As security is a priority to us, we will be performing a security upgrade to the DAPS development fund.
Instead of the DAPS development fund being in a normal wallet, we will now move it to a new multisig wallet that meets our security standards and needs.
“Why does the DAPS Dev Fund wallet have to be moved to a multisig wallet?”
Using a normal wallet has a few disadvantages to it:
For example, recently there have been some cases where people lost their private keys and no-one else had any backup copy of it, rendering their assets locked forever as was recently the case when the CEO of the Canadian Exchange QuadrigaCX passed away, taking significant amounts of the exchange’s assets with him into his grave – Read Here
Another downside of a normal wallet is that even if there are multiple holders of the same wallet, it could still be compromised for example; one of the holder’s Private Key were somehow stolen or compromised otherwise by one of its owners getting abducted, blackmailed or hacked then it would create a big security risk. The chain is only as strong as its weakest link.
The solution to eliminating any of these issues and risk factors is to use a multisig wallet. A multisig wallet is also another step towards further decentralization of the DAPS project.
“What is a MultiSig wallet, and how can a MultiSig wallet solve these issues?”
Multisig wallets have many advantages compared to a regular wallet. A multisig wallet is essentially a smart contract.
With a multisig wallet there can be multiple signees (owners) of the wallet who have access to it, and specific rules can be configured of how it can be used.
For example, it can have 6 signees (owners), and in order for a transaction to be made, it can be configured that there must be at least 4 out of the 6 signees who confirm this transaction before it is executed.
Of course, there are more benefits to using a multisig wallet. To name a few advantages in short:
- A multisig wallet creates redundancy: if a wallet holder loses their Private Key, all access is not lost and the holder’s access can be restored by replacing them with a new owner wallet.
- It is very secure: If someone’s Private Key somehow gets stolen, the wallet itself is still safe as the thief cannot make any transaction and the thief’s access can be revoked.
- It reduces the individual risk of the wallet holders: Hacking, abduction, blackmail or other forms of pressure are rendered useless as they cannot control the multisig wallet without the consent of the minimum set amount of other wallet holders.
Here is a YouTube video explaining Multisig Technology in an easy to understand format:
“When will this upgrade happen, and how?”
The Development Fund will be moved to the new multisig wallet today the 24th of February 2019 before the ETH hard fork happens this coming week.
The address of the new DAPS MultiSig Development Fund wallet is:
We hope you are having a good weekend, stay tuned for poll and testnet updates to follow this week!