H.E. Justin Sun 🍌
H.E. Justin Sun 🍌|Feb 24, 2025 09:17
Cold Storage Recommendations for Large USDT Holdings We have discussed storage solutions for large USDT holdings on our platform, and I recommend storing them on the Tron blockchain using a cold multi-signature (multi-sig) approach. Reasons for this recommendation: First, USDT on the Tron blockchain is fully recognized by Tether on a 1:1 basis, just like USDT on Ethereum, ensuring security. Currently, 62 billion USDT have been issued on the Tron network. However, compared to Ethereum, Tron offers several key advantages in terms of management and security: Native Multi-Sig Support:Tron provides native multi-signature functionality at the blockchain level, whereas Ethereum relies on smart contracts (e.g., Gnosis Safe). This means that on Tron, multi-sig security is inherently tied to the security of the entire blockchain—as long as the chain remains secure, the multi-sig setup remains secure. In contrast, Ethereum's multi-sig solutions introduce additional risks through smart contract vulnerabilities, such as those seen in Safe multi-sig implementations. Transparent Transactions & Enhanced Security:Multi-sig transactions on Tron are fully transparent on Ledger, avoiding the risk of blind signing that occurs on Ethereum, where signers might unknowingly approve malicious transactions. This transparency significantly reduces the risk of wallet ownership being compromised. Example: When using Tron multi-sig for USDT transactions: The Ledger device clearly displays the token name, amount, sender (from), and recipient (to). When making changes to multi-sig permissions, the Ledger device flags these actions as "unknown type", allowing users to distinguish between real transactions and multi-sig configuration changes. This distinction is possible because Tron natively supports multi-sig at the blockchain level, ensuring a higher level of security and transparency.
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