Jump to content
Sign in to follow this  
Julian_Williams

Security for future wallet owners

Recommended Posts

This subject developed on Hodor's Comments where I was imagining a world where wallets become personal bank accounts, the conversation started :

"Do you think Wallets are going to be like mobile phones and landlines? -  at first people will have wallets as well as bank accounts, then they will find wallets have more features than their bank accounts and they will drop their bank accounts (as they have dropped their landlines)."

I followed with a question, suppose I have my life savings in my wallet, perhaps 35K XRP is then worth $500 per token - that would be a lot of money.  Could a thug put a gun to my head and force me to transfer the lot to another wallet in exchange for sparing my life.  Would that transaction be stoppable and would the cash be retrievable?  Obviously one solution is to have most of the money in a second wallet that is only accessible through channels that would delay payments, maybe held in a bank vault.

How do you stop thugs being thugs.  I am thinking of a society where most people have an iphone with a connection to their wallets with thugs and drug addicts creaming vulnerable people walking through alleyways or in car parks.

At present banks watch for suspicious activity on bank accounts holding high amounts of savings, obviously there would be less scrutiny over wallets unless security features/settings are built into the wallet software; maybe settings not allowing more than $10,000 to be transacted per day. 

 

Edited by Julian_Williams

Share this post


Link to post
Share on other sites
9 minutes ago, Skippy said:

Best bet would be to not talk about your crypto ever to anyone.

Second best thing to do... don't keep it so you have access to your funds all the time.

I think we have to consider the General Public will not be that savvy as investors on this forum and need protection.  Banks already do this to a degree, but sometimes fail.  There was a lady on the radio who was persuaded by a scammer to transfer £50K in lots of 10K from a Santander bank account to an unknown bank account.  Santander were the only bank that allowed these scammers to transfer repeated amounts of 10K and they were rightly criticised because every other bank have protective routines to delay the second transaction and alerted the owner of the suspicious activity.

If wallets become as ubiquitous as mobile phones and thugs know they can intimidate people to transfer their savings they will become targets and it will happen.

Edited by Julian_Williams

Share this post


Link to post
Share on other sites
40 minutes ago, scoobysi said:

on a more general note though it is the one thing that tempts me to learn how the escrow thing works so I could lock away the bit I wouldn't sell in the short term & no-one could even under threats of death get me to give......

This is what I’m currently trying to learn! It’s a bloody nightmare. There are no how to’s whatsoever!

There are paid services like reservoir lite, but I’m trying to eliminate the trust issue by doing it myself on an offline raspberry pi with Ripple API.

Share this post


Link to post
Share on other sites
5 hours ago, scoobysi said:

on a more general note though it is the one thing that tempts me to learn how the escrow thing works so I could lock away the bit I wouldn't sell in the short term & no-one could even under threats of death get me to give......

Then they target the destination wallet... It would just be a delayed theft.

Escrow is not security, just a time delay. I guess it would make you a less desirable target, but to technically protect your wallet you need to take other precautions.

Share this post


Link to post
Share on other sites

You can have a phone wallet and a savings wallet. Savings wallet is not on your phone. Keeping enough on your phone wallet for day to day spending. Should thugs force you to transfer from your phone you only lose what’s in your phone wallet. Enough to make them go away but not your life savings. 

Same principle for storing cash/gold in your house. Have more than one safe. The decoy safe has enough that thugs think they got the goods. 

Edited by Kaidan

Share this post


Link to post
Share on other sites

The problem with the dual wallet trick is that anyone can look up all your wallets' transactions once they have one of your XRPL addresses, and it will become clear that you have more stashed away than you carry on your phone. UNLESS you never link the XRPL accounts by only cross-funding them via an exchange that doesn't give you a native XRPL wallet.

Share this post


Link to post
Share on other sites
1 hour ago, PunishmentOfLuxury said:

The problem with the dual wallet trick is that anyone can look up all your wallets' transactions once they have one of your XRPL addresses, and it will become clear that you have more stashed away than you carry on your phone. UNLESS you never link the XRPL accounts by only cross-funding them via an exchange that doesn't give you a native XRPL wallet.

Ok too be fair I was assuming we were talking about thugs, not a higher “professional” level criminal ? 

Share this post


Link to post
Share on other sites

Everyone gripes about their bank until their debit/credit card is stolen. Fill out a bank form and a police report and voila! Reimbursement. For crypto to ever be used mainstream, some way of reimbursing theft and fraud must be created. Some form of insurance where you pay a small premium or something? There’s insurance for practically everything else. 

Edited by Deeznutz

Share this post


Link to post
Share on other sites
Guest

I have always believed there are two major hurdles before masses buy crypto regardless of volatility.

1)

Ease of buying, which is getting better everyday now and will only be improving.

2)

This is a major area of concern, "Storage" We need custody solutions for small investors, where all their crypto regardless of small stash or big is insured, like fiat in your bank accounts. I believe this will also come with time, until then you can never be sure, no matter how tech savvy you are.

Share this post


Link to post
Share on other sites
1 hour ago, Invincible said:

This is a major area of concern, "Storage" We need custody solutions for small investors, where all their crypto regardless of small stash or big is insured, like fiat in your bank accounts. I believe this will also come with time, until then you can never be sure, no matter how tech savvy you are.

Custodial solutions will allow the masses to hold crypto (likely "digital fiat") in the future.  The custodial solutions will act like banks do today (I can hear the anarchists screaming already).   They will give you insurance, security, ease of use etc.  I can't ever see the masses using wallets as we use them - it would be a clusterfu3k of immense proportions - in fact, nobody would accept it - it's designed for early adopters.  Imagine if you had to access the internet via typing in a bunch of commands in a command shell - it would not be accepted by the masses. 

Share this post


Link to post
Share on other sites

I think it begs for technical solutions. It's like a bank account, some people lot's of money in their accounts (non savings), but there is a limit as to how much they can withdraw at one time or in one day. Moreover, banks are monitoring for suspicious withdrawals depending on the type of client, should something bad happen regardless, accounts are insured and people can get reimbursed for losses. 

The same can be applied to crypto holdings, but right now everyone is the master of their own wallet, nobody is monitoring for suspicious activity, nor helping you to achieve a level of security. It all comes down to personal responsibility. That's not good risk management when there are large amounts involved. Maybe banks will again become the custodians of value with regards to crypto, but they're gonna need Schwartz-type minds to make it safe. 

Share this post


Link to post
Share on other sites
Sign in to follow this  

×