Ethereum Co-founder Vitalik Buterin Engages in Spirited Debate on Wallet Security
Terrill Dicki Jun 29, 2023 03:23
In a recent Ask Me Anything (AMA) session on Twitter, Ethereum co-founder Vitalik Buterin fielded various questions from the cryptocurrency community. The session largely revolved around the pros and cons of MPC-based (EOA) wallets versus Smart Contract wallets, providing intriguing insight into Buterin's perspective.
In a recent Ask Me Anything (AMA) session on Twitter, Ethereum co-founder Vitalik Buterin fielded various questions from the cryptocurrency community. The session largely revolved around the pros and cons of MPC-based (EOA) wallets versus Smart Contract wallets, providing intriguing insight into Buterin's perspective.
Buterin pointedly criticized MPC-based Externally Owned Accounts (EOAs), stating that they are "fundamentally flawed" because they cannot revoke keys. Resharing the keys, he argued, is not a valid countermeasure since the original key holders could still recover them. He went on to imply that Smart Contract wallets should be the go-to choice, though his declaration elicited a range of responses.
One Twitter user, identified as Trevor, contested Buterin's assertion. He argued that key revocation wouldn't be a problem unless there's a colluding quorum of old key holders, suggesting that resharing could provide the necessary security. However, Buterin was not swayed, stating he didn't want to "trust a quorum forever."
Ouriel from ZenGo, a keyless crypto wallet, interjected with several perceived flaws of Smart Contract wallets. He pointed out that these wallets are limited to ETH/EVM, are relatively expensive to set up and recover on Layer 1 (L1), and that smart contracts could potentially be revoked.
Buterin rebutted these points, noting that Bitcoin needs a tech upgrade, a viewpoint he stated has been known for over five years. Regarding the costliness of L1 setup and recovery, he acknowledged that it is an issue and further emphasized the need for Layer 2 solutions (L2s) and more in-protocol support for smart contract wallets. As for the potential revocation of smart contracts, Buterin sought clarification on what Ouriel meant, leaving the point unresolved during the AMA.
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