Before now, bitcoiners and non coiners had raised questions on the possibility of transferring their crypto holdings or wealth to their loved ones in the case of death.
This question formed a part of fiat’s advantage over cryptocurrrency; however crypto startup Casa looks to solve this problem with its new service.
According to Casa, the new Bitcoin Inheritance Service and protocol named ‘Casa Covenant‘, will allow users to securely pass on their Bitcoin holdings to their loved ones; through estate lawyers.
What happens to your crypto holdings when you die isn’t the best of thought.
According to a blog post by Casa, three things are likely to happen to your Bitcoin after your demise.
First, your private keys and Bitcoin dies with you and are lost forever. This happens cause you hold all details personally and private (as is advised).
The second option involves sharing your wallet details with an hier. While this ensures the funds are not lost forever, it is a risky option as your coins could be stolen.
A third option could involve you havig a custodian manage your own wallet private keys, this also has its own risks; and many custodians do not have an inheritance protocol in place.
In a bid to provide a solution to these issues, Casa unveils its Casa Covenant protocol.
Casa Covenant features an intergration of multi-signature technology combined with the existing legal system infrastructure similar to that used in estate planning.
Details of the service show that the inheritance service will add a 6th key to Casa’s 3-of-5 key shield. This means 3 of the 6 keys can be used to recover a user’s bitcoin.
Hence, there will be 6 keys to recover user’s funds in cases of death, and the 6th key will be held by the user’s estate lawyer.
Casa will hold one of the three recovery keys, while the third key will be kept in a deposit box under the client’s name. This protocol will require the executor of the will to get a court order before he can access the key and funds.
The company however says there is still a lot to do, which is why the service will not roll out at once; as they look to offer an efficient and sound at service.
Casa describes “Inheritance” as one of the biggest unsolved problems in Bitcoin.
What are your thoughts on Casa Covenant? Will the stated steps solve the cryptocurrency inheritance problem? Share your thoughts in the comments.