Monad proposes wallet upgrade to protect against lost keys and quantum attacks

Monad suggests new way to secure crypto wallets

Monad, a blockchain compatible with Ethereum, has proposed a major change to how crypto wallets work. The idea is to separate a wallet’s permanent address from the keys that control it. This would let users replace lost or outdated keys without creating a new wallet or moving their assets.

Currently, losing the key to a crypto wallet can mean losing access to all funds permanently. Monad’s proposal aims to solve this problem while also preparing for future threats like quantum computers.

How the proposal works

• The design would allow users to change the keys that approve transactions while keeping the same wallet address.
• Users could add, replace, or remove keys without moving their crypto to a new wallet.
• The system could support passkeys (used on phones and laptops), multiple signers, and quantum-resistant cryptography.
• It could also enable account recovery if a key is lost, without requiring asset transfers.

Why this could help users

A crypto wallet is like a digital bank account that holds your funds. The key is like a password—if you lose it, you lose access. Monad’s proposal would let users upgrade their security without abandoning their existing wallet address.

For example, a user could set up their wallet so that either their normal key works, or two trusted people could together install a new key if the original is lost. This could make wallets safer and easier to use.

Preparing for quantum computers

Quantum computers are a potential future threat to crypto because they could break the digital signatures used to prove ownership of coins. Monad’s proposal would let users switch to quantum-resistant security without changing their wallet address or moving assets.

Bitcoin and Ethereum are also researching ways to protect against quantum threats, but Monad’s approach focuses on the wallet level.

What is still unclear

• The proposal is an early draft, and no detailed plan for how to implement it has been written yet.
• It is not confirmed if or when Monad will adopt this change.
• Existing wallets would continue working normally if the change is made.

Why this matters for crypto users

If adopted, this change could make crypto wallets more flexible and secure. Users would no longer risk losing access to their funds if they lose a key. It could also help protect against future threats like quantum computers.

The proposal is part of a broader effort in the crypto industry to improve security and usability as the technology evolves.

Sources

• CoinDesk