Summary
Wallet infrastructure provider Safe has partnered with digital asset bank Sygnum and cryptocurrency recovery group CoinCover to launch Safe{RecoveryHub}, a solution for social recovery of crypto wallets. Social recovery allows users to recover lost or forgotten private keys by relying on trusted individuals or third parties. Safe{RecoveryHub} enables users to set up recoverers who can access their accounts only when a recovery is needed. The recovery process involves executing recovery transactions and generating new owner keys to regain access to smart accounts. Safe{RecoveryHub} is seen as an important step towards wider adoption of cryptocurrencies, as it allows users to remain in control of their funds while providing recovery options.
Key Points
1. Safe{RecoveryHub} is a collaboration between Safe, Sygnum, and CoinCover to introduce social recovery options for crypto wallets. This aims to address the issue of lost or forgotten private keys, which has resulted in a significant amount of ether being inaccessible.
2. Key management systems in Web3 currently have limited recovery solutions, meaning that if a user loses their private key, they can no longer access their assets. Social recovery offers a solution by allowing users to designate trusted individuals or entities as recoverers who can help recover a missing private key.
3. Safe{RecoveryHub} users can set up multiple recoverers for added security and control. The recovery process involves creating a recovery transaction and replacing lost access keys with new keys that the user controls. The timelock module used for social recovery has been built by the Gnosis Guild and has been in production for multiple years.