Can Digital Assets Be Inherited?
Cryptography ensures the integrity and a high level of protection of personal data against access by third parties, which is certainly a useful feature applicable in many areas of human life. Methods for providing data confidentiality and integrity are widely implemented, and cryptocurrencies are a good example of their use in the modern world. Upon purchasing any cryptocurrency, users create a digital wallet, where they keep purchased coins. Each wallet has a unique private key, which allows its owner to access his/her funds. A code, which is generated by the system, consists of a long set of non‑repeating numeric characters, which cannot be changed. Any person will have to go over millions or even billions of options regarding the sequence of such digits, which makes hacking almost impossible even by using special programs. However, this level of protection has a flip side, which has made many users confused. It is almost impossible to restore access to a virtual account if the key has been forgotten or lost.
How to Restore Access to Bitcoin or Ethereum Wallets
Bitcoin and Ether, which are now the two most popular cryptocurrencies, also have such a drawback. Private keys of these platforms cannot be restored. Within the context of the Chainalysis crypto project, research was conducted, which has shown that users have irretrievably lost access to their Blockchain wallets with some 20 billion USD. The reason for that was the inability to restore the access code to the digital account. But there are those, who managed to break down this barrier regarding application of cryptocurrencies and facilitate restoring access to the wallet if the key has been lost. The Simcord team has developed a way to restore access codes in its decentralized Bitbon System. This was made possible through the customer verification procedure without reducing the protection level of their personal data. As long as the crypto community believes that coin regulation is a disadvantage, users’ losses due to the inability to restore the access code will remain an important issue. By addressing this significant problem, the Bitbon System developers have managed to combine decentralized platform management, interaction with regulating authorities and multi-level degree of personal data protection.
Digital Wallet and Inheritance
User verification in the Bitbon System also makes it possible to inherit property rights to digital assets. It’s a lot easier than restoring Bitcoin, Ethereum or any other cryptocurrency wallet. There are many websites offering ways to restore the code, but, in reality, presented methods turn out to be ineffective. A private key is a complex mathematical mechanism, which is almost impossible to guess or forge. Considering the fact that many users have funds in their virtual accounts, it should be noted that completing the verification procedure is a reliable and secure way to insure their digital assets. In the Bitbon System, users must provide relevant documents and act in accordance with the legislation of the country, where the process is performed.
Experience shows that people stop thinking about cryptocurrency regulation as something bad. Regulating authorities do not restrict the digital industry, but rather promote interaction between users in a legal field.
Originally published at www.investitin.com on August 15, 2018.