Key Points
- Justin Sun, Tron’s founder, encourages major USDT holders to transfer their assets to the Tron blockchain for better security and transparency.
- Sun highlights the superiority of Tron’s integrated multi-signature security over Ethereum’s smart contract-based security.
Justin Sun, the individual behind the creation of Tron, is actively encouraging significant USDT holders to transfer their assets to the Tron blockchain. He cites improved security and transparency as reasons for this switch. This recommendation comes as Tron’s role in the stablecoin market continues to grow, with 62 billion USDT already issued on the network.
Tron’s Multi-Signature Security
Sun emphasized the importance of cold storage solutions, advocating for a multi-signature approach on Tron. He pointed out that unlike Ethereum, which relies on smart contracts for multi-sig security, Tron incorporates this feature directly into the blockchain. This structure eliminates additional risks associated with smart contract-based security vulnerabilities, which have led to past breaches in Ethereum-based solutions like Gnosis Safe.
Sun mentioned ongoing discussions on secure storage for large USDT holdings. He endorsed a cold multi-signature setup on Tron as a safer alternative to Ethereum’s reliance on third-party smart contracts.
Sun criticized Ethereum’s multi-sig mechanism for exposing users to blind signing risks, where approvals may happen without full awareness of potential threats. He underscored Ethereum’s dependence on smart contracts to manage multi-sig wallets, which create exploitable vulnerabilities. Tron eliminates this uncertainty by ensuring complete transparency in every multi-sig transaction.
Benefits of Tron’s System
Ledger devices offer clear details when processing USDT transactions on Tron, including the token name, amount, sender, and recipient. This makes verifying transactions easier, reducing the likelihood of fraud and unauthorized transfers. Any attempt to alter multi-sig permissions triggers an “unknown type” transaction alert, helping users distinguish between genuine transfers and wallet configuration changes.
Sun’s argument hinges on the belief that security should not rely on third-party smart contracts and should instead be built into the blockchain itself. He maintains that Tron’s approach aligns better with this philosophy, making it the preferred choice for large USDT holders.
In addition to the blockchain’s security structure, Sun highlighted cold storage as a critical factor in protecting large USDT holdings. Holders significantly mitigate the risk of cyberattacks and unauthorized access by storing assets in cold wallets. Tron’s multi-sig feature integrates seamlessly with cold storage solutions, further enhancing security measures.
Platforms like TotalSig offer user-friendly solutions for those looking to implement Tron’s multi-sig functionality. TotalSig supports various assets, including TRC10 and TRC20 tokens, TRX, and NFTs, making it a versatile option for users managing significant holdings. TokenPocket has also introduced a TRON multi-sig wallet feature, simplifying the process of creating and managing multi-sig wallets on the network.
These platforms provide a straightforward setup process, allowing users to either create or import Tron-based multi-sig wallets without needing deep technical knowledge. The increased adoption of these services suggests a growing awareness of multi-sig security benefits among institutional and high-net-worth investors.
