BTC $63,139.60 +0.02%
ETH $1,884.03 +0.45%
BNB $606.53 -0.13%
XRP $1.00 -0.27%
SOL $75.53 -0.32%
TRX $0.3321 -0.50%
DOGE $0.0699 +0.24%
ADA $0.1802 -0.66%
BCH $203.72 -1.14%
LINK $8.89 +1.52%
HYPE $55.91 -3.02%
AAVE $86.64 -0.95%
SUI $0.6781 -0.81%
XLM $0.1600 +0.75%
ZEC $492.05 +1.04%
BTC $63,139.60 +0.02%
ETH $1,884.03 +0.45%
BNB $606.53 -0.13%
XRP $1.00 -0.27%
SOL $75.53 -0.32%
TRX $0.3321 -0.50%
DOGE $0.0699 +0.24%
ADA $0.1802 -0.66%
BCH $203.72 -1.14%
LINK $8.89 +1.52%
HYPE $55.91 -3.02%
AAVE $86.64 -0.95%
SUI $0.6781 -0.81%
XLM $0.1600 +0.75%
ZEC $492.05 +1.04%

eba

All
Article
Flash

The cryptocurrency industry is once again debating "who should hold the private keys" due to the $130 million theft case involving the Coldcard wallet

A wallet security incident involving approximately $130 million in Bitcoin losses is reigniting discussions in the crypto industry about asset custody models: should Bitcoin holders rely on personal self-custody or turn to institutional custody? Hardware wallet manufacturer Coldcard had a vulnerability in its firmware in 2021 that led to some mnemonic phrases generated by the device being predictably risky. This vulnerability was discovered years later, and approximately 5,200 addresses and about 2,000 BTC have been stolen, with losses amounting to around $130 million.After the incident, some investors began to turn to Wall Street custody products. Data shows that the U.S. spot Bitcoin ETF saw a net inflow of about $626 million within days of the incident. Bloomberg ETF analyst Eric Balchunas stated that such security incidents could further drive funds into ETFs. However, the Bitcoin core community still insists on the self-custody concept. Casa co-founder Jameson Lopp stated that recent events should not undermine users' confidence in self-custody and pointed out that third-party custody also carries risks. Bitcoin Core early developer Peter Todd also believes that self-custody has a better long-term safety record than centralized institutions.Onramp co-founder Michael Tanguma believes that both options have flaws. He stated that concentrating a large amount of assets in a single institution creates a "honey pot," while hardware wallets face risks related to supply chains, firmware, and random number generation. Tanguma proposed a "multi-institution custody" solution, where multiple regulated institutions hold keys through a multi-signature mechanism, requiring multiple institutions to jointly sign any transaction to reduce single points of failure. However, this model has also sparked controversy. Critics argue that while multi-institution custody enhances security, it also introduces permissioned management, conflicting with the decentralized ideals originally pursued by Bitcoin. As Bitcoin gradually enters the fields of pensions, trusts, and institutional asset allocation, the industry is seeking new custody solutions suitable for long-term wealth management. The Coldcard vulnerability incident once again highlights that achieving a balance between security, decentralization, and usability remains a core challenge facing the Bitcoin ecosystem.

The latest funding crisis in Ethereum has sparked intense debate, focusing on whether staking rewards should be taxed

According to Cointelegraph, Ethereum is embroiled in a fierce governance debate over the source of core development funding. Last Friday, former Ethereum Foundation contributor Trenton Van Epps warned that as old support programs deplete and foundation expenditures shrink, the core development ecosystem could face a "slow-burning funding crisis" within three to nine months, requiring approximately $30 million annually to maintain over a dozen clients, research, and coordination teams.The core of the debate stems from the "validator redirect income" proposal put forward by Kleros co-founder Clément Lesaege, which suggests redirecting 0% to 10% of validator rewards to an ecosystem funding pool, estimated to generate about 50,000 to 70,000 ETH annually at current staking levels. This proposal has faced widespread opposition, with critics warning that it could entrench the power of large validators and blur the boundaries between operations and governance. Some community members previously countered that the foundation's funds are sufficient to operate for 30 years, but the foundation's actual decisions indicate that it is actively shrinking expenditures and pushing for diversified funding models.On Monday, a nonprofit organization called EthLabs was announced, initiated by five former Ethereum Foundation researchers, aiming to directly fund development through large ETH holders. On Tuesday, Ethereum founder Vitalik Buterin stated that the foundation is cutting its budget by about 40% according to established policies and has recently laid off 54 people.
app_icon
ChainCatcher Building the Web3 world with innovations.