What Is Safe? A Deep Dive Into The Safe Smart Contract Wallet

What Is Safe?

Launched in 2018, Safe, previously known as Gnosis Safe, has emerged as a formidable player in the realm of decentralized protocols for asset management on Ethereum and EVM-compatible blockchains. The platform has been instrumental in evolving the concept of asset management with the introduction of Smart Account technology, which enhances user security through the use of multi-signature transactions.

In line with its mission, Safe Wallet has facilitated user interaction with the dynamic spheres of Decentralized Finance (DeFi) and Web3. The introduction of the SAFE token airdrop is a notable step toward decentralized governance involving the SafeDAO. Furthermore, the platform’s Account Abstraction SDK provides developers with sophisticated tools to manage blockchain assets, reinforcing Safe’s critical role in the DeFi ecosystem.

Key Takeaways

  • Safe boasts an asset management protocol with Smart Account technology securing over $69 billion.
  • It connects users to DeFi and Web3, also progressing towards decentralized governance.
  • Safe provides an Account Abstraction SDK for developers, reinforcing its significance in DeFi.

What Is The History of Safe?

Safe, formerly known as Safe, is a multi-signature wallet and asset management platform that operates on the Ethereum blockchain and other EVM-compatible blockchains. It was launched in 2018 by the Gnosis Foundation, a non-profit organization that aims to promote the development of decentralized autonomous organizations (DAOs)1.

Early Development

In the early days, Safe was primarily used by crypto enthusiasts and developers to manage their own funds. However, as the DeFi (decentralized finance) ecosystem grew, Safe began to attract more institutional investors and other users who wanted a secure way to manage large amounts of cryptocurrency.

Key Features

Safe offers a number of features that make it a popular choice for asset management, including:

  • Multi-signature security: Safe transactions require approval from multiple signers, which helps to prevent unauthorized access to funds.
  • Smart contract compatibility: Safe can be integrated with other smart contracts, which allows for a wide range of use cases.
  • Transparency: All Safe transactions are publicly viewable on the blockchain.

Growth and Adoption

Safe has experienced significant growth in recent years, with a growing user base and a number of partnerships with major crypto exchanges and other companies. In 2020, Safe was integrated into the Coinbase Custody platform, which allows institutional investors to store and manage their cryptocurrency holdings with a high level of security.

Community and Governance

Safe is a community-driven project, and the SAFE token is used to govern the platform2. SAFE token holders can participate in governance votes to shape the future of Safe, including proposed features, upgrades, and partnerships.

Future of Safe

Safe is poised to play a major role in the future of decentralized finance. With its strong security features, smart contract compatibility, and growing community, Safe is well-positioned to become a leading platform for asset management.

How Does Safe Work?

Safe, launched in 2018, is a robust decentralized protocol essential for the secure management of assets on the Ethereum Virtual Machine (EVM) and compatible blockchains. To date, it has commendably managed assets worth billions of dollars and has been adopted across more than a dozen EVM-compatible blockchain networks.

Key Features of Safe:

  • Smart Account Technology: Unlike traditional accounts, Safe employs Smart Accounts that allow customizable rules for transactions, like multi-signature requirements and spending limits3.
  • Decentralized Protocol: The platform extends its services over 12 EVM-compatible blockchain networks.
  • Asset Management: It’s responsible for securely managing over $69 billion in digital assets.
  • Transaction Volume: More than $24 million in transactions have been processed through the protocol.
According to the Safe website, there are nearly $70 billion in assets stored in Safe accounts.
According to the Safe website, there are nearly $70 billion in assets stored in Safe accounts. Source: Safe

What are Enhanced Smart Contract Accounts on Safe?

Safe offers an advanced suite known as the Safe{Core} SDK4, which equips developers with tools for integrating sophisticated account management within their platforms. This SDK is composed of four main elements:

  • Protocol Component: This allows the crafting and tailoring of smart contract accounts that carry out secure transactions and can handle multiple transaction batching.
  • Authentication Module: It simplifies the onboarding process, enabling sign-ins through Web3Auth methods, which can include using social media platforms or an email address without requiring a pre-existing wallet.
  • Relay Feature: By integrating with Gelato, this offers users the ability to conduct transactions without concerning themselves with gas fees, even offering the option to cover transaction costs with ERC-20 tokens5.
  • Fiat Integration Tool: Through a partnership with Stripe, users can effortlessly transition from fiat to crypto, providing the option to purchase cryptocurrencies using credit cards.

Each part of this toolkit is designed to streamline the user experience, whether it be enabling secure transaction protocols, easing access via familiar authentication methods, mitigating the intricacy of gas fees, or simplifying the conversion from fiat currencies.

the SAFE Airdrop and Tokenomics Explained

Safe decentralized its operations through a strategically planned airdrop, issuing SAFE tokens to approximately 43,000 participants. These tokens are crucial for involvement in SafeDAO’s governance, ensuring participants have a voice in decision-making6.

The SAFE token allocation is meticulously organized to balance the interests of different community members:

Token HolderAllocation Percentage
Users, Ecosystem Contributors, Joint Treasury5
Safe Foundation7
Strategic Partners (2022 Funding Round)8
Core Contributors15
The distribution of SAFE tokens.

With a circulation cap set at 1 billion SAFE tokens, the timeline for complete distribution is targeted for 2030, emphasizing Safe’s commitment to fostering a collaborative and rewarding ecosystem.

How Does The Safe DAO work and utilize the Safe Token?

Safe DAO7, or Safe Decentralized Autonomous Organization, is a community-governed organization that oversees the development and direction of the Safe ecosystem. Safe is a multi-signature wallet and asset management platform that operates on Ethereum and other EVM-compatible blockchains. SAFE DAO members can participate in governance votes to shape the future of the Safe platform, including proposed features, upgrades, and partnerships.

Here are some of the key features of Safe DAO:

  • Transparent governance: All governance proposals are publicly viewable on the Safe DAO forum.
  • Decentralized voting: SAFE token holders can participate in governance votes using their SAFE tokens.
  • Outcome-based Resource Allocation (OBRA) framework: Safe DAO uses an OBRA framework to allocate resources to different projects and initiatives.
  • Guardians: Safe DAO has a group of Guardians who are responsible for safeguarding the SAFE token and ensuring that the DAO operates in a fair and transparent manner.
The SafeDAO is very active, with proposals being voted on monthly.
The SafeDAO is very active, with proposals being voted on monthly. Source: Safe

Final Thoughts on Safe

Safe stands as a prominent name in the realm of decentralized asset management, offering a suite of features that cater to the needs of both crypto enthusiasts and developers. Its robust multi-signature security, seamless smart contract compatibility, and unwavering transparency make it a frontrunner in the DeFi landscape. Safe’s potential to revolutionize asset management in the decentralized finance space is undeniable, and its continued growth and adoption are testaments to its value.

Frequently Asked Questions

What Is Safe?

Safe is a decentralized multi-signature wallet that empowers users to securely manage their digital assets with enhanced control and flexibility.

How Does Safe Improve Security?

Safe wallets are designed with a focus on security and incorporate multiple protective measures for users’ funds:

Multi-signature authentication: Transactions require approval from multiple parties before being executed.

Smart contract-based: Leveraging Ethereum smart contracts for added security layers.

Asset custody: Protects digital assets on Ethereum and various EVM-compatible blockchains.

How Does Safe Operate Decentralized Applications?

Safe facilitates seamless interaction with decentralized applications (DApps) through:

Web3 interface: Allows DApps to interact directly with Safe.

Transaction approvals: Users confirm actions via the Safe wallet for added security.

Peter Barker


Peter Barker

Peter is an experienced crypto content writer and a DeFi enthusiast with more than 3+ years of experience in the space. Previously a journalist and news editor at a leading European news sourcing agency.

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