Dan Finlay 🦊 on Warpcast

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1/ The crypto industry needs to wake up to its biggest blind spot: signing security. Most crypto losses involve private key management and blind signing. If experts get hacked regularly, what hope is there for mass adoption? We need better tools.

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2/ The Bybit and Radiant hacks -where a transaction looked legitimate on a computer but is replaced before reaching a hardware wallet- undermines the security benefit of smart contract multisig wallets. If you can't verify what you're signing, the best software tools offer no protection at all.

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3/ It’s not a bug or a bad UI. It’s a systemic failure in how we handle transaction verification. Attackers are exploiting the gap between what humans can verify and what machines actually sign - and there’s no effective defense with current tools.

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4/ If we don’t fix this, we’ll keep seeing bigger and bigger exploits. Minor positive steps -air-gapping, MPC, AA wallets, better signing flows- cannot solve this alone. Transactions must be verifiable on secure hardware, by humans, in a trustless way.

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5/ This isn't just about big exchanges and onchain treasuries. This impacts us all - 1 out of 5 crypto users have lost funds due to private key exploits. The industry tells users it's their responsibility to educate themselves and be more careful instead of fixing the problem.

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6/ The only real solution is easily readable signing on secure hardware, displayed on a secure screen. There's no solution using only phones or computers: everyone needs a fully independent, tamper-resistant way to verify exactly what they’re approving.

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7/ Crypto has grown too important to rely on outdated security solutions we already know leave us all exposed to risk. We all need to collaborate and coordinate to address this problem. If we don't, no mythical killer app will get us the mass adoption we're building for.

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8/ Our team at gridplus.io focused on this specific problem early on because we realized legacy BTC HW wallets didn't protect us as Ethereum users. Our first step was introducing hardware clear signing for EVM transactions, but fully addressing this requires broad collaboration.

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9/ This isn't about Bybit or any one hack. It's about fixing a glaringly obvious problem with all of crypto. We must make crypto transactions easily verifiable by every single user to prevent these types of exploits from impacting all of us at this scale.

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Dan Finlay 🦊 pfp

Dan Finlay 🦊

I think ERC-7715 is a goldmine for the first hardware wallet to do it right. Rather than sites proposing opaque bytecode and the signer trying to guess: The site proposes concrete specific permissions, and the signer chooses how they want to grant those permissions, ensuring readability is inherent in the handshake.

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Dan Finlay 🦊 pfp

Dan Finlay 🦊

There's still a question then about how the signer learns what kinds of permissions it's capable of granting (and how it is able to attenuate those policies). I haven't spec'd that out yet but conceptually I think there are established secure patterns to draw from: https://blog.danfinlay.com/permissionless-permissions/

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At a high level, it's very likely we can support this with the new device we're releasing at year end. We've been tackling how a new kind of hardware wallet can securely manage SCAs, agent wallets, and new software approaches in general. I'll reach out to give you a preview for feedback if you're up for it.

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