The current signup process for creating a cryptocurrency wallet or account relies on 12-word mnemonic seeds. While mnemonic seeds are a convenient way to backup and restore wallets, they present certain issues that need to be addressed.

Ease of Loss:

One problem with 12-word mnemonic seeds is their vulnerability to loss. Due to their compact nature, users may accidentally misplace or forget them, leading to potential loss of access to their funds or accounts.

Limited Secure Storage Options:

Users face a challenge in finding a safe place to store their mnemonic seeds. While secure wallets provide some level of protection, there are concerns about relying solely on a digital platform, as it introduces potential vulnerabilities to hacking, malware, or device failures.

Feature Request:

To address the problems associated with 12-word mnemonic seeds, I propose the development of a better way to sign up and secure user accounts. This enhanced signup process would focus on the following aspects:

Multifactor Authentication:

Implementing a multifactor authentication system during the signup process would add an extra layer of security. By combining something the user knows (e.g., password), something they have (e.g., mobile device), and something they are (e.g., biometric verification), the risk of unauthorized access would be significantly reduced.

Secure Storage Solutions:

Introduce additional options for securely storing mnemonic seeds. This could include offline hardware solutions, such as dedicated devices or physical media (e.g., encrypted USB drives) that are designed to withstand potential physical damage and theft. Clear guidelines and recommendations should be provided to users regarding these storage options.

Encrypted Cloud Backup:

Offer an optional encrypted cloud backup service for mnemonic seeds. This would allow users to securely store their seeds in the cloud, protected by robust encryption and user-specific keys. It is important to emphasize that the encryption keys should be solely in the user's possession, ensuring that even if the cloud storage is compromised, the mnemonic seeds remain secure.

User Education:

Place a strong emphasis on user education and awareness about the importance of securely storing mnemonic seeds. Provide detailed instructions on best practices, such as using secure physical storage options, periodically verifying seed backups, and regularly updating recovery options to prevent the loss of access to accounts.

By implementing these features, users will have a more secure and reliable way to sign up for cryptocurrency wallets or accounts, reducing the risk of losing access to their funds and promoting greater peace of mind when managing their digital assets.