Jameson Lopp, the chief technology officer and co-founder of Bitcoin wallet provider Casa states an increasing desire for Ethereum self-custody solutions. Lopp told Cointelegraph in a talk at Bitcoin 2023 that Casa has determined it is vital to offer Ethereum support owing to the rise of Ethereum users requesting the service.
Stablecoins and other Ethereum-based tokens must be stored securely due to events like the collapse of FTX in 2022. Lopp Added :
“I’ve talked to Casa clients who lost money due to a few failures last year. Those that kept their Bitcoin in Casa did okay, but some lost other things, including stablecoins, because they couldn’t place those into a distributed cold-storage structure.
Casa said in December that it would be adding Ethereum support to address this issue. Lopp said this choice was “controversial for some,” alluding to online Bitcoin BTC $26,825 supporters who criticized it. The business nevertheless carried out the strategy since its customers wanted it.
According to Lopp, users continue to believe that there is a step “learning curve” associated with self-custody. Although creating a wallet and transmitting cryptocurrency are simple processes, adopting the right security practices can be challenging and give clients the impression that self-custody is challenging.
He said that if you begin by perusing all of the security-related literature, it can be intimidating. However, “we are baking all of those best practices into the product itself so that you follow the instructions of our software, and it sits you in the position where you can be human, you can make a mistake, and it won’t result in a catastrophic loss.”
According to Lopp, the Casa service is “an extremely secure cold-storage setup with distributed keys.” Its initial market consisted of “mega-whales” ready to pay $10,000 yearly for custody. Still, it has since broadened its selection to the point where it now even provides a free version with restricted functionality.
With Satoshi Nakamoto’s creation of the first Bitcoin wallet, BitcoinQT, crypto self-custody was born. Although many experts claim that this practice is unsafe, as the number of cryptocurrency users has increased, many new users have decided to keep their cryptocurrency under the authority of centralized exchanges. Some wallet providers claim that new technology will simplify self-custody and encourage more users to manage their crypto assets to tackle this problem.
