Gnosis Safe Explained

Gnosis Safe Explained

Discover how Safe revolutionizes digital asset management and custody with advanced features and user-centric approaches.

Summary: Safe, previously known as Gnosis Safe, is a decentralized asset management and custody protocol, managing billions in assets across 12+ EVM chains. It introduces features like Smart Accounts for user-defined rules and advanced key modifications, offering superior user control and security.

Safe also provides the Safe Wallet, a web3-friendly tool that enables easy interaction with the DeFi and Web3 ecosystem. Safe's transition to SafeDAO and the airdrop of SAFE tokens demonstrate its dedication to decentralized governance.

Safe (Formerly Gnosis Safe)
5.0 out of 5.0 by Datawallet
Gnosis Safe, now known as Safe, is a top-tier decentralized asset management and custody protocol on the Ethereum Virtual Machine, revolutionizing digital asset ownership with its secure, user-centric system and advanced smart contract accounts.
Supported Chains
Ethereum, Arbitrum, Avalanche + 9 more
Assets Under Custody
$39 Billion secured by Safe
Safe Accounts
1.5 million Safe accounts deployed

Content Guide

What is Gnosis Safe?

Safe, previously known as Gnosis Safe, is a leading decentralized asset management and custody protocol on the Ethereum Virtual Machine (EVM). Originated in 2018, it manages billions in assets through highly customizable Safe accounts across 12+ EVM chains. With over 4 million transactions and $39 billion+ in assets, Safe emphasizes flexible, secure digital asset ownership.

A standout feature is its Smart Account or Smart Contract Account. Unlike regular accounts, Smart Accounts allow user-defined rules such as multi-signature requirements or spending limits. This advanced adaptability extends to key modification and transaction payment options, reinventing the account concept from a basic password/private key model to a fully-customizable system, boosting security, and user control.

Gnosis Safe Wallet

How Does Gnosis Safe Work?

Safe functions using smart contract accounts on the Ethereum blockchain and other EVM-compatible chains. Users set control parameters, such as multi-signature requirements, spending limits, or organizational hierarchies. These rules are built into the smart contracts, dictating transaction operations.

Transactions are proposed and confirmed by assigned signatories within the Safe interface. Safe enables transaction batching, scheduling, and payment via ERC-20 tokens. It also includes recovery mechanisms for lost keys and allows key swaps for compromised ones. Essentially, Safe leverages blockchain technology to offer a secure, user-centric digital asset management platform.

What is the Safe Wallet?

The Safe Wallet is a web3-friendly app that bridges the gap between users and the DeFi and Web3 ecosystem. Its design offers seamless interaction with various protocols, while promoting decentralized co-ownership. As a multi-signature platform requiring multiple private keys for transaction validation, it enhances asset security and allows for shared asset management. 

This flexibility, combined with the ability to modify account ownership, caters to evolving needs in a decentralized economy. Accessible via web and mobile platforms, the Safe Wallet not only simplifies Web3 interactions but also ensures users retain full control over their digital assets.

What is the Safe Wallet App?

SAFE Airdrop and Tokenomics

Safe has launched an airdrop of its native SAFE tokens to about 43,000 users, part of the transition to SafeDAO. These tokens grant voting rights in SafeDAO's decisions. An anti-Sybil mechanism saved almost 2.9M tokens from potentially fraudulent claims.

SAFE's tokenomics distribute tokens to various stakeholders. Users, ecosystem contributors, joint treasury, the Safe Foundation, strategic partners from a 2022 funding round, core contributors, GnosisDAO (as the founder), and SafeDAO receive 5%, 5%, 5%, 7%, 8%, 15%, 15%, and 40% respectively. The total SAFE supply is 1 billion, expected to be fully vested by 2030.

SAFE Tokenomics

Gnosis Safe Account Abstraction

Gnosis Safe Account Abstraction refers to the Safe{Core} Account Abstraction SDK, an open-source, full-stack toolkit that allows developers to incorporate account abstraction functionality into their applications. This comprehensive SDK includes four key components: Protocol Kit, Auth Kit, Relay Kit, and Onramp Kit.

The Protocol Kit allows developers to create and customize smart contract accounts, ensuring secure and audited transactions, and supports batching multiple transactions simultaneously. The Auth Kit offers a straightforward onboarding process through Web3Auth, including social media or email login, even allowing users to start without a wallet. 

The Relay Kit enables a gas-less experience through Gelato, facilitates transaction fee sponsorship, and supports gas fee payment in ERC-20 tokens. Finally, the Onramp Kit provides seamless fiat on-ramping via Stripe, even allowing crypto purchases with a credit card.

Bottom Line

In conclusion, Safe, formerly Gnosis Safe, has revolutionized digital asset management and custody with its secure, adaptable, and user-centric system. It has robust features like smart contract accounts, flexible transaction parameters, and enhanced recovery mechanisms. With the Safe Wallet, users gain seamless access to the DeFi and Web3 ecosystem, and shared asset management. 

The platform's recent transition to SafeDAO and launch of the SAFE token airdrop demonstrate their commitment to decentralized governance and stakeholder participation. Lastly, the Safe{Core} Account Abstraction SDK opens up vast opportunities for developers to integrate advanced account functionalities into their applications, demonstrating the platform's versatility and future growth potential in the evolving blockchain economy.

Frequently Asked Questions

Got More Questions? We've Got Answers.
A Guide to Commonly Asked FAQs.

What is Safe, previously known as Gnosis Safe?
How do Smart Accounts in Safe work?
What does Gnosis Safe Account Abstraction refer to?