With the evolvement of the cryptocurrency arena, people have started showing trust in the new-age currency and have started investing their money in digital currency trading. The trading volume of these virtual currencies has seen a drastic surge in recent years, primarily because of the lucrative features the domain has to offer to its customers.
Though a certain class of people has started accepting cryptocurrencies, there still remains a majority of people who prefer to stick around the traditional mechanisms. One such limitation of the digital currencies which restrains people from opting for it as a medium of payments is the “issue of inheritance.”
Very often, the Bitcoin owners get traumatized at the thought of their whopping funds turning into trash post their death. Some potential issues which might pop up because of lack of inheritance facility in the crypto niche are:
- If a person has not shared the recovery instructions with his/her family members, then his/her assets will be inaccessible forever.
- If he/she has shared the details, then though the bitcoin is recoverable, there will always be a risk of theft or attack of their digital assets even before they take their last breath.
- Also, if a custodian manages his/her account, then to their assets will lie idle as many custodians do not provide the inheritance feature.
However, the crypto market has resorted to an efficient counter to the inheritance problem as well with the announcement of Casa Covenant, a Bitcoin inheritance service and protocol. The strategic solution bestows the users with the golden opportunity to pass on their Bitcoins to the person of their choice by designating him their assets securely. The protocol promises to bring down the risk of theft before the demise of the owner with the help of its stellar attributes.
Casa, the leading blockchain and cryptocurrency-based computer software firm offering a digitized crypto wallet for private keys protection, is the driving force behind the Casa Covenant platform. The company has been striving hard for the past ten months to curate a highly-secured inheritance protocol for the Keymaster users via which they can easily pass on their assets to their heirs.
The firm will be implementing the protocol with the unique full support ‘inheritance service’ that will not only help in the transfer of the assets but will also work as a crucial tool making the inheritors understand the security and custody mechanisms for the long-run protection of the Bitcoin.
Secured Inheritance with Multisig Usage:
A perfect collaboration of multisig or multi-signature terminology with an efficient security protocol fosters safe, reliable, and controlled inheritance of the Bitcoins at the discretion of the owner. While evaluating an array of options for solving the inheritance issue, Casa resolved that strategic integration of multi-signature pedagogy with the current estate planning and judiciary system is the first step in the right direction. A more developed and advance inheritance system is likely to be carved out in the near future, but eagerness is likely to cause more bad than good.
For example, it is quite easy to fall into the trap and make use of a basic social recovery solution via Shamir’s Secret Sharing. But this comes with high risks of trivial errors, which can thereby ruin the complete inheritance process. Also, there can be an intruding attack during first creation as well as during the regular testing.
The best solution to this issue is that an estate attorney renders protection to the single client key in the multi-signature framework in the form of a hardware wallet, aligned with other important documents. By doing so, a person can safeguard his assets as it is unlikely for an attorney to lose essential keys.
Casa will make the entire process like a cakewalk for the person who is planning to take up the inheritance project services. The platform will enrich the estate lawyer on issues such as key management. It will offer them with lawyer-specific tools designed for key management and will also guide the heirs on how to use Keymaster for recovering funds securely. The firm will also teach the inheritors about their options for security and custody.
The Working Mechanism of Casa Covenant:
The Casa’s innovative inheritance process leads to the addition of an optional 6th key to the customers’ 3-of-5 Key Shield, thereby ending it up to work as a 3-of-6 system. The concerned key is put to use after the customers initiate the inheritance process with Casa. It is held by the person’s estate lawyer.
Post the demise of a particular client, the keys given below can be used to recover the funds of the person by his/ her heirs:
- Estate lawyer key
- Casa Recovery Key
- Safety Deposit Box Key (“Safe Key”)
It is undeniably of utmost importance to keep the Safe Key in a deposit box under his/her name as this ensures the proper working of the inheritance protocol mechanism. In case of death, the estate executor can access it via a court order, which can be acquired only after providing proof of death. This indicates the fact that a minimum of three keys remains accessible by a third-party post following the legal requirements.
By drafting out an efficient security model clubbed with a critically framed technical process and strict legal measures, one can enjoy an easy pass on of assets securely.
If you are interested in exploring the Casa Covenant solution, then drop an email and enjoy a free demo of Keymaster multi-signature. The new service will be first available for Casa Diamond members and later on will be available to other members as well.