The Gnosis Safe multisignature wallet is now available to all users and decentralised applications (dApps) of the Avalanche blockchain (AVAX). A simple way to secure your funds
More security for Avalanche users
On Twitter, blockchain company Avalanche (AVAX) announced that Gnosis Safe would now be compatible with its network in order to increase security for its users.
Projects, developers and DAOs can expand their security tooling with @gnosisSafe now supporting Avalanche Setup Gnosis Safe multisig wallets to securely transact and store digital assets.https://t.co/ZbzBNOrSlh
– Avalanche (@avalancheavax) December 15, 2021
As with a traditional wallet, a multisignature wallet allows you to send and receive cryptocurrency, but also to interact with smart contracts.
How does a multi-signature wallet work?
With a multisignature wallet, also known as a multisig, any transaction will necessarily require validation by at least two different addresses.
It’s like trying to open a door with two locks. In either case, you will need two different keys, one is not enough. If you have the first key, then you will have to ask someone else to use their key at the same time as you, and vice versa.
As you can see, this way, it is much more complicated to have your funds stolen
Why use a multi-signature wallet
The main advantage is security. It will be much more difficult for someone with malicious intent to hack a wallet with multi-factor security than if it only had a single key.
Indeed, if you only have a single key wallet, if it is ever lost or stolen, then you will have no way of preventing a bad person from emptying your funds.
With a multi-signature wallet, even if someone finds one of your keys, they will not be able to make any transactions unless you give them the opportunity to do so via a third party or via one of the terminals with one of the authorised addresses.
Decentralised applications (dApps) and decentralised autonomous organisations (DAOs) can also use it, such as the decentralised Pangolin exchange (PNG) built on the Avalanche blockchain.
Thus, it helps to avoid any hacking due to phishing or any other attack.
How to create and use a Gnosis Safe multi-signature wallet
It’s very simple and only takes a minute.
First, go to the Gnosis Safe page dedicated to this purpose.
Then click on “Create new Safe”:
On the next page, simply connect Gnosis Safe to your wallet (MetaMask, Ledger…) and choose on which network you want to use it (Ethereum, Avalanche…)
Then simply name your new multi-signature wallet.
For the last step, you need to define how many and who will be the users with access to the wallet. Note that your personal wallet address is listed in the first line of text by default.
As explained in our article on setting up a multi-signature wallet, one of the simplest and most effective choices is to set up a “2-of-3” setup. You will then have three different keys:
- A “hot” key that stays on your computer’s hard drive;
- A “cold” key on your Ledger;
- A “back-up” key in the form of a seed kept only on paper.
So you alone have all three keys, but you will only need two of them to validate your current transactions, and you will always have a back-up if you lose one of the three.
A fee of a few cents will need to be paid to validate the creation.
