In light of the recent $1.44 billion hack of the Dubai-based cryptocurrency exchange Bybit, Tron founder H.E. Justin Sun has issued a strong recommendation for crypto holders to store large USDT holdings using cold multi-signature (multi-sig) storage on the Tron blockchain.
The advice comes after the largest crypto hack to date, which saw hackers infiltrate Bybit’s internal systems, using a multi-signature wallet exploit via compromised employee computers.
Despite the breach, Bybit confirmed that customer funds remained unaffected. Sun’s suggestion underscores the growing need for enhanced security measures within the crypto industry, especially for large-scale holdings of stablecoins like USDT.
Why Cold Multi-Signature Storage on Tron?
Justin Sun’s recommendation centers on the security advantages of storing USDT on the Tron blockchain using a cold multi-signature method.
USDT on the Tron network is fully recognized by Tether on a 1:1 basis, offering the same security as USDT on Ethereum, but with additional benefits.
As of now, 62 billion USDT are issued on the Tron network, making it a trusted platform for stablecoin transactions.
One of the main advantages of using Tron over Ethereum is its native multi-signature support at the blockchain level, which is directly integrated into the network’s infrastructure.
The feature provides a higher level of security compared to Ethereum’s reliance on external smart contracts like Gnosis Safe, which have been prone to vulnerabilities and exploits in the past.
Enhanced Security and Transparency on the Tron Blockchain
Tron’s multi-signature system also offers superior transparency compared to Ethereum. With Tron, multi-sig transactions are fully visible on the Ledger, allowing users to clearly see the details of each transaction, including the token name, amount, sender, and recipient.
The contrasts with Ethereum-based systems, where users can unknowingly approve malicious transactions due to the risk of “blind signing” in some multi-sig implementations.
Also Read: Worldcoin Moves $135.9M Worth WLD Tokens To Multi-Sig Wallet, What’s Next?
The transparency of Tron’s native multi-sig system significantly reduces the likelihood of wallet ownership being compromised, making it a safer option for large USDT holdings.
Additionally, Tron’s multi-sig system flags any unauthorized configuration changes, providing an extra layer of protection for users.
The Growing Importance of Blockchain Security Solutions
The Bybit hack has once again highlighted the vulnerabilities within the cryptocurrency industry, emphasizing the need for more secure storage solutions.
Sun’s cold multi-signature storage recommendation for large USDT holdings is a direct response to this increasing concern over crypto hacks.
By utilizing Tron’s native multi-sig functionality, crypto holders can enhance the safety of their assets by mitigating risks associated with external smart contract vulnerabilities and ensuring that all transactions are transparent and verifiable.
As the crypto industry continues to evolve, implementing robust security measures like multi-signature storage on secure blockchains will be crucial in safeguarding assets against increasingly sophisticated attacks.