Inheritance of Digital Assets(Crypto)
What will happen to your (personal) crypto when you die.
What will happen to your (personal) crypto when you die? I would like to say "if", but Vitalik has not yet defeated this dragon… Anyway, the issue is uncomfortable, but important, and therefore they are also trying to solve it with the help of blockchain and smart contracts.
Here is a brief digression into the state of affairs and three examples of protocols working on the issue of inheritance of digital assets.
Problems that arise when a cryptocurrency user leaves his life:
🔹 Lost access to private keys and LED phrases.
The lack of a legislative framework for the transfer of digital assets to relatives.
🔹 Technical obstacles for the general public who have never dealt with the crypt.
🔹 Proof of death — how can technology remotely understand that a person has died?
It works as a customizable "dead man switch" by subscription ($19/year) and 1% commission. If the user does not renew the subscription, the assets may be claimed by the recipients. At the same time, for the latter, the protocol offers the possibility of creating a non-custodial wallet in 1 click without knowledge of the blockchain with notifications by email, Telegram and Twitter.
Currently, the project is in beta testing, the launch will take place in February. One of the investors is Mark Cuban.
The protocol allows you to assign an unlimited number of verifiers through their email addresses and to schedule the shares of inheritance distribution between different parties. If the verifiers confirm the death and are not refuted by the main user within a certain period of time, the funds are transferred automatically. the protocol reserves 2.5% of the amount.
Now there is a beta test and a campaign in Crew3.
Another "dead man switch" using Ethereum and Arweave. The user encrypts the file with his data via DApp and creates a smart contract that sets the expiration date of the storage of the "sarcophagus" and their recipient. Then the data is wrapped in another layer of encryption and sent for permanent storage to Arweave. Upon expiration, the third party provides the key for external decryption and allows the addressee to extract the data.
The project has been working since January 2021, there is already a version on the mainnet (unaudited, DYOR!). Work is underway on V2, regular voting takes place in the DAO (for which there is a SARCO token). The project also recently raised $5.5 million from Placeholder, Lattice and other funds.