Vitalik Buterin Advocates Improving Cryptocurrency Wallets to Prevent Accidental Losses

• Buterin focuses on preventing accidental losses in portfolios.
• Importance of continuous audits for Ethereum security.
• Adoption of the Poseidon hash function to improve security.

Ethereum co-founder Vitalik Buterin has expressed significant concerns about the need for cryptocurrency wallets to be better protected against losses not associated with theft. The call comes amid the recent Ethereum Pectra upgrade and a new round of security audits. Ethereum has been heavily involved in conducting formal audits and verifications to identify vulnerabilities and strengthen the network’s security.

Reminder: there's also plenty of people who have lost huge amounts of crypto to *loss* rather than theft.

Software bug, forgotten password, lost device, paper wallet burned down in LA fire, upgraded device without backing up data…. lots of ways for that to happen.

because…

- vitalik.eth (@VitalikButerin) February 28, 2025

In a move to address the problem of losses caused by forgotten passwords, lost devices or unintentional mistakes — such as burning paper wallets in a fire — Buterin stressed the importance of innovative solutions in a recent social media post. He noted, “Problems such as forgotten passwords, lost devices or unintentional mistakes such as burning paper wallets in a fire can result in significant losses for traders.” He added that unlike theft incidents, victims of mistakes often have no one to turn to, carrying a sense of shame and helplessness.

Buterin not only called for improvements to wallets, but also emphasized the need for robust security measures within the Ethereum ecosystem. The Pectra upgrade, which underwent a testing phase on the Holesky testnet, faced finality and consensus issues, which delayed its full rollout. Despite these challenges, the Ethereum team remains steadfast in its commitment to keeping the platform secure and resilient through continuous audits and improvements.

Buterin’s commitment to security extends beyond the Pectra upgrade. He has advocated for the adoption of the Poseidon hash function on Ethereum to increase efficiency and strengthen security. By encouraging researchers to rigorously test and analyze its properties, Buterin continues to push for a more secure and user-friendly blockchain experience. This initiative reflects his ongoing commitment to solving often overlooked issues in the cryptocurrency space by prioritizing security at all levels.

At the time of publication, the price of Ethereum was quoted at US$2.162,03, up 1,5% in the last 24 hours.