What is it ?
Safe is a smart contract wallet running on a number of blockchains (EVM-based) that requires a minimum number of people to approve a transaction before it can occur (M-of-N). If for example you have 3 main stakeholders in your business, you are able to set up the wallet to require approval from 2 out of 3 (2/3) or all 3 people before the transaction is sent. This assures that no single person could compromise the funds.
Here's an overview, comparing Safe to other digital asset storage solutions:
What problem does it solve?
For individual purposes, a single key wallet , be it a hardware wallet like Ledger/Trezor or a software wallet (EOA) like Metamask is just fine.
But for an organization, like an LLC or a DAO, a single key wallet is not secure to manage your business's crypto funds, as it runs the risk of an employee or DAO contributor misappropriating the funds or simply misplacing the private key. And in this case, your organization’s funds are lost forever.
As the name implies, a multisignature (multisig) requires a minimum number of people to approve a transaction before it can occur.
Feature Highlights
- Supports ERC-20 tokens
- Supports NFTs / Collectibles under the ERC-721 standard
- Signature policies
- Spending limits
- Recurring transactions
- Delegate key to enable non-owners to propose a transaction
- Direct execution of DAO decisions
- Safe apps that allow users to interact using the Safe interface
How it works
Article
How to authorize a multisig payment using Gnosis Safe
Videos
- Part 1 - Create a Safe account, add owners & deposit funds into the wallet
- Part 2 - How to create & sign a transaction