Industry security test, self-managed wallets are the future of Web3

Self-managed wallet is not only a product concept, but also a shift in industry paradigm. It represents the return of de-trust, transparency and personal sovereignty.

The torrent of algorithms continues, and security incidents are like the sword of Damocles hanging overhead. They have never happened “if”, but “when”. Recently, CEX and DeFi have been frequently hacked. Asset losses, contract loopholes, and the shadow of Trojan viruses have shrouded the market, making the word “security” the focus once again. There has never been absolute security in the encrypted world, only evolving security strategies.When the traditional rule of finance that is too big to fail fails in the Web3 world, the industry is facing an unprecedented question: Who should we entrust the security of our assets to?

OKX clearly recognizes the security risks in the encryption industry, but we focus on solutions rather than fears-fear will not solve problems, technological innovation is the answer. We care about the safety of all encrypted users. No matter where you trade, we always advocate higher security standards,And through technological innovations such as self-managed wallets and POR, users can truly have their own asset sovereignty. This is not marketing, but the inevitable direction of industry development.

We believe that the future of Web3 is not based on a trust-centered platform, but on code, transparency and user sovereignty. Real security does not rely on a certain platform, but is controlled by the users themselves. So,The self-managed wallet we advocate is not only a product concept, but also a shift in the industry paradigm. It represents the return of de-trust, transparency and personal sovereignty. OKX is committed to promoting higher security standards and providing more transparent and trustworthy solutions not only for itself, but also for the entire industry.

We hope to further strengthen OKX’s commitment to cryptographic security by helping users understand the concept of self-managed wallets, help users make informed decisions, and increase security awareness. OKX firmly believes that the industry must continue to develop to protect the safety of user assets, and we support stricter safety standards to ensure the long-term development of the entire industry.

Platform security under the traditional paradigm is fundamentally different from autonomous security in the Web3 era.“Not your key, Not your money”，Self-managed wallets give users absolute control over encrypted assets and achieve decentralized management through unique private keys. Users can complete asset storage, transaction and other operations without relying on third-party organizations, truly becoming managers of personal digital assets.This security mechanism based on mathematical proof completely breaks out of the traditional security framework that relies on human operation and maintenance. It not only protects the integrity of asset ownership and privacy rights, but also avoids the redemption risks caused by operational crises on centralized platforms.However, absolute control comes with full responsibility, and users need to independently assume security obligations such as storage of mnemonic words.

In terms of account generation and private key backup, unlike traditional wallets that only support deriving multiple wallets from one set of mnemonic words, OKX Web3 Wallet is the only company that simultaneously creates multiple sets of mnemonic word wallets and derives multiple sets of mnemonic words. The wallet for multiple accounts improves users ‘flexibility and security in asset management, and effectively reduces the risk of private key leakage. In addition, OKX Web3 Wallet reconstructs the backup process, allowing users to complete offline backup by simply logging in to their iCloud/Google account and setting an encryption password. This solution breaks through traditional hardware dependence. Even if the device is lost or the mnemonic is forgotten, assets can still be quickly restored through cloud verification and encrypted backup. The triple protection system: cloud storage + password verification + local encryption, while lowering the operating threshold, builds an insurance mechanism for encrypted assets that can withstand single points of failure.

At the same time, OKX Web3 Wallet provides powerful private key protectionFor example, users are prohibited from taking screenshots or recording private keys and mnemonics to prevent information leakage. In order to further improve security, functions such as segmented copying of private keys are also supported to ensure that every link is protected.Through these protective measures, the user’s private key and mnemonic words are always under strict security guarantees, reducing potential security risks.

According to a public audit by Slowfog Technology, all private keys and mnemonics of OKX Web3 wallet users are only stored on the user’s local device and will not be uploaded to any external server. In addition, the OKX Web3 wallet-related SDK is also open source, has undergone extensive verification and continuous review by the global developer technology community, making it more open and transparent. The OKX Web3 Wallet Private Key Security Module meets financial-grade security standards, ensuring that mnemonic words are stored offline and never touch the Internet.

In response to the “unlimited authorization” risk common to the DeFi ecosystem, OThe KX Web3 wallet has built-in smart contract rights management functions, supporting highlight functions such as customized authorization limits, one-click deauthorization, maintaining risk monitoring at all times, DApp risk warnings without interaction for 30 days, and regular pop-up window warnings of risks, further eliminating excessive authorization. Asset exposure caused by authorization creates a “minimum rights” security paradigm.

For example, many users have authorized various contracts, but contracts that have not been interacted with for a long time may become targets of hackers due to lack of maintenance by the project party. OKX Web3 Wallet records contracts authorized by users through on-chain search functions and tracks and manages risk-free contracts among them. For contracts that have not been interacted for a long time, the system will automatically detect and promptly alert users after risks are discovered. Every 30 days, the system will remind users who have not cancelled the authorization of long-term non-interactive contracts. It is recommended that users regularly manage wallet contract authorizations and promptly cancel contracts that are no longer in use to reduce potential risks. For another example, the OKX contract monitoring engine provides 7*24-hour security protection, scans contracts authorized by users in real time, and promptly prompts users to cancel authorization after risks are discovered; if they are not cancelled within 24 hours, the system will pop-up a reminder again.

For on-chain interactive risks, OKX Web3 Wallet provides powerful risk transaction identification functions, such as integrating the Sky Eye KYT system to build an active defense network and scanning the risk address label library in real time. In key links such as DApp interaction and asset transfer, machine learning is used to dynamically identify threats such as malicious contracts and phishing addresses to achieve millisecond-level risk blocking before transactions. This protection system deeply integrates user autonomy with professional risk control capabilities, allowing self-managed wallets to maintain decentralized characteristics while gaining security capabilities beyond centralized platforms.

The future of the industry is unknown, but self-managed wallets are undoubtedly one of the deterministic paths-becoming the “Noah’s Ark” for user asset security.