More safety for Avalanche users
On Twitter, the Avalanche blockchain (AVAX) announced that Gnosis Safe would now be compatible with its network in order to increase the security of its users.
Projects, developers and DAOs can expand their security tooling with @gnosisSafe now supporting #Avalanche. Setup Gnosis Safe multisig wallets to securely transact and store digital assets.https://t.co/ZbzBNOrSlh
– Avalanche 🔺 (@avalancheavax) December 15, 2021
As with a classic wallet, a multisignature wallet allows send and receive cryptocurrency, but also to interact with smart contracts.
How does a multi-signature portfolio work?
With a multi-signature portfolio, also called ” multisig », Any transaction will necessarily need to be validated by at least two different addresses.
It is as if you wanted to open a door with two locks. In either case, you will need two different keys, just one not being sufficient. If you have the first key, then you will have to ask a third party to use their key at the same time as you, and vice versa.
You will understand, in this way, it is much more complicated to have your funds stolen.
👉 To learn more – definition of a multisignature account
Why use a multi-signature wallet?
The main advantage lies in the security. It will be much more complicated for someone with bad intentions to hack a wallet with a security multifactors rather than if it only had a unique key.
Indeed, in the event that you do not have a unique key, should you ever lose or have it stolen, then you would have no way of preventing a malicious person from emptying your funds.
With a wallet multisignature, even if someone finds one of your keys, they will not be able to no transaction without you giving it the possibility via a third party or via one of the terminals with one of the authorized addresses.
Decentralized applications (dApps) and decentralized autonomous organizations (DAO) can also use it, such as the Pangolin decentralized exchange (PNG) built on the Avalanche blockchain.
Thus, this makes it possible to avoid any hacking due to phishing or any other attack.
How do I create and use a Gnosis Safe multisignature wallet?
It’s very simple and it barely takes a minute.
First, go to the Gnosis Safe page dedicated to this purpose.
Then click on “Create new Safe”:
On the next page you just need to connect Gnosis Safe to your wallet (MetaMask, Ledger …) and choose on which network you want to use it (Ethereum, Avalanche …)
Then just give a name to your new multi-signature wallet.
For the last step, you need to define how much and Who will be the users having access to the wallet. Note that your personal wallet address is entered by default in the first line of text.
As explained in our article on setting up a multi-signature portfolio, one of the simplest and most effective choices is to set up a setup called “ 2-of-3 “. You will then have three different keys:
- A key ” hot »Which remains on your computer’s hard drive;
- A key ” cold »On your Ledger;
- A key ” back-up »In the form of a seed kept only on paper.
So, only you have all three keys, but you will only need two of them to validate your current transactions, and you will always have a backup if you lose any of the three.
A fee of a few cents will have to be paid to validate the creation.
👉 On the same subject: the USDC lands on the Avalanche blockchain (AVAX)
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