Thanks for this very useful invitation to exchange ideas on this topic. Keeping your wallet seeds safe and avoid scammers to steal your money is very a important topic to think of.
In the short term there are some basic rules to apply: keep your seed words safely, and NEVER share them, as it’s the keys to steal all. There are ways to have them stored in a fire proof way, like engraving in steel etc.
In the longer term there are some ideas, however not implemented yet as bringing the grid live is the first priority right now.
We have a unique technology to bring some capabilities to the market. Let’s discuss to see if one of the following would bring value, and if so, by when:
- ‘social key recovery’: in the same way as our dispersed storage works, we could split up seed words and represent them in a descriptive way, equations split over the 3bots of your friends and relatives. In case a key needs to be recovered for reason ‘lost’ / ‘deceased’ / … an instruction could be sent out to your friends to recollect the pieces, and a mechanism could be built in that a) x out of y people are needed to reconstruct the data and b) we could have some time delaying factor built in, useful to discourage phishing and/or when heirs needs to reconstruct the full key after a decease.
- be sure that the counterparty you are sending tokens to is authentic, by having KYC in place under form of a ‘self-sovereign identity’, by this we mean that the proofs that you are a reliable person / company is kept within your 3bot but in a way that you cannot tamper with it yourself and it’s immutable. So this info is credible to the outside world, and reusable for usage in KYC process of different parties other farmers, but also every company that needs to do KYC on their customers). We could implement it in 2 ways:
a) rely on so-called KYC-providers that check identity (passports, company info, …) against third parties, and that ‘sign’ the proof after checks, or
b) use peer2peer validation: multiple of your friends validate your existence.
The first one is, from a legal perspective, more correct, the second one is a more democratic setup and usable outside of the western world.