Cryptocurrency Wallet Access Recovery

Users lose access to their wallets forgetting password and/or private keys. Besides centralized solutions (unsafe by default) there are no services on the market allowing users to withdraw from a lost-access wallet. There is a similar problem with physical (cold) wallets, like Ledger, Trezor etc., there’s always a chance the device will be damaged or stolen.
Keeping data in cloud services to backup access is risky. Almost all cloud services have denial of responsibility if data is lost or has been accessed by third parties.

Losing money easily

American journalist Mark Frauenfelder recently made a post on how he lost his pin-code for private key storage and almost lost $30000 (restoring them by practically cracking Trezor). The fraction of forgotten passphrases is large in lost wallet scenarios not to mention owners keeping money on separate wallets.
Recent press on Parity Ethereum wallet vulnerability is very relevant: approx $150 M were lost forever.
This is just a small selection of widely known cases which are fairly recent. The problem users face is to protect one’s wallet from unauthorized access and having a plan B to be able at least withdraw the money when losing pin-code\passphrase or private key

What are the options?

One of the options is recently announced NYX solution (https://www.nyx.insure): a decentralized insurance and account access recovery. This solution is based around smart-contract logic giving a life-time guarantee to restore access.
The core is NYX smart-contract which is holding money and access recovery opportunities.

How to restore access and withdraw the money?

When generating NYX-account two accounts are generated: managing and insurance and there is only managing account visible on blockchain. Insurance account address is stored in NYX-account with encryption. Moreover if both are lost you can still withdraw money to an emergency account which can be created later.
One of features is a decentralized video identification. It’s used when you need to withdraw money to an emergency account. Owner requiring access restore publishes special request on the blockchain which contains data for identification process. Other users process it and participate in the process for the reward based recovering NYX account balance. The consensus and protection from bias is reached by using Schelling point.
Important data stored in NYX account is safely encrypted with Keccak256 hashing algorithm which disallows reverse data restoration.

Hacking contest

NYX developers are so sure on effectiveness and reliability of their solution that they plan to use their wallet while making ICO as a safe way to save money and access to them.
Besides that NYX team decided to make a contest where everybody can legally try being a hacker and withdraw money from a wallet. The winner will get a $10000 equivalent of NYX tokens.
The prize is given to whoever makes a transaction and withdraws the money from the following account:
ADDRESS https://etherscan.io/address/0xd8f760AC90208423Ecf9a5f320037cB224De8909
KEY OF THE OWNER

Code:

{"address":"6cfdda07ffec78a5ba39d6b3969f92e603523542","crypto":{"cipher":"aes-128-ctr","ciphertext":"d5515de066e1f6bbdcc026384bdaa4dcc196cae54c11a31368eb6e3e6be7cdab","cipherparams":{"iv":"851065c2135f9b696693f05927d285e7"},"kdf":"scrypt","kdfparams":{"dklen":32,"n":262144,"p":1,"r":8,"salt":"1fed1b7d94e59591d916d9be7ecdf452081b28dcf84bda4bf388a8140e71f930"},"mac":"3fe0b2017324fb0ea25ff0309cd82d1d8b41310a65a53b809c03e4a08bdd97b0"},"id":"ddcfdcea-bea9-410e-98ef-6871fa145737","version":3}

PASS qwerty01

Conclusion

The situation around cryptocurrency wallets is not that unclouded. Typical crypt-account cannot compete with ordinary banking account in terms of access recovery. Multiple cases of wallet freeze, lost keys and etc makes you think on a solution simultaneously safe and giving you plan B, C and even D if something goes wrong. NYX is a good answer to these challenges.
The source code and key features of this service are in the project White Paper allowing everyone to make their own independant and free choice.