Ever thought about what would happen to the crypto gainz you made if something happened to you?
No one really does.
What if there was a decentralized way to prevent that from happening? A backstop so to say, will share 3 projects building possible solutions.
A🧵 below :
No one really does.
What if there was a decentralized way to prevent that from happening? A backstop so to say, will share 3 projects building possible solutions.
A🧵 below :
2/
Short Primer:
Problems when a crypto native user passes away:
→ Private keys are private for a reason, one leak is all it takes to get wiped hence its important to keep them safu
→ Lack of legal frameworks and guidelines on how to pass on digital assets to next of kin
Short Primer:
Problems when a crypto native user passes away:
→ Private keys are private for a reason, one leak is all it takes to get wiped hence its important to keep them safu
→ Lack of legal frameworks and guidelines on how to pass on digital assets to next of kin
3/
→Technical hurdles for non crypto natives including documentation of assets and technical operation knowledge
→ Proof of death? Did I really die or is someone faking and claiming I did?
→Technical hurdles for non crypto natives including documentation of assets and technical operation knowledge
→ Proof of death? Did I really die or is someone faking and claiming I did?
4/
The first step = Proof of Death
Why is this necessary?
To ensure that assets are handled in accordance with the deceased's wishes and prevent unauthorized access or fraud. It allows for legitimate transfer of assets to rightful inheritors.
The first step = Proof of Death
Why is this necessary?
To ensure that assets are handled in accordance with the deceased's wishes and prevent unauthorized access or fraud. It allows for legitimate transfer of assets to rightful inheritors.
5/
Filed and published in Sept 2022, California bill proposes to allow county recorders to certify birth/death/marriage certificates using blockchain technology, so that's a first!
leginfo.legislature.ca.gov
Filed and published in Sept 2022, California bill proposes to allow county recorders to certify birth/death/marriage certificates using blockchain technology, so that's a first!
leginfo.legislature.ca.gov
6/
Now for the part where I'm pretty sure everyone came for.
3 protocols building in this sector:
@BequestFinance
@GuardMyFund
@sarcophagusio
Now for the part where I'm pretty sure everyone came for.
3 protocols building in this sector:
@BequestFinance
@GuardMyFund
@sarcophagusio
7/
@BequestFinance
Onchain will / estate planning for tokens/NFTs backed by Mark Cuban
markcubancompanies.com
@BequestFinance
Onchain will / estate planning for tokens/NFTs backed by Mark Cuban
markcubancompanies.com
8/
How it works:
Customizable deadman-switch for assets with a subscription model ($19/year) and 1% cut on asset transfers. If user doesn't renew, assets can be claimed by recipients.
How it works:
Customizable deadman-switch for assets with a subscription model ($19/year) and 1% cut on asset transfers. If user doesn't renew, assets can be claimed by recipients.
9/
USPs:
1-click non-custodial wallet generation service for non-crypto native users with opt-in notifications through email, Telegram, and Twitter and support for multiple blockchain platforms.
Currently in beta launch, live in February.
USPs:
1-click non-custodial wallet generation service for non-crypto native users with opt-in notifications through email, Telegram, and Twitter and support for multiple blockchain platforms.
Currently in beta launch, live in February.
10/
Issues:
No docs released yet, so can't comment much. Inaccessibility to internet causing a missed resubscription will trigger the transfers. No safety mechanism.
Issues:
No docs released yet, so can't comment much. Inaccessibility to internet causing a missed resubscription will trigger the transfers. No safety mechanism.
12/
How it works:
Designation of verifiers via email and selection of inheritors based on percentages, with automatic fund transfer if verifiers confirm loss/death and is not denied by the main user within a specified time frame, 2.5% cut on transfers and a referral program.
How it works:
Designation of verifiers via email and selection of inheritors based on percentages, with automatic fund transfer if verifiers confirm loss/death and is not denied by the main user within a specified time frame, 2.5% cut on transfers and a referral program.
13/
USPs:
Unlimited amount of verifiers (you can select your whole family).
Running incentivized testnets now guard.crew3.xyz
Issues:
Email's are not that secure, still susceptible to exploits/hacks. "Trusted" guardians can conspire together.
USPs:
Unlimited amount of verifiers (you can select your whole family).
Running incentivized testnets now guard.crew3.xyz
Issues:
Email's are not that secure, still susceptible to exploits/hacks. "Trusted" guardians can conspire together.
14/
@sarcophagusio
On-chain Deadman-Switch utilizing Ethereum and Arweave, focusing on data (private keys etc) as payload.
Recently raised $5.5M via DAO tokens $SARCO in Jan 2022 from @placeholdervc @lattice_fund and a few others. Project has been up and running since Jan 2021
@sarcophagusio
On-chain Deadman-Switch utilizing Ethereum and Arweave, focusing on data (private keys etc) as payload.
Recently raised $5.5M via DAO tokens $SARCO in Jan 2022 from @placeholdervc @lattice_fund and a few others. Project has been up and running since Jan 2021
15/
How it works:
The user encrypts their data (including a recipient) through a dApp, creates a smart contract that sets a expiration date on the data's release, wraps the data in another layer of encryption, and sends it to a third party to store it permanently on Arweave.
How it works:
The user encrypts their data (including a recipient) through a dApp, creates a smart contract that sets a expiration date on the data's release, wraps the data in another layer of encryption, and sends it to a third party to store it permanently on Arweave.
16/
Once the expiration date is reached, the third party provides a key to unlock the outer layer of encryption and allow the intended recipient to access the inner layer and retrieve the data.
Once the expiration date is reached, the third party provides a key to unlock the outer layer of encryption and allow the intended recipient to access the inner layer and retrieve the data.
17/
USPs:
Integration of a native token and utilizes Arweave for secure and decentralized storage of unchanging data. DAO governed and a self sustaining ecosystem.
Current state:
v2 being implemented and voted on regularly.
Issues:
Complicated system. Not user friendly.
USPs:
Integration of a native token and utilizes Arweave for secure and decentralized storage of unchanging data. DAO governed and a self sustaining ecosystem.
Current state:
v2 being implemented and voted on regularly.
Issues:
Complicated system. Not user friendly.
18/
I like Sarcophagus's idea. However, I personally don't see a growth in this sector YET.
If we look at USA alone, majority are not at the age where they think about setting up wills when it comes to crypto
Source: @jpmorgan shorturl.at
I like Sarcophagus's idea. However, I personally don't see a growth in this sector YET.
If we look at USA alone, majority are not at the age where they think about setting up wills when it comes to crypto
Source: @jpmorgan shorturl.at
18/
This area is new and a lot of research is needed, it could be hard to implement such solution as it's hard to verify death and prove it to the network, and this technology needs to be adopted by the legal systems and authorities to be widely used and accepted.
This area is new and a lot of research is needed, it could be hard to implement such solution as it's hard to verify death and prove it to the network, and this technology needs to be adopted by the legal systems and authorities to be widely used and accepted.
19/
Some thoughts for improvements:
→ Introduce a safety mechanism post transfer in case a mistake was made
→ Giving approvals of tokens to a smart contract is still risky, maybe wallet abstraction methods for sign-in keys on the original wallet as an alternative
Some thoughts for improvements:
→ Introduce a safety mechanism post transfer in case a mistake was made
→ Giving approvals of tokens to a smart contract is still risky, maybe wallet abstraction methods for sign-in keys on the original wallet as an alternative
20/
→ Include optional KYC for inheritors or verifiers
→ Adding requirements for inheritors to go through a web3 speedcourse on technical operation
→ Better UI/UX (1-click creation etc) + onboarding
→ Add a legal team to the project to explore incorporation
→ Include optional KYC for inheritors or verifiers
→ Adding requirements for inheritors to go through a web3 speedcourse on technical operation
→ Better UI/UX (1-click creation etc) + onboarding
→ Add a legal team to the project to explore incorporation
21/
Maybe when further adoption happens, then things in this area will start to pick up pace.
That's all for this thread and hoped you learned something about the projects above!
Better start looking for a way to do this, or just send me your keys I'll take care of em lmao
Maybe when further adoption happens, then things in this area will start to pick up pace.
That's all for this thread and hoped you learned something about the projects above!
Better start looking for a way to do this, or just send me your keys I'll take care of em lmao
22/
Special shout to @DefiIgnas for reigniting this idea! Tagging some threadoor chads/chadettes below:
@crypthoem
@crypto_linn
@Chinchillah_
@Slappjakke
@DAdvisoor
@WinterSoldierxz
@rektdiomedes
@TheDeFinvestor
Special shout to @DefiIgnas for reigniting this idea! Tagging some threadoor chads/chadettes below:
@crypthoem
@crypto_linn
@Chinchillah_
@Slappjakke
@DAdvisoor
@WinterSoldierxz
@rektdiomedes
@TheDeFinvestor
If you like the tweet please share and like lmao am out drinking so appreciate your support
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