28 Oct 2019 #Bitcoin
It is becoming more and more apparent with every passing year that Bitcoin, and probably some of the major altcoins, are not a fluke, not a bubble, or a short-lived phenomenon. They represent digital assets of the future that would be transmitted by heredity from one owner to another.
However, the process of passing bitcoins in case of an unexpected death of their owner presents a real problem right now. Basically, there are three scenarios that the owner, and the future inheritors, could face:
With more and more such instances happening over time, people begin to pay more attention to this acute problem, while projects like Casa Covenant even come up with a working solution.
Casa Covenant is the US-based tech company that has already designed such digital security solutions as Keymaster, Healthcheck, Casa Node & Extension, etc. One of their recent products is called the Bitcoin Inheritance Protocol, which affords the customers an opportunity to mitigate the risks of losing even a part of stored cryptocurrencies in case of sudden death. The combination of the Inheritance protocol with Casa’s proprietary multi-signature solution allows for a safe and seamless process of transferring bitcoins by heredity.
In order to obtain access to the inheritance service, one would have to register a Keymaster account on Casa and provide the required information. In case of the owner’s death, the private key on the digital wallet of the deceased, along with one of the multi-signature elements, will be transferred to a family lawyer or a trusted estate attorney. The use of legal professionals has proven to be a more reliable way of securing a cryptocurrency inheritance since they possess the necessary expertise and experience in adequately arranging for the settlement of estates, even the most innovative ones like bitcoins.
The procedure involves adding an extra 6th key to the Key Shield, Casa’s own security solution that lets the owner keep only 3 keys out of a 5-key setup. The additional key is called the Safe Key, which is being kept in a designated deposit box under the customer’s name. It can be used along with the Casa Recovery Key and the Estate Lawyer Key to successfully recover the funds following the death of the wallet owner.
Previously, the problem of Bitcoin inheritance has been tackled by Third Key Solution, a cryptographic key management company founded by a famous Bitcoin advocate Andreas Antonopoulos.
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