Part 5/12:
He points out that companies like Casa take extensive measures, such as rigorous code reviews and multi-layered security protocols, including using hardware enclosures and encrypted backups, to ensure that private keys remain protected. These practices are essential because software bugs, if exploited, can cause irreparable damage to users’ holdings and undermine trust in the network.
Challenges and Education in Self- custody
Despite the technical solutions available, Szabo recognizes that many new entrants find self-custody intimidating. He notes that hardware wallets and multi-sig setups are often perceived as complex or daunting, leading people to prefer custodial solutions like Coinbase — historically a less risky choice for beginners.