Industry security test: Self-hosted wallets are the future of Web3

Algorithms are constantly flowing, and security incidents are like the sword of Damocles hanging over our heads. It is never "if" it will happen, but "when" it will happen. Recently, CEX and DeFi have been frequently attacked by hackers, and asset losses, contract loopholes, and Trojan viruses have cast a shadow over the market, making the word "security" the focus again. There has never been absolute security in the crypto world, only evolving security strategies. When the traditional financial "too big to fail" rule fails in the Web3 world, the industry faces an unprecedented question: Who should we entrust our asset security to?

OKX is clearly aware of the security risks in the crypto industry, but we focus on solutions rather than fears -Fear will not solve the problem, and technological innovation is the answer.

OKX is clearly aware of the security risks in the crypto industry, but we focus on solutions rather than fears -Fear will not solve the problem, and technological innovation is the answer. We care about the security of all crypto users. No matter where you trade, we always advocate higher security standards, and through technical innovations such as self-hosted wallets and POR, we allow users to truly own their own asset sovereignty. This is not marketing, but the inevitable direction of industry development. We believe that the future of Web3 is not built on trusting centralized platforms, but on code, transparency and user sovereignty. True security does not rely on a certain platform, but is in the hands of the users themselves. Therefore, the self-hosted wallet we advocate is not only a product concept, but also a paradigm shift in the industry. It represents the return of de-trust, transparency and personal sovereignty. OKX is committed to promoting higher security standards, providing more transparent and trusted solutions not only for itself but also for the entire industry.

We hope to further strengthen OKX's commitment to crypto security by helping users understand the concept of self-custody wallets, helping users make informed decisions, and raising security awareness. OKX firmly believes that the industry must continue to evolve to protect the security of user assets, and we support stricter security standards to ensure the long-term development of the entire industry.

There is an essential difference between "platform security" under the traditional paradigm and "autonomous security" in the Web3 era. "Not your key, Not your money", Self-hosted wallets give users absolute control over encrypted assets and achieve decentralized management through unique private keys. Users can complete asset storage, transactions and other operations without relying on third-party institutions, and truly become managers of personal digital assets. This security mechanism based on mathematical proofs completely breaks away from the traditional security framework that relies on human operation and maintenance. It not only guarantees the integrity of asset ownership and privacy, but also avoids the redemption risk caused by the operation crisis of centralized platforms. However, absolute control is accompanied by full responsibility, and users need to independently assume security obligations such as mnemonic custody.

In terms of account generation and private key backup, unlike traditional wallets that only support the derivation of multiple wallets through one set of mnemonics, the OKX Web3 wallet is the only wallet that can create multiple sets of mnemonic wallets and derive multiple accounts from one set of mnemonics at the same time, which improves the flexibility and security of users in asset management and effectively reduces the risk of private key leakage. In addition, the OKX Web3 wallet has reconstructed the backup process. Users only need to log in to their iCloud/Google account and set an encryption password to complete the off-chain backup. This solution breaks through the traditional hardware dependence. Even if the device is lost or the mnemonic is forgotten, assets can still be quickly restored through cloud-verified encrypted backups. Triple protection system: cloud storage + password verification + local encryption, while lowering the operating threshold, builds an insurance mechanism for encrypted assets that can resist single point failures.

At the same time, the OKX Web3 wallet provides powerful private key protection functions, such as prohibiting users from taking screenshots or recording private keys and mnemonics to prevent information leakage. To further enhance security, it also supports functions such as private key segmentation replication to ensure that every link is protected. Through these protective measures, users' private keys and mnemonics are always under strict security protection, reducing potential security risks.

According to the public audit of SlowMist Technology, all private keys and mnemonics of OKX Web3 wallet users are only stored in the user's local device and will not be uploaded to any external server. In addition, the OKX Web3 wallet SDK is also open source, and has been widely verified and continuously reviewed by the global developer technology community, making it more open and transparent. The private key security module of the OKX Web3 wallet meets financial-grade security standards, ensuring that the mnemonic phrase is stored offline throughout the process and never touches the Internet.

In response to the "unlimited authorization" risk that is prevalent in the DeFi ecosystem, the OKX Web3 wallet has a built-in smart contract permission management function, which supports custom authorization limits, one-click risk authorization release, constant risk monitoring, 30-day non-interaction DApp risk warnings, regular pop-up window warnings and other highlight functions, further eliminating the risk of asset exposure caused by excessive authorization and creating a "minimum authority" security paradigm.

For example, many users have authorized various contracts, but contracts that have not been interacted with for a long time may become targets of hacker attacks due to lack of project maintenance. OKX Web3 wallet records the contracts that users have authorized through the on-chain search function, and tracks and manages the risk-free contracts. For contracts that have not been interacted with for a long time, the system will automatically detect them and promptly remind users when risks are found. Every 30 days, the system will remind users who have not canceled the authorization of contracts that have not been interacted with for a long time. It is recommended that users regularly manage wallet contract authorizations and cancel contracts that are no longer used in a timely manner to reduce potential risks. For example, the OKX contract monitoring engine provides 7*24 hours of security protection, scans user-authorized contracts in real time, and promptly prompts users to cancel authorization after discovering risks; if it is not canceled within 24 hours, the system will pop up a window to remind again.  

For on-chain interaction risks, OKX Web3 wallet provides powerful risk transaction identification functions, such as integrating the Sky Eye KYT system to build an active defense network and scanning the risk address tag library in real time. In key links such as DApp interaction and asset transfer, malicious contracts, phishing addresses and other threats are dynamically identified through machine learning, achieving millisecond-level risk blocking before transactions. This protection system deeply integrates user autonomy with professional risk control capabilities, allowing self-hosted wallets to obtain security capabilities that exceed centralized platforms while maintaining decentralized characteristics.

The future of the industry is still unknown, but self-hosted wallets are undoubtedly one of the definite paths - becoming the "Noah's Ark" for the security of user assets.

Disclaimer

This content is for reference only and does not constitute and should not be regarded as (i) investment advice or recommendation, (ii) an offer or solicitation to buy, sell or hold digital assets, or (iii) financial, accounting, legal or tax advice. We do not guarantee the accuracy, completeness or usefulness of such information. Digital assets (including stablecoins and NFTs) are subject to market fluctuations, involve high risks, and may depreciate or even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation and risk tolerance. Please consult your legal/tax/investment professionals for your specific situation. Not all products are available in all regions. For more details, please refer to the OKX Terms of Service and Risk Disclosure & Disclaimer. OKX Web3 mobile wallet and its derivative services are subject to separate terms of service. Please be responsible for understanding and complying with local applicable laws and regulations.