Web3 wallet and Custodial Security: Examining Industry Challenges and Opportunities from a Ground-Level Perspective

Recently, at a highly anticipated global Web3 and AI summit, a roundtable forum focusing on "Web3 wallet and custody security" sparked widespread discussion within the industry. This forum delved into how to build safer and more scalable Web3 asset protection mechanisms from the underlying perspectives of hardware and system software.

The guests participating in the discussion include executives and founders from several well-known technology companies, who come from fields such as digital asset infrastructure, computing technology, storage solutions, and crypto security. The forum host pointed out at the beginning that current discussions on Web3 security are often focused on on-chain protocols and smart contracts, while the crucial role of underlying hardware and system architecture is often overlooked.

An expert from a well-known technology company shared their team's technical architecture for high-security digital asset custody, including EAL5+-based partitioning and cold storage signing processes, as well as an offline signing orchestrator system that supports bank-level custody services.

The CEO of another storage solutions company pointed out the systemic risks exposed in the existing "delegated custody" and "self-custody" models through case analysis. He introduced a new solution based on "distributed custody" and MPC-TSS technology, emphasizing the application value of a flexible and scalable signature structure for both enterprise and individual users.

The founder of a computing technology company shared his team's practical experience in multi-terminal computing and local security isolation, starting from the real challenges of open-source technology. He called on the industry to think more systematically about the openness and trustworthiness of the underlying architecture while ensuring user experience.

The CEO of a cryptocurrency security company analyzed the key bottlenecks and response strategies in current hardware custody solutions, drawing on his extensive experience in hardware security modules (HSM) and key management. He emphasized that the importance of hardware trust boundaries cannot be overlooked when building a global digital asset infrastructure.

When discussing the future development trends of Web3 wallets, attending experts generally believe that composable and modular multi-signature architectures will become mainstream, while balancing user experience and security remains the core challenge. Some experts added that financial enterprises have become accustomed to using dedicated hardware for private key and signature management, and relevant security assessments have been widely accepted by regulatory agencies. However, these assessments are not specifically designed to verify the security of blockchain signature implementations, so the level of security protection these systems provide for digital assets still needs to be audited by professional blockchain security companies.

Regarding the role of open-source software in Web3 accomplice, attendees expressed a cautious yet optimistic attitude. Some experts pointed out the legal gaps and market barriers faced by open-source chip design, calling for the industry to advance further in security transparency. Other experts discussed how to achieve module-level open-source isolation without sacrificing performance from the perspective of operating system-level security.

At the end of the forum, the host summarized: "The underlying technology of private key custody and wallets is still evolving. We look forward to future collaboration from all parties to provide provable and user-trusted security solutions."

The holding of this forum reflects the industry's push for the establishment and development of Web3 security standards from a systematic and structured perspective. Against the backdrop of increasingly clear regulations and the growing complexity of technology, global cybersecurity practitioners are working together to provide cross-layer collaborative security solutions for developers, enterprises, and regulatory agencies.