Gnosis Safe has evolved into a cornerstone of Web3 infrastructure, empowering DAOs, institutions, projects, and individuals to securely manage digital assets. With over $64 billion in self-custodied assets on Ethereum alone, it offers unparalleled security for decentralized finance (DeFi) and organizational treasuries.
What Is Multi-Signature?
Gnosis Safe Basics
Most Ethereum users rely on single-key wallets (e.g., MetaMask), known as Externally Owned Accounts (EOAs). These wallets use private keys—convertible to a 12-word seed phrase—for security. However, if the private key is compromised, funds can be stolen.
For businesses or teams, EOAs pose significant risks:
- A single rogue employee or careless key management can lead to irreversible fund loss.
- Even solo operators face vulnerabilities from phishing or hacking.
Solution: Multi-signature (multi-sig) wallets. Gnosis Safe is a smart contract wallet requiring M-of-N approvals before executing transactions. For example:
- A 3-person team can set a threshold where all 3 must approve transactions.
- Funds remain secure unless a majority colludes.
Unlike centralized custodians, Gnosis Safe ensures self-sovereignty—no banks, no intermediaries.
Gnosis Safe vs. Other Asset Storage Solutions
| Feature | Gnosis Safe | EOA (MetaMask) | Custodial Wallets |
|-----------------------|-------------|----------------|-------------------|
| Self-Custody | ✅ Yes | ✅ Yes | ❌ No |
| Multi-Sig | ✅ Yes | ❌ No | ❌ No |
| DAO-Friendly | ✅ Yes | ❌ No | ❌ No |
| Smart Contract | ✅ Yes | ❌ No | ❌ No |
👉 Explore Gnosis Safe’s advantages
Why Connect a Signer Wallet?
To create a Gnosis Safe account, you must connect a signer wallet (e.g., MetaMask, Ledger).
Key Reasons:
- Multi-Owner Structure: Safe accounts are controlled by multiple signers.
- Transaction Execution: Gnosis Safe’s interface lacks private keys; signer wallets handle approvals.
- Flexibility: Supports hardware wallets (Ledger/Trezor), MetaMask, and WalletConnect-compatible apps.
Recommended: Use a hardware wallet for high-value transactions.
How to Create a Gnosis Safe Account
Step 1: Navigate to Gnosis Safe App
- Click "Create New Safe".
Step 2: Name Your Safe
- Choose a name (stored locally, never shared).
Step 3: Add Signers
- Enter Ethereum addresses or ENS names of owners.
- Example: A 2-of-3 setup with Alice, Bob, and Carol.
Step 4: Set Threshold
- Define required confirmations (e.g., 2 out of 3).
Step 5: Deploy
- Pay gas fees (ensure signer wallet has ETH).
- Confirm deployment via connected wallet.
Optimal Safe Configurations
For Individuals:
- Owners: 3 (MetaMask + 2 hardware wallets).
- Threshold: 2 (balance security and convenience).
For Teams/DAOs:
- Owners: 5+ members.
- Threshold: 3+ (prevents unilateral decisions).
👉 Best practices for multi-sig setups
Supported Assets
| Asset Type | Support Level | Management Tools |
|------------------|-----------------------------|--------------------------------|
| ETH/ERC-20 | ✅ Full | Web/Mobile App |
| ERC-721 | ✅ Full (NFTs) | Collectibles Tab |
| ERC-1155 | ⚠️ Partial (via fallbacks) | Third-party apps (OpenSea) |
Note: For non-standard tokens, use WalletConnect with interfaces like OpenSea.
Sending Funds
- Click "New Transaction" → "Send Funds".
- Enter recipient address (ENS or manual entry).
- Select asset/amount.
- Adjust gas parameters if needed.
- Submit and sign with signer wallet(s).
Interacting with Contracts
- Paste the contract address.
- Enter ABI (auto-filled if verified on Etherscan).
- Select a function (read/write).
- Define parameters (e.g., ETH value).
- Review and execute.
FAQ
Q1: Can I change owners after deployment?
A: Yes! Navigate to "Settings" → "Owners" to add/remove signers.
Q2: What if I lose a signer wallet?
A: Use remaining owners to reset thresholds or recover access.
Q3: Is Gnosis Safe free?
A: Only gas fees apply; no subscription costs.
Q4: Can DAOs use Gnosis Safe?
A: Absolutely—ideal for decentralized treasuries with multi-party governance.
Final Tip: Regularly audit your Safe’s activity log for transparency.