Adaptive 2FA based on Transaction Risk for Rabby Wallet

[jagadbumi1000]

Building upon the concept of Hardware Signer and leveraging the power of on-chain smart contracts, here's a suggestion for an adaptive 2FA feature specifically for Rabby Wallet:

Concept:

Implement a risk-based system that dynamically adjusts the 2FA requirements based on the perceived risk of a transaction within Rabby Wallet.

How it works:

• Transaction Risk Assessment:

Analyze various factors like transaction amount, recipient address, and historical transaction data to determine the potential risk associated with a transaction within Rabby Wallet.

• 2FA Levels:

Define different 2FA levels with varying degrees of security, such as:

1. Level 1: Basic password login.
2. Level 2: Password + mobile authenticator code.
3. Level 3: Password + mobile authenticator code + hardware signer approval (if enabled).

• Dynamic Triggering:

Based on the assessed risk, the system automatically prompts the user for the appropriate 2FA level before authorizing the transaction within Rabby Wallet.

Benefits:

• Enhanced Security: High-risk transactions require stronger authentication, reducing the impact of potential compromises.
• Improved User Experience: Low-risk transactions require less stringent 2FA, streamlining the user experience for everyday activities within Rabby Wallet.
• Flexibility and Control: Users can potentially customize the risk assessment parameters and preferred 2FA methods for different scenarios within Rabby Wallet.

Implementation Considerations:

• Carefully design the risk assessment algorithm to ensure accurate and unbiased evaluation.
• Provide clear communication to users about the rationale behind the dynamic 2FA prompts within Rabby Wallet.
• Offer options for users to override the system's suggested 2FA level if desired within Rabby Wallet.

By incorporating this adaptive 2FA feature, Rabby Wallet can strike a balance between robust security and user convenience, catering to the diverse needs of its users and potentially promoting wider adoption of self-custody solutions.