Today, I am navigating a sensitive, yet incredibly vital discussion: ensuring our digital assets remain accessible to our loved ones in various unforeseen circumstances, including incapacitation or demise.
In conventional banking, a relatively straightforward process exists. Upon a customer’s passing, their beneficiaries or next of kin can, through legal processes, gain access to their financial assets, given the appropriate documentation.
Contrastingly, with cryptocurrencies and non-custodial wallets, especially in your secure and decentralized framework, the recovery processes are understandably different. Users possess the pivotal recovery details, such as seed phrases and private keys, which are imperative to access funds securely.
Your website mentions:
“If a user’s keys are lost, the issuer of a contract can freeze, unfreeze, and confiscate tokens to allow users to get their assets back.”
This statement prompts the following inquiries:
Details on Contract Issuer Interventions: Could you provide clarity on the mechanisms through which an issuer of a contract can facilitate the recovery of assets? What are the specifics of the process of freezing, unfreezing, and confiscating tokens?
Scenarios of Death or Incapacitation: In circumstances where a user has passed away or is incapacitated, how can the issuer of a contract be approached, and what documentation or verification is required to facilitate asset recovery?
Differing Asset Treatments: Does the recovery process vary between different types of tokens or cryptocurrencies (e.g., BSV) held in the wallet?
Secure Storage and Transmission Guidance: Given that no device, including your platform servers, has visibility into user’s private keys, what are your recommendations for secure storage and potential transmission of recovery details to trusted individuals?
Legal and Alternative Recourse: If the user is unable to provide recovery information due to various reasons, what legal or alternative options are available for family members or beneficiaries to access the assets?
Comparative Practices: How do Tokenized’s policies and procedures stand compared to other prevalent practices within the cryptocurrency industry, particularly concerning asset recovery?
Thank you for considering these questions and I look forward to your valuable feedback.