Home Bitcoin DeFi Digital Wallet Seeks to Decentralise Crypto and NFT Inheritance

DeFi Digital Wallet Seeks to Decentralise Crypto and NFT Inheritance

by upendra
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In the ever-evolving world of decentralized finance (DeFi), a novel concept is emerging – the “crypto will.” As the DeFi industry continues to innovate, the notion of crypto inheritance is gaining momentum. Israeli crypto software company Kirobo is at the forefront of this movement, aiming to address a significant gap in the DeFi market. They offer crypto investors the ability to transfer assets or hand over private keys according to their last will. On May 31, Kirobo made a groundbreaking announcement – the launch of an inheritance function for Liquid Vault, a decentralized crypto wallet that empowers users to select crypto wallets to inherit their assets.

The Evolution of Crypto Inheritance

Traditionally, the process of inheriting cryptocurrencies and digital assets has been a complex and often legally fraught endeavor. It typically required the intervention of lawyers, government agencies, or centralized organizations to create and execute an automated testament. This cumbersome process is now being disrupted by Kirobo’s innovative system.

With Kirobo’s Liquid Vault, crypto inheritance is simplified, democratized, and placed firmly in the hands of the asset owner. Instead of relying on intermediaries, users can designate up to eight beneficiaries and specify a date for distributing funds to the chosen wallets. This approach not only streamlines the process but also reduces the associated costs and potential conflicts.

Kirobo’s Unique Technology

The foundation of Liquid Vault’s new inheritance method lies in Kirobo’s proprietary “future conditional transactions” technology. This groundbreaking tool empowers users to create future transactions or establish a secondary access point to crypto based on predefined parameters. Asaf Naim, CEO of Kirobo, describes it as “a one-of-a-kind smart contract infrastructure” that enables consumers to sign future transactions and condition them on a wide range of factors. Furthermore, it allows other parties to build complex services on the blockchain without the need for writing intricate smart contracts.

What Liquid Vault Supports

Liquid Vault, initially released in beta in late 2021, currently supports Ether and all ERC-20 tokens, including popular assets like Ethereum-based Bitcoin and Wrapped Bitcoin. Additionally, it extends its capabilities to ERC-721 nonfungible tokens (NFTs). While the inheritance tool in Liquid Vault currently focuses on ETH and ERC-20 tokens, Kirobo has ambitious plans to include support for NFTs in future versions.

Addressing the Crypto Inheritance Challenge

The growth of the DeFi space has led to an increasing number of Web3 users holding substantial amounts of cryptocurrencies. These digital assets play a significant role in investment portfolios and retirement planning. Asaf Naim observes, “There’s a growing trend among Web3 users to hold considerable amounts of cryptocurrencies, increasingly relying on these assets in investment portfolios and retirement nest eggs.” In light of this trend, Kirobo’s new tool provides a straightforward and secure method for passing digital wealth to future generations while adhering to the core principles of Web3, which emphasize decentralization and community ownership.

Crypto inheritance has long been a pressing concern for crypto owners. Private cryptocurrencies, such as Bitcoin, are designed to ensure that only the owners have control over their assets. However, as of 2020, it was estimated that up to 4 million BTC, roughly 20% of the total circulating BTC supply, might be lost forever due to inaccessible private keys, with a significant portion attributed to the passing of the original owners.

Diverse Solutions for Crypto Inheritance

To address this challenge, crypto owners have explored various methods for ensuring the smooth transfer of assets to the next generation. These solutions range from utilizing software-based inheritance platforms to simply sharing keys with trusted family members.

In conclusion, the DeFi industry is evolving rapidly, and with it, the concept of crypto inheritance. Kirobo’s Liquid Vault stands as a groundbreaking solution, simplifying the process of passing on digital assets and ensuring that the decentralized principles of the crypto world are upheld. As the industry continues to grow, innovations like this are likely to play a pivotal role in shaping its future.

FAQs

1. How does Kirobo’s Liquid Vault differ from traditional inheritance methods? Kirobo’s Liquid Vault offers a decentralized approach to crypto inheritance, eliminating the need for intermediaries like lawyers and government agencies. Users can designate beneficiaries and set conditions for asset distribution.

2. What cryptocurrencies are currently supported by Liquid Vault’s inheritance feature? Liquid Vault supports Ether (ETH) and ERC-20 tokens. Kirobo plans to expand support to include NFTs in future updates.

3. Why is crypto inheritance a growing concern among crypto owners? Many crypto owners are concerned about the possibility of their digital assets becoming inaccessible after their passing. This concern arises from the unique nature of private cryptocurrencies like Bitcoin.

4. How does Kirobo’s “future conditional transactions” technology work? Kirobo’s technology allows users to create future transactions and set conditions for their execution. It simplifies complex transactions and eliminates the need for intricate smart contracts.

5. What are the benefits of decentralized crypto inheritance? Decentralized crypto inheritance provides greater control and flexibility to asset owners, reduces costs, and aligns with the principles of decentralization and community ownership in the crypto world.

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