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The most common for listening to events emitted by multiple smart contracts seems to be by using a JSON-RPC wrapper such as ethers or web3js.

Let the contracts be ERC-721. If our contract emits an event, we will call the safeTransferFrom() function on the respective smart contract. But since safeTransferFrom() required the msg.sender to be the owner, approved, or operator. We somehow must have custody of it's private key,

If we would follow this flow/architecture for a lot of different contracts we would need to hold the private keys of all of these contracts on some form of backend. From a security standpoint, this approach appears unsafe since it is highly vulnerable in the event of a backend breach.

Are there alternative methods that are more decentralized and secure?

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