CEO Binance And Vitalik Buterin Talked About Secure Storage Of Cryptocurrency

Changpeng Zhao, CEO of the popular crypto exchange Binance, believes that the best solution for organizing the safe storage of digital assets for most users is the use of the crypto exchange wallets.

The specialist decided to express his opinion in response to the incident with the loss of access to cryptocurrency, which was recently shared by well-known Bitcoin critic, CEO of Euro Pacific Capital, Peter Schiff.

Many hardcore crypto ogs advocate storing your own keys. But the truth is, today most people are not able to secure a key even from themselves (losing it). A trusted centralized exchange is #SAFUer for most people. The numbers speak for themselves.

Need to work on wallets. https://t.co/bsX3Ea5WCD

— CZ Binance (@cz_binance) January 19, 2020

As an argument in favor of storing cryptocurrency on centralized exchanges, the specialist cited the possibility of organizing the safe maintenance of the assets involved in the framework of the Binance project. Recall that one of the technical solutions of the platform is the SAFU fund. The latter deducts 10% of the fees charged on the platform.

The fund is considered as an element of user funds insurance. In case of theft of customer assets, cryptocurrencies accumulated in SAFU can be used to cover losses. An example of the involvement of the fund was an episode with the theft of $ 40 million from Binance in the spring of 2019.

Users on the network drew attention to the fact that tips on organizing the safe storage of funds from a representative of a platform that had previously been hacked look unconvincing.

Ethereum co-founder Vitalik Buterin joined the discussion about organizing safe storage of funds. The specialist believes that the responsibility for the security of access keys should extend to project developers.

Disappointed at people replying to this with “crypto is what it is, it’s your job to be super-careful and write down backup seeds in three places”. We can and should create better wallet tech to make security easier.

Eg. here’s a social recovery ERC WIP: https://t.co/tuSbHhXKgd https://t.co/hCBAJKbK41

— vitalik.eth (@VitalikButerin) January 20, 2020

He expressed his opinion in response to the accusations of Peter Shif that losing access to cryptocurrency is exclusively his problem.

As a solution to the problem of access to digital assets, the specialist suggested using technology that involves the distribution of parts of the key among proxies.

Recall, recently it became known that the co-owner of Yahoo! Japan will help Binance with expansion in Japan.

Discuss