Consensus 2023: Self-Custody from an Institutional Perspective

In the “Self-Custody from an Institutional Perspective” panel of Consensus 2023, Brian Stern, Aaron Stafford and Chen Zur from EY talked about the different techniques that institutions use to solve new risks in the digital asset market.

Some important points touched upon by the speakers who explained the technique by giving examples from different use cases were as follows:

In blockchain technology, we can classify the real-time monitoring technique as network monitoring, activity tracking, smart contract tracking and asset tracking. The problems that arise in the evolution of this technique play an important role in the development of the technique.
Aaron Stafford lists the evolution points of the technique as follows: Insufficient current risk management skills, transition of transactions from manual to automatic, faster response to problems, need for different options during the monitoring phase, and providing access in institutions.
A protocol update is discussed in the network monitoring use case used by Chen Zur. Firstly, the draft and voting phases of the draft are carried out off-chain. Afterwards, if sufficient monitoring capabilities are provided and the voting is successful, the update is implemented through nodes. If any action is required in addition to the update, a fork is occurring in the network.
In another use case, the pump and dump scheme is discussed. First of all, large amounts of assets are stored in treasury or administrator wallets. The asset tracking method is applied when assets are exchanged and traded assets fall in the stock market.
Zur summarizes the speech and presentation as follows: Enterprise monitoring skills are critical to ensuring infrastructure security, performance, compliance, transparency and governance of public blockchains.