Monad Proposes Wallet Upgrade to Preserve Addresses After Key Loss

Monad, an Ethereum-compatible blockchain, has proposed a wallet upgrade that would allow users to keep their addresses and assets even if they lose or replace their security keys. The proposal, which is still in its early draft stage, aims to separate wallet addresses from the security keys that control them. This would enable users to switch between different security methods, such as private keys, passkeys stored on smartphones or laptops, multisignature systems, and quantum-resistant encryption methods.

The current system means that losing a private key can result in permanent loss of access to assets, while changing security methods often requires creating a new wallet and transferring holdings. If Monad's proposal is adopted, users would be able to switch between different authentication methods without having to create a new wallet or transfer their assets.

Monad says the approach could also enable account recovery if a private key is lost. Users could set up a system in advance that requires two trusted people to jointly register a new authentication method if the original key disappears.