key in your phone. So two out of three. If someone gets the key in your safe, he can’t access your coins (he’ll need your phone too).
  - DannyBee 3y ago
    There is collusion, of exactly the form described. Just because the collusion happens through voting doesn't make it not collusion.
- dustymcp 3y ago
  even the laser etcher is a problem :)
  - MaxwellKahn 3y ago
    I was super paranoid, and bought one of these metal stamping tools(https://www.amazon.com/gp/product/B07ZFB5J15 https://www.amazon.com/gp/product/B07ZFB5J15), and made my condo neighbors angry for one evening :) but hey, completely airgapped!
HumanOstrich 3y ago
It's definitely not a "solved problem", especially the non-technical aspects. For example, uh, see this current post we are on.
acdha 3y ago
multi-sig addresses one aspect of the problem but not everything. The underlying problem is that the system is brittle rather than robust, and multisig only helps with a specific challenge (“I don’t want a single key loss to lose everything, but don’t want to make copies of the same key”). It doesn’t help with many common scenarios: “I was compromised”, “my employee abused access to my keys”, “someone made a typo in a transfer”, “I am choosing not to comply with a court order”, “our CFO died unexpectedly”, etc. Contrast this with how easily this could have been resolved in the financial systems which are actually used and you get an immediate appreciation of how valuable it is to have a way to handle human error in systems used by humans.

by csomar 3y ago

This is a solved problem in crypto and having even a billion in a single wallet is fine. That’s why multi-sig were created, it’s used more as a redundancy mechanism than a voting one.

MaxwellKahn 3y ago

Even with multisig, each individual key holder has to manage their device, and the steel backup for that device. And there exists possibility of collusion between n of m of the multi sig holders against the other holders. Seems like it would still keep me up at night (though with SVB, standard bank accounts are starting to look shaky too). Having not worked for a crypto company, curious what the standard best practices are for securing the "keys to the kingdom" (literally).

csomar 3y ago
There is no collusion, that’s the point of multi-sig, it’s akin to voting powers. You can use multisig yourself too: ie you can use a key you remember, or the one in your safe. Along with a key in your phone. So two out of three. If someone gets the key in your safe, he can’t access your coins (he’ll need your phone too).
- DannyBee 3y ago
  There is collusion, of exactly the form described. Just because the collusion happens through voting doesn't make it not collusion.
dustymcp 3y ago
even the laser etcher is a problem :)
- MaxwellKahn 3y ago
  I was super paranoid, and bought one of these metal stamping tools(https://www.amazon.com/gp/product/B07ZFB5J15 https://www.amazon.com/gp/product/B07ZFB5J15), and made my condo neighbors angry for one evening :) but hey, completely airgapped!

HumanOstrich 3y ago

It's definitely not a "solved problem", especially the non-technical aspects. For example, uh, see this current post we are on.

acdha 3y ago

multi-sig addresses one aspect of the problem but not everything. The underlying problem is that the system is brittle rather than robust, and multisig only helps with a specific challenge (“I don’t want a single key loss to lose everything, but don’t want to make copies of the same key”). It doesn’t help with many common scenarios: “I was compromised”, “my employee abused access to my keys”, “someone made a typo in a transfer”, “I am choosing not to comply with a court order”, “our CFO died unexpectedly”, etc. Contrast this with how easily this could have been resolved in the financial systems which are actually used and you get an immediate appreciation of how valuable it is to have a way to handle human error in systems used by humans.