What happens to your crypto if you die without passing on your keys to your loved ones?
Remember the adage, “In life, there are three certainties: death, taxes, and ETH gas fees if you like.”
We don’t live forever. There must be a succession/inheritance strategy in place. Indeed, crypto could make it tough to pass on your assets to your successors without jeopardizing your security.
One of the most difficult tasks for self custody is Inheritance.
Well, I know what you’re thinking now;
You could simply share the keys with your family if you adopt the low-security technique of a paper wallet or metal tags. Of course, there are some disadvantages to this. If they are young or non-technical, they may not have the necessary tools to keep or secure a copy of the backups. If they make a security mistake, a hacker could simply steal your funds. They could also take your funds at any time. Depending on your trust connection with them, you may or may not desire this.
I strongly advise avoiding sharing keys between people, regardless of their relationship, for the simple reason that if money is moved or stolen, it’s impossible to figure out who transferred it or who had their security breached. It’s just a mess.
Your paper wallet or metal tags could be stored in a bank vault or with a lawyer. However, as previously said, if any of the parties involved obtains a copy of the keys, they will be able to move the funds without leaving much trace. This is different from lawyers having to go through a bank to move your account balance to your heirs.
Qredo can help with some of the difficulties raised thus far, so let’s get started;
Qredo is a revolutionary new blockchain infrastructure that provides interoperability, lightning-quick settlement, and decentralized custody.
So, after reading the last section, you could think to yourself, “damn, that’s a lot of trouble with seed phrases.” Let me simply keep my coins on Qredo, and I’ll explain how it works in this scenario.
You and your loved one can share control of their digital assets on Qredo while maintaining security.
This could be achieved by setting up a wallet with a simple signing scheme where the signature of either spouse can authorize transactions (1 of 2).
This method is quite safe, but it does necessitate that your loved ones be able to maintain their signature gateway secure with a reasonable level of confidence.
You would claim that multi-sig could solve this, however, Qredo has several advantages over traditional on-chain multi-signature schemes.
Flexible governance changes;
Qredo corporate(Joint) accounts, unlike on-chain multisig, can be modified on the go. New approvers can be added and the size of the consensus can be changed without having to send the entire balance to a new account if the group of individuals changes (for example, your children are now of age and you wish to include them).
Setting up multi-signature systems with third-party providers can be costly, and each on-chain transaction can be considerably more expensive than usual due to the added complexity. Qredo provides zero-fee custody, making it possible to set up and execute even the most sophisticated governance schemes for no cost.
Are you looking to create your own Qredo governance system?
When you open a Qredo Wallet, just choose an organization account and configure your signature methods and subaccounts to match your needs.
Qredo is a radical new blockchain infrastructure that delivers interoperability, lightning-fast settlement, and decentralized custody.
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