FAQs

The worlds first multi-signature Ethereum web wallet


Why EtherLi?

EtherLi is the worlds first multi-signature Ethereum web wallet. This is the first Ethereum wallet that allows you to access your funds from anywhere on the web while taking advantage of multi-signature security layered with two-factor authentication for outgoing transactions. In addition our wallet supports a trustless model where only the user has full control of their funds.

How does the wallet work?

When you create a wallet, we deploy a multi-signature contract to the blockchain. The official Ethereum reference code is used for this contract. The wallet is created with 3 accounts or keys, 2 of which are required to successfully send funds.

The web client acts as a single account running and signing logic locally. The second account which is required to apply the second signature is run by our service and acts as a co-signer that will confirm transactions given the users authorization. In the case of an emergency, the owner of the wallet still has two of the three keys necessary for recovery of funds.


How does the co-signer work?

Transactions are signed and emitted to the network client-side. Our co-signer watches the network for execution (withdrawal) requests on your contracts, and sends you an SMS requesting a confirmation that the transaction is valid. Once our server receives the confirmation, Etherli applies the second signature to validate the transaction.

What happens if EtherLi is down or is unable to sign?

In the case of an emergency, the user still has two of the three keys necessary for moving funds into another wallet. Please ensure that both keys which are provided upon wallet creation are printed out and stored in a safe location.


What are some of the benefits of multi-signature wallets?

With a multi-signature wallet multiple signatures are necessary before funds can be transferred. Etherli uses a two of three multi-signature scheme which means that at least two signatures are necessary to validate a transfer of funds. Multi-signature wallets are more secure because an attacker must obtain at least 2 keys and gain access to multiple devices in order to obtain access of a users funds. The use of 2FA and server-side security of the co-signer key dramatically lowers risks posed by malware, phishing, weak passwords, and hacks. Chances of loss through other (non adversarial) situations is lowered - for example, you can still recover funds if you lose data for a single key, or forget the password to one of the keys.

What is the difference between a wallet contract and a user account?

In Ethereum, there is the basic concept of user accounts and more advanced contracts - both of these can be used to store funds, but a user account is controlled by a single private key (we believe this poses significant security risks). Your wallet contract address is powered by the multi-signature contract provided by Etherli, and you should funds should be stored in that address. The user account is used to pay mining fees for initiating requests to send funds. The recommended balance of the user account is 0.1 ETH. A multi-signature model which does not require fees to be paid out of a user account is coming soon.


How mature is the wallet today?

Etherli is currently a proof of concept more improvements will arrive in the coming months

Our decision to release this product was based on demand and out of a personal need for better security. However, we caution that this wallet has not undergone a security audit and we cannot be responsible for any loss, misuse, or negligence that result in a loss of funds. Although we believe this is the most secure wallet model in the Ethereum ecosystem today, we caution against storing large amounts of Ether with our services.

How does Etherli compare to other wallets in the landscape?

Currenty the Ether wallet landscape consists of wallets that require a node to run and are limited to use on a single device and single signature web wallets. This results in a tradeoff between security or usability and convenience. We believe that you deserve both, that's why we made EtherLi. We provide you 24/7 access to your funds from anywhere in the world, while protecting your wallet with two-factor authentication.


Who developed this software?

EtherLi was built by Mason, Ben Chan, and Barath Chandrashekar.

Can I use Etherli for other tokens?

Etherli is in early phases and currently designed for storing Ether only. Future releases may support other tokens (Augur/DAO/etc) but do not use Etherli to store these tokens today.