As a seasoned crypto investor with a keen interest in blockchain networks and their underlying infrastructure, I can’t stress enough the importance of robust security measures for multisignature wallets. The potential $121 million loss across 12 networks from a compromised wallet is an alarming reminder of this fact.
Twelve distinct blockchain networks rely heavily on multisignature wallets for their operations. A breach of this particular wallet could result in financial losses amounting to $121 million collectively across all 12 networks. Among these networks are Zora, Aevo, Hypr, Orderly, Ancient8, Lyra, Mode, Pgn, Parallel, and Metal. They employ Conduit rollup software for transactions that necessitate multisignature approval.
Conduit chains, which include Zora, Aevo, Hypr, Orderly, Ancient, Lyra, Mode, Pgn, Parallel, and Metal, are upgradeable using the same multisig.
— donnoh.eth 💗 (@donnoh_eth) May 19, 2024
Based on findings from L2Beat researcher Luca Donno, this wallet necessitates approval from three out of the five designated signatories prior to carrying out any transactions. The safety of these signatures is amplified due to their preservation in hardware wallets, as explained by Conduit founder Andrew Huang. Gaining unauthorized access would demand physical possession of keys held by at least three out of the five individuals. In response to security issues, Huang disclosed intentions to improve the authentication procedure, mandating approval from five out of seven signatories instead. This enhancement is anticipated in the approaching weeks.
As layer 2 solutions advance, it is expected that they will move into a more decentralized phase in their development. This next stage could help minimize centralization risks and enhance the user experience by lowering Ethereum gas fees and potentially increasing adoption due to improved efficiency.
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2024-05-22 09:41