I've taught hundreds of thousands of developers through Cyfrin Updraft, and if there's one piece of advice I consistently emphasize, it's this: never use a regular wallet to manage protocol permissions or significant funds. Ever.
Why am I so adamant about this? Because I've seen too many projects compromised by issues with basic wallet security. Whether you're building a new protocol, managing a DAO's treasury, or simply protecting substantial assets, a multi-signature (multi-sig) wallet isn't just a "nice to have" – it's absolutely essential.
In this guide, you'll learn how to set up a Safe multi-sig wallet, formerly known as Gnosis Safe, one of the most trusted solutions in the space.
And if you’re more of a visual learner, this Cyfrin Updraft video lesson will walk you through the process.
Before setting up a multi-sig, let’s first consider…
A multi-sig wallet is a smart contract wallet that requires multiple approvals before executing a transaction. Unlike traditional wallets controlled by a single private key, multi-sig wallets distribute authority among multiple signers, enhancing security and reducing the risk of a single point of failure.
Companies, decentralized autonomous organizations (DAOs), and protocols widely use multi-sig wallets to ensure collective control over funds and critical permissions. While in this article, we’ll focus on Safe, other companies offering multi-sig wallets, include:
OK, now that we know what multi-sig wallets are, let’s explore the rationale behind using them.
If you're a protocol developer and you have any type of ownership or permissions in your smart contract, it should never – and I mean never – be controlled by an externally owned account. Not your hardware wallet, not your browser wallet, nothing but a multi-sig wallet. Here's why:
So, let’s dive in.
To view your wallet on Etherscan, click on the icon circled in purple in the image below:
This will take you to the Etherscan page of your deployed Safe smart contract wallet:
Click on the Contract tab to view the GnosisSafeProxy contract:
To verify the smart contract code, compare it with the source code in the Gnosis GitHub repository. Click on the link penciled below to get the deployed bytecode of the contract:
Safe’s user interface offers various features. You can connect to applications listed on the UI or use wallet-connect for unlisted apps.
To connect to an app like Uniswap via wallet-connect, follow these steps:
Once connected, your Safe wallet will be linked to Uniswap. Repeat the process for any other app you choose.
Here are a few best practices I've learned (sometimes the hard way):
Remember to double-check every detail when handling large amounts of money. Then, you can safely (pun intended) enjoy the enhanced security and functionality of your multi-sig wallet.
I've seen web3 evolve dramatically, and one thing remains constant: security is paramount. So, a Safe multi-sig wallet isn't just a luxury – it's your foundation for secure protocol development and asset management.
Whether you're building the next big decentralized finance (DeFi) protocol or managing a DAO's treasury, taking the time to set up and properly manage your Safe wallet is crucial. Start with a testnet deployment, get comfortable with the interface and processes, and then move to mainnet with confidence.
Remember: in web3, you don't get second chances with security. Take the time to do it right.
Questions about setting up your Safe? Join our Discord community – we're always here to help you build securely.
