Secure your cryptos with gnosis safe
A lot of people are wondering about the best way to secure their cryptos. Whether to protect yourself from a Hack, in the event of loss / forgetting of your seed, or in the event of issues (family, health, equipment, etc.). There is a great amount of reason to want to guarantee your capital as much as possible.
I very nice combo to use is Metamask + Ledger . This provides excellent protection, but it is possible to extend the lanyard even further. The main function of gnosis safe to increase your protection is that you have to validate a transaction through several wallets. So, even if 1 of your wallets gets hacked, if it is stolen … the transaction cannot be completed.
You will also realize from the article that this can protect you against further mishaps
Here is a brief summary of what Gnosis offers with its gnosis safe:
“Fully customize how you manage your personal crypto assets, with the option to require multiple devices to confirm transactions (hardware wallets, EOA-based wallets, paper wallets, or a combination of them).”
The app is available for web, desktop and on mobile. So you can access it virtually anytime and anywhere.
- First, you have to create a safe. Just go on this website and follow the different steps.
- Choose a name
Now we come to the important stage. You will then need to enter the addresses that will have access to this safe. As well as the number of confirmations it will take to validate a transaction.
If you enter 2 addresses and ask for 2 confirmations. This means that the 2 wallets will have to validate the transaction for it to be effective. It should be noted that the 2 wallets do not have to validate the transaction at the same time. It may sound trivial, but a lot of users are wondering. A wallet can validate, so this will put the transaction “on hold”, and it will be carried out when the second wallet validates the transaction.
Regarding the number of addresses and validation There is no right or wrong combination. It all depends on what you want to do. For example, you can enter 5 wallets and ask for confirmation by 3 of these 5 wallets to complete the transaction.
- Once the various steps have been completed, you will have access to your safe’s dashboard. As you can see it is empty. Indeed, this safe is a new wallet. It is therefore necessary to send tokens on it. You will not have access to the tokens on the wallets you entered previously. They are only used for validations and to pay transaction fees. It is therefore important to always keep some ETH on these wallets.
- Thanks to your newly opened safe, you can do simple actions, such as sending tokens to another address. But it is also possible to interact directly with dAPPs. However, it should be noted that not all dAPPs are integrated (but the list is growing very regularly.). It should also be noted that a WalletConnect app is available. So, all dApps that work with WalletConnect should work with Gnosis safe You can find out more here.
For example, you can generate a loan on Liquity protocol. Or deposit and borrow from Aave.
Draw interest-free loans against ETH as collateral with decentralized borrowing protocol @LiquityProtocol: pic.twitter.com/wSU44jvsnn
— Gnosis Safe (@gnosisSafe) April 27, 2021
Note: More and more dAPP are integrated. If you are able to integrate a new one, check out this little “grant” program (up to $ 10,000 up for grabs).
Example: Interaction with Compound
In this example, we are going to interact with compound and deposit some ETH. To do this, simply click on Compound in the APPS window (previous screenshot).
Then you just have to select the token you want to deposit (or withdraw), the amount and click on Supply (or withdraw)
You will then have to sign the transaction.
In this example. 2 confirmations are required to validate the transaction. As you can see in the following screenshot, an address confirmed and a confirmation is pending. So all you have to do is connect to your safe from the other address and validate this transaction. To do this, simply go to the TRANSACTIONS tab and then to QUEUE. The last validating address will have to pay the transaction fees. You must therefore have ETH in this wallet.
You will then see the history of your transaction with the different steps and the addresses that participated.
There are other ways that Gnosis Safe can be used.
Gnosis Safe isn’t just for organizational use – it’s a great solution for individual users who seek peace of mind about key recovery.
Our modular system enables users to design a setup that meets their needs without overreliance on “family” or “team” access control features. pic.twitter.com/vunPnmN7wR
— Gnosis Safe (@gnosisSafe) April 23, 2021
For example, you can use it to secure your cryptos if one day you lose your private key. All you need to do is to add 2 addresses to your gnosis safe and validate transactions with only one of those 2 addresses. So, you can use your gnosis safe like a normal wallet, with just one confirmation. You can, for example, leave the other wallet (a ledger key for example) in a safe or with a member of your family. If one day you no longer have access to your main account, you will still be able to access your gnosis safe via the second wallet. Be careful, as you may have noticed, this does not protect against a hack for example, because if someone takes control of your wallet they will still be able to carry out transactions since only 1 signature is enough. . It’s up to you to be inventive to be both protected in the event of a hack and loss of your private keys.
Example: gnosis safe with 3 wallets and 2 signatures required. One of the wallets is stored in a safe or with a member of your family
It is also possible to play with the mobile and web version. It’s up to you to be inventive!