The issue of trusting centralized bodies with crypto keys came back into the spotlight following the collapse of FTX.According to the original bankruptcy filings, several million users are still waiting to retrieve between $1 billion and $10 billion worth of cryptocurrency assets held in the Bahamas-based exchange.The collapse served as a reminder that self-custodying your own digital assets by keeping the cryptographic keys safe (on your own computers, a hardware device disconnected from the internet, or even written on a piece of paper locked in a safe) would prevent consumers from falling victim to scams like FTX.
Self-custody is the sole option, according to crypto purists, because controlling one’s own keys prevents the dangers of centralization.However, crypto users have frequently noted that guarding one’s keys can be nerve-wracking because there aren’t many recovery techniques available in the event that users misplace their keys.
At Consensus 2023, a closed-door roundtable discussion examined how legislators might develop strong consumer protection rules without compromising or perhaps possibly boosting the crypto culture of asset ownership.Participants came from a range of fields, including business, technology, and law. Looking at the results to the poll question,What percentage of people have the knowledge/comfort to hold crypto keys? that was posed to the larger Consensus audience. Less than 10% of crypto users are proficient and at ease storing their own keys, according to the 169 participants who responded to the electronic poll, which was answered by little over half (54%) of them.