Custodial wallets entrust private keys to a third party, offering convenience but risking centralized control and potential hacks. Users rely on the provider’s security measures, which may include insurance or multi-factor authentication, but lose autonomy over their assets. Non-custodial wallets, where users manage their keys, provide full control and privacy but require self-responsibility for key storage. While they eliminate third-party risks, losing keys means permanent asset loss. The trade-off hinges on balancing convenience and security, with non-custodial solutions favoring privacy-conscious users and custodial ones appealing to those prioritizing ease of use.
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StarkNet prevents Sybil attacks by implementing identity verification measures, such as linking wallets to unique social accounts (GitHub, Twitter) or requiring on-chain activity thresholds (e.g., minimum transaction counts). Machine learning algorithms analyze behavior patterns to flag bot-like activity. Snapshots are taken over extended periods to ensure genuine engagement, reducing the effectiveness of mass-created fake accounts.
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Identity networks integrate with the Domain Name System (DNS) by mapping decentralized identifiers (DIDs) to human-readable domain names via DNS records (e.g., DID+DNSSEC). This enables users to associate their DIDs with domains like user.id, simplifying discovery. Blockchain-based naming systems (e.g., ENS, Handshake) offer alternative, censorship-resistant resolutions, allowing DID owners to control their identifiers across traditional and decentralized web infrastructures.
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