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What is the best wallet to keep USDT?

<h2>Best Non-Custodial Wallets for Bitcoin, Ethereum, and Altcoins</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1695215522/Best_Non_Custodial_Wallets_for_Bitcoin_589d0c7192.jpg" alt="a large safe with digitized art around it and a big bitcoin B on the middle of the door">Non-custodial wallets have emerged as a favored choice for cryptocurrency enthusiasts and investors. In this article, we'll explore what non-custodial wallets are and the different types available, and ultimately make a case for DKG <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">social recovery wallets</a> as the best option.<h2>Non-custodial wallets defined</h2>Often referred to as <a href="https://gridlock.network/blog/what-is-self-custody-in-the-world-of-cryptocurrency" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">self-custody wallets</a>, non-custodial wallets are cryptocurrency wallets that provide users with full control over their private keys and funds. Unlike custodial wallets, which are managed by third-party services like exchanges, non-custodial wallets put the responsibility of safeguarding private keys squarely in the hands of the wallet owner.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1695215594/Different_types_of_self_custody_wallets_824684746e.jpg" alt="a table with several types of non-custodial wallets"><h2>Primary advantages of non-custodial wallets</h2>The main benefits of non-custodial wallets relate to the enhanced security they offer:<ul><li>Users retain ownership and control of their private keys, reducing the risk of hacks or unauthorized access.&nbsp;</li><li>Eliminates the need for trusting a central authority to manage your assets.</li></ul>If a centralized exchange holds your assets and they go bankrupt or get captured through regulation, you may never get your crypto assets back. With a non-custodial wallet, control and ownership of cryptos like Bitcoin and Ethereum remain with you.<h2>Cons of non-custodial wallets</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1695215711/Crypto_wallet_with_seed_phrase_a3b04b4d0c.jpg" alt="Mobile crypto wallet with seed phrase">The main pain points of non-custodial wallets have to do with the self-ownership aspect:<ul><li>Non-custodial means you are the one tasked with securing and storing your assets.&nbsp;</li><li>You are solely responsible for safely storing your private keys, the seed phrase that grants access to your crypto holdings and enables transactions.</li></ul>With a custodial solution such as Binance exchange, you do have the Binance name and team standing behind you in case something goes amiss. However, because the exchange is so big and popular, it is also one of the most heavily scammed brands in crypto history.&nbsp;As with any custodial solution where a centralized organization controls your ownership and access to your Bitcoin, etc., you must also tread very carefully and always make sure you are interacting with the real deal.&nbsp;For many crypto diehards, those risks are too high to make. So they prefer to self-custody their crypto in non-custodial wallets.<h2>Types of Non-Custodial Wallets</h2><h3>Hardware Wallets</h3>Hardware wallets are physical devices designed specifically for storing cryptocurrencies securely. These “hard” wallets generate and store private keys offline, making them immune to <a href="https://gridlock.network/blog/9-ways-on-how-to-avoid-crypto-scams" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto scams</a>, phishing attacks, and malware. Popular hardware wallets like Ledger Nano S, Ledger Nano X, and Trezor are widely considered as secure options for long-term cold storage (meaning offline).<h3>Paper Wallets</h3>A paper wallet is a physical document or material that contains a private key for storing and making transactions with cryptocurrency funds. Since paper wallets are offline, they are immune to online attacks. However, they are vulnerable to physical damage, loss, or theft, and are less convenient for everyday use.<h3>Distributed Key Generation (DKG) Wallets</h3>DKG wallets are a relatively new addition to the non-custodial wallet landscape. They take security a step further by incorporating distributed key generation techniques. DKG wallets distribute parts of the private key across multiple devices or entities, adding an extra layer of security. This approach minimizes the risk of a single point of failure.<h3>Social Recovery Wallets</h3>Social recovery wallets combine the security of non-custodial wallets with a unique twist. Instead of relying solely on physical backups or multiple devices, social recovery wallets allow users to set up a group of trusted contacts who can help recover the wallet in case of loss or access issues. This innovative feature bridges the gap between security and user-friendliness.“We need wide adoption of social recovery wallets.” - Ethereum Founder, <a href="https://vitalik.ca/general/2021/01/11/recovery.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Vitalik Buterin</a><h2>What is the best non-custodial crypto wallet?</h2>While all non-custodial wallet types have their merits, distributed key generation wallets with social recovery offer a compelling blend of security and convenience that sets them apart as the best option for cryptocurrency storage. Here's why:<h3>Advantages of DKG Wallets with Social Recovery</h3>Enhanced Security: DKG wallets distribute private key components, reducing the risk of a single point of failure. Even if one part of the private key is compromised, it cannot be used to steal the funds. This multi-layered security makes DKG wallets highly resilient against various types of attacks.Reliable Recovery: Social recovery adds an extra layer of safety by allowing users to designate trusted contacts who can help recover the wallet in case of emergencies. If you lose your keys or forget your password, a threshold percentage of these contacts can collectively assist you in regaining access, making it less likely that you'll lose your funds permanently.User-Friendly: While security is paramount, user-friendliness also matters. DKG wallets with social recovery strike a balance between security and convenience. They provide a safety net without sacrificing accessibility for users who may not be as tech-savvy or for those who don’t want to be held responsible for managing their private keys.Adaptability: The cryptocurrency space is continuously evolving. DKG wallets can adapt to emerging threats and technologies, making them a future-proof choice for long-term cryptocurrency storage. Social recovery wallets can enable the user to easily and quickly update their network participants (aka <a href="https://gridlock.network/blog/What-are-Partner-Guardians-Network-Nodes-Crypto-Non-Custodial-Wallet" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Guardians</a>), managing changes with just a few clicks.Community and Trust: Trusting a group of known individuals and associated businesses as your recovery contacts can provide peace of mind. It eliminates the need to rely on centralized institutions or services for account recovery, aligning with the decentralized principles of cryptocurrencies.When storing and transacting with your favorite crypto coins, your choice of wallet can make all the difference when it comes to security. While various types of non-custodial wallets exist, distributed key generation (DKG) wallets with social recovery stand out as the best option. They offer a unique blend of enhanced security, reliable recovery mechanisms, user-friendliness, adaptability, and a community approach in line with blockchain’s decentralized tenets.The decentralized nature of cryptocurrencies calls for self-reliance and ownership over your digital assets. DKG wallets with social recovery empower users to:<ul><li>Take control of their financial destinies.</li><li>Safeguard their digital investments.</li><li>Actively participate in the cryptocurrency ecosystem without the fear of losing their funds to unforeseen circumstances.&nbsp;</li><li>Enjoy streamlined financial technology that is in line with the future.</li></ul>As the crypto landscape continues to evolve, choosing the right wallet is a critical step in ensuring the safety and longevity of your investments. <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Download Gridlock Wallet</a>, a DKG social recovery solution providing robust security and easy convenience as you navigate crypto markets. ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Best Non-Custodial Wallets for Bitcoin, Ethereum, and Altcoins

<a href="https://gridlock.network/" rel="noopener noreferrer" target="_blank">Gridlock</a>, a fast-growing blockchain startup, has developed a social recovery wallet with cold-wallet and hot-wallet usability, so easy that anyone can keep their crypto safe.<h2>Why Gridlock focuses on security</h2>Crypto wallet hacks have been a common point of contention since the birth of Bitcoin. With billions of dollars in crypto stolen over the years, the need for security over your assets becomes more and more apparent. Despite the crypto landscape maturing with more investment in the space over the past few years, losses appear to be an even more common occurrence.Better security needs to be a priority. Gridlock has designed a crypto wallet that focuses on making cutting-edge crypto security available to the masses. It's a new type of hot wallet with enhanced security functions.<ul><li>A user's private key is split into five pieces to eliminate any single point of failure.</li><li>Each key share is distributed between the user, Gridlock, and selected individuals.</li></ul><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690847067/multi_sig_wallet_nodes_f572d8872f.jpg" alt="digital cubes in black with light blue light connected by a digital network">Gridlock's new model shows that <a href="https://gridlock.network/blog/seed-phrases-vs-social-recovery" rel="noopener noreferrer" target="_blank">seed phrases</a> are a dated concept. They are challenging to manage and a liability to the owner. This risk is not the only concern with hot wallets, but something that has continued to cause problems and millions in lost or stolen cryptocurrencies.If a private key is held on any device connected to the internet, it is at risk. Experts notice this issue and often opt for hardware crypto wallets or 'cold storage' to remedy concerns about hacks. Cold storage is usually preferred because it is physical and disconnected from the internet, but there are still many <a href="https://blog.lowersrisk.com/risks-crypto-cold-storage-transportation/" rel="noopener noreferrer" target="_blank">risks with cold storage</a>.For example, what happens if the cold wallet is destroyed? For those with cold storage, when was the last time you practiced recovery? Cold wallets work for those comfortable with complex technology, but it's risky and tedious to take on personal ownership of crypto security. Gridlock fixes that.&nbsp;&nbsp;So, how does Gridlock's crypto wallet combat the issues highlighted with existing methods of crypto storage? First, it's a mobile app for iOS and Android, meaning users can access their crypto anywhere and can use social recovery in the case of a lost or compromised device. But Gridlock also enables crypto holders to maintain full and secure access to their crypto, even if their device is lost or compromised. It all happens through Social Recovery.<h2>What is Social Recovery?</h2>Social Recovery is the process of recovering access to your crypto assets after losing a device or having it compromised. In the early days of seed phrases, if you lost your private keys that would be the end. But with Gridlock's Social Recovery wallet, recovery can easily be initiated by anyone in your <a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank">Guardian network</a>. Guardians are holders of the key shares that together make up your private keys. They can be individuals that you know and trust, or crypto companies that you select to be a <a href="https://gridlock.network/blog/What-are-Partner-Guardians-Network-Nodes-Crypto-Non-Custodial-Wallet" rel="noopener noreferrer" target="_blank">Partner Guardian</a>. No one Guardian can know of the others or control access to your crypto. BUT - any one of them can initiate the <a href="https://gridlock.network/blog/What_is_Social_Verification_for_Crypto_Wallet_Security" rel="noopener noreferrer" target="_blank">social verification</a> process so you can quickly recover your crypto assets.<a href="https://gridlock.network/" rel="noopener noreferrer" target="_blank">Gridlock</a>, a fast-growing blockchain startup, has developed a social recovery wallet with cold-wallet and hot-wallet usability, so easy that anyone can keep their crypto safe.<h2>Why Gridlock focuses on security</h2>Crypto wallet hacks have been a common point of contention since the birth of Bitcoin. With billions of dollars in crypto stolen over the years, the need for security over your assets becomes more and more apparent. Despite the crypto landscape maturing with more investment in the space over the past few years, losses appear to be an even more common occurrence.Better security needs to be a priority. Gridlock has designed a crypto wallet that focuses on making cutting edge crypto security available to the masses. It's a new type of hot wallet with enhanced security functions.<ul><li>A user's private key is split into five pieces to eliminate any single point of failure.</li><li>Each key share is distributed between the user, Gridlock, and selected individuals.</li></ul><blockquote>Gridlock's new model shows that <a href="https://gridlock.network/blog/seed-phrases-vs-social-recovery" rel="noopener noreferrer" target="_blank">seed phrases</a> are a dated concept. They are challenging to manage and a liability to the owner. This risk is not the only concern with hot wallets, but something that has continued to cause problems and millions in lost or stolen cryptocurrencies.</blockquote>If a private key is held on any device connected to the internet, it is at risk. Experts notice this issue and often opt for hardware crypto wallets or 'cold storage' to remedy concerns about hacks. Cold storage is usually preferred because it is physical and disconnected from the internet, but there are still many <a href="https://blog.lowersrisk.com/risks-crypto-cold-storage-transportation/" rel="noopener noreferrer" target="_blank">risks with cold storage</a>.For example, what happens if the cold wallet is destroyed? For those with cold storage, when was the last time you practiced recovery? Cold wallets work for those comfortable with complex technology, but it's risky and tedious to take on personal ownership of crypto security. Gridlock fixes that.&nbsp;&nbsp;<h2>How Gridlock Wallet improves on existing methods of crypto storage</h2>So, how does Gridlock crypto wallet combat the issues highlighted with existing methods of crypto storage? First, it's a mobile app for iOS and Android, meaning users can access their crypto anywhere and can use social recovery in the case of a lost or compromised device. But Gridlock also enables crypto holders to maintain full and secure access to their crypto, even if their device is lost or compromised. It all happens through Social Recovery.<h2>What is Social Recovery?</h2>Social Recovery is the process of recovering access to your crypto assets after losing a device or having it compromised. In the early days of seed phrases, if you lost your private keys that would be the end. But with Gridlock's Social Recovery wallet, recovery can easily be initiated by anyone in your <a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank">Guardian network</a>.Guardians are holders of the key shares that together make up your private keys. They can be individuals that you know and trust, or crypto companies that you select to be a <a href="https://gridlock.network/blog/What-are-Partner-Guardians-Network-Nodes-Crypto-Non-Custodial-Wallet" rel="noopener noreferrer" target="_blank">Partner Guardian</a>. No one Guardian can know of the others or control access to your crypto. BUT - any one of them can initiate the <a href="https://gridlock.network/blog/What_is_Social_Verification_for_Crypto_Wallet_Security" rel="noopener noreferrer" target="_blank">social verification</a> process so you can get quickly recover your crypto assets.In order to transfer a wallet to a new device or do anything involving account security, for that matter, the user needs permission from their friends (guardians). Social recovery is a feature that Ethereum founder Vitalik Buterin champions. However, it needs to be widely adopted in crypto wallets before the public can have safe and recoverable storage.Gridlock's social recovery techniques optimize the trend started by companies like Argent, whose Ethereum-only wallet has received some backlash.Gridlock crypto wallet offers flexibility and a variety of tokens. Gridlock guardians have a host of features that make them ideal for security:<ul><li>Social recovery</li><li>Suspicious activity monitoring</li><li>Non-custodial key share hosting</li><li><a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank">Multi-Party Computation (MPC)</a> transaction signing using Threshold Signatures.</li></ul><h2>What are Threshold Signatures?</h2>With threshold signatures, a hacker must compromise multiple devices to steal funds because crypto keys are spread throughout their network. Only the network owner can bring together the pieces to make transactions.Thanks to Guardian Recovery, any part of a Gridlock network can be recovered or replaced if it goes missing. The concept of key splitting has been seen before, like in Shamir's Secret Sharing. However, Gridlock fixes a security flaw in these other technologies: the key is split in one location and then distributed. They fix this with Distributed Key Generation. Partial key generation occurs on each device, and all devices then communicate to derive the official crypto key. With this method, the key is&nbsp;never&nbsp;in one place, even during the initial generation.Gridlock combines the positives of cold and hot wallets while eliminating the negatives. Could Gridlock have finally cracked the code on crypto security? The app is free to use, easy to use, and highlights simplicity as one of the core design concepts.The CEO of Gridlock, Derek Rodriguez, shares how a personal loss of funds inspired him to start the company:<blockquote>"In 2009, I mined Bitcoin and lost what would be the equivalent of $3 million today. Almost everyone I speak to has or knows someone who has lost their cryptocurrency. I wanted to design something that removes any single point of failure in security, and Gridlock does just that." - Derek Rodriguez, CEO, Gridlock</blockquote>Gridlock crypto wallet currently offers storage of Ethereum, Solana, many ERC20 tokens, and even NFTs. Many more coins are coming in the near future and, of course, DeFi integration throughout the space. The team is working hard to bring this technology to the masses because it is exactly what the crypto world is missing.Easy and secure ownership is needed in the crypto space and Gridlock has offered their solution. Try it today - <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank">Download Gridlock Wallet.</a>To transfer a wallet to a new device or do anything involving account security, for that matter, the user needs permission from their friends (guardians).Social recovery is a feature that Ethereum founder Vitalik Buterin champions. However, it needs to be widely adopted in crypto wallets before the public can have safe and recoverable storage.Gridlock's social recovery techniques optimize the trend started by companies like Argent, whose Ethereum-only wallet has received some backlash.Gridlock crypto wallet offers flexibility and a variety of tokens. Gridlock guardians have a host of features that make them ideal for security:<ul><li>Social recovery</li><li>Suspicious activity monitoring</li><li>Non-custodial key share hosting</li><li><a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank">Multi-Party Computation (MPC)</a> transaction signing using Threshold Signatures.</li></ul>With threshold signatures, a hacker must compromise multiple devices to steal funds because crypto keys are spread throughout their network. Only the network owner can bring together the pieces to make transactions.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1691079207/Gridlock_Partner_Guardians_add_security_to_the_network_7180d97268.jpg" alt="a digital network of devices">Thanks to Guardian Recovery, any part of a Gridlock network can be recovered or replaced if it goes missing. The concept of key splitting has been seen before, like in Shamir's Secret Sharing. However, Gridlock fixes a security flaw in these other technologies: the key is split in one location and then distributed. They fix this with Distributed Key Generation. Partial key generation occurs on each device, and all devices then communicate to derive the official crypto key. With this method, the key is&nbsp;never&nbsp;in one place, even during the initial generation.Gridlock combines the positives of cold and hot wallets while eliminating the negatives. Could Gridlock have finally cracked the code on crypto security? The app is free to use, easy to use, and highlights simplicity as one of the core design concepts.The CEO of Gridlock, Derek Rodriguez, shares how a personal loss of funds inspired him to start the company:<blockquote>"In 2009, I mined Bitcoin and lost what would be the equivalent of $3 million today. Almost everyone I speak to has or knows someone who has lost their cryptocurrency. I wanted to design something that removes any single point of failure in security, and Gridlock does just that." - Derek Rodriguez, CEO, Gridlock</blockquote>Gridlock crypto wallet currently offers storage of Ethereum, Solana, many ERC20 tokens, and even NFTs. Many more coins are coming in the near future and, of course, DeFi integration throughout the space. The team is working hard to bring this technology to the masses because it is exactly what the crypto world is missing.Easy and secure ownership is needed in the crypto space and Gridlock has offered their solution. Try it today - <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank">Download Gridlock Wallet.</a> - - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Gridlock Crypto Wallet: How This Social Recovery Wallet is Better Than Cold Storage

Is it Safe to Put Money in Tether?

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Welcome to our exploration of the perplexing world of crypto storage solutions. With an ever-growing list of options available, selecting the right wallet for your digital assets can feel like navigating a maze without a map. That's where we step in. Today's blog post aims to illuminate the key features of various crypto wallets, helping you chart a course toward the choice that best suits your needs.We'll kick off with a comprehensive table that breaks down the attributes you should keep an eye on when comparing wallets, ranging from accessibility and ownership to security and ease of recovery. Following that, we'll dive deeper into what each feature really means for you as a user. Finally, we'll offer an overview of each major type of wallet—software, hardware, web, and the innovative Gridlock—to give you a feel for their unique advantages and limitations.IWhile we find Gridlock to be an exceptional option due to its distinct features, like not necessitating a seed phrase and offering distributed security, we encourage you to conduct your own research to find what works for you. Each wallet caters to different preferences and priorities, and your individual needs are paramount in determining the right fit.Our goal is not to endorse one-size-fits-all answers but rather to equip you with the necessary knowledge to make an informed decision. With clarity and a bit of guidance, the journey to secure and efficient crypto storage need not be daunting. So, if you're ready to take the first step, let's delve in and demystify the world of crypto wallets together. Continue reading for a more detailed overview of each type of wallet.<h2>Cryto Wallet Features</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1701832591/wallet_compare_table_c32d762058.png" alt="wallet compare table.png"> Read below to learn more about each feature that matters when choosing a crypto storage solution <ol><li>Full Ownership: Both software and hardware wallets, as well as Gridlock wallets, provide full ownership, meaning users have complete and exclusive control over their private keys. This control is crucial for ensuring the security of one's cryptocurrency assets.</li><li>Always Accessible: Software and Gridlock wallets are generally accessible, though software wallets depend on the availability of the storage device, like a computer or phone. Hardware wallets, on the other hand, are not inherently always accessible, as they require physical possession of the device. Web wallets are accessible as long as the company continues giving the user access to their funds.&nbsp;</li><li>No Seed Phrase: One of the unique advantages of Gridlock and web wallets is the absence of a seed phrase. Seed phrases can be confusing and pose a risk, as losing them means potentially losing access to your cryptocurrency.</li><li>Strong against Online Theft: Hardware and Gridlock wallets excel in protection against online threats, such as hackers, viruses, and social engineering attacks. This is due to their robust security measures and isolation from online vulnerabilities.</li><li>Strong against Offline Theft: Web and Gridlock wallets offer strong resistance against offline theft, protecting your cryptocurrency from physical threats like theft or brute-force attacks.</li><li>Easy Recovery: Web wallets provide an easier recovery process, typically involving the custodian's assistance. Gridlock wallets also emphasize easy recovery without the need for complex steps or procedures.</li><li>Distributed Security: Gridlock wallets excel in distributed security, meaning they do not have a single point of failure. This distributed approach provides robust protection against loss and theft, unlike web wallets, which, despite having secure storage, can negate this benefit by controlling user access.</li><li>Social Protection: Gridlock wallets uniquely incorporate social protection, adding a human element to security. This approach is especially effective against social engineering attacks, where trickery is used to access someone's crypto assets.</li><li>Joint Ownership: Software and hardware wallets, as well as Gridlock wallets, allow for joint ownership. This feature is beneficial for members in a household sharing a computer or a hardware wallet, thereby offering shared control over a crypto address.</li><li>Maintenance-Free Security: Hardware and Gridlock wallets stand out with their maintenance-free security feature. This means they are self-upgrading, ensuring the wallet's security measures remain up-to-date and effective against evolving threats.</li></ol>﻿<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1701834976/wallet_feature_review_2_23dc81c63e.jpg" alt="wallet feature review (2).jpg">There are many features to consider, and it can be daunting. Continue reading for a different perspective that gives a detailed overview of each type of wallet.&nbsp;<h2>Software wallets</h2>Software wallets are a type of storage for your cryptocurrency that you can download onto your computer, tablet, or smartphone. They allow you to send and receive cryptocurrencies like Bitcoin and Ethereum. Many people use them because they're pretty straightforward—you don't have to be a tech whiz to get the hang of it. Plus, they're usually free, which is always nice when you don't want to spend extra money.One of the main features is that software wallets can be used quickly because they're connected to the internet. This means you can quickly check your balance or make a transaction whenever you need to. They often come with interfaces that are not too complex to navigate. Moreover, some of these wallets support multiple cryptocurrencies so that you can manage all your digital assets in one place.However, using a software wallet comes with some risks. For instance, being online all the time makes them vulnerable to hackers. If your wallet is compromised, someone could steal your cryptocurrency—and once it's gone, getting it back is often impossible. Plus, because these wallets are on your devices, you could be in a tough spot if something happens to your gadget (like it gets lost or breaks).Another important point is the security phrase for recovery, often known as a seed phrase. It's a series of words you need to keep safe and secure because it's the key to accesses your funds if something goes wrong. If you lose this phrase, it's like losing the keys to a safe—you won't be able to open it again. That's pretty stressful if you ask me.So while software wallets are convenient, they're not without their problems. They can be a good choice for managing your digital currencies if you're careful, but you have to stay vigilant about security. It's kind of like leaving your car unlocked—it's super handy until someone decides to take it for an unauthorized spin.<h2>Hardware wallets</h2>Hardware wallets are physical devices that store your cryptocurrency offline. Think of them as USB drives that hold digital money. They're praised for their strong security because they keep your crypto completely disconnected from the internet when not in use. This means hackers can't easily reach your digital treasure.With a hardware wallet, every time you want to make a transaction, you have to connect the device to your computer or phone and confirm the transaction right then and there. This is great for keeping your funds safe, but it can be a bit of a hassle, especially if you make transactions often or urgently. It's like having a safe deposit box; your valuables are secure, but it's not that convenient when you need quick access.Another upside to hardware wallets is that you're not relying on a third-party service to keep your crypto safe. You've got the keys, literally, in your own hands. It gives you more control than online wallets, where you must trust someone else with your funds.But hardware wallets aren't perfect. First off, they're not free. You have to buy the device, and sometimes they can be pricey. Also, if you lose the wallet or forget your pin code—or worse, both—you could be locked out of your digital money vault for good. And just like any physical object, these devices can break or get damaged. Plus, you have to keep updating the device's software to ensure it remains secure, which can be a bit of a nuisance.There's also the matter of convenience. In a fast-moving market, having to plug in a device to confirm every transaction could mean missing a crucial moment to buy or sell. So, while hardware wallets might provide strong security, they can slow you down at times when speed is of the essence.In short, hardware wallets offer solid security for your cryptocurrency, but they can be a bit unwieldy and aren't immune to problems like loss or damage. They have their own set of trade-offs you'll want to consider before deciding if it's the right choice for your crypto storage needs.<h2>Web Wallets</h2>Web wallets are a kind of digital wallet used for cryptocurrency, and you'll often find them as part of an online exchange where you can buy or sell your digital currency. They run in your web browser, meaning you don't have to download any software or apps to use them. One of their big pluses is convenience. You can easily access your wallet from any device with internet access, which is nice when you're on the go and want to check your funds or make a quick transaction.Most web wallets are pretty user-friendly, with straightforward layouts and steps that guide you through each process, whether that's exchanging currency, checking your balance, or sending money to someone else. They also often enable the quick exchange between different types of cryptocurrencies, which can be very handy.However, there are some significant drawbacks to consider with web wallets. Since they are online, they're exposed to the same risks as any other online account, like potential hacking or phishing scams. Essentially, you trust the platform's security to keep your crypto safe, and sometimes, even the most prominent companies can be compromised.Another downside is you're not totally in control of your keys—the special codes that represent ownership of your cryptocurrency. Instead, the exchange or wallet provider keeps them. This means if the service goes down, gets hacked, or for some reason denies you access to your account, you might not be able to get to your crypto.And there's one more thing to think about: fees. Web wallets, especially those on exchanges, often charge fees for transactions or converting between different cryptocurrency types. While they're convenient, they might cost you more than other types of wallets in the long run.In conclusion, web wallets are all about easy access and user-friendliness, but they trade off some important aspects like control and security. They're not a bad way to store your crypto, especially if you're trading regularly, but remember to weigh the risks and consider how much trust you're placing in the wallet provider's hands <img src="https://res.cloudinary.com/duwaapbve/image/upload/v1701834976/Gridlock_distributed_blog_image_2_fa06f434ce.jpg" alt="Gridlock distributed blog image (2).jpg"><h2>Gridlock Wallet</h2>If you're looking for a crypto wallet that prioritizes security, then <a href="https://gridlock.network" rel="noopener noreferrer" target="_blank">Gridlock wallet</a> is the place to be. This type of wallet stands out because it's built on a distributed model, requiring more than one person to sign off before any crypto coins can be used. It's like having several people holding keys to a safe; your digital currency only moves when enough people says it's okay.Now, why might this be a solid choice? With each person needing to approve a transaction, your crypto is less likely to fall into the wrong hands. This isn't just good for personal use but also for businesses or families who manage their crypto together.&nbsp;Another benefit is the way these wallets handle your crypto keys. Instead of stressing over a single point of failure, such as forgetting a password, you have a backup in the form of your co-signers. If you're ever in a bind, your teammates can help you regain access, and that can be a real lifesaver.When you compare Gridlock wallets to others, the difference in shared control is what catches the eye. While single-user wallets rely entirely on one individual, Gridlock wallets bring a collective approach to managing crypto. This democratizes access and decision-making, which is ideal for users who prefer collaborative security measures.As for speed, while it's true that needing multiple signatures might add a little time to processing transactions, the benefit of extra security is often worth that trade-off, especially for significant or sensitive transactions where that layer of scrutiny is appreciated.Setting up a Gridlock wallet requires a bit of coordination to ensure everyone is on the same page. Each person with signing power must understand their role, but once you're rolling, it becomes part of the routine—an operational step that strengthens your crypto defenses.Deciding on a Gridlock wallet comes down to what's important to you. Suppose you're okay with involving a trusted circle in your crypto decisions and you value collective security measures. In that case, Gridlock could be a strong contender for your crypto storage solution. It's a practical, sensible choice for those prioritizing security in a group setting. Keep this in mind as you weigh up how best to safeguard your digital assets.<h2>Summary</h2>In summary, the world of cryptocurrency storage is rich with options, each presenting its own set of features designed to meet the varied requirements of users. From the convenient but potentially vulnerable web wallets to the robust and secure hardware wallets, and from the versatile software wallets to the collaborative security of gridlock wallets, the decision hinges on what you value most for your digital currency.Remember, it's all about balance. While one may prioritize ease of access, another might lean towards tight security measures, and yet another might seek the comfort of easily recoverable assets. Take the time to consider these factors, review our summaries, and reflect on your own crypto usage patterns and risk tolerance.We've laid out the landscape to start you off, spotlighting the pros and cons of each option. Ultimately, the choice is personal, and what's right for one might not be the ideal match for another. Keep in mind that as technology evolves, so do wallet features and security protocols, meaning staying informed is an ongoing process.Thank you for joining us on this journey through the intricate terrain of crypto wallets. We hope this post has shed some light on the various storage options at your disposal and has set you on a path toward choosing a solution that secures your hard-earned digital assets while fitting seamlessly into your cryptocurrency endeavors. - - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Crypto Storage 101

<h2>Revolutionizing Crypto Security with a Decentralized Approach</h2>Have you ever worried about the security of your NFTs and other crypto assets? With all the recent news of <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto scams</a>, rug pulls and thefts, chances are pretty high that you have. Distributed Key Generation (DKG) is a cryptographic technology that puts those worries to rest. Read on to learn what DKG is, how it works, and how Gridlock Wallet implements Distributed Key Generation in an enhanced way to provide you with optimal crypto security.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1692320245/Distributed_Key_Generation_and_Mobile_Crypto_Wallets_8b91585868.jpg" alt="A mobile phone held by human arms and surrounded by a network of digital blocks">Crypto and NFT enthusiasts have historically received their <a href="https://gridlock.network/blog/seed-phrases-vs-social-recovery" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">private keys</a> from one centralized source. They were then tasked with personally keeping those private keys safe and secure.&nbsp;While many people continue to use this system, new technologies have emerged that provide a much higher level of security.&nbsp;<ul><li>No longer do you have to personally maintain backups of your private keys or worry about losing them altogether.&nbsp;</li><li>And, no longer do you have to rely on a trusted 3rd party to issue the private keys to your crypto.</li></ul>Distributed Key Generation is an alternative way to generate the keys to your crypto, giving you peace of mind and convenient access.&nbsp;<h2>What is Distributed Key Generation in crypto?</h2>Imagine multiple parties collectively and automatically crafting a shared public and private key set, where no one individual has access to the entire private key. So, instead of a hacker trying to compromise your one device, they must work their way into multiple devices at once. Even then, they cannot access the entire set of private keys!&nbsp;Distributed Key Generation is a cryptographic process where a randomized calculation creates the private keys across multiple devices. Unlike most key encryption models, distributed key generation does not need to rely on trusted 3rd parties.<h2>How does DKG work?</h2>In order to avoid any one user having sole possession of the private keys, DKG enables a process of decentralized key generation. Each party is issued an encrypted share of the private keys and none of them can access the other key shares. The private keys in their entirety are never located in one place.To make a transaction with your crypto assets using DKG technology, a threshold of the participating key share holders is necessary. From a user's standpoint, that means a percentage of key shares must be online for the wallet holder to make or sign a crypto transaction.&nbsp;<h2>DKG’s Practical Applications</h2>DKG technology holds immense promise in <a href="https://gridlock.network/blog/crypto-mobile-wallet-security-guide" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto wallets</a> as well as in other Internet security initiatives, making more of our digital place safer:<ul><li>Key Escrow Services: Companies can leverage DKG for key escrowing services. By setting a threshold, multiple employees can collaboratively decrypt a ciphertext version of a private key, keeping it out of escrow services' reach.</li><li>Server-Side Password Authentication: In an era where server breaches are all too common, DKG offers a ray of hope. Instead of centralizing password hashes, DKG can distribute authentication across multiple servers, eliminating vulnerabilities.</li><li>Group Digital Signatures: DKG shines in the realm of group digital signatures, enabling a digital consensus or voting system. Only when a set threshold of group members participate can a document receive the group's digital seal of approval.</li></ul><h2>Leading edge key splitting technologies</h2>Earlier key-splitting techniques posed centralization risks because the private keys were generated in a single location before splitting and sending to recipients. If the original device that issued the split keys is compromised, there’s the added risk of the keys being accessed.Traditional methods of key splitting, such as Verifiable Secret Sharing (VSS) and Shamir Secret Sharing, allowed for key splitting but the originating entity remained a centralized source. With Gridlock’s novel approach to Distributed Key Generation, hacking becomes nearly impossible and privacy is greatly enhanced.&nbsp;<h2>How Distributed Key Generation works with Gridlock Wallet</h2>To bypass the risks of centralized key splitting, Gridlock devised a system of Distributed Key Generation that virtually generates the split private keys across all the key share devices, also known as <a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Guardians</a>. As a <a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">multi-party computation (MPC) wallet</a>, Gridlock users can create their own network of devices, attaining a much higher level of security than earlier multisig wallets.Even if one of the Guardian devices is compromised, a process of <a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Social Recovery</a> using a threshold of the remaining key shares keeps your crypto assets safe. In essence, the private keys simply do not exist in one centralized place, nearly eliminating the chance of a hack.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676955499/blog_gridlock_crypto_wallet_cover_dceb7a349b.jpg" alt="Gridlock logo">Gridlock’s decentralized approach offers enhanced security against potential attacks and breaches while sidestepping the need for trusted 3rd parties in encryption models. We artfully synthesize Distributed Key Generation with other leading technologies, such as Threshold Signature Schemes.<h2>Hand in hand with Threshold Signature Technology</h2>Gridlock incorporates <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Threshold Signature Scheme (TSS)</a> technology so that wallet users can access their wallet even if all five Guardian devices aren't active. Splitting the private key among different devices and/or people that you select keeps it concealed and inaccessible. With TSS, just 3 of the 5 Guardian devices, usually including you and Gridlock, need to be online for wallet access. Even if Gridlock is offline, your Guardians guarantee that funds recovery is still achievable.The addition of <a href="https://gridlock.network/blog/What-are-Partner-Guardians-Network-Nodes-Crypto-Non-Custodial-Wallet" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Partner Guardians</a> to Gridlock’s offering allows you to select from reputable crypto companies, over and above friends, family, and legal and financial advisors, to add more resilience to your network of Guardians.<h2>Security in the age of crypto</h2>Distributed Key Generation is not just another cryptographic method—it's a transformative approach to security in the digital age. It decentralizes trust, amplifies security through collective effort, and heralds a future where no single party, whether Gridlock or another platform, has unbridled access to a user's keys. As digital assets proliferate and cyber threats amplify, DKG stands as a sentinel, ensuring a safer digital world.Experience distributed private key technology with Gridlock today and safeguard your NFTs and crypto assets like never before. <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Download Gridlock</a> today!﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

Distributed Key Generation (DKG) Explained

What is Proof of Identity in Gridlock?

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blockchain what is.jpg

Gridlock Pro is the new paid subscription model for <a href="https://gridlock.network/blog/distributed-storage-for-crypto-asset-security-future-of-digital-wealth" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Gridlock’s distributed crypto wallet</a>. What does your wallet get with Gridlock Pro and how can you try it out for free? Read on to find out more.<h2>Expanding from Gridlock’s original wallet</h2>The free version of Gridlock Wallet has been available for 10 months and has amassed an impressive 16,000 signups. The wallet works by splitting your private key into separate key shares, one that is controlled by you and the other by a distributed network of Gridlock nodes.&nbsp;The main benefit is that no one can sign a transaction without your share of the key and majority approval. Devices outside this network are not allowed entry without your permission, and all key shares are useless on their own.&nbsp;This essentially means that your wallet will never be breached!While the core features of Gridlock will always remain free, Gridlock Pro unlocks an even higher level of security and peace of mind for your crypto wallet experience.<h2>Gridlock Pro Features</h2><h3>Social recovery on steroids</h3>Social recovery has become known for being the easiest and most secure method of regaining access to your wallet if you lose or damage your device. All you need to do is ask your guardians to help with wallet recovery and they’ll get back to you - all with just a few clicks. button.Gridlock Pro enables you to build a wider network of social guardians, making it even more impossible for a hacker to breach because each guardian that holds a key share has a different device and storage.&nbsp;What’s better than a distributed wallet with 5 devices?A distributed wallet with 10!&nbsp;In addition to giving users the ability to expand their network of social guardians, Gridlock Pro offers the following features:<ol><li>Continuous Monitoring: Imagine having the already-optimal security of Gridlock, but with advanced automated monitoring on top of it. This system scans your secure network to ensure all parts are communicating and automatically sends silent notifications to reach them. If there are any problems, you receive an email to advise you on how to fix them.&nbsp;</li><li>VIP Access: With Gridlock Pro you are first in line when it comes to trying out the latest features and products.</li><li>Premium Support: You’ll not only have a higher level of security, but you’ll also enjoy an elite level of user support and guidance.&nbsp;</li></ol>A value that’s hard to pass upStarting from just $6.25 a month, Gridlock Pro is your go-to security partner for all your precious crypto assets. Don’t settle for the risks of existing storage methods, including paper wallets, hardware wallets, and other types of crypto storage.With Gridlock Pro, you have the opportunity to greatly reduce the chances of loss with even more guardians, and receive regular reports on your security to ensure you’re always in control and protected.Get a free trial of Gridlock Pro today and make your wallet security better (and way easier!) than a cold wallet. Simply <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">download Gridlock Wallet</a> and enter your vault to access the free trial button and get a little taste of premium crypto security!If you have any questions for the team, reach out to us on <a href="https://discord.gg/a5cMK5rZAG" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Discord</a>! ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Gridlock Pro is here! How to get a free trial

<h2>Can Sam Altman's WorldCoin win over crypto skeptics or are the risks too many?</h2>WorldCoin recently launched its Proof-of-Personhood (PoP) concept and the World ID system, aiming to revolutionize digital identity and Web3 finance. With iris-scanning orbs to verify personhood and the WLD token designed for Universal Basic Income (UBI), the WorldCoin project is set for disruption. But is WorldCoin, with its orbs and UBI token, a <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">safe crypto</a> solution for the masses as the team suggests?<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690338899/Sam_Altman_Worldcoin_launch_tweet_8708931550.png" alt="A tweet from Sam Altman introducing WorldCoin">In this article, we delve into how WorldCoin's World ID system works while examining the security concerns it raises.<h2>Intro to WorldCoin</h2>On the upside, WorldCoin wants to broaden economic equality and opportunity. With AI technologies now hitting the internet like a tidal wave, the team also wants to make sure that humans online can be easily differentiated from AI bots. Sam Altman, CEO of OpenAI, leads the WorldCoin team as co-founder with a pack of venture capitalists behind him.&nbsp;But many in the Web3 community have been critical of the project’s marked lack of <a href="https://gridlock.network/blog/why-storing-your-crypto-in-a-distributed-wallet-is-safer-than-an-exchange" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">decentralization</a> and question whether UBI and iris scans and a giant airdrop are the best way to go about it. Nevertheless, we are about to see where this project goes.&nbsp;&nbsp;<h2>How WorldCoin's World ID System Works</h2>WorldCoin's World ID system serves as the cornerstone of its security measures, differentiating between human users and bots. The first step to using WorldCoin is to create your World ID, similar to a digital passport that verifies your humanity through biometrics. In this case, the biometrics are your eyes, an iris scan to be more specific.&nbsp;To get your iris scanned at the start of your WorldCoin adventure, you have to visit a physical location that has an hardware device called an “Orb” that performs the scan. You can find the closest Orb station on their website.&nbsp;<h3>What is an Orb?</h3>The Orb is an imaging device that uses biometrics to prove your personhood. After having your iris scanned at an Orb location, each user gets their World ID. The idea is that the World ID will allow you to have one digital identity to use across Web2 and Web3 without having to share personal information such as email addresses or names. Backdoors ability there<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690339000/The_Orb_1c0d278bc4.png" alt="a picture of a globe and a WorldCoin iris scanning Orb device"><a href="https://worldcoin.org/blog/announcements/worldcoin-orb-going-on-tour-globally" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Finding an Orb near you</a>To access the WLD wallet, airdropped tokens, and potential UBI payments, you have to have the World ID, a unique identifier obtained by undergoing an iris scan. The project emphasizes that user data is not stored; instead, it uses zero-knowledge proofs to verify the user's humanity without compromising personal information. However, despite this approach, <a href="https://gridlock.network/blog/9-ways-on-how-to-avoid-crypto-scams" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">potential security vulnerabilities</a> remain.<h2>Is your biometric data safe with WorldCoin?</h2>WorldCoin's registry of iris scans raises privacy concerns. Although the project claims that images are promptly deleted, the possibility of inadvertent data exposure remains. Additionally, the accessibility of World IDs is another potential risk. The availability of Orbs, which conduct iris scans, might be limited, hindering users from reliably obtaining a World ID.As far as storing user data, according to GooglePlay, the app may share data including personal info with third parties.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690339090/data_safety_f38b9c8898.png" alt="WorldCoin app may share data with third parties">For a mobile wallet app to store cryptocurrencies of any kind, it’s preferable to use a mobile wallet like Gridlock that does not share data with 3rd parties and provides a higher level of security.&nbsp;<h2>Security Risks with WorldCoin</h2><a href="https://vitalik.eth.limo/general/2023/07/24/biometric.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Vitalik Buterin highlighted security issues with WorldCoin</a>, primarily problems around its Proof of Personhood approach. Such risks include:<ul><li>The possibility of 3D-printed fake people</li><li>Bad actors potentially selling World IDs on the black market</li><li>Phone hacking and phishing schemes</li><li>The threat of government coercion to access or take control of IDs</li></ul>All of these concerns highlight the complexity of ensuring foolproof user verification and protecting sensitive data. WorldCoin may have the right idea, but we must look at it as just an initial iteration. The project will likely give rise to a lot of discussion around what we want our digital identity to look and act like.<h3>Black Market for Accounts</h3>WorldCoin's verification of real personhood seems limited to the enrollment level, leading to the emergence of a black market for accounts. This practice undermines the integrity of the system and poses additional security risks.While the WorldCoin team has talked up its early user base numbers, there are some reports that they may have exploited people in developing countries early on to <a href="https://www.technologyreview.com/2022/04/06/1048981/worldcoin-cryptocurrency-biometrics-web3/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">boost initial numbers</a>. Others suggest that a black market for accounts has already emerged.&nbsp;<blockquote>“Verification that you’re a real person seems to only currently be enforced at the enrollment level. This has led to the emergence of a Black Market for accounts. Currently accounts have gotten as low as $1 per account on Telegram.”&nbsp;Source: <a href="https://twitter.com/zachxbt/status/1683512572668960769" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">@ZachXBT on X</a></blockquote><h2>Trading Risk - Tokenomics</h2>When looking at what coins you want to hold, knowing the risks involved helps keep you safe. Learning the tokenomics around a coin helps you determine if it has staying power.&nbsp;At the WorldCoin launch, tokenomics data was geofenced, meaning many countries could not access it. What was provided was similar to many token launches of old that were not that successful.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690339260/World_Coin_tokenomics_d1cdde3af3.png" alt="a tweet from tokenomic expert on WorldCoin"><a href="https://twitter.com/wmougayar/status/1683488646207348736" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Source: @wmougayar on Twitter</a>Key points revealed in their tokenomics documentation include:<ul><li>WLD an ERC-20 token</li><li>Users will receive their WLD using Optimism Layer-2</li><li>1% of supply in circulation at launch (106 million WLD)</li><li>1-year lock-up for team tokens</li><li>Max supply fixed at 10 billion WLD for first 15 years</li><li>Launched with fully diluted valuation of $20.6 billion</li></ul><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690339381/WLD_allocation_f6175b10d3.jpg" alt="A pie chart breaking down WorldCoin">Source: <a href="https://whitepaper.worldcoin.org/tokenomics" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">WorldCoin Tokenomics</a>Since there is no ICO, crypto investors should steer clear of any potential fake ICO scams or websites. According to Coindesk, at launch WorldCoin increased its original WLD token allocation for insiders from 20% to 25%.🚩&nbsp;<h2>Centralization Risks</h2>Have a centralized company like WorldCoin run a blockchain-based project at such a scale adds additional risks.&nbsp;<ul><li>If it’s a centralized entity, could your WorldCoin holdings be seized in the case of regulatory or other issues?</li><li>If the data isn’t stored in a decentralized manner, how do we achieve the security of decentralized blockchains?</li><li>Who will produce and control the Orb devices? Can WorldCoin still introduce a backdoor?</li></ul>The centralized nature of the Orb hardware devices is a particular cause for concern. While the software layer may be decentralized, the presence of hardware backdoors could enable the Worldcoin Foundation to create fake human identities. This centralization undermines the core principles of many cryptocurrencies that strive for a distributed network.<h2>Play it on the safe side with Gridlock Wallet</h2>With all the risks with token projects like WorldCoin can introduce, isn’t it nice to know that Gridlock Wallet has your back? By employing <a href="https://docs.gridlock.network/the-tech/distributed-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">distributed key generation</a> and key distribution, Gridlock Wallet eliminates the risk of centralized points of failure like WorldCoin.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676955499/blog_gridlock_crypto_wallet_cover_dceb7a349b.jpg" alt="Gridlock logo">Gridlock uses <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">threshold signatures</a>, <a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">multi-party computation (MPC)</a>, and <a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">social recovery</a> for the most robust security you will find in mobile crypto wallets. Private seeds are never stored in a single location, multiple parties are required for signing transactions, and a network of chosen Guardians helps you with distributed key share storage as well as social recovery. Gridlock’s approach significantly enhances the security of user assets and personal data.<h2>What’s next?</h2>While WorldCoin's World ID system appears innovative, it is crucial to examine the potential security risks it poses. Concerns surrounding privacy, accessibility, centralization, and the emergence of a black market for accounts call for robust security measures.&nbsp;Gridlock Wallet is a secure alternative that offers crypto users a decentralized and protected way to manage their digital assets. As the cryptocurrency landscape continues to evolve, prioritizing user safety and data protection will be critical in gaining regulatory respect and acceptance. ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

How Safe is WorldCoin’s PoP?

Blockchain what is it?

FUD (Fear, Uncertainty, and Doubt) generally refers to deliberately spreading misleading information to create pessimism. In the context of crypto, FUD is a tactic used to shake investor confidence and manipulate their decisions.&nbsp;The cryptocurrency market is relatively new and lacks regulations, both of which make it naturally susceptible to speculation. This is why FUD is prevalent in this space.&nbsp;To avoid impulsive decision-making, anyone dealing in crypto should understand FUD meaning and its impact. In this article, I will shed some light on what is FUD, and how it shapes market behavior.&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1704923315/phone_with_crypto_6f250c2c36.jpg" alt="phone with crypto.jpg"><h2>What Does FUD Mean in Crypto?</h2>While the common use of FUD in crypto is new, the term was first coined in the 1900s and soon gained momentum in business and marketing.&nbsp;We know that FUD implies negative or misleading information about something.&nbsp;In crypto, this could refer to the general cynicism and doubts the public holds towards the industry because of its unpredictable and volatile nature. To add to this, FUD in crypto is also used when there are rumors associated with a certain coin, causing a fall in its prices.&nbsp;<h2>Sources Of FUD In the Crypto Market</h2>There are multiple sources of FUD in the crypto space. I'll list down the main ones below:<ul><li>Competitors: In crypto, it is not unheard of for competitors or rival companies to spread FUD to discredit a particular token.</li></ul> <ul><li>Media and News Outlet: Media running sensationalized headlines regarding blockchain technology is another major source of FUD in the industry.&nbsp;</li></ul> <ul><li>Regulatory Bodies: The attitude of governing bodies towards crypto, and any changes in their policies can fan fear in investors.</li></ul> <ul><li>Other Traders: People tend to follow well-known, <a href="https://gridlock.network/blog/10-ways-to-store-crypto-like-a-whale" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">successful traders</a> when it comes to making investments. These influential traders may spread negative narratives to create panic selling.</li></ul> <ul><li>Security Breaches: Any incidents of hacking or other forms of security breaches in <a href="https://gridlock.network/blog/crypto-storage-101" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto storage</a> and platforms can trigger FUD.&nbsp;</li></ul><h2>FUD vs FOMO: What Is The Difference?</h2>FUD and FOMO are two slang terms commonly used about crypto. While the two are often confused, FUD and FOMO are in fact, contrasting concepts.So, what does FUD stand for? Fear, uncertainty, and doubt. As we discussed, FUD is driven by negative news and rumors, and instills apprehension amongst investors.&nbsp;As a result of FUD, people are prompted to panic sell their coins, contributing to a decline in prices. In addition to this, FUD also causes potential investors to avoid entering the crypto market altogether.&nbsp;FOMO or Fear of Missing Out, on the other hand, is essentially the fear of losing potential gains. It is fueled by positive sentiments and triggers a sense of urgency to invest more in the industry.&nbsp;Both FUD and FOMO play on investor psychology and can result in impulsive, and mostly harmful decisions.&nbsp;<h2>How Does FUD Impact The Crypto Market?</h2>Now that we know what is FUD, let’s look into its impact on the crypto market.FUD influences investor behaviors and can therefore significantly affect the crypto market.&nbsp;When negative information or rumors are spread about any blockchain technology, it creates a sense of fear that decreases overall market confidence. Investors tend to react hastily to FUD, selling their holdings to minimize potential losses.&nbsp;This naturally causes rapid price fluctuations and increases the volatility of cryptocurrency.Moreover, the perceived risks can lead to a lack of trust, hindering new investments, and by extension, preventing the growth of decentralized currency.&nbsp;<h2>Popular Examples Of FUD In Crypto</h2>The history and subsequent impact of FUD in crypto has been rather interesting and very telling of human psychology. Here are a few popular examples:<h3>Bitcoin Ban in China</h3>Every country has rules set in place for crypto trade. Since blockchain technology is fairly new, these policies are still evolving, and new regulations are introduced very often.&nbsp;However, in China, every time the government introduces new restrictions on crypto, the media always reports it as a 'ban on Bitcoin' in the country. The resultant FUD is reflected in the investment decisions of organizations working there.&nbsp;<h3>Technology FUD</h3>FUD in crypto is also often driven by pain points in its fundamental technology.&nbsp;Bitcoin is widely believed to be bad for the environment. While this is true, many counter theories also maintain that crypto mining has as much carbon footprint as any other technology.&nbsp;In addition, miners are also now trying to switch to renewable sources to minimize the harmful environmental effects.<h3>Celebrity Influence and Control</h3>Celebrity influence is a huge factor when it comes to crypto market decisions. Wealthy people, also known as whales of the industry, can manipulate the market and amplify FUD.&nbsp;A celebrity's endorsement or criticism can easily trigger market reactions, contributing to unpredictable crypto price movements.&nbsp;<h2>How To Deal With FUD?</h2>Understanding the crypto market requires a strategic and measured approach. Therefore, when it comes to investments in blockchain technology, FUD-driven impulsivity is just not it.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1704923315/stock_trading_chart_897bb335b3.jpg" alt="stock trading chart.jpg"> Here are some helpful tips you can use when navigating FUD in the industry:<ul><li>Diversify Your Portfolio: Diversifying your crypto portfolio is an important element of risk management, Spread your investments across different assets to reduce pote Diversifying your crypto portfolio is an important element of risk management, Spread your investments across different assets to reduce potential loss.&nbsp;</li></ul> <ul><li>Critical Thinking: While crypto is new, there are hundreds of different currencies, and consequently, a load of information. Evaluate every news you come across critically, and verify it from reliable sources before considering it in your decisions.&nbsp;</li></ul> <ul><li>Community Engagement: Reddit, Quora, Discord, and other platforms have very supportive communities of investors. Participating in the community forums can give you a good insight into market trends and help identify baseless FUD.</li></ul> <ul><li>Emotional Control: Whether you decide to factor in a FUD or not, make sure to always keep your emotions in check. Stay calm, rational, and focused on your long-term investment goals, and make your decisions accordingly.&nbsp;</li></ul><h2 class="ql-align-center">Frequently Asked Questions&nbsp;</h2><h3>Who uses FUD?</h3>FUD is used by competitors, individuals, and corporations alike to manipulate the market and create panic for personal gain in the crypto space.&nbsp;<h3>What is HODL in crypto?</h3><a href="https://www.investopedia.com/terms/h/hodl.asp" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">HODL</a> is a term coined by reedit's crypto community. It encourages investors to hold onto their assets despite market fluctuations, instead of overreacting to short-term market uncertainties. It is essentially a counter-strategy to FUD.&nbsp; - - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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Crypto wallets are a fundamental aspect of any cryptocurrency. This short guide ‘Crypto Wallets 101’ will explain what a crypto wallet is and why it matters.<h2>Crypto wallet overview</h2>As the name implies, the wallet is where you store your virtual currency and it behaves almost exactly like the wallet in your back pocket. Your access to tokens on the blockchain that you own is governed by the wallet, and keeping it safe is the name of the game. When you grant access to make a purchase or trade via your wallet, the tokens are removed from a blockchain address and are added to another blockchain address i.e. the recipient of the transaction. And the wallet updates your balance automatically when tokens are added or removed.<h2>Types of crypto wallet</h2>There are two types of crypto wallet – hot wallets and cold wallets. Both store your virtual currency securely, but there are some key differences to note.<h2>Hot wallet</h2>The most common type of storage, hot wallets are typically software-based, such as a smartphone app or an online service. The common factor is that hot wallets are always internet connected making them ideal for day-to-day spending and transactions.<h2>Cold wallet</h2>Cold wallets typically use hardware, such as encrypted USB thumb drives, to store crypto coins offline. They are particularly popular with people who have large crypto holdings that they intend to hold as a long-term investment.<h2>Self-custody wallets</h2>Whether using hard or soft technologies, if you control direct access to the wallet with no intermediaries, it is called a ‘self-custody’ wallet. This means that you are responsible for managing and operating the wallet and its contents. If you lose the passphrase or the hardware key, you also lose any tokens in your wallet.It is important to note that if you are not using a self-custody wallet, it means that someone or something else has control over your tokens. That could be a centralized exchange which has issued you a username and password, or some other scheme. In that case, you do not have direct control over your tokens and cannot verify they exist. If something like a hack or liquidity crisis were to occur, just like we are reading about frequently in the media, your tokens would likely be temporarily or permanently inaccessible.<h2>The problem(s) with ‘first-generation’ crypto wallets</h2>Although they get the job done, there are several problems with most crypto wallets currently available:<h2>Set-up and configuration</h2>The barrier to entry into cryptocurrency has gotten lower, but wallets are still quite difficult to use for non-technical users. Perhaps the biggest problem is the need for an unintuitive, randomized 12 or 24-word security passphrase that secures the wallet and its contents. These pass-phrases, known as “seed phrases” can be extremely long making them hard to remember – and if the passphrase is lost or stolen, the wallet owner cannot recover their crypto. Ever.&nbsp;Furthermore, users are instructed not to save these phrases on their computers or phones, and instead to write them down on paper, introducing further risk of loss due to water or fire damage, theft, misplacement, or degradation.<h2>Loss of control</h2>One of the quickest ways to get started with virtual currencies is to choose a hosted wallet. You can sign up to an online service and allow them to protect your coins with the added benefit of being able to recover your passphrase if it is lost. However, if the service provider goes bust, or their platform is hacked, you could still lose everything since you only have a username and password in your control, not the keys to the actual wallet that contains your tokens.<h2>Inconvenience</h2>Cold wallets are incredibly secure – so long as you can remember your passphrase and you don’t lose the hardware device. Again, if the passphrase is forgotten, the wallet’s contents are gone forever. And if you want to transfer or spend any of your coins, you must have the hardware wallet available and in your possession. It also needs a battery with some charge!<h2>Why does any of this matter?</h2>For a technical user, wallets are a manageable frustration. For less technical people, crypto wallets are a significant barrier to adoption. And if people cannot get onboard with virtual currencies, the technology will struggle to achieve traction, which would be a real shame, effectively delaying many of the most important developments of Web 3.0.&nbsp;Blockchain-powered technologies promise to give people greater control of their finances and protection from the over-printing of money by central banks – and therefore the economy itself. Wallets need to become more user-friendly to avoid the many positive world-changing developments from being delayed.Which type of wallet will you choose? (Gridlock, obviously).<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Download Gridlock</a> ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Crypto Wallets 101

<h2>Distributed storage plays an increasingly important role In the ever-evolving quest for crypto security, accessibility, and resilience.&nbsp;</h2>Digital wealth, stored as cryptocurrencies, NFTs, and other digital assets, requires safeguarding in a way that matches the ethos of decentralization that underpins the blockchain revolution. Enter distributed storage, a technological advancement that promises to redefine how we <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">manage and secure our digital assets</a>.In this article, we explore the topic of distributed storage, its role as the linchpin of cryptocurrency security, and the future of digital wealth.<h2>The quest for secure crypto storage</h2>The ascent of cryptocurrencies over the past decade has been nothing short of meteoric. Bitcoin, the pioneer of the crypto phenomenon, has paved the way for thousands of cryptocurrencies with diverse applications and use cases. As the total market capitalization of cryptocurrencies surged into the trillions, one glaring issue has persisted: the vulnerability of digital assets to theft, loss, and centralization.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1694903272/Distributed_nodes_for_decentralized_storage_8b7234f226.jpg" alt="digital cubes in blue and gold with light and connected to each other">Traditional cryptocurrency wallets rely on <a href="https://gridlock.network/blog/why-you-should-never-see-your-private-key-how-gridlock-keeps-keys-safe" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">private keys</a> (seed phrases) for crypto storage and transactions. But the private keys to your crypto have proven to be a weak link in the security chain. Hacks, phishing attacks, and the infamous loss of keys have caused the loss of billions of dollars in digital wealth. Moreover, some of the centralized exchanges that facilitate trading have suffered catastrophic breaches, leading to skepticism about the security of these platforms.In response to these challenges, the cryptocurrency community has been exploring new ways to enhance the <a href="https://gridlock.network/blog/crypto-mobile-wallet-security-guide" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">security of digital assets</a>. Distributed storage and systems like <a href="https://gridlock.network/blog/distributed-key-generation-dkg-explained-private-keys-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">distributed key generation</a> have emerged as a promising solution, offering a fresh perspective on how to secure crypto assets.<h2>Decentralized Storage: The Basics</h2>At its core, distributed storage is a data storage method that spreads information across multiple physical locations or devices, ensuring redundancy and reducing the risk of data loss. In the context of cryptocurrencies, it means dispersing the encrypted data representing your digital assets across a network of nodes (aka servers), often interconnected through blockchain technology.<h2>How it works</h2>Data Sharding: Cryptocurrency data is divided into smaller, encrypted fragments known as “shards.” Each shard is then distributed across a network of nodes, making it practically impossible for a single entity to access or manipulate the entire dataset.Decentralized Nodes: These nodes, operated by various participants in the network, store and maintain the shards. This decentralization eliminates single points of failure, reducing the risk of data loss due to a server malfunction or <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">cyberattack</a>.Blockchain Integration: Distributed storage utilizes blockchain technology to ensure data integrity and security. The blockchain database serves as an immutable ledger, providing a transparent record of data access and transactions.<h2>The Benefits of Distributed Storage for Cryptocurrency</h2>Distributed storage offers a plethora of advantages for crypto users:<ul><li>Enhanced Security: By dispersing data across a decentralized network, distributed storage reduces the risk of a single point of failure or a concentrated attack. Even if one node is compromised the attacker cannot access the complete dataset.</li><li>Reduced Vulnerability to Hacks: Traditional centralized exchanges and wallets have been attractive targets for hackers. Distributed storage makes it significantly more challenging for malicious actors to target and compromise digital assets.</li><li>Improved Accessibility: Distributed storage allows users to access their digital assets from anywhere in the world, as long as they have access to the private keys that unlock them. There are no restrictions based on geography or any reliance on a central authority.</li><li>Resilience and Redundancy: The decentralized nature of distributed storage means that even in the face of natural disasters or network disruptions, your data remains accessible and intact. This resilience is a key advantage in an increasingly interconnected world.</li><li>User Control: With distributed storage, users have greater control over their digital assets. They are not beholden to the policies and security practices of centralized entities.</li><li>Privacy: Distributed storage solutions often prioritize user privacy by encrypting data and granting users full ownership and control of their encryption keys.</li></ul><h2>5 Prominent Distributed Storage Solutions</h2>Several distributed storage solutions have gained prominence in the cryptocurrency space:<h3>InterPlanetary File System (IPFS) - Distributed storage platform</h3>IPFS is a peer-to-peer hypermedia protocol that enables users to create decentralized and distributed applications. It's particularly well-suited for file storage and sharing within the blockchain ecosystem.<h3>Filecoin - Distributed file storage market</h3>Built on top of the Interplanetary File System (IPFS), Filecoin incentivizes users to share their unused storage space with the network in exchange for cryptocurrency rewards. This creates a vast, decentralized storage marketplace.<h3>Storj - P2P Distributed video storage network</h3>Storj leverages a decentralized network of storage nodes to store and retrieve data, particularly video storage and streaming. It offers enhanced security and data durability, making it a popular choice for cryptocurrency enthusiasts who can store their data using the Storj token.<h3>Arweave - Distributed data storage system</h3>Arweave uses blockchain technology to create an immutable, permanent data storage system. Data stored on Arweave is preserved indefinitely, making it suitable for long-term storage of critical information. As a permanent and decentralized web inside an open blockchain ledger, Arweave also hosts <a href="https://www.arweave.org/build" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">provably neutral</a> web applications.&nbsp;<h3>Gridlock&nbsp;- Distributed wallet with distributed key generation</h3>Gridlock is a <a href="https://gridlock.network/blog/why-storing-your-crypto-in-a-distributed-wallet-is-safer-than-an-exchange" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">distributed wallet</a> service for crypto assets that utilizes distributed storage via distributed key generation. With cutting-edge cryptography, Gridlock enables users to distribute their private keys into key shares (like shards) across multiple devices of their choosing. In this way, a Gridlock wallet eliminates most of the vulnerabilities that arise with private key management while enhancing user control and crypto security.&nbsp;<h2>Shaping Tomorrow's Digital Fortune</h2>As cryptocurrencies continue to infiltrate mainstream finance and technology, the security of digital wealth becomes paramount. <blockquote>Distributed storage is poised to play a pivotal role in shaping the future of how we store, access, and manage our crypto holdings.</blockquote>In this brave new world, digital wealth is not just about the value of your cryptocurrency holdings; it's also about how securely and conveniently you can access and manage those assets. The traditional paradigms of banks and centralized financial institutions are giving way to decentralized, peer-to-peer networks, and distributed storage is at the forefront of this revolution.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1694903157/Peer_to_peer_nodes_for_distributed_file_storage_a81b0ca67a.jpg" alt="a network of many laptops each with an image of a shield on their screen">While distributed storage brings a multitude of benefits, it is not without challenges. Scalability, user-friendliness, and interoperability remain areas that require continued development and refinement. However, as technology evolves and more people adopt cryptocurrencies, these hurdles are likely to be overcome.<h2>Safeguarding your crypto wealth</h2>Distributed storage holds the promise of not only safeguarding your digital wealth, but also ushering in a new era of financial freedom and security.&nbsp;As we navigate the ever-expanding landscape of cryptocurrencies, keep an eye on innovations like distributed storage that can reshape the future of digital wealth management. By embracing these advancements, we can look forward to a world where our crypto holdings are not just secure but also easily accessible, resilient, and truly decentralized.<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Download Gridlock Wallet</a> to experience a next-generation distributed storage solution for crypto security! ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Distributed Storage for Digital Wealth Security

What Does FUD Stand For?

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Economic Impact

Many people use mobile wallets to store their cryptocurrencies, but how secure is a crypto wallet on your phone? Learn about the different types of mobile wallets and find out how they stack up when it comes to <a href="https://gridlock.network/blog/why-storing-your-crypto-in-a-distributed-wallet-is-safer-than-an-exchange" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">keeping your crypto assets safe</a>.&nbsp;<h2>What is a mobile cryptocurrency wallet?</h2>A mobile crypto wallet is a software program that you can easily download on your mobile phone to store and use cryptocurrencies. Typically, mobile wallets are considered a type of “hot wallet”, meaning it is connected to the Internet using your mobile phone.&nbsp;<h2>Hot wallets vs. cold wallets: What’s the difference?</h2>Hot wallets are very convenient to use but are more vulnerable to hacks. This is because there are more attack vectors when your crypto is stored online as opposed to offline. On the flip side, hot wallets provide more convenience and access to more crypto assets than cold wallets. Examples of mobile “hot wallets” include exchange wallets, browser wallets, and mobile wallets.<ul><li>Who uses hot wallets? People who store crypto in hot wallets typically engage in the speculative trading of tokens or NFTs on exchanges or in DeFi (decentralized finance) protocols.</li></ul> <img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688782847/Hot_wallet_vs_cold_wallet_mobile_wallet_security_9cccdf2484.png" alt="A graphic describing the differences between hot and cold crypto wallets">Source: <a href="https://coingate.com/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Coingate</a>Cold wallets are software programs combined with an offline storage system, such as a hardware device (hardware wallet). Cold storage can also mean physically storing the seed phrase on a piece of paper (paper wallet). Some crypto users will even engrave their seed phase onto metal as a form of cold storage.&nbsp;<a href="https://gridlock.network/blog/gridlock-crypto-wallet-better-than-a-cold-wallet" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Using a cold wallet</a> provides a higher level of security but is less convenient. To move crypto in or out of the cold wallet or make any transactions, users must connect the crypto assets in cold storage to an online device. Additionally, the wallet owner must safely store the hardware device or paper wallet, adding another layer of complexity.<ul><li>Who uses cold wallets? Users who store cryptocurrency in cold storage often make very few transactions, if any. Typically, their investment thesis is more long-term and they are not participating in the daily swings of the cryptocurrency markets.&nbsp;</li></ul> <img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688782964/Hardware_wallet_crypto_mobile_wallet_security_5a36beec58.jpg" alt="Example of a hardware wallet with Bitcoin holdings"><h2>The benefits of using a mobile wallet</h2>Mobile wallets offer a high level of convenience while remaining more secure than traditional online or exchange wallets, which are always online and susceptible. The process for getting a mobile wallet is simple; it’s just downloading any app.As an example, a mobile wallet that you download from the App Store or Google Play will act as the fastest and most convenient wallet for sending funds to an exchange account or NFT market.&nbsp;But beware: Once you send crypto from your self-custody wallet to a centralized exchange or platform, you lose control over the private keys to your crypto assets.<blockquote>With an increasing number of crypto scams and hacks in recent years, and several major crypto firms going bust in 2022, self-custody and maintaining sufficient wallet safety procedures have become more critical than ever. - <a href="https://blockchain.news/news/vitalik-buterin-emphasizes-importance-of-varied-guardians-for-crypto-wallet-safety" rel="noopener noreferrer" target="_blank">Jesse Ellis, Blockchain.News</a></blockquote><h2>Self-custody wallets vs. custodial mobile wallets</h2>Many mobile wallets are self-custody wallets (or non-custodial). This means that the user controls the private keys, so they have control of their assets. But they also must personally ensure the safety of their crypto.&nbsp;Exchange mobile wallets require you to give up control of the private keys. Essentially, the exchange owns the assets and if they were to go bankrupt or come under harsh regulatory action, you could lose access to your crypto in the blink of an eye.&nbsp;On the other hand, exchange wallets often provide a higher level of security than an individual would have. Most have some form of institutional cold storage and insurance for their custodial assets.&nbsp;&nbsp;<h2>Mobile wallet security measures</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688784263/mobile_wallet_near_laptop_ce31a3dd49.jpg" alt="a mobile wallet on a desk by a laptop with a a Bitcoin transaction happening">Many mobile wallets do not have the same security features as desktop wallets, making them even easier for hackers to target. As a result, it is important to take some precautions when using a mobile crypto wallet.When choosing the wallet for you, it is important to find one that is reputable and has a good security track record. Here are 5 strategies to try when shopping for a secure crypto wallet:<ol><li>Only download apps from trusted sources. Check for the number of mobile downloads and read the reviews.&nbsp;</li><li>DYOR by checking the wallet company’s website and documentation to see how they keep your crypto safe.&nbsp;</li><li>Google “Has [this wallet] been hacked?”</li><li>Never store more cryptocurrency than you need in your wallet. If you’re just HODLing your crypto for the long term, consider a cold wallet. Even better, choose a wallet with features like Gridlock.</li><li>Find out if the wallet uses distributed key generation and social verification.&nbsp;</li></ol><h2>The crypto security tools you want are in your Gridlock Wallet</h2>A new class of mobile wallets is hitting the industry with Gridlock leading the way. These ultra-secure wallets utilize <a href="https://docs.gridlock.network/the-tech/distributed-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">distributed key generation</a> and <a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">social verification</a> to provide the highest level of protection for the crypto holder.&nbsp;Distributed key generation means that the private keys to your crypto are distributed upon generation so that no one has access to the entire seed phrase, only key shares. If you lose your private keys or your device is compromised or damaged, the key can be recreated using a social verification network.Social verification spreads out the verification process among several participants of your choosing. In the case of <a href="https://gridlock.network/blog/seed-phrases-are-outdated-why-social-recovery-is-better" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">seed phrase recovery</a>, a certain number of participants, called Guardians, is required to be online for the verification to take place. The same goes if you lose your device. Once you have your new device, your social verification network can easily help you regain control of your crypto assets.&nbsp;<ul><li>Guardians in the social verification process can never access your crypto and NO ONE can access the entire seed phrase.&nbsp;</li><li>The combination of distributed key generation and social recovery makes hacking a mobile wallet orders of magnitude more difficult, if not impossible.</li></ul><h2>Storing cryptocurrency safely on a mobile wallet</h2>In the early years of crypto wallets, users had to strike the right balance between convenience and security when choosing mobile wallets. Today, due to advanced blockchain and threshold signature technologies, crypto holders can enjoy both convenience and high security.<h2>One final tip: practice recovering your crypto</h2>Suppose you are starting out in the world of cryptocurrency. In that case, it's never a bad idea to do a practice drill in case you ever have to recover your crypto in the event of a hack, scare, or broken device.Spend an hour every few months to make sure you know how to restore your wallet. Since the birth of crypto, those who can protect their tokens have reaped the largest rewards, and with a little planning and a Gridlock Wallet, you can achieve this as well.Experience crypto security like never before - <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Download Gridlock Wallet today!</a> ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

Are Mobile Crypto Wallets Secure?

The Economic Impact of Cryptocurrencies

Like many astute observers, you're likely keeping a close eye on the crypto markets, pondering their future with concern and curiosity. It's the question on everyone's mind: is there a light at the end of this tunnel, or are we bracing for a longer stretch of darkness? This isn't just casual speculation – it's a question with considerable financial and technological implications. The cryptocurrency journey has been nothing short of a wild ride, replete with soaring peaks and abrupt valleys. To say that the landscape has been turbulent might be an understatement. This volatility pattern isn't new to those familiar with crypto's history; however, each trough and crest brings a unique set of circumstances and outcomes, offering lessons and setting precedents. So, let's take a step back, survey the panorama of digital currency, and carefully consider whether the current situation is part of the usual ebb and flow or indicative of a more substantial shift in the crypto paradigm.<h1>Looking into the past</h1><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1705693805/past_2110e1e4ce.jpg" alt="past.jpg">As we stand at this familiar crossroads, a glance over our shoulders at the past may offer valuable context. Do you recall the events of 2017-2018? Those years were a hallmark in cryptocurrency lore. We saw an unprecedented surge in market value, leading to record-setting highs, followed by a dramatic downturn that left many in dismay. But what truly stood out was not the slump but the vigorous rebound that followed. Crypto didn't just stage a comeback; it surged to form new allures and reach wider audiences.This resilient pattern is why many seasoned crypto-watchers view the market's fluctuations through cautious optimism. Pulling from the pages of crypto's relatively short but eventful history, we learn that these dips have often been precursors to periods of intense innovation and growth. Indeed, the market has rarely been content with simply retracing old paths. Instead, it seems intent on carving out fresh ones, sometimes leading to advancements as significant as the introduction of smart contracts or the explosion of decentralized finance.However, the most fascinating aspect is how each new chapter of crypto's story doesn't just repeat the past; it often challenges it, shapes it, or completely rewrites it. We've seen it with the birth of new altcoins, the rise of blockchain applications in diverse sectors, and the varying responses from governments and regulatory bodies worldwide.In deciphering these patterns and their implications, we're reminded that crypto's journey is far from linear. It's a burgeoning tale of technology meeting tenacity and a testament to the underlying belief in blockchain's transformative potential. While not indicative of future results, past performance is a rich archive from which we can draw insights and prepare for what comes next. As we stand on the threshold of yet another potential turning point for crypto, we must remember that endurance and evolution often go hand-in-hand in this dynamic digital saga.<h1>Considering the Present</h1><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1705693805/present_d9139aec2b.jpg" alt="present.jpg">When we pivot to examine cryptocurrency's current state of affairs, we find a landscape awash with potential catalysts for positive change. The regulatory environment is one of the most prominent factors at play. As national and international bodies start rolling out more explicit frameworks, the cryptosphere gains legitimacy. This much-needed clarity paves the way for confidence among investors—the new and the old guard. It signals a growing recognition of cryptocurrency as an evolving and maturing market segment. It's not merely about imposing constraints but establishing a rulebook that everyone can play by.On the technological front, there's a lot to be optimistic about. The blockchain world is not standing still—far from it. Significant infrastructure improvements, such as Ethereum's transition to a proof-of-stake consensus mechanism, promise enhanced scalability and efficiency. These upgrades are critical not only for existing users but also for onboarding new participants. They bolster the system, making it more resilient and capable of supporting various applications. It's a crucial step in crypto's progression from niche to mainstream.Sentiment is another instrument in the market's orchestra, often leading the melody. It has the power to shift markets precipitously. With evolving narratives, <a href="https://www.cnbc.com/2023/10/24/bitcoin-crosses-34000-to-the-highest-since-may-2022-on-etf-hopes.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);">the collective mood could swing positive</a>, unlocking waves of investment that bolster market recovery. This sentiment reflects the market's heartbeat, and though it may seem ephemeral, it has tangible and pronounced effects on market dynamics.The involvement of institutional investors brings a measure of gravitas to the crypto arena. Their foray into this space provides a vote of confidence and introduces a stabilizing influence amidst the inherent volatility. Their long-term investment horizons suggest a belief in the enduring value of digital assets, which can, in turn, inspire broader participation.Outside the direct crypto sphere, broader economic indicators also intersect with the fortunes of digital currencies. In the face of rising interest rates and inflationary pressures, traditional assets and currencies may falter. This economic environment opens a window for cryptocurrencies to shine as an alternative or complementary asset class, offering a hedge against the fluctuations in traditional markets.Innovation is relentless in the cryptocurrency sector, constantly fueling the expansion into uncharted territories. The explosive emergence of Non-Fungible Tokens (NFTs), the maturation of Decentralized Finance (DeFi), and the ongoing melding of blockchain technology with various industries create unique opportunities and use cases. This inventive spirit nurtures an ecosystem ripe for recovery and expansion, with the potential to capture the imagination and investment of those looking for the next frontier in technology and finance.These threads—regulatory clarity, technological advancement, market sentiment, institutional engagement, economic trends, and relentless innovation—all weave together to form a tapestry of hope for the present and future of cryptocurrency. With each of these factors contributing its unique influences, the present moment is not simply a crossroads; it's a kaleidoscope of intersecting paths that may lead the world of crypto into its next stage of growth and development.<h1>The Narrow but Solid Path Forward</h1><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1705693805/future_071fcdfa4f.jpg" alt="future.jpg">As we wrap up our discussion on the dynamic and ever-evolving world of cryptocurrency, it's crucial to remember the importance of being cautious and wise on this journey. The road to crypto success is full of promise but also peppered with challenges like cybersecurity risks, market shifts, and changing rules worldwide. We need to keep our eyes wide open as we move forward.The world of cryptocurrency experts is as diverse as the coins themselves, reflecting this market's complex and ever-changing nature. Some experts are super positive, discussing how cryptocurrency is becoming more popular, and technology is advancing non-stop. On the other hand, some experts urge us to be careful, reminding us of the significant economic challenges and market issues that could slow things down. Listening to all these different views is essential. It helps us stay balanced, combining hopefulness with a realistic, careful approach.In short, there are plenty of good reasons to stay cautiously optimistic about cryptocurrency's future. We're seeing fantastic progress in blockchain technology, more precise rules, and serious interest from big investors. All of this could set the stage for a strong comeback.But remember, the crypto market is known for its ups and downs, so we can't just sit back and relax. Staying informed, learning, and alert is essential for anyone involved in or watching the crypto world. Regularly checking out detailed market analyses and keeping up with the latest tech news will help you understand what's happening now and what might happen next.Cryptocurrency is still new in the big picture of financial markets. It's still growing and changing; ample opportunities and challenges come with that. If you approach this world with patience, a balanced view of the risks and rewards, and a steady approach, you could be in a great position to make the most of this exciting journey.It's a narrow path, but it's solid. And for those who are careful and determined, it could lead to a future full of exciting possibilities. Want to walk this path with confidence? Explore <a href="http://gridlock.network" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);">Gridlock</a>, your reliable partner in navigating the complexities of cryptocurrency. Our advanced crypto wallet technology offers unmatched security, user-friendliness, and ease of maintenance. Join Gridlock and take a step towards a secure and promising crypto future. <a href="http://gridlock.network" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);">Visit our website</a> to learn more and get started! - - -Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

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<h2>Do I really need a hardware wallet? How safe are they?</h2>A hardware wallet is a physical device that stores the <a href="https://gridlock.network/blog/why-you-should-never-see-your-private-key-how-gridlock-keeps-keys-safe" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">private keys</a> to your crypto assets and allows you to sign transactions. Hardware wallets are often considered to be the most secure type of cryptocurrency wallet because they are offline and are not susceptible to cyber hacks. But how safe are they and are they the best choice for securing your crypto holdings? This blog post will explore the benefits and risks associated with using a hard wallet and help you determine if a hard wallet is right for you.<h2>What is a hardware wallet?</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1693533481/cold_wallet_072ebf1c3d.jpg" alt="a hardware cold wallet for crypto hooked up to a laptop">As a specialized type of <a href="https://gridlock.network/blog/crypto-wallets-101" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">cryptocurrency wallet</a>, hardware wallets store the user's private keys in a secure hardware device. Unlike software wallets that run on computers or smartphones and are vulnerable to malware and hacking attempts, hardware wallets offer an extra layer of security by ensuring that the private keys are never exposed to the online world.Because it generates and stores your private keys offline, hard wallets help you avoid a lot of the cyber risks that crypto users face today. However, maintaining your hardware wallet and device and managing backups may be less convenient for many crypto enthusiasts. Recent technologies like <a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">multi-computational wallets (MPCs)</a>, <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Signature Threshold Schemes</a>, and Social Recovery have combined for premium wallet security. Typically, a hardware wallet resembles a USB stick and requires physical interaction to confirm transactions, providing an effective shield against remote hacking attempts. This makes them one of the safest options for individuals looking to <a href="https://gridlock.network/blog/10-ways-to-store-crypto-like-a-whale" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">store significant amounts of cryptocurrencies</a> over extended periods.<h2>How does a hardware wallet work?</h2>Using a hardware wallet involves a series of straightforward steps to ensure the safe storage of your cryptocurrencies.&nbsp;<ul><li>First, purchase a reputable wallet from a trusted manufacturer to avoid counterfeit devices.&nbsp;</li><li>Upon receiving it, set it up by initializing and choosing a strong PIN.&nbsp;</li><li>During the setup, the device will generate a recovery seed phrase, typically a series of 12 to 24 words;&nbsp;</li><li>Write down the seed phrase and store it securely, as it's the only way to recover your funds if the wallet is lost or damaged.&nbsp;</li></ul>Once set up, you connect the wallet to a compatible software interface on your computer or mobile device when you want to send or receive cryptocurrencies. Always ensure you are sending funds to the correct address and double-check transaction details on the hardware device's screen before confirming.<h2>Hardware wallets and their security benefits</h2>Unlike software wallets, which are vulnerable to malware, phishing attacks, and system breaches, a hardware wallet isolates your private keys from the internet, ensuring they remain uncompromised even if your computer gets infected.&nbsp;This physical barrier between digital assets and potential hackers grants many users peace of mind. Furthermore, hardware wallets typically require manual verification for transactions, adding another layer of security. Besides heightened security, hardware wallets have other benefits as well:<ul><li>Portability</li><li>Support a wide range of cryptocurrencies</li><li>Suitable for novice and experienced crypto users.&nbsp;</li></ul><h2>What are the risks associated with using a hardware wallet?</h2>While hardware wallets offer robust security for cryptocurrency holdings, they are not without risks.&nbsp;<ul><li>Physical damage, loss, or theft of the device can result in inaccessible funds unless backups or recovery options have been pre-established.&nbsp;</li><li>Some users might fall victim to buying counterfeit hardware wallets or purchase hardware wallets that have been tampered with by malicious actors, leading to the potential loss of assets.&nbsp;</li><li>If a user forgets their PIN or loses the recovery seed phrase, they might be permanently locked out of their holdings.&nbsp;</li><li>If the hardware wallet’s associated software is used on a computer that is infected with malware, generally your crypto may remain secure but your data may become available to hackers.&nbsp;</li></ul>When using a hardware wallet, make sure to buy from reputable companies, check thoroughly for any signs of tampering, store it in a safe place, and use antivirus software on your associated devices.&nbsp;Hardware wallets are generally more secure against online threats, but they are not entirely foolproof. Users should always ensure they follow best practices and keep their devices' firmware and antivirus software updated, store the device in a safe place, and maintain backups for the pin and seed phrase.&nbsp;<h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1693961376/Entering_the_PIN_for_your_hardware_wallet_772efaf505.jpg" alt="a hardware wallet showing the numbers to enter your pin">What happens if I lose my hardware wallet?</h2>Losing your hardware wallet can be a daunting experience and is the primary risk of owning one. However, you can take a few steps to minimize the damage.&nbsp;<ul><li>First, if you have a backup of your seed phrase, you can use this to restore your wallet and access your funds. If you don't have a backup, you can try to recover your wallet using a recovery service. These services typically require you to provide proof of ownership, such as a photo ID or recovery phrase.&nbsp;</li><li>You should also contact the company that made the wallet and report the loss. They may be able to deactivate the wallet so it can no longer be used, which will protect your coins from being stolen. Once you've recovered your coins, be sure to create a new backup to prevent this from happening again in the future.</li></ul><h2>The best way to mitigate the risks of hardware wallets</h2>A hardware wallet is an important tool for your overall crypto security. By generating and storing your private keys offline, you avoid a lot of the cyber risks that crypto users face today. However, maintaining your hardware wallet and device and managing backups may be less convenient for many crypto enthusiasts. Recent technologies like <a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">multi-computational wallets (MPCs)</a>, <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Signature Threshold Schemes</a>, and Social Recovery have combined for a premium wallet for crypto security. <h2>The latest technology in crypto wallets</h2>Recent technologies like multi-computational wallets (MPCs), Signature Threshold Schemes, and Social Recovery have combined for a leading edge security for crypto assets.&nbsp;MPC wallets enable you to select your network of trusted Guardians (aka like the signers in a multisig wallet). Each Guardian has access to one a key shard. MPC wallets have one one major difference from multi-sig wallets:<blockquote>The private keys with MPC wallets are generated virtually and split into distributed shares. So, while the private keys are generated online, they are in pieces that are never online in one place.</blockquote>With this type of wallet, if your mobile device becomes damaged or compromised, you can initiate a Social Recovery process from a threshold (percentage) of Guardians. The same goes for transaction signing - a threshold of signatures (i.e. 3 of 5) is required to be online for automated transaction signing.&nbsp;While a hardware wallet is one of the mainstays of crypto security, it does create extra work for the digital asset holder. A mobile Social Recovery wallet like Gridlock provides the convenience of a hot wallet with the security of cold storage. Try it out today and see!&nbsp;<a href="https://gridlock.network/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Download Gridlock Wallet</a><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676955499/blog_gridlock_crypto_wallet_cover_dceb7a349b.jpg" alt="Gridlock logo"> - - -﻿ Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

Do I really need a hardware wallet? How safe are they?

Will Crypto Recover

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Understanding the social impact of blockchain

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Private Key vs Seed Phrase

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Hot Wallet vs. Cold Wallet? A Beginner’s Guide to Secure Crypto Storage

Welcome to the exciting world of cryptocurrency! In this guide, you're about to embark on a journey through the basics of crypto – what it is, how it works, and most importantly, how to secure crypto. Whether you're new to digital currencies or looking to strengthen your existing knowledge, this guide is designed to provide clear, easy-to-understand insights. By the end, you'll not only grasp the fundamental concepts of cryptocurrencies like Bitcoin and Ethereum, but you'll also be equipped with essential strategies to secure your crypto assets. So, let's dive in and learn everything you need to know about crypto. <h1>The private key</h1>In the world of cryptocurrency, a private key is the only thing that matters. It’s how you secure crypto and NFTs. Imagine your crypto wallet is a special kind of digital bank account. The private key is a unique and very long set of numbers and letters that only you should know. The most important password you will ever have. It's the key to your digital treasure chest. When you want to send or receive cryptocurrency, like Bitcoin, you use this private key. It proves that you are the owner of the crypto without revealing your secret key to anyone else. If someone else gets your private key, it's like they have the key to your treasure chest, so it's super important to keep it safe and never share it with anyone. This is how your cryptocurrency stays secure – only you have the key to access and use it. <h1>The address</h1>The next thing you need to know is the crypto address. An address is a critical component that plays a central role in transactions. Think of a crypto address as a public mailbox where you receive your digital currency. This address is derived from your wallet's public key, which is itself generated from your private key (the secret password we talked about earlier). Unlike the private key, the public key, and hence your address, is meant to be shared with others. It's like an email address for your crypto wallet, allowing others to send you cryptocurrency. Each time you initiate a transaction, such as receiving Bitcoin, you share this address. It’s a long string of letters and numbers, unique to your wallet, and acts as a secure destination for your digital funds.&nbsp;Importantly, while your address is visible to others in the blockchain network when you receive transactions, it doesn't reveal your identity or the specifics of your wallet's contents. This balances transparency in the crypto network with personal security, ensuring that while transactions are verifiable and traceable, your personal information and the access to your funds remain protected.&nbsp; <h1>The owner</h1>When it comes to cryptocurrencies, understanding ownership is key. Unlike traditional money that you can hold in your hand, crypto ownership is established digitally. It's all about who holds the keys. Here's how it works: a cryptocurrency, like Bitcoin, is owned by an address, which we just learned about. This address is linked to a public key, and behind that public key is a private key - the one that only you should know. When you have a cryptocurrency in your wallet, what you actually own is a record on the blockchain (a kind of digital ledger) that says, "This amount of crypto belongs to this address." As long as you control the private key associated with that address, you control the cryptocurrency linked to it. No one can move or use that crypto without the private key. It's like having a safe deposit box where the box is the address, the contents are your crypto, and the key to open the box is your private key. This setup ensures that you have full control over your digital assets. So, in the crypto world, ownership isn't about physical possession; it's about having the exclusive rights and ability to access and transfer your digital assets through your unique keys. <h1>The blockchain</h1>At the heart of cryptocurrency is the blockchain, a powerful technology that documents ownership and ensures secure transfers. Imagine the blockchain as a digital ledger or a record-keeping book that's open for everyone to see. Every time someone transfers cryptocurrency, like sending Bitcoin to a friend, this transaction is recorded on the blockchain.Here's how it works: When you transfer crypto, the transaction is grouped with others into a 'block' of data. Each block contains a list of recent transactions. But before a block is added to the blockchain, it must be verified and secured. This is where the unique feature of the blockchain comes in – each new block is connected to all the previous ones, forming a chain. This connection is made possible with complex mathematics that you don’t need to understand, but know that it makes sure that transactions are finalized and secured forever once added to the blockchain.The chaining of blocks ensures that every transaction is permanent and transparent. Once a block is added to the chain, the transaction is complete, and the ownership of the cryptocurrency changes accordingly. The recipient's address now shows a record of receiving that crypto, and the sender's address shows a record of sending it. This process guarantees that the history of every crypto transaction is recorded and that ownership is clearly and publicly documented on the blockchain.The beauty of the blockchain is its transparency and security. Since every transaction is publicly recorded and linked to previous transactions, it's nearly impossible to fake a transaction or alter the history of a transaction. This makes the blockchain a trustworthy and essential Concept Number of how cryptocurrencies work. So, in the world of crypto, the blockchain doesn't just record transactions; it's the backbone that ensures the integrity and security of digital currency ownership and transfers. <h1>The miner</h1>Mining is a strange concept that you need to understand. It serves as the backbone for generating new blocks on the blockchain. But why does mining exist, and how does it drive the economics of a coin like Bitcoin? Let's break it down.Mining is essentially the process of creating new blocks to add to the blockchain. When miners mine, they use powerful computers to solve complex mathematical problems. These problems are so challenging that they require significant computational power to solve. The first miner to solve the problem gets the right to add a new block of transactions to the blockchain. This process is crucial because it's how everything is kept in line.But mining isn't just about maintaining the blockchain; it's also how new coins are created. When a miner successfully adds a block to the blockchain, they are rewarded with a certain number of new coins. This reward is an incentive for miners to keep the blockchain running smoothly. The creation of new coins through mining is how cryptocurrencies like Bitcoin inject new units into circulation, which is a critical aspect of their economics.Moreover, mining affects the supply of the coin. For instance, in Bitcoin's case, there's a cap on the total number of coins that will ever exist - 21 million. The rate at which new coins are created slows down over time in an event known as halving, which happens every four years. The next halving will happen in April 2024. This limited supply and decreasing rate of new coin creation help to drive the value and demand for the coin.In essence, mining is not just a technical process but a critical economic activity. It secures the blockchain, facilitates the processing of transactions, and governs the issuance of new coins, all of which are key to the functioning and value of cryptocurrencies. Through mining, cryptocurrencies can maintain a decentralized, secure, and economically viable system.<h1>The seed phrase</h1>The "seed phrase" is a crucial concept in cryptocurrency. It is the tool that helps you recover your private key if you lose it. Typically, a seed phrase is a series of 12 to 24 words generated by your crypto wallet when you first set it up. It's an essential backup tool for accessing your cryptocurrencies, and you better be sure to keep it safe.Here's why it's so important: If you lose access to your crypto wallet - maybe your phone gets lost, your computer crashes, or you forget your wallet password - the seed phrase is your recovery tool. By entering these words into a new instance of your wallet, you can regain access to all your cryptocurrencies. It's like having a backup key to every lock in your house.The words in a seed phrase aren't random; they're taken from a specific list known as a wordlist and are generated in a particular order. This order is crucial - even if you have the correct words but in the wrong order, you won't be able to recover your wallet.It's vital to keep your seed phrase extremely secure and private. If someone else gets hold of it, they can access your wallet and steal your cryptocurrencies. Writing it down and storing it in a safe place, away from prying eyes and potential digital theft, is a good practice. Never store it on an internet-connected device or share it with anyone.In summary, a seed phrase is a powerful tool in the cryptocurrency world but also a dangerous point of failure. To properly secure crypto, you need to ensure that your seed phrase is safe.&nbsp; Now that you understand the main concepts in blockchain technology, including the critical roles of private keys, addresses, ownership, the blockchain itself, and mining, it's time to focus on the core intention of this blog post: how to secure your crypto assets. Security in the world of cryptocurrency is not just a feature—it's an essential practice that underpins every interaction you have with digital currencies. With the foundational knowledge you've gained about how cryptocurrencies operate, you're now in a great position to explore the various strategies and tools available to safeguard your digital investments. Whether you're a casual user, an avid trader, or someone interested in the broader implications of blockchain technology, understanding and implementing robust security measures is crucial for protecting your assets in this dynamic and evolving digital landscape. Let's delve into the practical steps you can take to ensure your crypto journey is not only exciting but also secure. <img src="https://res.cloudinary.com/duwaapbve/image/upload/v1703284482/chalkboard_c30816794c.jpg" alt="chalkboard.jpg"><h1>Traditional way to secure crypto</h1>Securing your cryptocurrency using the traditional seed phrase backup tools involves a few critical steps to ensure utmost safety. First and foremost, when you create your crypto wallet, it will generate a seed phrase, usually a series of 12 to 24 words. Treat this seed phrase with the highest level of security—it's the master key to your digital funds. Write down the seed phrase on paper and avoid digital copies to reduce the risk of online theft. Store this paper in a secure location, such as a safe or a locked drawer. Some people go a step further by using a metal seed storage tool, which protects the phrase from physical damage like fire or water. It’s also wise to have multiple copies stored in different secure locations, in case one is lost or damaged. Remember, anyone who gains access to your seed phrase can access your crypto assets, so discretion is crucial. Don’t share it with anyone, and be wary of phishing scams or fraudulent services asking for your seed phrase. By meticulously safeguarding your seed phrase, you create a robust line of defense for your crypto assets, ensuring that you can always regain access to your wallet, even if the device you use for transactions is lost or compromised. <h1>New way to secure crypto</h1>If you think traditional backup methods are painful, then you are not alone. Thankfully, the landscape of crypto security is evolving with the advent of new technologies like <a href="https://gridlock.network/mpc" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">MPC (Multi-Party Computation)</a> and distributed storage. This innovative approach is changing how we secure our digital assets, making the traditional seed phrase a thing of the past. By eliminating this single point of failure, these new methods significantly enhance security. With the use of MPC, the responsibility of key management is distributed among multiple parties. This means no single entity has complete access to your key, drastically reducing the risk of total loss or theft. Additionally, distributed storage scatters pieces of your key across various locations, adding layers of security and simplifying recovery processes. A notable application of this technology is found in platforms like <a href="https://gridlock.network" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Gridlock</a>, which not only employ these advanced methods but also introduce features like social verification. This unique aspect allows a network of trusted individuals to assist in securing and recovering each other's crypto assets, blending state-of-the-art technology with the power of community collaboration. The result is a more resilient, user-friendly approach to safeguarding your cryptocurrencies. To wrap it up, gone are the days of relying solely on traditional methods like seed phrases. The future is here with groundbreaking technologies like MPC and distributed storage, revolutionizing how we safeguard our digital treasures. Embracing these innovations means not just enhanced security but also the power of community-driven safeguards through social verification. In the ever-evolving universe of cryptocurrency, staying ahead in security isn’t just smart; it's essential. Secure your crypto, secure your future! ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

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Secure Crypto

If you’re investing in digital assets and wondering how to set up a crypto wallet, you’ll find everything you need to know in this article. As you embark on your journey to own and trade cryptocurrencies, a crypto wallet is a must-have. The first step is to look for the best crypto wallet for your particular needs. There are several different types and many providers available in the market.&nbsp;To help make things easier for you, we’ll cover the basics of the crypto wallet before outlining step-by-step guidelines for creating one for yourself.&nbsp;<h2 class="ql-align-justify">What is a Crypto Wallet?&nbsp;</h2>A crypto wallet stores the public and private keys to access cryptocurrencies. While the crypto assets are stored on the blockchain, a wallet holds the keys that allow you to make crypto transactions, such as to and from a crypto exchange. Keys, especially your private key, are essential for accessing and using any crypto holdings. And they must be stored in a secure place. In essence, a crypto wallet’s function is not much different from a regular wallet that secures your money, credit cards, driver’s licenses, etc.&nbsp;<h3 class="ql-align-justify">Types of Crypto Wallets</h3>Fundamentally, crypto wallets are of two types: hot and cold. Hot wallets are online crypto wallets that are software-based and work just like an application on the desktop, web, or mobile. As these wallets are online, they’re connected to the Internet. On the other hand, cold wallets are hardware-based. These resemble flash storage devices and store private keys to crypto holdings. Paper wallets, which store keys on paper, can also qualify as cold storage wallets.&nbsp;As opposed to hot wallets, cold crypto wallets are offline, which makes them more secure. However, they’re not the most convenient, especially when compared with software-based wallets, which can be accessed from anywhere. For beginners, a hot wallet is the best choice, especially if you plan to trade and acquire more crypto assets.&nbsp;However, recently a new type of wallet has gained popularity. It’s called a <a href="https://gridlock.network" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">distributed wallet</a> and it combines the strengths of a cold wallet with the usability of a hot wallet.&nbsp;<h3 class="ql-align-justify">Custodial vs. Non-Custodial Wallets&nbsp;</h3>With hot wallets, you have to be wary of another aspect. Is the wallet custodial or non-custodial? With custodial crypto wallets, the provider also has access to the private keys in the wallet. In other words, they have the custody of your crypto assets. With non-custodial crypto wallets, private keys are exclusively for the owner. It’s a completely decentralized offering that ensures only you can access your private keys and conduct transactions in and out of your wallet.<h2 class="ql-align-justify">Setting up a Crypto Wallet: Step-by-Step Instructions</h2>Fortunately, setting up a crypto wallet is super easy and quick. This guide focuses on hot wallets only, which are the most popular choice in the crypto world.&nbsp;Here’s the step-by-step process on how to get a crypto wallet:<h3 class="ql-align-justify">Step 1: Choose a Crypto Wallet</h3>The first step is to decide which crypto wallet you want to acquire. While there are many options, not all are created equal. So, it’s best to do your homework and compare the features of the wallet, especially security features that ensure your assets are safe from hackers. While most crypto wallets are free to set up, there are fees associated with transactions. So, you should also consider that when choosing which provider to go with.&nbsp;<h3 class="ql-align-justify">Step 2: Download the Wallet App</h3>Once you have decided on the wallet you want to use, download its application from the official website. You may find both desktop and mobile applications from the provider. Many crypto traders prefer mobile wallets, which can be used on the go. When downloading the mobile app through the official website, you’ll be directed to the App Store on Apple devices or the Play Store on Android devices. Complete the download.&nbsp;<h3 class="ql-align-justify">Step 3: Create Your Account</h3>The next step is to create your account on the crypto wallet application. You’ll need an email address for this step, so it’s best to use your primary email address. You may have to complete an identity verification process and be asked to provide identity documents. Usually, you should be able to scan the document from the app or upload a picture to it. You may also be required to take a front picture to confirm your identity. The identity verification process may take some time.&nbsp;<h3 class="ql-align-justify">Step 4: Transfer Crypto to the Wallet</h3>With your account set up and identity verified, you can move your crypto assets to your wallet. Your wallet provider will enable various options for transferring assets from an exchange or another wallet. Most wallets are compatible with different cryptocurrencies so that you can transfer various digital assets. Transfers will be made using the private key.&nbsp;<h2 class="ql-align-justify">Things to Consider When Choosing a Crypto Wallet</h2>As there are many choices for crypto wallets, here are the most important factors to consider:<h3 class="ql-align-justify">Security</h3>The deciding factor when choosing a crypto wallet should be security. At the end of the day, using the wallet secures your assets. Pay attention to the security and authentication features the wallet provider employs, whether custodial or non-custodial. Features like two-factor authentication, biometric validation, <a href="https://gridlock.network/mpc" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">threshold signature security</a>, and social recovery can ensure your private key to crypto assets is always protected. Also, look for the crypto wallet providers' reputation and whether there have been incidents like <a href="https://www.cnbc.com/2023/09/21/mark-cuban-lost-nearly-900000-dollars-to-crypto-hackers.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">hackers gaining access to users’ wallets</a>.&nbsp;<h3 class="ql-align-justify">Supported Cryptocurrencies</h3>While crypto wallets support many popular cryptocurrencies, they might not be compatible. If you intend to transfer multiple currencies, ensure that the wallet you’re choosing supports those currencies.&nbsp;<h3 class="ql-align-justify">Fees</h3>Another critical factor to consider is the fee. Transactions to and from your wallet have a fee, which varies by provider. You want to choose a wallet with a transparent fee structure and, ideally, charges the lowest.&nbsp;<h3 class="ql-align-justify">User Interface</h3>A wallet app with a user-friendly interface will make it easier for beginners to transfer assets. A complicated interface, on the other hand, can have a learning curve and may take time to get used to.&nbsp;<h3 class="ql-align-justify">Customer Service</h3>Lastly, consider the quality and channels of customer service from the wallet provider. You can’t expect the technology to be 100 percent reliable all the time. So, when push comes to shove, you’ll need assistance. Ensure there’s ample knowledge base on the website and options to speak to a representative directly. This can come in handy when you need help urgently.&nbsp;<h2 class="ql-align-justify">Crypto Wallet vs. Exchange Wallet</h2>Exchanges like Coinbase and Binance also provide wallet services, which are custodial. The main difference between a dedicated crypto wallet and a wallet on an exchange is that the latter is owned and controlled by the exchange. Non-custodial wallets ensure that the private key is only known to the owner. Exchanges facilitate transactions and allow you to hold crypto assets, but they don’t allow you to hold your private key.&nbsp;Crypto wallets mostly allow you to hold assets; they don’t facilitate the buying or selling of cryptocurrencies. That said, some wallets have partnered with exchanges to allow users to buy and sell cryptocurrencies directly through the wallet app. Opting for a digital wallet is considered safer, especially for holding onto assets. The private keys paired with the wallet’s security features ensure no one else, but you can use the cryptocurrencies you own.&nbsp;Besides, it’s very easy to transact digital currencies from your wallet to an exchange for the purpose of trading or staking.&nbsp;<h2 class="ql-align-justify">Best Practices of Using a Crypto Wallet</h2>Here are some tips for beginners who are new to using crypto wallets:<ul><li class="ql-align-justify">Don’t share your private keys – The security of your crypto assets hinges on the private key stored in your wallet. If you share this key with someone, they own your crypto and can move it anywhere.&nbsp;</li><li class="ql-align-justify">Change the password regularly– Your software-based wallet account has its own password, which should be updated every few months. Make sure to use a strong password combination and ensure it’s not the same as any of your other accounts.&nbsp;</li><li class="ql-align-justify">Don’t access your crypto wallet with the public Internet– Avoid using the crypto wallet app when connected to public Wi-Fi. Such connections are more susceptible to hacking and can compromise your private keys. Use a virtual private network (VPN), when using a public network.&nbsp;</li></ul><h2 class="ql-align-justify">Most Secure Crypto Wallet</h2>Gridlock is the best crypto wallet for beginners and pros alike, offering some of the most advanced security features in the industry. It’s a multi-computational wallet (MPC) that uses a network of trusted guardians and a threshold of signatures to authenticate transactions and recovery keys. It combines the convenience of a software-based wallet with the security protocols akin to that of a hardware-based one.&nbsp;<h2 class="ql-align-justify">FAQs</h2><h3 class="ql-align-justify">How much does it cost to set up a crypto wallet?</h3>Most crypto wallets (hot wallets) are free to set up. You don’t have to pay a fee to create an account. However, you may have to pay a transaction fee once you transfer assets to and from the wallet. If you’re just storing Bitcoin or other cryptocurrencies in the wallet, you don’t have to pay a fee.&nbsp;<h3 class="ql-align-justify">Can you sell crypto from your wallet?</h3>Some wallets allow you to sell crypto assets directly from the application. Otherwise, you can move your crypto from your wallet to an exchange to sell it. Check if your wallet provider offers crypto buying and selling services. If not, move your assets to an exchange of your choice.&nbsp; ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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<h2>How to protect your crypto assets with Multi-Signature wallets</h2>With <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">cyber threats</a> becoming increasingly sophisticated, relying solely on a single private key for your crypto wallet might not be enough to shield your funds from potential hacks and theft. That's where multi-signature (multi-sig) wallets come into play, offering an extra layer of security to safeguard your hard-earned cryptocurrencies.&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690847067/multi_sig_wallet_nodes_f572d8872f.jpg" alt="digital cubes in black with light blue light connected by a digital network">In this article, we delve into the intricacies of multi-sig wallets and guide you on how to find the best one to keep your digital wealth secure.<h2>Understanding Multi-Signature Wallets</h2>In a traditional single-signature wallet, only one private key is required to execute a transaction. If this private key falls into the wrong hands, it could result in a complete loss of funds. Multi-sig wallets, however, necessitate the involvement of multiple private keys to authorize a transaction, making them exponentially more secure.Multi-sig wallets operate on a predetermined "threshold" model, where a certain number of private keys out of a total set must sign off on a transaction for it to be valid. <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Threshold signature wallets</a> can be customized based on your preferences, ranging from 2-of-3 (2 private keys out of 3 needed) to more complex setups like 4-of-6 or 3-of-5, depending on your level of security and convenience.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690847165/crypto_wallet_security_a842613eb8.jpg" alt="a lock in the middle of a digital network of people"><h2>Advantages of multisig wallets</h2><ul><li>Enhanced Security: As mentioned earlier, the primary advantage of multisig wallets lies in their superior security. Even if one of your private keys is compromised, unauthorized transactions cannot take place without the consent of the other signatories. This feature is particularly useful for businesses, crypto exchanges, and high-net-worth individuals dealing with significant amounts of digital assets.</li><li>Protection Against Human Error: Multisig wallets can protect you from accidental loss as well. If you misplace or lose one of your private keys, you can still access your funds with the remaining keys, preventing potential financial disasters.</li><li>Trustless Collaborations: In scenarios where multiple parties need to manage funds collaboratively, multisig wallets offer an ideal solution. They ensure that no single individual has complete control over the funds, thereby fostering a sense of trust and security among the participants.</li><li>Custodial Flexibility: Many multi-sig wallets are <a href="https://gridlock.network/blog/what-is-self-custody-in-the-world-of-cryptocurrency" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">non-custodial</a>, meaning you retain control over your private keys. However, there are also custodial options available, which can be useful for those who prefer third-party management of their keys for added convenience.</li></ul><h2>Mulit-sig wallet characteristics</h2>Now that you understand the benefits of multisig wallets, let's explore the essential factors to consider when selecting the best one for your needs:<ul><li>Security Measures: Different multisig wallets may implement varying security protocols. Look for wallets that offer robust encryption, two-factor authentication (2FA), biometric access, and hardware wallet integration for an added layer of protection.</li><li>User-Friendly Interface: Security should not come at the cost of usability. The best multi-sig wallets strike a balance between security and a user-friendly experience, making it easy for both novices and experts to manage their digital assets effectively.</li><li>Supported Cryptocurrencies: The multisig wallet you choose should support the cryptocurrencies you plan to store. While Bitcoin is commonly supported, compatibility with other altcoins might vary among different wallets.</li><li>Community Trust and Reputation: Research the reputation and track record of the wallet provider. Check over user reviews, community discussions, and any past security incidents to gauge the level of trustworthiness.</li><li>Backup and Recovery Options: Investigate the wallet's backup and recovery mechanisms. A reliable multisig wallet should offer secure backup options, such as <a href="https://gridlock.network/blog/seed-phrases-are-outdated-why-social-recovery-is-better" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">mnemonic phrases or seed phrases</a>, to help you regain access in case of device loss or failure.&nbsp;</li></ul><h2>Types of multisig wallets to consider</h2><h3>Hardware wallets</h3>Hardware wallets employ the use of a hardware device for storing the keys to your crypto. Ledger Nano S/X and Trezor Model T are two examples of hardware wallets that offer multisig functionality. They both support a wide range of cryptocurrencies and provide robust security measures. However, both <a href="https://www.weirdo.rocks/blog/was-ledger-ever-hacked" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Ledger</a> and <a href="https://beincrypto.com/cybersecurity-hacks-trezor-wallet-old-exploit/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Trezor</a> have experienced data vulnerabilities.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690848062/hardware_wallet_9ac2fae528.jpg" alt="someone"><h3>Hybrid hardware wallets</h3>Hybrid hardware wallets use multiple technologies for cold storage. As an example, Casa Wallet is a Bitcoin hardware wallet that recently opened up service for Ethereum as well. This hard wallet focuses on inheritance and estate planning, with a 3-of-5 multisig setup. Casa wallets may require users to have a higher level of technical know-how since part of their security protocol includes managing multiple devices.&nbsp;<h3>Institutional multisig wallets</h3>BitGo wallet is one example of a mulit-sig wallet that focuses on providing self-storage for institutional investors. BitGo’s wallet setup includes three signatures, the user, BitGo, and a backup key share, requiring 2 of 3 to sign transactions.&nbsp;<h3>Custodial multisig wallets</h3>For those preferring a custodial solution, Coinbase Vault provides a multisig wallet option with qualified custody. This means that Coinbase controls the private keys but also has a legal, fiscal responsibility to honor your best interests. with added layers of security and insurance for peace of mind. Users should know that trusting your crypto to an exchange can potentially put you at risk of an <a href="https://gridlock.network/blog/How_to_Shield_Crypto_from_an_Asset_Freeze" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">asset freeze</a>.&nbsp;<h3>Multi-Party Computation (MPC) wallets</h3><a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Multi-Party Computation wallets (MPCs)</a> like Gridlock solve a lot of the problems with multisig wallets. These wallets do not rely on one private key or multiple keys shared among trusted entities. Instead, MPC wallets use <a href="https://docs.gridlock.network/the-tech/distributed-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">distributed key generation</a> to create a split key system of “key shares”.&nbsp;The private key is never in one piece, but multi-signatures are required for transaction signing and recovery. All of the problems around losing your private keys disappear with the MPC.<h2>What is the best multisig wallet?</h2>In the best-case scenario, a crypto holder would have an MPC multi-sig wallet that also provides <a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">social recovery</a>. By extending the benefits of multi-signature wallets to the seed phrase recovery process, Gridlock makes multisig crypto storage safer and easier from the user’s standpoint.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676955499/blog_gridlock_crypto_wallet_cover_dceb7a349b.jpg" alt="Gridlock logo">In the ever-expanding crypto landscape, safeguarding your digital assets is of utmost importance. Multi-signature wallets provide a practical and effective way to fortify your security, protecting you from potential hacks and losses. Remember to carefully assess the key factors we discussed and explore all the reputable multi-sig wallet options.By adopting the best multi-sig wallet for your needs, you can confidently navigate the crypto world, knowing that your funds are shielded by the cutting-edge technology of multi-signature security.To enjoy robust security with the convenience of mobile, <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">download Gridlock Wallet</a> today! ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

What is the Best Multisig Wallet?

How to Set Up a Crypto Wallet: A Step-by-Step Guide for Beginners

According to Statista, the cryptocurrency market is forecasted to grow by 14.40% during 2023-2027 for obvious reasons. CNBC highlights that <a href="https://www.cnbc.com/2022/03/31/cryptocurrency-news-21percent-of-adults-have-traded-or-used-crypto-nbc-poll-shows.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">1 in 5 Americans has traded in</a>, invested, or otherwise used cryptocurrency.&nbsp;The accessibility of crypto empowers banked and unbanked populations by allowing them to participate in the global economy and engage in digital transactions securely regardless of their location - hence the skyrocketing popularity.&nbsp;Yet, the distinction between a crypto wallet vs exchange remains a perplexing topic for many, “How is a cryptocurrency exchange different from a cryptocurrency wallet?”Below, we’ll break down the specifics for clarification and to help you make informed decisions in the crypto sphere.&nbsp;<h2>What is a Crypto Wallet?&nbsp;</h2><a href="https://www.forbes.com/advisor/investing/cryptocurrency/best-crypto-wallets/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">A crypto wallet</a>, also termed a digital wallet, is a tool that allows users to send, receive, and store their cryptocurrencies or any other digital asset.&nbsp;Think of it like a traditional wallet that stores your credit cards or cash. A crypto wallet holds your digital assets.&nbsp;The primary difference, however, is that instead of storing money in the form of cash, it allows users to store cryptographic keys like public addresses and private keys.&nbsp;You can use this wallet with several cryptocurrencies, including Ethereum, Bitcoin, and Litecoin.&nbsp;It is worth noting that although they are termed “wallets”, they don’t store your digital currencies but rather their keys. This allows you to use your assets on the blockchain when needed.&nbsp;<h2>How Does It Work?&nbsp;</h2>A cryptocurrency wallet functions via a technology called public key cryptography. Every wallet contains a pair of them - a private and a public key.&nbsp;A public key, as the name implies, can be shared with everyone. People use it to send you digital funds. It’s akin to a bank account number that can be disclosed.&nbsp;Contrarily, the private key is a digital signature used to sign off transactions. Consider it like an ATM PIN code that cannot be revealed. Otherwise, people will be able to use your digital funds.&nbsp;When someone transfers you a fund, they sign off the coin to your wallet address.&nbsp;For you to access and utilize these funds, your private key must correspond with the public address assigned to the currency.Once it does, your funds increase, and the sender’s balance reduces.<h2>Types of Crypto Wallets&nbsp;</h2>There are different types of cryptocurrency wallets, and each offers unique use cases and features. Here’s a quick overview of the most common types.&nbsp;<h3>Non-Custodial Wallets</h3> Non-custodial wallets grant users exclusive control over their private keys. Simply put, they have complete autonomy over their funds, unlike custodial wallets that entrust key control to third-party services and limit user sovereignty.&nbsp;<ul><li>Hot Wallets. These user-friendly wallets can be used on desktops, web, and mobile phones. You can easily connect them to the Internet. Overall, they are convenient and secure. However, they are slightly prone to online threats.&nbsp;</li><li> </li><li>Cold Wallets. <a href="https://gridlock.network/blog/hot-wallet-vs-cold-wallet-explained" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">The cold wallets provide better security</a> since they aren’t connected to the Internet. People typically use them for storing cryptocurrencies for excessive periods.&nbsp;</li><li> </li><li>Paper Wallets. They are physical documents that contain your cryptocurrency address and private key. It’s either written or printed on paper and is generally used as a long-term cold storage solution. Although they are secure from online hacks, they can be easily lost, damaged, or stolen physically.&nbsp;</li></ul><h3>Custodial Wallets</h3> Here, third-party services, like crypto exchange, manage the private keys. This is a suitable option for people who do not want to manage their keys. Nonetheless, it also implies that users will entrust their security measures to a third party.&nbsp;<h2>What is Exchange?</h2>Crypto exchange refers to a type of digital wallet provided by a crypto exchange program.&nbsp;It allows users to store, send, and receive their assets, but unlike traditional wallets, which users manage independently, these wallets are integrated into the exchange platform’s infrastructure.&nbsp;As such, when users create an account on a cryptocurrency exchange, they are automatically assigned an exchange wallet.&nbsp;The main type of exchange wallet is linked with centralized exchanges (CEXs). Platforms like Binance, Kraken, and Coinbase oversee these wallets for users.&nbsp;Decentralized exchanges (DEXs) are also an integral part of the cryptocurrency trading landscape. However, they lack built-in wallets to engage with the exchange.&nbsp;&nbsp;<h2>How Does It Work?&nbsp;</h2>In centralized exchanges, the exchange generates a dedicated wallet when users create their account. The exchange controls this wallet. In other words, it secures and manages the private keys.&nbsp;When engaging in trade, users transfer their digital assets into this exchange wallet, and it efficiently manages these assets.&nbsp;For instance, it maintains balance, allows users to purchase, sell, and trade crypto assets, and facilitates transactions.&nbsp;On top of that, it also tackles the transaction's security and verification. However, it is worth noting that this pro comes with a downside - heightened risk.&nbsp;Centralized exchanges are enticing targets for hackers since they contain users' private keys and funds. Breaches can, unfortunately, lead to a significant asset loss.&nbsp;<h2>Cryptocurrency Wallet vs Exchange: What’s the Difference?</h2>The primary difference between cryptocurrency wallets and exchanges lies in their functionality. Below, we’ll take a closer look at their differences.<h3>Cryptocurrency Wallet&nbsp;</h3><ul><li>Privacy. They offer better privacy since transactions aren’t associated with user identity unless a user chooses to reveal it. This aspect appeals to users who prefer confidentiality and anonymity.&nbsp;</li><li> </li><li>Security &amp; Control. Personal wallets (hot, cold, or paper wallets) offer better security because users have complete control over their private keys. This naturally reduces the risk of unauthorized access and hacks. Ultimately, this makes them ideal for the long-term storage of substantial cryptocurrency amounts.&nbsp;&nbsp;</li><li> </li><li>Ownership. A personal wallet means you own your digital funds outright. This boosts a sense of control and ownership, which is favorable for some.&nbsp;</li></ul><h3>Cryptocurrency Exchange</h3><ul><li>Liquidity. Exchanges generally have <a href="https://gridlock.network/blog/what-is-liquidity-mining-pros-and-cons-explained-is-it-worth-it" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">high liquidity</a>. This ensures that users can purchase or sell cryptocurrencies without major price fluctuations. This is beneficial for traders who seek to capitalize on market movements.&nbsp;</li><li> </li><li>Convenience &amp; Accessibility. Exchanges are user-friendly for active traders. They provide hassle-free access to various cryptocurrencies and an easy conversion between digital assets, which is a plus.&nbsp;</li><li> </li><li>Additional Services. Exchanges often offer additional services like lending, margin trading, and staking. This allows users to access diverse opportunities and grow their investments.&nbsp;</li></ul><h2>Cryptocurrency Wallet vs Exchange: Which One to Choose?&nbsp;</h2>Although the choice depends on your unique needs, here’s a quick overview to help you choose the right option.&nbsp;<ul><li>For Security-Conscious Users. Cryptocurrency wallets are better due to enhanced security features and user control over private keys.&nbsp;</li><li> </li><li>For Active Traders who seek convenience. If you’re an active trader who values convenience, accessibility, and the ability to quickly trade various cryptocurrencies, you better opt for crypto exchanges.&nbsp;</li></ul>It is important to note that a few users prefer both wallets and exchanges. For instance, they allocate a portion of their funds for regular trading on exchanges and store the bulk of their assets in secure wallets for long-term holding.&nbsp;Before you pick your route, it’s vital to understand the risks involved. Make sure you research and adhere to the best security practices to safeguard your investments.&nbsp;Ultimately, the choice boils down to your specific needs, risk tolerance, and investment strategy.&nbsp;<h2>Conclusion</h2>Crypto wallets and exchanges play a critical role in the realm of cryptocurrencies. However, their unique functionalities set them apart.&nbsp;Wallets offer the utmost control and security. Contrarily, exchanges provide quick access to cryptocurrencies and convenient trading.&nbsp;It’s similar to choosing between a safe deposit box for long-term security and a marketplace for active transactions.&nbsp;Remember, the best approach often combines both - protecting your investments in a secure wallet and utilizing exchanges for trading opportunities.&nbsp;<h2>FAQs</h2><h3>Is It Better to Keep Crypto In a Wallet Or Exchange?</h3>The decision to keep crypto in a wallet or an exchange depends on your preferences. If you prioritize security and control over your funds, using a crypto wallet is better.&nbsp;Contrarily, if you want convenience and frequent trading, consider choosing an exchange. They do come with potential security risks, however.&nbsp;<h3>Is Coinbase a Wallet Or Exchange?</h3>Coinbase is a self-custody wallet. It has been termed rightfully so because it gives you greater control over your crypto. Consider it like a physical wallet that holds your essentials and which you can directly access on the go.&nbsp;<h3>Does Crypto Lose Value In Wallet?</h3>Cryptocurrencies do not necessarily lose value when stored in a wallet. That’s primarily because their value depends on the supply dynamics and market demand.&nbsp;If the market demand for a particular crypto plummets, its value may decrease. Conversely, the value might boost when the demand increases.<h3>Is Binance an Exchange or Wallet?</h3>Binance is a cryptocurrency exchange. It is one of the most popular and largest crypto exchanges globally and offers a platform for individuals to trade several cryptocurrencies.&nbsp;Although Binance provides wallet services within its exchange platform and allows users to store their funds temporarily, it is worth noting that these wallets are custodial wallets managed by Binance.&nbsp;﻿- - - Written by Reid Zedkongor<img src="https://lh7-us.googleusercontent.com/g1uvWCDDaOKSJR88_deGEPABfUAqrMc2UNuXGv1CxxhiZS_oqyxzNPTFNCODSq8scgR3eznba7LcTcLh0BT_PaXobJm8vmXpKn2OwBITARSJ8aEFuenwk7w25JRgaIKYNJS3XQrh4ht19NyVOP1_ZdU" alt="a6 (1).jpg" height="61" width="62">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

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Gridlock cryptocurrency wallet utilizes threshold signatures and social verification to offer the best security in the Web3 wallet industry.&nbsp;Download Gridlock for Android or iOS today. <h1>How to Secure Crypto Assets and Private Keys</h1>In the past, if you wanted to send or receive money, you had to go to a physical bank and exchange cash or checks. Today, thanks to the advent of digital currency, you can conduct transactions entirely online simply by knowing your private keys. However, this new form of money comes with risks. Because crypto assets are stored electronically, they are susceptible to hacking and theft. That's why it's essential to utilize security tools to ensure you have stored your cryptocurrency safely and that it is accessible by you and only you.This guide will cover the basics of security for cryptocurrency, including different types of wallets and tips for keeping your assets safe and ensuring you never lose access. We will also guide what to do if your crypto assets are lost or stolen and which security practices security experts recommend. By the end of this guide, you should understand how to keep your crypto assets safe and avoid crypto-related disasters.<h2>The basics of security for crypto assets</h2>When it comes to digital security, there are a few basics that everyone should grab every user's attention. First and foremost, it's essential to understand that governments that print fiat currencies do not typically support digital currencies. Digital currencies have a fundamentally different model wherein there is no central bank to guarantee their value or provide insurance in the event of theft. As a result, it's essential to protect your digital currency holdings. One way to do this is to store them in a digital wallet.A digital wallet is software that helps you keep track of your digital currency balance and transactions, protecting digital assets. Some wallets also allow you to store other types of digital assets, such as loyalty points or access keys. When choosing a cryptocurrency wallet, it's essential to choose one that offers a high level of security. Many wallets allow you to set up multiple layers of security, such as a PIN code or biometric authentication. In addition, it's also a good idea to choose a wallet that has support from a reputable company.<h2>Digital Assets; Digital Accounts</h2>Another way to protect your digital currency is to store it in a digital bank account. These accounts are similar to regular bank accounts but specifically designed for digital currencies. They offer many of the same features as traditional bank accounts, such as FDIC insurance and multi-factor authentication. However, they also typically offer higher interest rates and lower fees.Digital banks often have partnerships with major exchanges, allowing you to easily convert digital currency into fiat currency or other assets. Lastly, another way to protect your digital currency is by using a different type of wallet available in the market. Following these basic security measures can help ensure that your digital money remains safe and secure.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676905086/computing_6c6afdfa4f.jpg" alt="computing.jpg"><h2>Other Wallet Types, Including Hardware Wallets</h2>There are a variety of wallets available for storing cryptocurrency, each with its advantages and disadvantages. One popular option is the paper wallet, a piece of paper with public and private keys printed on it. Paper wallets are very secure, as they are not susceptible to hackers like online wallets are. However, they can be lost or damaged easily, and users must take care to keep them safe. Another option is the hardware wallet, which stores the user's private keys on a physical device. But can users easily manage hardware wallets? Hardware wallets are also very secure, but they can be expensive and may only be compatible with some types of devices.<h2>Custodial Wallet vs. Non-custodial Wallet</h2>Custodial wallets are another option that allows users to store their funds on an exchange or other third-party service. These wallets are convenient but involve trusting the custodian with the user's private keys.Nowadays, people prefer mobile cryptocurrency wallets that enable them to keep crypto safe while enjoying non-custodial features, while completely controlling their funds. Finally, users can install desktop wallets and software wallets on a computer or mobile device. Desktop wallets offer a good balance of security and convenience, but they may need to be more secure than hardware or paper wallets since the machine is always connected to the internet.Many users have multiple wallets to store cryptocurrency safely, which helps mitigate the possibility of a single point of failure, keeping private keys separated and some funds offline. A strategy using multiple wallets, including an online wallet, cold storage (paper wallet), and hardware devices, should all be considered when protecting your crypto.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676905087/wallet_lock_46db6d946f.jpg" alt="wallet-lock.jpg"><h2>What To Do If Your Crypto Wallet Is Lost Or Stolen</h2>If your crypto assets are lost or stolen, there are a few things you can do to try and recover them. First, check your digital security settings to ensure your account is properly secured. If you believe your account may have been hacked, change your passwords and enable two-factor authentication if possible.Next, check to see if your funds are in a hot or cold wallet. Hot wallets are connected to the internet and, therefore, are more vulnerable to theft, while cold wallets are considered much safer and offline. If your funds are in a hot wallet, you may be able to contact the wallet provider and track them down and recover them. However, if your cold wallet was compromised, it is much harder to trace and the crypto is likely gone for good.<h2>Keeping Your Cryptocurrency Safe</h2>Remember, you are the only person responsible for the safety of your crypto. This single idea is the most important concept to understand when interacting with digital assets. Be sure to take all necessary precautions to protect your crypto, like keeping your hardware wallet or software wallet in a secure location, knowing your recovery phrase or recovery seed, and following all best practices. To secure your cryptocurrency holdings, choose reputable crypto wallets.The latest security models on the market involve social verification and distributed keys to assist in recovery should loss-of-access occur. The best example of this is the <a href="https://gridlock.network/" rel="noopener noreferrer" target="_blank">Gridlock mobile crypto wallet</a> that thousands are using to store their crypto funds and ensure easy recovery in case of loss. - - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

How to Secure Crypto Assets and Private Keys

Crypto Wallet vs Exchange: What’s the Difference?

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Atomic Wallet and the Problem of Single-Device Key Generation

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<h2>Learn to Neutralize the Risks of NFT Hacks and Scams</h2>NFTs are minted using cryptography and blockchain networks. So, aren’t they a safe and <a href="https://gridlock.network/blog/crypto-mobile-wallet-security-guide" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">secure way to store your tokenized assets</a>? Unfortunately, in many cases, scammers and hackers can put a damper on security and your NFT assets become at risk. Let’s delve into the hackability of NFTs, starting with a little backstory.&nbsp;<h2>What is an NFT?</h2>Non-Fungible Tokens (NFTs) use blockchain technology to offer digital representations of ownership and authenticity for unique items. Non-Fungible means that each NFT is its own distinct token, provable as an original on the transparent blockchain ledger.A fungible token would be like most cryptocurrencies, including Bitcoin, Ethereum, or Doge. All units of each type of crypto asset are identical and interchangeable - the exact opposite of non-fungible.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689909860/NFT_cover_a8dbf8a1f1.jpg" alt="the letters NFT inside a matrix of digital networks"><h2>But what about blockchain security?</h2>The bedrock of cryptocurrencies and NFTs is blockchain—a decentralized, transparent technology famous for its robust security features. Blockchains like Ethereum, where most NFTs are minted, use cryptography to keep transactions secure. Once data is added to the blockchain, it's extremely difficult to alter without consensus from the network.This foundation offers NFTs a high level of security.&nbsp;<ul><li>The decentralized nature of blockchains means there isn't a single point of failure.&nbsp;</li><li>For a hacker to tamper with an NFT, they would need to overpower more than half of the blockchain's network, a feat that is, theoretically, extremely challenging and costly.</li></ul>These unique digital assets have carved a niche for themselves in an expanding list of industries, including art, music, gaming, metaverse, and real estate. Many NFTs have also become extremely valuable, something that has drawn nefarious actors into the space.&nbsp;Which begs the question: When you buy, sell, or trade an NFT, how secure is that digital asset? Can NFTs be hacked?<h2>NFTs: Impenetrable or Not?</h2>In the purest sense, the NFTs themselves, thanks to their blockchain underpinnings, are secure. However, that doesn't mean they are entirely immune to all vulnerabilities.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689910035/Amicoa_NFT_hack_a4a8571f4c.jpg" alt="A hacker who overtook a project">Fake Discord account scamming NFT investors - Source: <a href="https://cointelegraph.com/news/animoca-to-repay-users-265-eth-stolen-in-fake-nft-drop-discord-hack" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">CoinTelegraph</a><ul><li>Back in 2021, Amicoa Brands fell victim to an NFT scam through Discord. The Discord Server of one of its subsidiary’s games, <a href="https://www.playtoearn.online/2022/02/28/animoca-brands-to-compensate-victims-of-the-phantom-galaxies-discord-hack/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">PhantomGalaxies, lost control of the server to scammers</a> who used malicious bots to compromise the Admin’s 2FA. Once in, they banned all the team members and moderators and began announcing their fake NFT minting event. They proceeded to charge all participants a minting fee of 0.1 ETH. And, you guessed it, they never got their highly anticipated PhantomGalaxies NFT.&nbsp;</li><li>In 2022, investors bought <a href="https://coingeek.com/frosties-nft-2-charged-in-us-over-1-3m-rug-pull/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">$1.3 million in Frostie NFTs</a> after being promised by the team that they’d receive staking rewards and other benefits. Imagine their shock when the team, after selling 8,888 Frosties NFTs, pulled the rug! Without a moment’s notice, they closed their website and socials and disappeared with the money (Update: later they got caught by the Justice Department!).</li><li>The next year in January of 2023, the founder of PROOF Collective, <a href="https://www.axios.com/2023/01/27/kevin-rose-nfts-cyber-crime-spear-phishing" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Kevin Rose, lost $1 million in high-value NFTs</a> in a phishing scam. Rose was participating in an airdrop but was lured to a malicious website where he activated his hardware wallet, which got drained of his precious “Memes by 6529” NFTs.</li></ul><h2>How do NFTs get hacked?</h2>The examples above are only the tip of the iceberg. NFT scams and hacks can take on many different forms:Platform Vulnerabilities: While NFTs reside on a secure blockchain, they are often bought, sold, and displayed on online platforms or marketplaces. If these platforms have vulnerabilities, hackers can exploit them. For instance, if an NFT marketplace does not implement proper security measures, hackers might access users' accounts and transfer NFTs without their consent.Phishing Attacks: The age-old trick of deceiving individuals into providing their sensitive data, like private keys or passwords, remains a threat. Once these details are obtained, unauthorized access to one's digital wallet or NFTs becomes possible.Smart Contract Flaws: NFTs operate using smart contracts—self-executing contracts with the terms of agreement directly written into code. If there's a loophole or flaw in the contract, it could be exploited. Though smart contract auditing has become a norm, human error can sometimes overlook potential vulnerabilities.There are multiple other ways that hackers can separate you from your NFT assets, such as with NFT spoofs (or fakes), or Man-in-the-Middle attacks, where communications between an investor and a website are compromised due to lack of encryption.&nbsp;<h2>Two major risk vectors you can solve for with Gridlock</h2>Overall, most of the vulnerabilities that threaten your NFTs stem from two access points: your private keys and transaction signing. Scammers want to either gain access to your private keys so they can take control over the assets, or get you to sign a transaction that may lead to a malicious website where your assets get drained.&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689910370/Transaction_signing_NFT_hack_9978498626.png" alt="A tweet warning of the danger of transaction signing during an NFT transaction">﻿Source: <a href="https://twitter.com/richerd/status/1488735229963501573" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">@Ricerd on Twitter</a><h2>How to protect your NFT investments so they don’t get hacked</h2>While the risks associated with NFTs might seem daunting, there are steps you can take to ensure your digital assets remain safe:<ul><li>Regular Updates: Ensure that all software, especially wallets and applications associated with NFTs, are updated. Developers frequently release patches to address vulnerabilities.</li><li>Be Ultra-Cautious: Don't click on suspicious links or share your private keys. Always triple-check the URLs of sites you are interacting with during NFT transactions to ensure you're not on a counterfeit website.</li><li>Distributed Key Storage: Use Gridlock Wallet, which empowers NFT users to eliminate the greatest access point for scams and hacks - your private keys. By distributing private keys into key shares (or shards) that have no knowledge of each other, Gridlock Wallet owners have peace of mind knowing their private keys cannot get hacked.&nbsp;</li><li>Threshold Signatures: Again, Gridlock Wallet is the place for your NFTs when signing transactions. <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Threshold Signature technology</a> empowers you to secure your assets by requiring multiple parties to sign for transactions.</li><li>Verify: Be on guard during every stage of an NFT minting or sale event. Cross-check announcements on 2-3 official sites, such as a project’s website, Twitter and Discord, to make sure the event is legit.&nbsp;</li><li>Be on the Alert: It is relatively easy to mimic a browser application like MetaMask - but remember: MetaMask or any legitimate project or person WILL NEVER ASK FOR YOUR SEED PHRASE UNLESS YOU INITIATE WALLET RECOVERY.</li></ul>Moral of the story? Play it safe with Gridlock’s hyper-secure NFT wallet, where distributed private keys and threshold signatures provide the highest level of security for your precious non-fungibles.&nbsp;&nbsp;<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Download Gridlock today</a> and rest easy tonight, knowing your NFTs are safe. ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Can NFTs Be Hacked?

<h2>10 Ways to Store Crypto Like a Whale</h2>What are crypto whales and how do they secure their digital assets?Crypto whales are known for making waves in markets with their big moves. But big moves mean big crypto balances. So how do whales stay safe when crypto markets are teeming with <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">ways to lose your crypto assets</a>? Read on to learn how you can secure your crypto like a whale, even if the size of your wallet isn’t exactly making waves. <h2>What is a crypto whale?</h2>In the vast ocean of the crypto market, 'whales' are the formidable and dominant players who hold large amounts of digital assets. While their trading strategies can drive market fluctuations, one thing is sure — they're extraordinarily diligent about storing their cryptocurrencies securely.&nbsp;Here are 10 ways to store your crypto like a whale:<h2>1 - Understanding the importance of security</h2>Recognizing the significance of safeguarding your assets is paramount. Whales realize that the larger the stash, the more appealing it is to potential attackers. Thus, ensuring maximum security is not an option—it's a necessity. As crypto assets become more mainstream, people are shifting their investments to digital - the more they do this the higher the need for a secure option for all (not just whales).<h2>2 - Cold storage is king&nbsp;</h2>Cold storage refers to keeping a reserve of cryptocurrencies offline. This method protects from unauthorized access, cyber hacks, and other vulnerabilities that an internet-connected system might face. Examples include:<ul><li>Hardware Wallets: These are specialized devices designed solely for storing cryptocurrency private keys. Leading names in this sector, like Ledger Nano S/X and Trezor, provide high-grade encryption, making it nearly impossible for hackers to access your holdings.</li><li>Paper Wallets: An even simpler form of cold storage. It's essentially a physical document that contains all the data required to generate your private keys.&nbsp;</li></ul><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688782964/Hardware_wallet_crypto_mobile_wallet_security_5a36beec58.jpg" alt="Example of a hardware wallet with Bitcoin holdings">Just remember, whales as well as minnows can turbocharge their cold storage with Gridlock Wallet, where <a href="https://docs.gridlock.network/the-tech/distributed-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">distributed key generation and storage</a> gives your private keys the ultimate in crypto security.&nbsp;<h2>3 - Multi-signature wallets (Multisig)</h2>For an added layer of security, whales often utilize multi-signature wallets. These wallets require multiple private keys to authorize a transaction, much like a multi-signatory bank account. If a hacker gains access to one key, they can't transfer funds without the other required keys.One type of multisig is the <a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">MPC wallet</a>, which stands for multi-party configuration. MPCs help whales and the everyday crypto holder take multisig wallets to a new level. They do this by requiring a network of trusted “<a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Guardians</a>” in order to sign for transactions. With Gridlock, for instance, the MPC wallet makes it so your private key never exists in one place. It is always broken up into key shares (or shards) among your chosen Guardians.&nbsp;&nbsp;<h2>4 - Regular backups</h2>One of the nightmares for any crypto holder is losing access to their assets. Whales mitigate this risk by regularly backing up their wallets. This backup includes not just the digital assets but also the essential data associated with them like PINs, passphrases, and seed words. All these are kept in secure, often geographically dispersed locations.An improvement that Gridlock makes is that backing up your seed phrase becomes unnecessary. Instead, your network of Guardians allows you to recover your assets if compromised through <a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">social recovery</a>.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688739170/Gridlock_social_recover_wallet_be4b7e333c.jpg" alt="A digital network protecting your blockchain based assets"><h2>5 - Diversification</h2>Rather than putting all their eggs (or in this case, coins) in one basket, whales diversify their storage. Even if one storage method gets compromised, it won't mean the loss of all their holdings. Different cryptocurrencies, amounts, and access priorities are distributed across various wallets and storage mediums.This is especially important with active crypto traders. They’ll want to have enough crypto to buy, sell, and trade while their (hopefully growing) profits are often stored elsewhere.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690166561/Diversify_crypto_assets_with_Gridlock_31ff51f556.jpg" alt="a shield in the middle of a convergence of digital waves"><h2>6 - Securing the physical environment</h2>Physical security is as crucial as digital security when it comes to your crypto holdings. Whales ensure their hardware wallets, paper wallets, and backups are kept in safes, deposit boxes, and other secure locations. In many cases, they go to the extent of employing private security or using facilities that specialize in high-security storage.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1690166651/A_safe_for_cold_stroarge_options_90303ad109.jpg" alt="a safe for cold crypto storage options">Thankfully, you don’t have to worry about all the physical security of your digital assets when you have a Gridlock Wallet. Even if your device becomes lost, damaged, or compromised, your wallet stays intact and your crypto is safe and secure. Distributed key storage and your network of Guardians make this a reality not just for whales, but for everyone.<h2>7 - Updated software</h2>Ensuring that wallet software or associated software is regularly updated is a common practice among whales. These updates often come with security enhancements that protect against newly discovered vulnerabilities. Always keep all your crypto-related software updated to stay ahead of bad actors, whether your balance is .5 ETH or 10,000 <a href="https://gridlock.network/blog/whats-so-special-about-polkadot" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Polkadot (DOT)</a>.&nbsp;<h2>8 - Using secure networks</h2>When the need arises to access or move their cryptocurrencies, whales use secure, private networks and so should you. Public Wi-Fi is a big no-no, given their susceptibility to <a href="https://gridlock.network/blog/are-nfts-hackable" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">'man-in-the-middle' attacks</a>.&nbsp;<h2>9 - Regular security audits</h2>With significant holdings, it's common for whales to periodically audit their security measures. This may involve hiring experts to test vulnerabilities or simply reviewing and updating their protocols.&nbsp;Any crypto holder can regularly audit their security by checking that all wallets are updated, performing backups, and staying informed of the <a href="https://docs.gridlock.network/features/gridlock-vs-cold-storage" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">best wallet security procedures</a>.<h2>10 -&nbsp;Avoiding phishing scams</h2>Last but definitely not least, whales are always on their guard against phishing scams. They're very careful about the links they click, the software they download, the transactions they sign (especially when dealing with NFTs), and the information they share.While you might not have the holdings of a crypto whale (yet!), adopting their rigorous security methods can provide peace of mind and robust protection for your digital assets. After all, in the world of cryptocurrency, where personal accountability is the cornerstone, security isn't just a luxury—it's a lifeline. Adopting a 'whale mindset' will ensure your assets remain safe and sound in the vast digital ocean.<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Download Gridlock Wallet</a> today and start securing your crypto like a whale! ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

10 Ways to Store Crypto Like a Whale

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Distributed storage for digital wealth security

<h2>Crypto User’s Guide to Liquidity Mining</h2>Liquidity mining is a key component of Decentralized Finance (DeFi), adding stability and (you guessed it) liquidity to decentralized exchanges. It also enables a way to earn rewards to beef up your <a href="https://gridlock.network/blog/crypto-wallets-101" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto wallet</a>. But what is liquidity mining? How does it relate to crypto, and most importantly, is it worth your time and investment? This article offers insight into liquidity mining and the opportunities and risks it opens up for crypto enthusiasts.<h2>What is liquidity mining?</h2>To understand liquidity mining, let’s start with some basic terminology:<ol><li>LIQUIDITY refers to how easily an asset can be converted to cash (or a cash equivalent) without it affecting the price too much. In crypto, tokens have liquidity if you can easily buy, sell, and trade them in open markets.&nbsp;</li><li>A DECENTRALIZED EXCHANGE (DEX) is a trading exchange protocol for digital assets that does not have centralized ownership. They run on software and people can use a DEX to trade crypto assets without giving up personal information. However, transactions are tracked on public open blockchains, providing transparency and auditability.</li><li>LIQUIDITY PROVIDERS are DEX users who deposit their coins into liquidity pools so that the DEX has liquidity enough to make traders for other users. They can earn rewards for being liquidity providers, or LPs.</li><li>LIQUIDITY POOLS are the reservoirs of crypto that liquidity providers deposit into so when DEX swaps are made, the assets are there - giving the DEX liquidity.</li></ol><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1694133712/Decentralized_Exchange_DEX_e1be190d2d.jpg" alt="A circuit board with the title DEX and blocks with varying blockchain addresses ">Now, to the main question: What is liquidity mining in crypto? It's an innovative system where liquidity providers are incentivized to deposit their tokens into liquidity pools. In return, they earn rewards typically in the form of additional tokens.&nbsp;<h3>Liquidity Mining Defined:</h3>Liquidity mining is the act of providing liquidity to earn incentives.&nbsp;All of this is accomplished from a mobile or web wallet with relatively few clicks involved. Each protocol’s community will also have ample “how to’s” readily available for when you’re starting out as a liquidity provider. But here are a few basic needs before beginning your journey as a Liquidity Miner.&nbsp;<ul><li>Have a web wallet and make sure you have transferred enough Ethereum over for gas prices, or whatever tokens you need for other blockchain networks, such as Polygon</li></ul>As with many decentralized protocols, the community of users (liquidity miners) is incentivized to perform actions that can potentially benefit themselves along with the protocol itself, in this case, the DEX. Sounds like a match made in heaven, right?&nbsp;<h2>Can you lose money when liquidity mining?</h2>While the idea of earning rewards for depositing cryptocurrencies sounds enticing, it's crucial to be aware of the risks involved.Impermanent Loss: This is the primary risk associated with liquidity mining. It arises when the price of the deposited tokens changes compared to when they were initially put in the pool. If the price of a token in a liquidity pool increases significantly compared to another token in the pool, liquidity providers might end up with fewer valuable tokens when they decide to withdraw.Smart Contract Vulnerabilities: DEXs operate using smart contracts, which are financial contracts automated through code and blockchain technology. If there's a bug or vulnerability in the contract, it might be exploited, leading to a loss of funds for those who have deposited their tokens.&nbsp;Market Volatility: Cryptocurrency markets have historically been very volatile. These rapid market fluctuations that are all too common can affect the rewards expected by liquidity miners. Token reward prices may be affected if the price of the token rises or falls.&nbsp;<h2>Is liquidity mining worth it? Summary of pros and cons</h2>Determining the worth of liquidity mining boils down to weighing the potential rewards against the risks involved.<h3>Pros of Liquidity Mining:</h3><ul><li>Attractive Rewards: Many DEXs offer lucrative rewards for liquidity providers, especially when they're trying to attract more users or when a new token is launched.</li><li>Passive Income: Once you deposit your tokens in a liquidity pool, the rewards start accruing, making it a potential source of passive income.</li><li>Supporting the Ecosystem: By being a liquidity provider, you're aiding the decentralized finance (DeFi) ecosystem. It ensures that DEXs can operate efficiently, offering traders better prices and quicker trades.</li></ul><h3>Cons of Liquidity Mining:</h3><ul><li>Potential for Loss: As discussed, there's the risk of impermanent loss, contract vulnerabilities, and market volatility.</li><li>Lock-Up Periods: Some DEXs might require you to keep your tokens in the liquidity pool for a certain period, limiting your flexibility.</li><li>Complexity: For newcomers, understanding the mechanics of liquidity mining can be challenging. It requires some knowledge of the cryptocurrency world and the specifics of the DEX you're considering.</li></ul>Like many ventures in the world of cryptocurrencies, liquidity mining comes with its set of rewards and risks. While it offers the potential for substantial gains and supports the broader DeFi ecosystem, it's not devoid of challenges.&nbsp;<h2>Stay safe out there!</h2><a href="https://gridlock.network/blog/9-ways-on-how-to-avoid-crypto-scams" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Staying safe in crypto</a> is an ongoing process and certainly applies to liquidity providers and DEX users. Whenever acting in the DeFi realm, remember to DYOR thoroughly to understand the specific terms of the DEX you're considering. Stay aware of market trends and double-check all web addresses and smart contracts you encounter. If it seems too good to be true, it likely is so tread carefully.<blockquote>If done right, liquidity mining can be a fruitful endeavor in the vast ocean of opportunities that the crypto world presents.</blockquote>And in that case, you’ll need a secure wallet to safely hold your earnings so be sure to check out Gridlock Wallet. Gridlock is a <a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">multi-computational (MPC) wallet</a> that uses distributed key generation and <a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">social recovery</a> to ensure tight security with a simplified user interface.&nbsp;<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Download Gridlock Wallet</a> today to experience the security of cold storage with the convenience of a mobile wallet! ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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What is liquidity mining

<h2>How Partner Guardians add layers of security to Gridlock's crypto wallet experience</h2>Partner Guardians are a fundamental component of Gridlock’s secure, scalable, and accessible blockchain ecosystem. They consist of entities from the wider crypto community that operate as nodes in Gridlock's distributed network and contribute to Gridlock’s <a href="https://gridlock.network/blog/what-is-self-custody-in-the-world-of-cryptocurrency" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">self-custodial wallet service</a>.&nbsp;<h2>What is a Partner Guardian?</h2>Partner Guardians in the Gridlock system are highly available cloud-based servers that are owned and run by organizations other than Gridlock. Each new Partner Guardian adds another node to Gridlock’s distributed network, increasing its diversity while heightening security.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1691079207/Gridlock_Partner_Guardians_add_security_to_the_network_7180d97268.jpg" alt="a digital network of devices">The function of a Partner Guardian is to contribute to the transaction signing process in a <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">threshold signature scheme</a>. If a Partner Guardian node is compromised or offline, other nodes are used. The distributed nature of the Gridlock system means that even if one node is compromised, the potential thief would need to compromise enough nodes to reach the threshold to be able to steal a user's funds.As part of their function, Partner Guardians hold a single encrypted key share for each user. They do not have direct access to user funds. Instead, they contribute to the signing of transactions via a threshold signature scheme, which requires a certain number of nodes (Guardians) to agree for a transaction or change to occur. This scheme ensures security, even in situations where some nodes may go offline or become compromised.There are no specific technical requirements for Partner Guardians, other than the ability to run the provided base code. They are expected to stay updated with system changes, which Gridlock communicates through the release of new Docker containers. Partner Guardians do not have the ability to alter the base code.<h3>Data Protection</h3>Partner Guardians are expected to comply with government regulations regarding privacy and data protection. Despite this, Gridlock does not enforce any additional data handling requirements and does not directly oversee the proof-of-identity frameworks that Partner Guardians provide. There are no universal obligations for Partner Guardians to delete user-encrypted key share data when a user switches Guardians. However, legal requirements may necessitate this in certain jurisdictions.<ul><li>While Partner Guardians can refuse to provide service to a particular user, this does not prevent the user from accessing their funds. The user can still reach the required threshold for transactions with other Guardians.&nbsp;</li><li>If a Partner Guardian is found to be malicious or non-compliant, Gridlock can remove them from the communication layer, thereby protecting the integrity of the overall system.</li></ul><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1691079359/Data_privacy_and_protection_on_Gridlock_with_Partner_Nodes_6eb132d563.jpg" alt="A laptop showing a digital network with a padlock in the middle to denote network security"><h2>How Partner Guardians work</h2>Gridlock’s Partner Guardian system enables a wallet-signing network that self-manages risk, a distributed function for removing bad actors, and access to code updates while protecting the code base.&nbsp;Self-governed networkPartner Guardians provide their proof-of-identity framework without Gridlock directly overseeing the process. Gridlock does not manage the risks associated with opening up the Partner Guardian network to anyone in the future – the distributed system itself mitigates the risks. Similarly, Partner Guardians can refuse to serve a particular user based on their own criteria.Threshold consensus&nbsp;If a Partner Guardian is found to be involved in malicious activities, Gridlock can remove them from their permissioned list of Guardians, though this would require threshold consensus. The removal of a Partner Guardian from the network or their refusal to serve a user does not prevent the user from accessing their funds, as they can still access funds with a threshold of other Guardians.Streamlined yet secure technical set-upThere are no particular technical requirements for a Partner Guardian other than they must be able to run the provided base code. If any update or change is made to the system, Gridlock communicates this to Partner Guardians by releasing new Partner Guardian docker containers. Partner Guardians are not given the liberty to make changes to the base code.Partner Guardians may have knowledge of the users they are serving due to their proof-of-identity process. But they do not have any obligations to delete the user's encrypted key share when a user switches Guardians. However, they may be legally required to do so depending on their jurisdiction.<h2>Partner Guardians compared with Social Guardians</h2>Partner Guardians are distinct from Social Guardians, which are selected by the users from their network of trust (e.g., friends and family). While Social Guardians offer the benefit of human checks and <a href="https://gridlock.network/blog/What_is_Social_Verification_for_Crypto_Wallet_Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">social verification</a>, Partner Guardians offer professional maintenance and high availability, which can be beneficial for users who require round-the-clock transaction authorizations.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1691079580/Social_Guardians_vs_Partner_Guardians_895e35c12e.png" alt="A table describing the differences between Partner Guardians and Social Guardians">Partner Guardians are professionally run nodes that are typically more available but they lack the benefits of social verification. Instead, they use a proof-of-identity framework to verify the owner.As with Social Guardians, Partner Guardians only have access to their <a href="https://docs.gridlock.network/the-tech/distributed-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">single encrypted key share</a>, not the user's funds directly.&nbsp;<h2>Benefits of having Partner Guardians</h2>Partner Guardians contribute significantly to the robustness, resilience, and diversity of the Gridlock ecosystem. The advantages for users who include Partner Guardians include:Professional Level of Maintenance: Partner Guardians, which typically are managed by reputable organizations in the crypto space, will likely have professional IT teams maintaining their systems. This means they are constantly monitored, regularly updated, and promptly patched against potential vulnerabilities. This level of maintenance is generally higher than what can be expected from Social Guardians.Increased Availability: Partner Guardians are expected to have high availability due to their professional management, likely ensuring their servers are online 24/7. This can be beneficial for users who require prompt transaction authorizations at any time of the day, compared to Social Guardians, who may not always be available.Scaling the Network: By involving more organizations as Partner Guardians, Gridlock can potentially scale its network more quickly, increasing the robustness and reliability of the system.Adding Redundancy: The addition of more Partner Guardians increases the redundancy of the network. If a Social Guardian or another Partner Guardian goes offline, the presence of other Partner Guardians ensures the system continues to function.Increasing Trust: The involvement of well-established organizations as Partner Guardians can provide additional trust to users. Knowing that their transactions are also guarded by professional organizations, rather than solely by their personal contacts, can be reassuring.Promoting Best Practices: As Partner Guardians are vetted and selected by Gridlock, they likely follow the industry's best practices in terms of security, confidentiality, and other relevant aspects. This not only contributes to overall security but also sets a benchmark for other potential Partner Guardians.Increased Capacity for New Collaborations: The introduction of Partner Guardians could also open up possibilities for collaborations between Gridlock and these partner organizations, potentially leading to new innovations and advancements in the blockchain and crypto industry.<h2>Availability for Gridlock Pro users</h2><a href="https://gridlock.network/blog/gridlock-pro-is-here-how-to-get-a-free-trial" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Gridlock Pro</a> users can choose from a variety of Partner Guardians and switch between them as they see fit. <ul><li>All transactions and changes, including switching Guardians, are secure due to the threshold signature scheme. </li><li>Partner Guardians do not have the ability to impede a user's access to their funds and cannot be involved in malicious activities without risking expulsion by Gridlock.</li></ul>There are no stringent criteria for selecting Partner Guardians except that they must be reputable companies in the crypto space. Users, particularly those who upgrade to Gridlock Pro, can choose which nodes they wish to use for protecting their assets.<h2>Partner Guardians - Network diversity at its best</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676955499/blog_gridlock_crypto_wallet_cover_dceb7a349b.jpg" alt="Gridlock logo">In conclusion, Partner Guardians are an essential part of Gridlock's distributed security model, adding to the network's diversity, resilience, and overall security. Operating alongside Social Guardians, Partner Guardians offer a more technical and robust alternative, contributing to Gridlock's goal of creating the most secure and accessible wallet ecosystem.<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Download Gridlock</a> today and start building your network of Guardians! ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Introducing Partner Guardians

What is Liquidity Mining? Is It Worth It?

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Are Hardware Wallets Right for Me?

<h2>The hot wallet vs. cold wallet debate and what it means for the safely of your crypto holdings</h2>Finding the right <a href="https://gridlock.network/blog/gridlock-crypto-wallet-better-than-a-cold-wallet" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);">crypto wallet</a> takes a bit of DYOR. But with this convenient guide, you can get to know the two major types of crypto wallets and see how the hot wallet vs. cold wallet debate plays out for you. Let’s have a chilling start and begin with cold wallets.<h2>What are cold wallets for crypto?</h2>A cold wallet, also known as cold storage, is a type of cryptocurrency wallet that is not connected to the internet. Its primary purpose is to help you secure your cryptocurrencies away from potential online threats like hackers, malware, and phishing attacks.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1693533481/cold_wallet_072ebf1c3d.jpg" alt="a hardware cold wallet for crypto hooked up to a laptop">Cold wallets allow users to generate their private keys offline, reducing the risk of the keys being intercepted or stolen.<h3>The most common types of cold wallets</h3>Cold wallets come in several varieties, including hardware wallets, paper wallets, and air-gapped devices:<ul><li>Hardware Wallets: Devices like Trezor are similar in size to a flash drive but highly specialized for making secure cryptocurrency transactions. They all you to generate and store your private keys offline but can be connected to a device (like a computer) for making transactions. Even when connected, the private keys remain offline and inside the device.</li><li>Paper Wallets: These are physical documents that display your private and public keys, usually in the form of QR codes. A paper wallet can also just be a piece of paper or an engraving with the mnemonic seed phrase (private keys) printed. Paper wallets are generated offline and can be printed for physical safekeeping. When you want to move your crypto around, you’ll need to go online, get your physical copy, and type in the seed phrase or scan it online.</li><li>Air-gapped Devices: Some users might opt to use a separate device or computer that's never connected to the Internet (air-gapped) to generate and store their private keys. This may take some know-how in order to keep the computer operating offline without updates.</li></ul><h3>Cold storage considerations</h3>While cold storage is considered one of the safest ways to store your private keys, it's essential to remember that you're responsible for safeguarding your cold wallet. If a hardware wallet is lost or a paper wallet is destroyed, and no backup exists, the cryptocurrencies stored on them can be permanently inaccessible.Always ensure you have secure backups and follow <a href="https://gridlock.network/blog/9-ways-on-how-to-avoid-crypto-scams" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">best security practices</a> when managing your cryptocurrencies.<h2>What are crypto hot wallets?</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1693533370/Hot_wallet_for_crypto_storage_cc76bcd1af.jpg" alt="a mobile hot wallet for crypto">A hot wallet refers to any cryptocurrency wallet that is connected to the internet. It provides easy and quick access to cryptocurrency assets, making them suitable for everyday transactions.Unlike cold wallets, hot wallets allow users to easily access their private keys while online. This makes it easy and convenient, but hot wallets also come with potential security risks due to their online vulnerabilities.<h3>Types of hot wallets</h3><ul><li>Desktop Wallets: These are software applications downloaded and installed on a personal computer or laptop. They can only be accessed from the device on which they were installed.</li><li>Mobile Wallets: A popular hot wallet choice, mobile wallets are applications designed for smartphones, allowing users to manage their crypto on the go.&nbsp;</li><li>Web Wallets: Accessed through web browsers, web wallets such as MetaMask are hosted on online platforms and used by the everyday crypto user.</li><li>Exchange Wallets: When you register on a cryptocurrency exchange platform, the exchange often provides you with a desktop wallet to store and manage your assets on their platform.&nbsp;</li><li>Social Recovery Wallets: A mobile wallet like Gridlock uses <a href="https://gridlock.network/blog/What_is_Social_Verification_for_Crypto_Wallet_Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">social recovery</a> and <a href="https://gridlock.network/blog/distributed-key-generation-dkg-explained-private-keys-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">distributed key generation</a>, which mitigates much of the risk associated with having your private keys in an online environment.&nbsp;</li></ul><h3>Vulnerabilities with hot wallets</h3>Being online, hot wallets are at risk of a range of online threats, such as hacking, phishing attacks, malware, and more.Best practices: Focus on security measures like strong, unique passwords, two-factor authentication (2FA), and regularly updating your wallet’s software.Have a backup: Always back up your wallet and its recovery phrases. If you lose access to your hot wallet (e.g., if your phone is lost or stolen), a backup can help restore your funds.<h3>Hot wallets have flexibility and convenience</h3>The good: Hot wallets offer a high degree of flexibility and convenience. Yes, this is true and often crypto traders and others who make many transactions with digital assets use hot wallets without issues. This is particularly true with exchange wallets and the browser wallets used prolifically in DeFi.The bad: The trade-off is a higher risk compared with cold wallets. But frankly, degens and other crypto traders are more comfortable with risk to begin with. As an average hodler, NFT enthusiast, or crypto accumulator, you may have a different appetite for risk.&nbsp;The ugly: Remember, while hot wallets offer ease of access and convenience, users must practice heightened vigilance about security measures and be aware of the associated risks, especially with hot wallets that generate the private keys from a centralized source. Always stay informed about the latest security best practices in the crypto space.<h2>Hot wallet vs. cold wallet: What’s it going to be?</h2>The reality is, if you’re in the highly innovative crypto space, you will likely have a myriad of wallets. Once you’ve tried a crypto wallet of any kind and made a few transactions, it will be hard as hell to be satisfied making a transaction using banking software. And you’ll want to try all the latest crypto platforms and applications as development continues.A few rules of thumb:<ol><li>Use a hot wallet for frequent transactions and conveniences, but be extra vigilant of overall device and internet security.</li><li>Use a cold wallet for storing crypto for longer durations - but don’t set it and forget it! Remember, when using cold storage, you may need to periodically update your cold wallet or device. Plus, you'll need to personally secure your private keys since they are not available online.</li><li>If you want the best of both worlds - convenience and a high level of security - go with Gridlock Wallet.&nbsp;</li></ol><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676955499/blog_gridlock_crypto_wallet_cover_dceb7a349b.jpg" alt="Gridlock logo">With a network of Guardians and Partner Guardians making up your social recovery network, and with a process of distributed key generation, Gridlock brings the hot wallet into the age of crypto security.<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">Download Gridlock today.</a> ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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From Backups to Collaboration: How Social Recovery Transforms Private Key Security

Hot Wallet vs. Cold Wallet: Which One Is Right For Me?

Recent cybersecurity vulnerabilities have sparked questions about the safety of certain types of crypto storage methods. An issue was recently discovered with some of the most advanced methods of storing cryptocurrencies, which could potentially allow an attacker to gain access to a user's funds. Today, we want to reassure our users and explain why Gridlock Wallet remains safe and secure against these vulnerabilities.<h2>Cryptography concerns – simplified</h2>Fireblocks recently released an article detailing potential problems with GG20 MPC cryptography, a technology used by Gridlock to secure your assets. To understand why Gridlock is unaffected by the issue with the GG20 MPC protocol, let's first break down the potential risk scenarios using simple terminology. For a more in-depth explanation and detailed mathematics, you can review <a href="https://www.fireblocks.com/blog/gg18-and-gg20-paillier-key-vulnerability-technical-report" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Fireblocks’ blog post</a>.&nbsp;<h3>Scenario 1: The Insider Threat</h3>This risk scenario suggests a possibility where a malicious actor could exploit a specific vulnerability during the wallet creation - a limited window of time. If this person has sophisticated technical knowledge and harmful intent, they could potentially manipulate the system to secure unauthorized access to digital assets.&nbsp;Notably, this actor would need to manipulate the communication with other parties in the MPC storage network to cause them to inadvertently reveal information about the jointly-owned private key. If the attacker is able to convince all parties to attempt to create the same wallet 16 times, they would be able to collect enough information to define the private key.&nbsp;<h3>Scenario 2: The Excessive Transaction Threat</h3>In the second scenario, a massive volume of transactions ranging from hundreds of thousands to even billions could theoretically enable an attacker to gather enough information to compromise your digital assets.&nbsp;An attacker would need to be an active participant in your storage network with a share of the encryption key and persuade all other participants to cooperate in an abnormally high and suspicious number of transactions, triggering noticeable alerts.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1692744915/Crypto_wallet_security_with_Gridlock_9e2c31898d.jpg" alt="a digital globe surrounded by blockchain network nodes and a shield and lock in the center"><h2>Gridlock's resilience: How our defenses stack up against the MPC vulnerability</h2>Despite potential threats, Gridlock's robust structure works to mitigate these potential risks, providing users with bulletproof security and peace of mind.<h3>Network trust advantage with Gridlock neutralizes the Insider Threat</h3>The Gridlock security features that protect wallet holders from Scenario #1 (Insider Threats) center around the uniqueness of Gridlock's storage model. To understand the difference, let’s first cover how MPC protocols are commonly used.The best cutting-edge crypto applications are built on <a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">multi-party computation (MPC) technology</a> because it is the best path technology available for blockchain-based improvements. These MPC protocols often involve unknown participants interacting with each other. It's within these networks that the recently identified threats can pose real challenges.With Gridlock, however, the picture is quite different. Our system is built on a semi-trust model, where all participants, called <a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Guardians</a>, are chosen by the user. Instead of unknown entities, the Guardians of your digital assets are your friends or family members (Social Guardians) or reliable companies you generally trust (<a href="https://gridlock.network/blog/What-are-Partner-Guardians-Network-Nodes-Crypto-Non-Custodial-Wallet" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Partner Guardians</a>). But at the same time, you do not have to put full trust in any one person or entity, not even yourself!The likelihood of attacks is significantly reduced. After all, the chances of a trusted friend deciding to exploit a vulnerability to compromise your assets are extremely low. With this distinct advantage, our model makes these potential vulnerabilities much less of a concern for our users.By allowing users to establish a trusted network of Guardians, Gridlock's model instills an additional layer of security, reducing the potential for infiltration by a rogue actor, and thereby providing you with safer, more dependable storage for your digital assets.Regardless of the high improbability of this type of attack on Gridlock, we have already patched the vulnerability making the threat impossible.&nbsp;<h2>Guarding against transaction overload</h2>In light of Scenario #2, the Excessive Transaction Threat, it's essential to note that executing such an attack on Gridlock's system is nearly impossible. While some systems are vulnerable due to their reliance on continuous communication between participants, Gridlock is distinctively designed to function without this constant interchange, greatly reducing this threat.Gridlock's robust design makes it incredibly challenging for any attacker to gain consensus from all Guardians, especially for an abnormally high number of transactions. Additionally, our architecture inherently counters the environment that's most conducive for this kind of attack.While our design alone provides a formidable defense against transaction overload, we've further fortified our system by patching this potential vulnerability, ensuring its irrelevance.<h2>Gridlock’s unique model is the future of crypto storage</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676955499/blog_gridlock_crypto_wallet_cover_dceb7a349b.jpg" alt="Gridlock logo">Gridlock operates on a multi-party model with a minimum of five participants by default – a unique feature in the crypto storage world. The consensus of several Guardians is required to approve transactions, yet each Guardian operates independently.&nbsp;<ul><li>Individual Guardians can detect suspicious activities, like an abnormally high volume of transactions, signaling an attack. This means that the protection of your digital assets grows stronger with each added Guardian.</li><li>The Guardians in your storage network utilize different storage mediums and perspectives. They can spot and alert potential issues that others may miss.&nbsp;</li><li>With Gridlock's MPC, no one Guardian holds too much power. A threshold number must agree before transactions are approved. Not just one, but several of your Guardians. Our approach removes the risk of single ownership and delivers a balanced, robust security strategy.</li></ul>The collaboration of your chosen Guardians, coupled with the minimum 5-participant requirement, forms an impenetrable defense against possible extensive transaction attacks. Users enjoy multi-layered protection while maintaining full control over their digital assets, reinforcing Gridlock's standing as the best choice for secure crypto and NFT storage.<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Download Gridlock today</a> and strengthen your Guardian network while enjoying a robust defense system and a team dedicated to leading-edge crypto security.&nbsp; ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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Gridlock responds to vulnerabilities reported by Fireblocks

<h2>How to shield your crypto and NFTs from an asset freeze</h2>Nothing strikes fear into the heart of crypto investors like the term “asset freeze.” So when the SEC tried to freeze the assets of 678,000 Binance.US users in June of 2023, the anxiety felt by crypto investors worldwide was palpable. Read on to learn what happened and how to <a href="https://docs.gridlock.network/the-tech/design-principles/secure" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">protect your assets with Gridlock</a>.In an ongoing case against Binance, the SEC attempted to place a restraining order that would <a href="https://cointelegraph.com/news/sec-and-binance-seek-compromise-on-us-assets-freeze" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">freeze the assets</a> of Binance’s American arm. A US District Judge thwarted the freeze, but the threat of an asset freeze by the most powerful regulator against the largest crypto exchange is nothing short of chilling.&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688866037/Binance_SEC_asset_freeze_protecting_crypto_3d710ee8b0.png" alt="The cover of a CoinTelegraph article regarding the SEC">Source: <a href="https://cointelegraph.com/news/sec-binance-us-negotiate-deal-asset-freeze" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204);">CoinTelegraph</a>It is not just Binance that the SEC has gone up against this year, either. Current cases against Kraken, Gemini, and Coinbase have also brought fear into crypto markets. Once trusted for storing crypto assets, centralized exchanges like these are quickly losing ground to self-custody options for storage.&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688866200/Bitcoin_exchange_outflow_a7fd93104d.png" alt="Chart by Glassnode showing Bitcoin leaving crypto exchanges">Source: <a href="https://cryptoquant.com/insights/quicktake/6480a2a0e926de4bebd1f9ee-Increasing-Bitcoin-Exchange-Outflows-Following-SEC-Lawsuit-Against-Binance-and-C" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Glassnode</a>We are now in a changing era of crypto security. Not only do we need to protect our crypto holdings from scammers, phishing schemes, and rug pulls, but a fair share of regulatory risk has come into play. With blockchain-based financial applications coming under the gun, we have to make sure our Web3 assets have the best protection possible - especially in the case of an asset freeze.<h2>Crypto investors and search for safe storage</h2>Cryptocurrencies and other digital assets that are held on centralized exchanges like Binance are subject to the SEC and other US regulatory laws anytime they come into contact with US investors and holders. Additionally, with the USD still being the reserve asset internationally, what goes in US markets often has massive ripple effects (pun definitely intended).&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688866305/Operation_chokepoint_2_crypto_asset_freeze_cdfeb750a3.png" alt="A tweet talking about the SEC suing Binance and the beginnings of a CBDC">﻿Source: <a href="https://twitter.com/EasyEatsBodega" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">@EasyEatsBodega on Twitter</a>Since the US has been on a tear against crypto this year with what many are calling <a href="https://www.coindesk.com/business/2023/04/28/operation-choke-point-20-is-secs-chemotherapy-for-14b-ponzi-problem-bcbs-ceo-says/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">“Operation Chokepoint 2.0”</a>, investors are getting their crypto assets off exchanges en masse. More than ever, they are adhering to the famous phrase: Not your keys, not your coin.<h2>Self-custody can be a complex process</h2>Holding and securing the private keys to your crypto can be quite complicated. It may require you to use a combination of hard wallets and mobile wallets, which introduce new attack vectors. Additionally, when you self-custody you run the risk of losing or damaging your device or losing the private keys. But then again, that’s probably why we started using exchanges to hold our crypto in the first place!Crypto enthusiasts are searching for simple and secure self-custody solutions like Gridlock Wallet to protect their holdings. Up until recently, most options for securing your crypto required too much technical know-how and an often unrealistic level of personal responsibility.<h2>Why Gridlock is the right solution for today</h2>As a leading-edge crypto wallet, Gridlock employs advanced technologies to bring crypto asset protection to a new level. Blockchain ledgers, smart contracts, and advanced cryptography enable Gridlock Wallet users to easily store their own crypto.&nbsp;<ol><li><a href="https://gridlock.network/blog/what-is-an-mpc-wallet_and-why-does-it-matter" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Multi-Party Computation (MPC</a>): Gridlock leverages advanced MPC technology to divide the private keys into shards that are distributed across multiple parties. No single party has complete access to the user's assets, ensuring the highest level of security.</li><li><a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Threshold Signature cryptography</a>: Utilizing threshold signatures means multiple parties must sign off on a transaction before it can go through, reducing the risk of asset theft or loss.&nbsp;</li><li><a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Social Verification:</a> This is where trusted individuals or devices, known as 'Guardians', can be designated to protect distributed key shards. This feature adds an extra layer of personal protection to user assets.</li></ol>Crypto holders getting their cryptocurrencies and NFTs off centralized platforms now have a safe place to store their valuable assets.Gridlock’s use of advanced wallet technologies helps make crypto self-custody not only safe but also easy and convenient. No one is telling you to run a node or server and verify your own transactions, something too technical for most people. Instead, Gridlock makes ultra-safe storage doable by the masses.By implementing a system of <a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">trusted Guardians</a> that the wallet owner selects as a protective network, Gridlock has created a social recovery wallet that stands the test of time -&nbsp;and even protects against the threat of an asset freeze!<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1688866455/Adobe_Stock_419705764_Preview_a4e8166d49.jpg" alt="A wallet that looks digital with blockchain network nodes"><h2>﻿How it works</h2><ul><li>Distributed key generation</li></ul>With a Gridlock wallet, a private key is generated by dividing it into distributed fragments called “key shares.” These key shares are securely stored on <a href="https://docs.gridlock.network/features/guardians" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">trusted devices known as “Guardians”</a>. Importantly, no single Guardian can access the complete private key or the crypto assets. Ever.<ul><li>Guardians enable distributed storage</li></ul>Each Guardian holds only one fragment of the key on their device and is completely unaware of the other key shares. This distributed storage mechanism adds an extra layer of security by ensuring that the private key cannot exist in its entirety in any single location.<ul><li>Gridlock users have full control</li></ul>In the Gridlock Wallet system, the wallet owner possesses the most authoritative key share and maintains ultimate control. They have the ability to assemble the key shares whenever necessary for transactions or key recovery processes.&nbsp;<ul><li>Safe and secure</li></ul>Even in the event of a lost seed phrase, a predetermined threshold number of key shares can be used to reconstruct it. This is achieved through a simplified Social Verification process, which allows for simplified key recovery while maintaining security.<h2>The secure way to self-custody is with Gridlock</h2>Unlike traditional wallets, Gridlock ensures that <a href="https://docs.gridlock.network/the-tech/distributed-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">private keys are generated and stored across multiple trusted devices</a>, minimizing the risk of unauthorized access and potential loss of funds.Because it's so convenient and easy to use, Gridlock represents the perfect self-custody solution for the masses of users seeking shelter from the SEC’s threats.<blockquote>Gridlock puts the security of crypto assets back into the hands of users with a simplified, ultra-secure solution.</blockquote><a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Download Gridlock</a> today and keep all your assets secured. From Bitcoin to altcoins, to NFTs, your crypto holdings have the ultimate protection. ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

Don't Let an Asset Freeze Threaten Your Crypto

The Strength of Gridlock Wallet Amid Recent Cryptography Concerns

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Distributed Key Technology with Gridlock Wallet

<h1>The 9 Best Strategies for Avoiding Crypto Scams</h1>When it comes to cryptocurrency, scams are unfortunately all too common. A recent report found that nearly 10% of all Bitcoin transactions are crime-related. So, how do you protect yourself from becoming a victim and avoid scams so you <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank">don't lose your crypto</a>? Here are the nine strategies to set you on the path of crypto security:<h2>1. Don't send money to anyone you don't know or trust, no matter what they say.</h2>It's essential to be careful about who you send crypto to, especially regarding online transactions. Bad actors set up fake accounts or investment scams to scam people out of their money. Crypto scams are prevalent, often luring people in with promises of high investment returns. Another popular one is 'giveaway scams.' Some scammers will try to "catfish" you by impersonating a popular crypto influencer.All of these crypto scams can be challenging to spot, as scammers often use fake websites and social media accounts to make their offers seem legitimate while creating a perfect hook to reel you in.Suppose you are ever unsure about a cryptocurrency transaction. In that case, it's important to err on the side caution and avoid sending any funds until you're confident it's not a crypto scam.The relationship between you and the person or organization you're dealing with is best if based on several factors, including trust. Watch for signs of life in the project, such as:<ul><li>Recent updates</li><li>An informative website</li><li>Active social media accounts.</li><li>Finally, working technology that has gone through several iterations and is available in the marketplace is a also good sign.</li></ul>However, there are some red flags to watch out for, such as:<ul><li>Unrealistic promises of return on investment</li><li>Requests for cryptocurrency transactions rather than payment in fiat currency.</li><li>Requests to send crypto in order to receive crypto (major red flag!)</li></ul><h2>2. Be wary of any offer that seems too good to be true.</h2>We've all heard the saying, "If it seems too good to be true, it probably is." And yet, many of us still fall prey to scams every day. Whether it's an email promoting fake giveaways or a phone call from a "representative" offering free cash, there are plenty of ways to buy these scams and lose money to scam posts and scammers.Crypto scams are becoming increasingly common, so be extra cautious if you're thinking about investing in Bitcoin or another digital currency. Some scammers will promise unrealistic returns, while others will try to extort money from you directly. Either way, it's best to avoid cryptocurrency scams altogether. Do your own research (DYOR) before investing in anything, including cryptocurrencies.Pyramid schemes are easy to build and always produce an ever shrinking probability of payout for the participant. Participation comes to an end when inputs to achieve a payout become larger than the payout. Greed decreases the trajectory and probability of payout becomes certain assuming rational participation.It's no secret that crypto has taken the world by storm. With the early promises of anonymity and decentralization dating back to the mid-nineteen-eighties, it's no wonder that more and more people are looking for investment opportunities in the blossoming technology of the early two-thousand-twenties.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676887698/9_ways_1_dd62bc90f5.png" alt="9-ways-1.jpeg">Unfortunately, the popularity of crypto has also made the industry a honeypot for bad actors. Scammers who make many different sorts of fraudulent schemes congregate in Web3 cyberspace and interact. From Ponzi schemes to extortion scams, there are a variety of ways that scammers can take advantage of inexperienced investors who participate at a sort of 'retail' level. The overarching guidance here is that before finding an investment opportunity in crypto, you must do your research.&nbsp;You can learn how to spot these scams and protect yourself from cryptocurrency scammers by doing your research and incorporating daily reading on crypto-related industry news. In addition, keep an eye on emerging technologies and trends, as these can provide clues about which crypto coins may succeed in the future. By educating yourself about crypto, you can make wiser investment decisions and avoid becoming the victim of a scam.<h2>3. Be careful with your personal information.</h2>Identity theft is a significant problem in today's society. With so much personal information available online, it's easy for identity thieves to get their hands on your sensitive information. If you're not careful, you could easily fall victim to one of these scams, with no possibility of spotting cryptocurrency. That's why it's essential to be cautious with your personal information and cryptocurrency payments.&nbsp;Only give your private keys to trusted sources if you would like them to have full access to your funds, and never enter your personal information into a public computer. Contact your local authorities immediately if you think you may have been a victim of identity theft. Be as proactive as possible when protecting your information and avoid falling victim to identity theft, which is a costly and stressful experience.<h2>4. Be careful of phishing that leads to cryptocurrency scams.</h2>Phishing scams and phishing attempts are becoming increasingly common, and social media is one of the most popular platforms for scammers to target. These phishing scams typically involve social media ads or posts promising free money or giveaways, often for popular products or services. The scammers then create fake apps or websites that look identical to the real thing but will steal people's personal information, and that's why these are common cryptocurrency scams.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676887699/9_ways_2_396d885e1d.png" alt="9-ways-2.webp">Another popular way scammers scam people is with videos on YouTube, where they overlay their scam on top of a legitimate video. The text they have overlaid displays a destination bitcoin address and one or more options for an amount to send. The text implies that the sender will receive more in return, but this is not true; they will receive nothing.If you click on one of these, especially in the form of a 'giveaway scam,' be sure to do your research first. Check to see if the offer is from legitimate sites, and be especially wary of any site that asks for your personal information or login credentials before you can claim your prize.<h2>5. Be aware of a potential fake crypto wallet or entire exchange.</h2>With the popularity of crypto on the rise, a fake crypto wallet or exchange could impact you since they are becoming more popular. Fake wallets are digital wallets created to take control of a wallet or blockchain address and send cryptocurrency out of it to an address they control, stealing the unsuspecting victims' cryptocurrencies. The fake cryptocurrency wallet or exchange involved will often look identical to legitimate sites or wallets, making it difficult to spot the difference.Fake exchanges are websites that pretend to be honest cryptocurrency exchanges. These fake exchanges often list artificial prices for coins, or they may not allow users to withdraw their coins after depositing them. Fake wallets and exchanges can be highly costly for victims, so it's essential to be aware of these scams and take steps to avoid them.<h2>6. Keep your cryptocurrencies in a secure wallet.</h2>There are many different types of wallets, but the most important thing is to choose one that is secure and easy for you to use. Some wallets allow you to store multiple types of cryptocurrency, while others are a specific type and offer different features. When selecting a wallet, consider your needs and security preferences.&nbsp;Once you've selected a wallet, be sure to take steps to keep it secure, such as enabling two-factor authentication and choosing a solid password. You should also ensure that the wallet you choose is compatible with the exchange you plan to use. Taking these precautions can help safeguard your investment and enjoy peace of mind in the crypto space.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676887697/9_ways_3_464cf42fcd.png" alt="9-ways-3.webp"><h2>7. Monitor carefully to avoid investment scams.</h2>Cryptocurrencies can go up and down without warning, and it can be challenging to predict how the market will turn. That's why it's so important to monitor your investments carefully. By tracking your crypto regularly, you can quickly identify any red flags and take action to protect your investment.&nbsp;In addition, monitoring your investments can help you stay up-to-date on market trends and make informed decisions about when to buy or sell. So whether you're a seasoned investor or just starting, remember to keep a close eye on your crypto.<h2>8. Don't panic if the value of your investment goes down.</h2>When investing in cryptocurrency, staying calm is essential when the market isn't doing well. Like any other type of investment, the value of cryptocurrency can go up and down. A bad day in the crypto world doesn't mean that your investment is gone forever. However, you can do a few things to help weather the storm.&nbsp;<ul><li>First, don't sell your cryptos just because the value has dropped. Selling while the market is down will only lock in your losses.</li><li>Second, try to stay diversified by investing in different types of cryptocurrency. If one coin goes down, your eggs are not all in one basket.</li><li>Third, it's OK to take profits in this bourgeoning industry!</li><li>Finally, remember that crypto has generally performed exceptionally well as a long-term investment since valuations were lower in the industry's beginnings.&nbsp;</li></ul>Remember: don't panic if the value goes down today - it could be back up tomorrow. And likewise, don't rush to judgment if the value jumps up.<h2>9. Seek professional advice before investing in cryptocurrencies.</h2>Cryptocurrencies have been gaining popularity in recent years as more and more people invest money in these digital assets. However, it is essential to seek professional advice before investing in cryptocurrencies. Cryptocurrencies are a highly volatile asset class, and prices can fluctuate wildly.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1676887700/9_ways_4_7b709a365e.png" alt="9-ways-4.jpeg">In addition, investing in cryptocurrencies also carries several risks. For instance, there is the risk of hacking and theft and the possibility that a particular cryptocurrency could become worthless. Speaking to a financial advisor before investing money in cryptocurrencies is essential.Also, be aware that investing in cryptocurrencies sometimes involves sharing sensitive data, such as bank account information. Choose a reputable and trustworthy platform before investing in any particular cryptocurrency.<h2>Gridlock: A better way to stay safe from scams</h2>If you have been the victim of a scam, what can you do to protect yourself better? If you're thinking about security, have you looked into Gridlock? Check out <a href="http://gridlock.network/" rel="noopener noreferrer" target="_blank" style="color: inherit;">Gridlock.Network</a>&nbsp;to download the most secure crypto wallet for storing your NFTs and cryptocurrency.Gridlock cryptocurrency wallet utilizes threshold signatures and social verification to offer the best security in the Web3 wallet industry.&nbsp;<a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="color: inherit;">Download</a>&nbsp;Gridlock for Android or iOS today. - - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

How To Avoid Crypto Scams: 9 Best Strategies

<h2>The Rise of AI Tokens in the Digital Economy</h2>In the digital age, few technologies have shaped our world as profoundly as Artificial Intelligence (AI) and cryptocurrency. Now, imagine these titans colliding. The result? AI tokens—pioneering a fresh era of innovation. Balancing excitement with a healthy dose of caution, this article offers a brisk overview of the melding of AI and <a href="https://gridlock.network/blog/10-ways-to-store-crypto-like-a-whale" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto assets</a> along with the formation of AI tokens.&nbsp;<h2>Understanding the Convergence of AI and Cryptocurrency</h2>Historically, AI and cryptocurrency walked different evolutionary paths. AI's journey began with an aspiration to replicate human intelligence, while cryptocurrency aimed to revolutionize our financial systems. But destiny had other plans. These technologies, driven by the spirit of innovation, naturally converged, ushering in a new era of digital advancements.<h2>Decentralized tech and AI</h2>As one of the primary drivers behind cryptocurrency development and ethos is the idea of decentralization. Putting financial power into more hands while reducing the <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">risk of centralized data stores</a> has led to rampant development in the crypto space.&nbsp;As AI advances at breakneck speed, decentralized technologies are a natural match to help us avoid the possibility of AI ending up in the control of potentially malevolent centralized entities.&nbsp;&nbsp;<blockquote>“Imagine a world where AI is not controlled by just one central authority.” - <a href="https://www.blockchain-council.org/ai/the-potential-of-decentralized-artificial-intelligence-in-the-future/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Blockchain Council</a></blockquote><h2>AI and crypto markets rise together</h2>Launched in late November of 2022, ChatGPT’s chatbot notched 100 million monthly active users in just two months, beating out TikTok as the fastest growing application. At its core, ChatGPT has proven itself to be the closest thing to a human’s ability to reason - a machine that learns and can code a website, write a white paper, and analyze large data sets in seconds. This has led to multiple areas where crypto and AI are converging:<ul><li><a href="https://www.blockchainresearchlab.org/2023/02/08/the-rise-of-chatgpt-exploring-its-effects-on-ai-based-cryptocurrencies/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Crypto markets have been abuzz since ChatGPT’s</a> meteoric rise. In Q4 2022, when ChatGPT started gaining traction, we saw cryptocurrencies enjoy a boost in activity, interest, and market caps.</li><li>The acute <a href="https://gridlock.network/blog/How_to_Shield_Crypto_from_an_Asset_Freeze" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto regulatory environment</a> finally eased up slightly as policy makers and government officials turned to the potential dangers of AI.&nbsp;</li><li>The introduction of AI-based tokens and applications took place during this era, carving a new notch in the history of cryptocurrencies.</li></ul><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1691516014/The_convergence_of_AI_and_crypto_9e4599abb8.jpg" alt="a robot clicking on a large digital screen showing a blockchain network"><h2>What are AI tokens?</h2>An AI token is a crypto asset that infuses some element of AI, providing access to AI through a digital token. This can mean many things; in fact, the potential for innovation is limitless. For instance:<ol><li>An AI token may use AI technologies to improve aspects of its coin, such as increasing the <a href="https://gridlock.network/blog/gridlock-crypto-wallet-better-than-a-cold-wallet" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto’s security</a> or enhancing user experience.&nbsp;</li><li>AI applications and projects can use a crypto AI token for growth and marketing, capitalizing on the existing infrastructure of decentralized exchanges and marketplaces.</li><li>Artificial Intelligence projects can use a crypto token to help increase efficiencies, such as with automated smart contracts and Machine Learning based decision-making and predictive analysis.</li><li>AI tokens enable crypto and AI investors a new way to access the growth potential of tech startups in both industries.</li><li>Crypto companies can infuse AI to reduce overall costs and also piggyback on the massively expanding AI market.</li></ol><h2>Exploring projects using AI tokens</h2>A peek into the dynamic world of AI and crypto reveals a wide array of innovations:AI-Driven Trading Platforms - Think of trading on steroids. Here, AI sharpens prediction models and trading strategies to optimize gains.Data Marketplaces - Where AI is the merchant, trading valuable data seamlessly with tokens.&nbsp;Decentralized AI Networks - Envision a world where AI models learn, grow, and get rewarded with tokens. Intriguing, right?Token-based AI Services - In the future, we’ll likely see many AI services that you can access only through an AI token.<h2>Examples of AI tokens</h2>Let’s take a look at some of the top-performing AI crypto tokens to get an idea of the massive potential of these two industries colliding.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1691516085/Top_AI_tokens_by_marketcap_a51af17bbf.png" alt="A chart showing the top performing AI tokens by market cap">Source: <a href="https://www.coingecko.com/en/categories/artificial-intelligence" rel="noopener noreferrer" target="_blank">CoinGecko</a><h3>Render (RNDR)</h3>The Render project offers a P2P marketplace for computational power, enabling users to earn crypto tokens by offering their excess GPU power to 3D rendering projects for motion graphics and other visual effects. Render is often seen as the developmental pathway for Metaverse projects and services. The connection with AI comes into play when Render allows people to instantly render AI-generated images with a text prompt on the Render protocol. The Render token (RNDR) is a utility token used for paying out those earning on the platform.<h3>SingularityNet (AGIX)</h3>Singularity has a much more direct relationship to AI. The project is essentially a decentralized marketplace where users can monetize and promote AI services. AI developers are able to publish the AI tools they have built, sell them on the marketplace, and track sales and other market analytics. Singularity’s crypto AI token, AGIX, saw explosive growth following OpenAI’s launch of ChatGPT in November 2022, increasing <a href="https://ambcrypto.com/how-singularitynet-agix-built-momentum-amid-rising-chatgpt-traction/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">over 600%</a> in January 2023 alone.<h3>The Graph (GRT)</h3>The Graph project directly connects AI and crypto by allowing app builders to use its GraphQL AI query system to retrieve blockchain data. As a decentralized protocol, The Graph enables developers to efficiently create and use AI automations, such as for automated decision-making, and provides easy access to rich Web2 data indexing. Its native token GRT provides access to users who participate in the protocol and is the token they receive when earning on the platform.<h2>Benefits of AI tokens</h2>The marvels of AI tokens aren't just theoretical. They have the potential to bring vast efficiencies into any market they touch, including digital assets:<ul><li>Boost Efficiency: AI can fast-track tasks in blockchain like a pro.</li><li>Bolster Security: Detecting crypto threats? Leave it to AI to analyze onchain data and smart contracts.</li><li>Promote Accessibility: AI tokens, due to their global, 24/7 nature, help democratize access to Artificial Intelligence products and services.</li><li>Fuel Financial Innovation: Crafting new-age financial tools and strategies is now a breeze, thanks to AI.</li></ul><h2>Risks and challenges</h2>The fusion of AI and crypto isn’t without challenges, while poised at the cusp of a digital revolution, it's also crucial to understand the potential pitfalls of this AI and crypto convergence.&nbsp;<ul><li>Technical Hiccups: Marrying two advanced techs isn't child's play. Expect teething troubles.</li><li>Regulatory Hurdles: Governments are still sizing up this union, and their gaze isn’t always friendly.</li><li>Economic Ripples: Market dynamics may wobble. Watch out for manipulations!</li><li>Ethical Quandaries: Navigating the maze of privacy and transparency issues requires tact.</li></ul><h2>Future prospects for AI and crypto</h2>Looking ahead, the bond between AI and cryptocurrency will only deepen. With boundless sectors to explore and innovations to spawn, the sky's the limit.AI and crypto create ample opportunities for enhancing the security of your crypto assets. <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">Download Gridlock Wallet</a> today to experience cutting edge crypto technologies in the age of AI. ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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When AI converges with crypto

When AI and Crypto Collide: The Rise of AI Tokens in the Digital Economy

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<h2>How does Account Abstraction affect the future of crypto adoption?</h2>Account abstraction is the term for an update to the Ethereum blockchain, also referred to as ERC-4337. Proposed by Vitalik Buterin and the Ethereum development team in 2021 and deployed in March of 2023, account abstraction sets out to solve some of the problems with Ethereum’s current <a href="https://gridlock.network/blog/crypto-wallets-101" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">crypto wallet</a> structure.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689383088/ERC_4337_835bdf9fe9.png" alt="A screen shot of the meta data for ERC-4337 Account Abstraction Using Alt Mempool"><h2>Ethereum wallets without Account Abstraction&nbsp;&nbsp;</h2>To understand the benefits of account abstraction, it’s important to know how Ethereum accounts (wallets) are currently working without it. To start, there are 2 types of Ethereum accounts:<ol><li>Externally-Owned Accounts (<a href="https://ethereum.org/en/roadmap/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">EOAs</a>): Easily set up and may be controlled by anyone who has the <a href="https://gridlock.network/blog/seed-phrases-are-outdated-why-social-recovery-is-better" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">private keys</a>.</li><li>Contract Accounts: Controlled by code and deployed as a smart contract to the Ethereum Network. Unlike EOAs, contract accounts cannot initiate transactions.</li></ol>The account abstraction proposal (ERC-4337) sought to unite these two wallet account concepts to address the limitations and create a better, safer user experience.&nbsp;EOAs, however, are what everyday ETH users interact with when making transactions. So, to understand the potential for increased adoption that account abstraction offers, we need to first look at what EOAs do.&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689383251/ethereum_mobile_wallet_e6c5b3d36a.jpg" alt="A mobile wallet with silver coins with Ethereum"><h2>How do Externally-Owned Accounts (EOAs) work?</h2>EOAs are Ethereum accounts that anyone with a device can set up for free. Users can hold tokens in the account and initiate transactions with other externally-owned accounts. Each EOA has its own cryptographic pair of keys: a public key for receiving tokens and the private key that unlocks access to send crypto to other EOAs.<h2>Limitations of EOAs that Account Abstraction solves</h2>Even though they are widely used today, Externally-owned accounts do have their limitations:<ul><li>EOAs are the only way to initiate a transaction or execute a smart contract, which limits the ways users can interact with Ethereum.</li><li>Batches of transactions are not possible, which could potentially speed up transactions.&nbsp;</li><li>Users must always keep an ETH balance to cover transactional gas costs.</li></ul>Account abstraction helps to alleviate these issues by adding more programmability to Ethereum accounts.&nbsp;<h2>Benefits of Account Abstraction</h2>With account abstraction, developers are better able to program a better account experience, and, in turn, a higher level of adoption is possible.&nbsp;Greater Flexibility and Features: Users can hold complex logic within their accounts, like a Contract Account, without having to understand the underlying complexity. This provides ways for users to potentially have more control over their interactions with the blockchain and its smart contracts.Gas Payments in Tokens: Account abstraction enables users to pay for gas in tokens other than Ether, making the user experience simpler and more intuitive. This is especially so for those using token-centric applications that require many transactions.Enhanced Privacy: Current Ethereum transactions require a signature verification that can potentially leak some information about the sender's account. With account abstraction, users can leverage more complex <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">privacy-preserving signature schemes</a>, enhancing the privacy of transactions.Customizable Security Parameters: Account abstraction allows users to define their own security parameters for their accounts, which can potentially result in better security.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689383388/Crypto_shield_security_7f29453b2b.jpg" alt="A blue and white padlock floating in a digital space"><h2>How Will Account Abstraction Be Implemented?</h2>There are three basic routes for implemented account abstraction<ol><li>By <a href="https://eips.ethereum.org/EIPS/eip-3074" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">upgrading EOAs through EIP-3074</a>. This proposal would enable more functionality by letting users delegate control of an EOA to a smart contract. So it allows EOA accounts to act like a smart contract without having to deploy one.</li><li>Updating smart contracts via EIP-2938 is the second option for actualizing account abstraction. A contract would have the ability to pay fees in ETH and other tokens and initiate transactions. Examples of where EIP-2938 would be used include wallets with multisig verification or social recovery, thereby <a href="https://gridlock.network/blog/ten_best_ways_to_avoid_losing_crypto" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">reducing the risk of lost or stolen crypto assets</a>.</li></ol>Both of these options would entail protocol-level changes to Ethereum. Which brings us to #3: Adding a separate transaction system in parallel to Ethereum’s existing protocol. This third option would help increase the adoption of cryptocurrencies by adding functionalities without the need for Ethereum consensus changes.&nbsp;What all three options have in common is increased access to Ethereum through smart contract wallets that potentially provide a higher level of functionality, usability, and security.&nbsp;<h2>How smart contract wallets drive adoption via Account Abstraction</h2><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689383554/abstraction_wallet_smart_contract_tweet_ad51a4ced1.png" alt="A tweet imploring developers not to call it &quot;account abstraction&quot;">Some of the benefits that smart contracts can provide include:<ul><li>The ability to devise your own security rules.</li><li>A possible alternative recovery option if private keys are lost.&nbsp;</li><li>Users could distribute their account security protocols among multiple trusted devices.&nbsp;</li><li>Your gas fees could get paid by someone else, and you could pay someone else’s.</li><li>Transactions could be bundled together for faster transaction times. For example, a swap could be approved and executed at the same time.</li></ul>In addition to these added functionalities, smart contract wallets using account abstraction can create limitless opportunities for wallet developers to create innovative user experiences.&nbsp;The potential overall result of account abstraction on the end user is a faster, safer and more enriched experience. Behind the scenes, the higher level of support for smart contract wallets gives more robustness and functionality. From the user’s standpoint, however, the wallet experience is set to become easier, more cost-efficient, and safer.Keep in mind that while account abstraction offers potential solutions, its implementation is not without challenges. It requires careful consideration of various trade-offs, including the risk of additional complexity, the potential for increased block space usage, and new potential attack vectors.<h2>Why Account Abstraction?</h2>In conclusion, account abstraction represents a substantial step forward in making cryptocurrencies and blockchain technology more accessible, flexible, and user-friendly. As this feature continues to be developed and refined, it has the potential to significantly drive crypto adoption forward, bringing us closer to a future where blockchain technology is a fundamental part of our digital lives.Read more about easy-to-use crypto wallets with enhanced security in our article: <a href="https://gridlock.network/blog/What_is_Social_Verification_for_Crypto_Wallet_Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">“What Social Verification Means for Crypto Wallet Security.”</a><h2>About Gridlock Wallet&nbsp;</h2>Gridlock is a mobile wallet that offers seamless integration with Android and iOS operating systems. It provides a user-friendly interface and top-tier security measures for managing digital assets on the go. With distributed key generation, guardians for account recovery, support for cryptocurrencies and NFTs and commitment to innovation, Gridlock stands out as the premier wallet experience.&nbsp;<a href="https://gridlock.network/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Download Gridlock Crypto Wallet today!</a> ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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What is Account Abstraction?

One of the most important things to learn when entering the crypto space is how NOT to lose your crypto. Believe it or not, there are a lot of ways for this to happen, especially for newbies. But these top 10 strategies to avoid losing crypto assets actually apply to everyone, no matter your level of expertise in crypto investing.&nbsp;<h2>Why do people lose their cryptocurrencies?</h2>From losing the private keys to your crypto, to getting “catfished” or having your assets locked on an exchange, losing your crypto holdings is a worst case scenario. Some people may lose their assets through SIM swap scams, or even through a general lack of understanding of the complexities of digital assets.&nbsp;We want you to avoid losing your precious crypto at all costs. The following strategies were designed to help you keep your crypto safe and secure.&nbsp;<h2>1 - Self-custody your crypto</h2>Self-custody refers to a method of crypto storage where you maintain full control and ownership over the assets by storing and securing your private keys. The opposite would be to store crypto on a centralized exchange or platform, where the private keys are held and controlled by the centralized entity.&nbsp;Having a self-custodial wallet means you are in charge, but there are several ways to go about self-custody:<ul><li>Purchase a hardware wallet so your private keys are stored offline.</li><li>Use a paper wallet and store the private keys physically on paper or engraved.</li><li>Use a wallet with <a href="https://docs.gridlock.network/the-tech/distributed-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">distributed key generation</a> like Gridlock Wallet.</li></ul>Just remember to never use crypto exchanges for storage so you never have to worry about losing your <a href="https://gridlock.network/blog/How_to_Shield_Crypto_from_an_Asset_Freezeb" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto during an asset freeze</a>!<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689261597/Asset_freeze_Binance_92a2a969a8.png" alt="A copy of a tweet regarding the SEC trying to freeze Binance US crypto assets">Source: <a href="https://twitter.com/WatcherGuru/status/1666179626404642819" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">@WatcherGuru</a> on Twitter<h2>2 - Double check your transactions</h2>Generally, there are two important reasons to double check your crypto transactions:<ol><li>The first is when you are sending a large amount. If you’re worried or this is your first transaction, try a small transaction first. That way if a mistake is made, it’s a small one.</li><li>When trading and transferring crypto assets, make sure you are selecting the correction blockchain. Many wallets now service multiple blockchain networks, and if you try to send an Ethereum-based asset directly to a BNB wallet, you’re going to have a problem. And chances are there will be no one to help you.&nbsp;</li></ol>﻿<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689261701/Metamask_choosing_network_c7d6f54c13.png" alt="A screenshot of MetaMask browser wallet">MetaMask Wallet - Choosing your network<h2>3 - Understand gas fees</h2>Many people fall right in love with crypto and want to try everything on every protocol. They soon learn that this can get expensive, as gas fees for transactions can vary. Gas fees are the transactional costs for using a blockchain like Ethereum, and they can vary.&nbsp;For instance, when there is high demand such as during a hyped up token generation event, gas fees can skyrocket. Fees also vary by the complexity of the transaction or even the time of day.&nbsp;<ul><li>When making an onchain transaction, you’ll often get several choices, with the cheapest option taking the longest to complete.&nbsp;</li><li>Layer-2 blockchains that bundle transactions before going onchain are often much cheaper to use in terms of gas fees.&nbsp;</li></ul><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689261853/Etherscan_gas_tracker_f1fa9ef105.png" alt="A screen shot of Etherscan">Source: <a href="https://etherscan.io/gastracker" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Etherscan Ethereum Gas Tracker</a><h2>4 - Plan for the future</h2>Although crypto is officially only 13 years old, it’s time to start thinking about your digital asset legacy. Whatever scheme you have to access your crypto assets should be shared with someone you trust. That way, if something were to happen to you, your next of kin or other trusted confidante would be able to access the assets.&nbsp;<ul><li>If you already have estate planning in place, be sure to include information about passing down your digital assets to your beneficiaries.&nbsp;</li><li>In this early stage of crypto adoption, there’s a good chance that your beneficiary may not have your technical prowess. So, make the instructions clear and simple.</li><li>Include multisig wallets in your crypto estate planning</li></ul><h2>5 - Secure your private keys / seed phrase</h2>Not your keys, not your coin. You’ve heard it over and over if you follow crypto social media. So, what are the best ways to safely store your crypto keys? Here are a few options:<ul><li>Your brain - Some people remark on how the best way to store your seed phrase is via memorization. That way it’s never online, and there’s no way for anyone to steal it (yet!). This may be beneficial to some people, such as a family fleeing a hostile country or catastrophic event.</li><li>On paper - Paper wallets are still quite common. They require you to write down your seed phrase and then store it somewhere, such as a safe deposit box or a safe.&nbsp;</li><li>On a device - A hardware wallet can work for storing private keys offline, as can any such device such as a flash drive. However, the assets do come online whenever you make a transaction and plug the hardware into your device.&nbsp;</li><li>With trusted Guardians - Gridlock enables crypto hodlers to designate <a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Guardians</a>, each of whom holds a shard of your private keys on their device. No one has full access or can transact with your crypto - except you.</li></ul><img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689262053/Bitcoin_locked_assets_8297f0747f.jpg" alt="A picture of a padlock with the Bitcoin logo on it with coins to the side and a shield with a check mark to depict safe crypto storage with Gridlock"><h2>6 - Trade only if you’re a trader</h2>With a gaping lack of regulation in global crypto markets, risky strategies like 100x leverage trading and derivative markets have given the average Joe a chance to profit alongside the big leagues. But if you don’t have big league knowledge on markets and risks, it’s more likely to result in big league losses.&nbsp;Follow your favorite technical analysts, chart your heart away, but be realistic about your trading ability. If you’re new to crypto markets:<ul><li>Try dollar cost averaging or other simple crypto trade automations.</li><li>If you follow an analyst, make sure they are upfront about their trades and profits.</li><li>Only trade what you can lose.</li></ul><h2>7 - 2FA with Authenticator Apps</h2>If you have wallet apps on your phone and the primary source of your private keys is that phone, you must take extra precautions. Two Factor Authentication (2FA) is one way to avoid losing your crypto to scams like SIM swaps..&nbsp;SIM swap attacks are quite common in the crypto world. A scammer will scrape data looking for enough personal information on a victim to impersonate them. They contact the victim’s cell phone carrier claiming to be you and convince them to transfer your phone number to the scammer’s device.&nbsp;<ul><li>For online crypto accounts that you access by phone, be sure to download and use an authenticator app as opposed to using text messages as your 2FA.</li><li>Consider Gridlock Wallet, which <a href="https://gridlock.network/blog/atomic-wallet-and-the-problem-of-single-device-key-generation" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">splits the private keys into key shares</a> across multiple devices, so one device cannot be a centralized point of failure.</li></ul><h2>8 - Be discreet</h2>The crypto industry is a new and highly unregulated space. Talking about your crypto holdings online at this point is just asking for trouble. Don’t give attackers any information they can use to try and socially engineer the crypto right out of you.&nbsp;<h2>9 - Know the Software Risks</h2>Be aware of the main risks you take when interacting with crypto industry software and applications, whether decentralized or centralized.<ul><li>DYOR on DeFi protocols before participating in pools, lending, or other activities. How new is the protocol? Google them for hacks. Check the size of their deposits and, if possible, learn about the team behind it. DeFi platforms have historically been a gateway for code exploits, where a bad actor takes advantage of a code vulnerability; and rug pulls, where an insider engineers an exploit from within.</li><li>Beware of Phishing scams, which are a kind of social engineering that uses manipulation, commonly through private messages or texts. Scammers will “phish” for information, convincing you to give over wallet information or other financial data. </li><li>Catfishing is when impersonators duplicate a social media account of a well-known influencer and promptly start asking you to send ETH or other assets. </li></ul>Always use common sense: triple-check any links before clicking, verify the correct URL of a website you are entering, and stay safe!!<h2>10 - Use Gridlock Wallet</h2>Most of the ways to lose crypto can be avoided altogether by using Gridlock Wallet. With distributed key generation, the private key is never in just one place, yet it’s totally controlled by you.Gridlock lets you set up trusted Guardians using <a href="https://gridlock.network/blog/What-are-Threshold-Signatures-for-Crypto-Wallet-Security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">threshold signature technology</a>. So instead of your private keys being generated onto your phone or another device, you now have a network of devices that you choose, each with a share of the private key. This creates a much higher level of security and removes many of the access points for even the most advanced scammers.&nbsp;If you never want to lose your crypto (ever again :), <a href="https://gridlock.network/download" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">download Gridlock today</a> and experience an unprecedented level of security for your digital assets.&nbsp; ﻿- - - Written by Reid Zedkongor<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a6_1_b309e8684c.jpg" alt="a6 (1).jpg">Reid Zedkongor is peeling away layers of confusion around blockchain and cybersecurity. With a computer engineering background, he can dive into the details of crypto complexities to make crypto adoption easy for everyone. In his free time, he often reads fiction or enjoys a good laugh over a beer.

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Top 10 Ways to Avoid Losing Your Crypto 

From the early days of crypto, wallet security has been a major issue. It’s easy to lose the private keys to your crypto. And the device you store your digital assets on often acts as a single point of failure should a hacker gain access to your private keys or your device. Read on to learn about the emergence of Social Verification wallets and the next evolution of crypto security.Before we start, it’s essential to have an understanding of private keys and how they relate to crypto security.<h2>What are private keys?</h2><ul><li>The “keys” mean the <a href="https://gridlock.network/blog/how-to-secure-crypto-assets-and-private-keys" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">private keys</a> that enable you to access and transact with your cryptocurrency. They consist of a string of characters that must be copied and pasted. You receive this 12-word seed phrase when opening a self-custodial crypto wallet.</li><li>Private keys must be manually or digitally backed up and stored somewhere by you. Ideally, the storage is offline, where it is safer.&nbsp;</li><li>Whether you back up your seed phrase on a hardware wallet, a paper wallet, or anywhere else - if you lose it, that could be the last time you ever see your crypto.&nbsp;</li></ul>Taking the extra steps to self-custody and secure your crypto assets is often too complicated and risky for the everyday user. For cryptocurrency usage to reach the masses, we need a more simple and safe way to secure crypto.&nbsp;If you are new to Web3 assets, you may wonder what all the fuss is about losing crypto. Historically, losing crypto has been a big problem.<h2>Bitcoin insecurity - losing BTC</h2>You’ve probably heard about Bitcoiners losing their precious BTC. In fact, they've lost a collective 4 million bitcoins over time, now worth over $122 billion. Whether they lost their assets due to scams, theft, accidental loss, or hard forks, they’ve had to deal with the fact that they and their Bitcoin have been forever parted. Crypto loss has been a huge security problem.Cold storage wallets, such as hardware wallets and paper wallets, have been introduced to help people self-custody their crypto as a security solution. But the level of complexity is too high for the average person to use intuitively, also leading to lost assets and potential security vulnerabilities.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689045081/hardware_wallet_digital_assets_security_6c0d054071.jpg" alt="A hardware wallet next to a computer keyboard to depict crypto wallet security discussion"><h2>Ethereum and the multisig wallet&nbsp;</h2>Ethereum (ETH) and the host of crypto assets minted off the Ethereum Blockchain have also been the target of scammers, hackers, and sadly, an overly complex UX. Early ETH wallets were hard to manage individually without some level of tech savviness. Today, the sheer number of wallets and types of wallets is confusing, which can lead to loss, mismanagement of assets (by you or someone else), and added risk vectors.Multisig (multi signature) wallets evolved for both Bitcoin and Ethereum as a way to overcome the risks of self-custody wallets. Generally, the way they work is you have 2 separate private keys for signing transactions held by you on 2 different devices. A 3rd is a backup key that is held offline by a trusted friend or provider.&nbsp;<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689045194/Multi_sig_wallet_crypto_security_social_verification_a5ab94c39c.png" alt="A diagram depicting how crypto multisignature wallets work">Source: <a href="https://medium.com/unidocore/what-is-multisig-what-is-key-management-in-crypto-6d08b6ffbeae" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Unidao</a><h2>Looking beyond multisig and hardware wallets</h2>So far, multisig wallets and cold storage have not been enough to protect our crypto holdings. They continue to cause confusion, inhibit adoption, and lead to centralized vectors where our crypto holdings are exposed to additional risks.Ethereum’s Founder, Vitalik Buterin, has talked extensively about a new era of security, with the concept of Social Verification at the forefront. Buterin has been stressing the need for better crypto wallets since 2021:“An ecosystem whose only answer to losses and thefts is a combination of 12-step tutorials, not-very-secure half-measures, and the not-so-occasional semi-sarcastic ‘sorry for your loss’ is going to have a hard time getting broad adoption.” <a href="https://vitalik.ca/general/2021/01/11/recovery.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">- Vitalik Buterin</a>Vitalic cited a need for a wallet design that could do 3 things:<ol><li>Remove the single point of failure (like one device or an exchange).</li><li>Make the wallet usable with the users having to learn new things (think backups and mnemonic seed phrases).</li><li>Ensure that making transactions is a seamless easy process (no extra steps for everyday transactions).</li></ol><h2>Social verification wallets improve upon the status quo</h2>Wallets like Gridlock use a social verification process that checks all three boxes in Buterin’s design recommendation. Recovery of lost assets due to a damaged or lost device is possible through social recovery, and social verification provides a higher level of security from hacks and scams.<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1689045308/Social_verification_makes_crypto_storage_safer_2effaa57d1.jpg" alt="A man at a computer with three checkmark floating in his hand to depict social verification"><h2>What is Social Verification?</h2>Gridlock Wallet utilizes a system of social verification, where trusted individuals or devices, known as <a href="https://gridlock.network/blog/how-to-choose-guardians-for-distributed-crypto-storage" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Guardians</a>, can be designated to protect key shards. This feature adds an extra layer of personal protection to user assets. Additionally, the user experience is simplified and intuitive.The team at Gridlock has built a solution that replaces the need for individually backing up and storing your private keys. Using a Social Verification system that is easy from the user’s standpoint and securely encrypted among devices, Gridlock is leading the way to the next evolution of <a href="https://gridlock.network/blog/crypto-wallets-101" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">crypto wallets</a>.&nbsp;<h2>How it works</h2>Your private keys are split at the time they are generated into key shares and securely stored on a distributed network of trusted devices that you design.&nbsp;<ul><li>People you trust and nominate to hold one of these fragments are called “Guardians”.</li><li>Each Guardian you invite has no knowledge of other Guardians.&nbsp;</li><li>Individual key shares are useless without the other key shares.</li></ul>Key management is distributed amongst multiple parties, but only you have control because you have the most authoritative key share by design. Only you can assemble the key shares to make a transaction.If you lose your private keys, a combination of the key shares can reconstruct it for you without any of the other key shares ever gaining access to your private keys or seeing your holdings or transactions. This process is called <a href="https://gridlock.network/blog/social-recovery-vs-backing-up-private-keys-for-crypto-security" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Social recovery</a>.&nbsp;<h2>Why Gridlock?</h2>Social verification and recovery mean that Gridlock keeps the complexities of superior wallet encryption behind the scenes so you can keep your crypto safe without the typical worries of <a href="https://gridlock.network/blog/what-is-self-custody-in-the-world-of-cryptocurrency" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">self-custody</a>, such as losing your private keys.&nbsp;<a href="https://gridlock.network/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(74, 110, 224);">Download Gridlock</a>, a crypto management system that uses social verification to maximize security over the long haul for crypto users of all experience levels. ﻿- - - Written by Mason Winsed<img src="https://res.cloudinary.com/duwaapbve/image/upload/v1702583760/a7_1_09785caf35.jpg" alt="a7 (1).jpg">Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time,&nbsp;he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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