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Vitalik Buterin, co-founder of Ethereum 
$2,611, urged Web3 wallet developers to prioritize security and privacy in decentralized wallets. In a blog post dated December 3, 2024, Buterin emphasized that wallets should be designed to enhance decentralization and privacy.
Integration of Privacy Features
Buterin stated that privacy in Web3 wallets should not be an optional feature but an integral part of all wallets. Currently, users have to resort to specialized “privacy wallets” when they wish to conduct private transactions. He pointed out that this approach creates additional challenges for users and limits the number of individuals willing to participate in private transfers.
Simplifying Layer-2 Transfers
Buterin proposed adopting a standard wallet address format to minimize the complexity of token transfers among Ethereum’s Layer-2 (L2) networks. This would facilitate token sending across different L2 networks and improve the overall user experience.
Advanced Security Systems
Furthermore, Buterin highlighted the need for better security features in Web3 wallets to combat malicious activities. He suggested a two-layer security system incorporating social recovery and multi-signature combination with graded access control. In this system, users would hold the primary key for low-value transactions, while critical changes for high-value transactions would require the majority agreement of custodians.
Buterin’s call supports the principle of decentralization, previously emphasized in his plans for enhancing the Ethereum network. Prioritizing privacy, security, and user experience in the Web3 ecosystem could boost platform adoption.
In conclusion, implementing the proposed security and privacy improvements could enable Ethereum users to conduct safer and more confidential transactions.
