I would like to ask if it is possible to implement 2FA at the wallets of cardano for increased security. As I see it we like to attract people from developing world they don't have access to hardware wallets and definitely the price of them isn't helping. So is it possible?
What configuration are you suggesting? 2FA and wallet on the same mobile phone?– gRebelMay 4, 2021 at 8:40
Yes like Google authenticator– NottheonetodayMay 4, 2021 at 14:23
I'd love the multi-sig. I really don't trust password only for anything of high value, so its a huge barrier of entry for others as well I'm sure.– feydJan 23, 2022 at 20:40
2FA (in the traditional sense) relies on a shared secret. By design, this can only work in a centralized environment like an exchange or an online wallet, not with a wallet that interacts directly with the blockchain.
But there are other ways to achieve this, and a multi-sig would be possible and kind of the blockchain equivalent of 2FA. Multi-sig means, for example, you need two private keys to access the funds. (both keys should live on different devices)
There are also more advanced and configurable multi-sig solutions (m-of-n type) like: there are three private keys (m), and two of them (n) are sufficient to control the funds. We will see beautiful solutions here in the future.
I think it should become more feasible at a lower price, once the wallets start supporting Yubikeys as 2FA, via multisig. So, you would then be able to setup your wallet so that the Yubikey signature is required on all transactions, in addition to the signature from your spending password.