Stellar Lumens (XLM) Development Fund introduces SEP-30: Key Management and RecoverySeptember 1, 2020
Blockchain technology is known for its decentralization, security of funds, immutability, and transparency. It allows funds to be sent without trusting a third party. It has simplified cross-border remittances and ended waiting times for checks to clear. Blockchains like Stellar Protocol have made sending and receiving money as easy and fast as sending emails. People, banks, and organizations can easily digitize fiats and make them available on the blockchain.
But the major challenge has always been that the total security of a user wallet is the sole responsibility of the user. Private keys maintain access to a user wallet, they cannot be recovered. There have been cases when some users lost their wallets’ private or master keys, thus, losing their access to the wallets and their money.
This is why people are always advised to write down their private keys in papers and keep them safe. Additionally, cryptocurrency holders are warned not to use any online platforms (like emails or cloud storage) to store their keys because they can be compromised. But these scare many people away from crypto. The Stellar Development Fund (SDF) has come up with a solid solution to help improve its user experience (UX). This is what the Stellar Ecosystem Proposal (SEP-30) was built for.
SEP-30 is an ecosystem that allows the recovery of user keys so that they don’t lose hope on their funds when their master key is lost. The solution allows a user to entrust the signatory of his wallet to two third-party servers which cannot operate independently. This makes it secure and no one server or custodian can authorize transactions. With SEP-30 wallet recovery is as easy as proving identity to the custodians via the user’s mobile phone or email.
Denelle Dixxon, CEO and Executive Director at SDF stated in a release on The Importance of Key management and Recovery:
“The … point is that this process means a user doesn’t have to maintain a backup key on her own. In fact, a user doesn’t have to keep track of a key at all. SEP-30 allows the user to manage her entire account in ways that are familiar to her today in her other digital relationships, like through SMS or email verification.”
She concluded that key management and recovery solutions like Stellar Ecosystem Proposal 30 (SEP-30) are essential to driving the adoption of blockchain technology. This is because it will provide a great user experience for people.
Do you think SEP-30 is a great idea for Blockchain wallet Key management and Recovery?