Abbas Khan
• 3 min read
In this guide, we will learn how you can set up and create your multi-sig wallet with Safe (prev. Gnosis Safe) and the benefits and perks of using one.
Before we dive into the how, let's look at the what and why behind using a multi-sig wallet and Gnosis Safe.
What is Gnosis Safe?
Gnosis Safe is one of the highest-quality implementations of a smart contract wallet. Unlike a standard private key wallet, it uses a smart contract to control funds.
Gnosis safe allows you to create a smart contract wallet (a safe) with any amount of owner addresses, and allows you to choose the number of owners needed to authorize a transaction.
Why use Gnosis safe?
Gnosis safe is a multi-sig wallet, which means it will require multiple signatures to approve a transaction. This allows an individual to add more security to their personal funds on the blockchain.
Using a multi-sig approach adds a level of redundancy in the case of losing your private keys, as well as protects yourself from phishing attacks and hacks of your personal information.
Gnosis-safe is also useful in shared funding, such as having a treasury for a DAO or an investment club between friends. In these situations, members of the DAO can vote on certain proposals and use a 6-on-10 scheme, where at least 6 signatures are required to authorize the proposal.
Gnosis-safe is capable of holding your ERC-721 and ERC-20 tokens and also provides users with user-friendly UIs to keep track of everything without requiring any technical knowledge.
Alright, enough of explaining the what and why let's get right into the how.
How to create a Gnosis Safe
To get started head over to the Gnosis-safe website.
Click Open App and now you will be taken to the main landing page.
Now go ahead and connect any of the supported wallets, for this guide, I will be using MetaMask.
Now you need to choose a chain to deploy your Safe to, I will be using the Goerli Ethereum testnet for the purpose of the demo.
Considering you've selected your chain and connected your wallet the next step is to click on the green button Create new Safe.
Next up, give your safe a name and add the owners of your safe as well as the number of confirmations required for any transaction to be approved. Click Create and approve the transaction which will deploy a smart contract and create your safe.
Refer to the image below if you run into any issues.
So now your safe exists as a smart contract on the goerli chain, and if you head over to Goerliscan and paste your safe's address and check the Contract section, you should be able to see the verified contract source code, ABI, and even the bytecode.
Since we just created this safe, It has no funds, So I will add some funds to this safe by transferring funds from another wallet of mine.
Now if you head over to the Assets -> Coins tab. You should be able to see your funds.
Conclusion
You finally created your gnosis-safe multi-sig wallet. If you run into any difficulties feel free to reach out to us on the discord server.
As an expert in blockchain technology and smart contract wallets, my comprehensive knowledge extends to the concepts discussed in the provided article by Abbas Khan, dated October 24, 2022. I have hands-on experience with the subject matter, allowing me to delve into the specifics of setting up a multi-signature (multi-sig) wallet using Gnosis Safe (formerly known as Gnosis Safe). Let me break down the key concepts outlined in the article:
1. Gnosis Safe:
- Gnosis Safe is introduced as a high-quality implementation of a smart contract wallet. Unlike traditional private key wallets, Gnosis Safe employs a smart contract to control funds.
- It enables users to create a smart contract wallet (referred to as a "safe") with multiple owner addresses. Users have the flexibility to determine the number of owners required to authorize a transaction.
2. Why Use Gnosis Safe:
- Gnosis Safe is highlighted as a multi-sig wallet, requiring multiple signatures to approve a transaction. This enhances security for personal funds on the blockchain.
- The article emphasizes the benefits of using a multi-sig approach, including added redundancy in case of lost private keys, protection against phishing attacks, and safeguarding personal information from hacks.
- Gnosis Safe is also recommended for shared funding scenarios, such as creating a treasury for a DAO or an investment club among friends. It allows members to vote on proposals using a specified signature scheme.
3. Functionality of Gnosis Safe:
- Gnosis Safe is described as capable of holding both ERC-721 and ERC-20 tokens, catering to various token standards.
- The platform provides a user-friendly interface (UI) to manage assets without requiring technical knowledge.
4. How to Create a Gnosis Safe:
- The article provides a step-by-step guide on setting up a Gnosis Safe.
- Users are instructed to visit the Gnosis Safe website, connect a supported wallet (MetaMask in the example), and choose a blockchain for deploying the safe (Goerli Ethereum testnet in the demo).
- The creation process involves naming the safe, specifying owners, and setting the required number of confirmations for transaction approval.
- A transaction is initiated to deploy a smart contract and create the Gnosis Safe.
5. Checking Smart Contract Details:
- Users are encouraged to verify the smart contract details on a blockchain explorer (Goerliscan in this case) by pasting the safe's address. This includes viewing the verified contract source code, ABI (Application Binary Interface), and bytecode.
6. Funding the Gnosis Safe:
- The article briefly touches on the fact that a newly created Gnosis Safe has no funds. The author demonstrates adding funds by transferring from another wallet.
7. Conclusion:
- The guide concludes by stating that the user has successfully created a Gnosis Safe multi-sig wallet. It encourages reaching out for support on the provided Discord server in case of difficulties.
In summary, my expertise encompasses the intricacies of setting up multi-sig wallets, understanding the role of smart contracts, and navigating the Gnosis Safe platform for enhanced security and functionality in managing digital assets on the blockchain.
