Cryptocurrency Inheritance Problem to Be Solved by Italian Startup

[Goodcat49]

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.

Lost and Gone Forever
In 2018, $1,000,000,000 worth of Ripple’s XRP was totally lost when a cryptocurrency holder was reported to be dead. This investor was the only person to possess the private key to the wallet containing his virtual money. His heirs are still unable to locate these private keys or access the funds.

Another major case happened with QuadrigaCX, a Canadian exchange whose funds were lost because of the death of its founder who never bothered to guarantee that the private keys of the cold storage wallets were effectively given to another individual after his death.

Some reports claim that an estimated 0.7% of crypto holders die every year. If they have not arranged transfer inheritance rights to their legal heirs, the funds are lost forever, since there is no way make blockchain systems reveal the keys to someone other than the original holder.

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