"PulseChain Safe" Multi-Sig is launching soon on mainnet – and it aims to solve TWO major problems.
1. LOSE YOUR SEED PHRASE, and you can kiss goodbye to whatever assets you had stored on that wallet.
2. GET YOUR ASSETS STOLEN – and it's the same result once more – you can kiss goodbye to those assets also.
Enter "PulseChain Safe" – a forked version of Ethereum network's highly popular Gnosis Safe.
PulseChain Safe provides a way for you to secure your crypto assets and ensure access for your loved ones in case of emergency.
For example, say you have only one private key for your crypto wallet, which is the case for most.
If you were to pass away, and your family members don’t have access to your seed phrase, your asset could be lost forever.
However, if you establish a multisig, involving your family members, they could retrieve the digital assets and not have to rely on your single private key.
PulseChain Safe is a multi-signature smart contract wallet that enables users to designate a group of owner/signer accounts and establish a minimum number of signers needed to authorize a transaction.
Once the required number of owners have approved a transaction, it can be executed within the PulseChain Safe.
One way in which Safe could be used is to hold a group of individuals accountable to long-term goals within crypto.
For example, a group of users (or a single user) can set up a gnosis safe to interact with the Liquid Loans protocol.
Let’s say they decide to set up a 5-wallet multisig which requires 3 signatures to approve a transaction.
This means that without a majority decision from the group of 5 individuals, no function within the protocol, such as staking, stability providing, redeeming, or borrowing, can be executed.
Safe has already seen massive adoption on other chains and so it is only logical to bring it to PulseChain.
PulseChain Safe is a gift to PulseChain since many desire its functionality and added security benefits.
It was built by the community and for the community.
It is important to not just use any multisig wallet or safe fork. If the smart contract is not audited and fails in some way, millions of dollars of value could be locked up and lost.
By utilizing multisignature wallets, users can have peace of mind knowing that even if one of the keys is compromised, their funds remain secure.
Let's say Alex creates a 2-of-3 multisignature address and stores each private key on different devices or in different locations (such as a mobile phone, tablet, and laptop). Even if one of the devices is stolen, the thief won't be able to access Alex's funds with only one of the three keys.
Multisignature technology also mitigates the risks of malware infections and phishing attacks since hackers would typically have access to only a single key or device.
If Sarah creates a multisignature wallet that requires two keys, she establishes a two-factor authentication mechanism to access her funds. Sarah can store the private keys on two separate devices, and the funds stored in her multisignature wallet can only be accessed when both keys are provided.
However, using multisignature technology as two-factor authentication can be risky, especially in a 2-of-2 multisignature setup. If one of the keys is lost, accessing the funds becomes impossible. Therefore, it is safer to use a 2-of-3 configuration.
Let's imagine that Michael and Emily find themselves in a dispute. Michael makes a payment, but Emily fails to deliver the promised goods or services. In such a scenario, escrow transactions come into play. To resolve the dispute, a mutually trusted third party or arbiter intervenes. In a 2-of-3 multisignature wallet configuration, the arbiter is given the third key. Based on the arbiter's judgment, the key can be assigned either to Michael or to Emily.
Consider a company with four members on its board of directors. By establishing a 4-of-6 wallet, each board member gains access to one private key. This setup prevents any individual board member from misusing the funds. Therefore, only decisions that have the majority agreement of the board members can be executed.
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Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.
Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.