Falling of smart contract wallet
Hi frens,
Blocto has announced to sunset EVM support, probably in response to Taiwan’s tighten regulations, and asked users to withdraw assets.
What does that mean? Do we lost control of smart contract wallet when the vendor ceased operating? Doesn’t deployed smart contract work forever? Shouldn’t everyone move to smart contract wallets, and not your keys means not your coin...
Ouch. If your smart contract wallet features “social login” or “no seed phrase”, chances are you may lost control of the wallet when the “social login” service stops working.
Smart contract wallet is nothing magical, but simply some programs on the blockchain that help you manage the assets. These programs can delegate some control to others, for example, to social recovery guardians. But if you don’t have the ability to use your own keys to manage the wallet, then you don’t fully own the coins inside!
Designing a secure social recovery wallet is complex — it’s no easier than managing passwords or multi-factor authentication. But it’s also never been the real blocker to mass adoption of crypto.
Lastly, back to Blocto’s case, it actually offers switching to non-custodial model, but not mentioned in the announcement, probably because the smart contract hasn’t and wouldn’t be actively developed anymore.
Your friend,
Denken