Cryptocurrency Risks Rise with Blind Signing: Clear Signing Gains Ground

The world of cryptocurrency and decentralized applications (dApps) is fraught with risks, particularly when it comes to transactions. One major culprit behind losses is blind signing, a process where users are asked to sign opaque data without any context or warning. This can lead to unintended consequences, such as approving unlimited spending or interacting with the wrong contract.

Clear signing, on the other hand, converts raw calldata into human-readable intent on the device screen, allowing users to verify what they're authorizing before signing. Wallet vendors and dApps have been working towards implementing clear signing standards, with ERC-7730 being a key reference point for showing full intents on-device.

However, blind signing still persists due to its convenience and compatibility issues with certain devices or dApps. Users are often tempted to click through warnings without fully understanding the risks involved. To mitigate this, experts recommend disabling blind signing, updating device firmware and wallet apps regularly, cleaning up token approvals, and using transaction simulation.

Furthermore, it's essential to read prompts carefully, even with clear signing enabled. Token approvals should be reviewed for asset and decimals, spender address, and limits. Swap transactions require confirmation of exact tokens and amounts, as well as fees and router/contract information.