The future of self-custody lies in solutions that empower asset owners to manage their own keys while mitigating risks. Asset owners will seek out configurations that offer both single and multi-signature options, allowing them to recover funds even if they lose some or all of their private keys.
Smart Vaults will emerge as a popular self-custody solution, featuring a timelock mechanism that activates a rescue key. This enables access through a separate key pair after a specified period, providing a safety net if primary keys are lost or compromised. Regular key maintenance by a service provider will help keep these setups secure. The underlying technology powering these Smart Vaults is Miniscript, a domain-specific language scripts that simplifies the creation and management of complex multi-sig arrangements.
Additionally, users will have the ability to set extended timelocks of several months or more. If primary keys are lost during this period, a collaborative custody arrangement will be implemented, where the service provider assists in fund recovery without ever being able to access the assets independently.
Even if the service provider ceases operations, user-friendly self-custody setups built on #Miniscript will ensure that asset owners can still access their funds at any time, without relying on a third party. This level of autonomy and control over one's digital assets will be a key driver in the future of self-custody solutions.
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