[2019-02-17]Cryptocurrency Inheritance Problem to Be Solved by Italian Startup

[Vladdirescu87]

Italy is open to innovations and cryptocurrency adoption due to its security and decentralized nature. Indeed, the only way one can get access to crypto funds is possessing an alphanumeric private key.

However, even such a good solution has its dark side. It is impossible to gain access rights to cryptocurrency funds in case their owner is dead. There’s no institution that could regulate succession rights as the blockchain network, which is the basis of any crypto, is decentralised and immutable.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/cryptocurrency-inheritance-problem/

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[o_e_l_e_o]

Searching the name of the company in that article leads to this site and page: https://www.crypto360.it/en/crypto-custody-service/

The site is very unfinished, but from what I can gather, the user would encrypt their private key, upload the encrypted file to this service, who would then encrypt it again and store it. The user would then give their password to their next of kin. Upon presenting a death certificate to the service, they would decrypt their encryption, and send the original encrypted file to the next of kin, who would be in possession of the password required to decrypt it back in to a private key. This seems to cost €200 to set up and €200 a year to maintain. You are also entirely depending on this start-up to securely store your data and not to go bust at any time in the next 10, 20, 30+ years.

I'm not sure why would you do this, when you can achieve the exact same thing yourself by encrypting a file twice, giving the first password to your next of kin and leaving the other password in your will.

[CryptoBry]

This is actually a very big concern especially for those who are possessing considerable amount of cryptocurrency. There has to be a good way to get the cryptocurrencies to people who are legally heirs to the said assets because unlike physical assets like cash, real estate or even stocks, cryptocurrency has a different nature unless of course the private keys are preserved somewhere and can be retrieved once the owner has already passed. Just recently, there was the story of the big problem that an exchange encounter when their young CEO unexpectedly passed. The same story can happen again and again unless there can be an effective way to get around the same problem.

[romero121]

For users with large funds this is truly required service. Inheritance of cryptocurrency from one to the other can't be done through a third-party medium. Through the simple encryption and decryption process private key is being secured and broadcasted on providing necessary documents mentioned by the startup. Here also scam approaches will happen as large fund wallets will prefer to use these kind of services.

[btyco]

Good to see italian companies joining the blockchain revolution. So far there hasn't been any worth while investments coming from italy, and they are in serious need of development

[buwaytress]

Searching the name of the company in that article leads to this site and page: https://www.crypto360.it/en/crypto-custody-service/

The site is very unfinished, but from what I can gather, the user would encrypt their private key, upload the encrypted file to this service, who would then encrypt it again and store it. The user would then give their password to their next of kin. Upon presenting a death certificate to the service, they would decrypt their encryption, and send the original encrypted file to the next of kin, who would be in possession of the password required to decrypt it back in to a private key. This seems to cost €200 to set up and €200 a year to maintain. You are also entirely depending on this start-up to securely store your data and not to go bust at any time in the next 10, 20, 30+ years.

I'm not sure why would you do this, when you can achieve the exact same thing yourself by encrypting a file twice, giving the first password to your next of kin and leaving the other password in your will.

Precisely the shortfalls pointed out by earlier discussions on so-called private key inheritance (which, really, is all this is).

The easiest way to do this now is just by including it into your will, as you would any other property or inheritance.

Would I trust my will lawyer to carry out my wishes once I've passed? Probably a lot more than I would a service to seek out my next of kin. Too many points of failure. I bet you right now if I asked this service to seek out my next of kin they'd struggle... if they even tried.

[poptok1]

This seems to cost €200 to set up and €200 a year to maintain.

Man, this seems quite expensive for storing just a few kilobytes of data...
I could understand the initial price being even bigger, as legal preparation and staff training may inflate the cost, but maintaining few kb at 200 per year feels like a blunt robbery. I think that it will end up being just that, the robbery. I would never trust such important task to some startup while the same type of security can be created through solicitor, that is actually abided under special laws.

 

[enhu]

Its a good thing, you wouldn't want your kids to actually suffer financial support when you are gone. The problem with such services is that you don't know whether you can trust it. I have no idea what Digitrust is but certainly I'd rather teach my kid as early as possible to learn the value of money as much as how to learn about crypto and how important private key is.

[o_e_l_e_o]

Would I trust my will lawyer to carry out my wishes once I've passed? Probably a lot more than I would a service to seek out my next of kin.

Exactly. Do you trust a massive law company which has been in existence for decades and has executed thousands of wills, or do you trust a completely unknown startup in another country? Seems a no-brainer to me.

Man, this seems quite expensive for storing just a few kilobytes of data...

Well, considering for the €200 set up fee they are charging you could have a will written, and then it is stored indefinitely at no extra cost - plus the fact it is an entire will and not just a single crypto private key - means this service is hugely expensive for what it is.

The combination of an unknown entity massively overcharging for a very simply process should be throwing up red flags all over the place.

[Crypto360 S.r.l.]

Searching the name of the company in that article leads to this site and page: https://www.crypto360.it/en/crypto-custody-service/

The site is very unfinished, but from what I can gather, the user would encrypt their private key, upload the encrypted file to this service, who would then encrypt it again and store it. The user would then give their password to their next of kin. Upon presenting a death certificate to the service, they would decrypt their encryption, and send the original encrypted file to the next of kin, who would be in possession of the password required to decrypt it back in to a private key. This seems to cost €200 to set up and €200 a year to maintain. You are also entirely depending on this start-up to securely store your data and not to go bust at any time in the next 10, 20, 30+ years.

I'm not sure why would you do this, when you can achieve the exact same thing yourself by encrypting a file twice, giving the first password to your next of kin and leaving the other password in your will.

Hi, Crypto360 here. Proof of identity can be found on site root at file /bitcointalk-proof.txt (sorry, new profile, when possible we post links). We appreciated a few positive feedback but also negative, because glad to not see “it’s a SCAM!” but just constructive criticism.
So, we want to clarify some points and get precious feedback again.
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On bitcoin script/ ethereum smart contract solution. Here some problem:

1. Owner can spend Bitcoin anytime

yes, but it works only for bitcoin and ethereum, or smart contracts blockchain. You don't solve the problem of keep your private keys, just the coins. it's another problem. Moreover, you can still have other local copy of your keys for daytrading. But this is not recommended.

2. Heir can spend Bitcoin after n days, but need private key from inheritance company

N days aren't a trigger. Our service can handle any situation: inheritance, birthday, company failure etc. it's a human value that a script can't give.

3. Heir can spend Bitcoin after m days without private key from inheritance company where m > n in case the company bankrupt or didn't do it's job

In case of our failure, we release all files back to owners. For us, all files are worthless without password.
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Price
It’s not 200 euros for maintenance like someone said, but just 100. Or rather, customers have to pay lump sum for 200 euros just the first year like fixed price, and 100 euros every years like maintenance costs, starts from the first year. To make more clarity: 1° year 300 (200+100) the following years only 100.
Someone also said it’s a robbery, price to high for this service. If you have made just a little amount investment on crypto take a hardware wallet, it’s the best solution. But if you have made a big investment on this market, try to ask yourself this question… how much my investments worth? how much do I believe in this market?
Do you know what is the price for “bank’s safe-deposit box” or notary costs? Maybe in certain countries price for this performance are lower than Italy, but generally it have a modest cost.
And if you are a company who manages crypto for other people it’s necessary to adopt the max security level to prevent QuadrigaCX’s end.
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Differences with a notary
We are specialized on crypto market (we also provide other service) and have a strong skills about security and technology field, so we have an infrastructure and knowledge to better shields your crypto. Notary have first to know what are you talking about and maybe relies on third parties for guarantee the necessary security level for the storage.
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Not just inheritance
Service “storage + conveyance” make possibility of releasing the file by third parties, bound to the occurrence of a specific event. Customer contractually identifies the event that will determine the release of file to a designated third party.
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Trust
Your assertions about the trust factor are obviously lawful, but it’s all about trust, every solution you decide to adopt. Don’t look just the firm size, yes you are right, we are still small… but serious and competent. What is the trust that customers placed in Leman Brothers? They were a really big company…
Like I said below, in case of our failure, we release all files back to owners. For us, all files are worthless without password, is not the same for our competitors or other company in in which we place trust every day.
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Our SITE
Someone said its unfinished. In this days we are working on site to make a better work, you can find our English whitepaper on site root /Crypto360-Crypto-Custody-Service-WP-EN.pdf. Today we have made some improvement to the site,  so if you can, please tell us what would you improve, we will be happy to know it and get better work.

[buwaytress]

@Crypto360: Now this is what I call proof of life;)

Thanks for some of that clarification, and yeah, if you're not used to this forum yet, it's pretty solid for constructive feedback. Would suggest you even open up a thread to announce your service and provide support under Services section.

Re custodial for individual services, I'm still not convinced though but maybe use cases and client testimonials could help shed some light. But certainly, SMEs could consider, though QuadrigaX's case is really just gross negligence.

P.S. Sent you a PM.

[davis196]

There's one simple colution for crypto inheritance.Destorying all the crypto in inactive wallets.
If some users doesn't use his wallet(no logins,no transactions) for more than 1 year,all the crypto in his wallet are destroyed.This is the best solution,but I don't know about a solution for the cold storage wallet owners.

[Ozero]

In my opinion, even 100 euros per year as an annual fee for storing information about the testator's secret keys is quite a lot. In addition, there is the same problem of trust. Probably, it will be much easier to entrust the secret keys to your relatives than to complete strangers. Where is the guarantee that after some time, having collected information about the private keys of cryptocurrencies for a large amount, that firm will not disappear along with the cryptocurrency, the keys from which it stores under such a contract.

[Crypto360 S.r.l.]

In my opinion, even 100 euros per year as an annual fee for storing information about the testator's secret keys is quite a lot. In addition, there is the same problem of trust. Probably, it will be much easier to entrust the secret keys to your relatives than to complete strangers. Where is the guarantee that after some time, having collected information about the private keys of cryptocurrencies for a large amount, that firm will not disappear along with the cryptocurrency, the keys from which it stores under such a contract.

We are sorry for the superficiality with which criticisms are argued. We probably miss something in communication, but people do not make the effort to inquire before criticizing.

The amount paid for service is not only about storage but also for file conveyance and  inheritance guarantee. Regarding private key, we will never enter in possess of this information. Customer have to encrypt his private key like text file before upload it in our platform. So, we can't see client's private key/SEED.

Before making other considerations I would advise you to read our white paper that you find on our site. Having done this, all the considerations and criticisms are welcome to improve our service, provided they are constructive.