here we go
a solution for a trillion dollar problem that you can build v1 for in a few days with
@ikadotxyz
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the problem - private key loss
100s of millions of people with a self-custody seed phrase wallet and a daily risk of key loss
in 2011, stefan thomas lost access to 7,000 btc after forgetting his hardware wallet password
in 2013, james howells lost access to 8,000 btc after his keys were thrown out during a cleaning
key loss is estimated to have caused hundreds of billions of $ in damages, a number that grows every day, and won’t be long before it passes trillion $
existing solutions and why they’re not good enough
today the key loss problem can be solved with centralized custodians, mpc wallets, institutional mpc, key recovery services, shamir secret sharing etc.
these solutions are mostly centralized and/or require users to trust a 3rd party which dramatically reduces adoption.
some of them also require transitioning into a different custody system and don’t work out of the box with existing wallets, can be super expensive, or require complex setups and hiding shares - in short bad ux, also dramatically reducing adoption.
at least one of the three - Zero-trust, Usability (ux), Decentralization - is sacrificed
the ZUD solution with ika
here’s the gist from the user perspective:
- no matter what wallet you have, you can use this solution
- you take your key (seed) and create a dWallet (imported key dWallet). that basically involves (1) a user share that only you know and gives you the same cryptographic guarantees as a private key (signatures can never be generated without it) and (2) a network share that is encrypted and can only be operated by 2/3 of the decentralized ika network
*super important: this does not reduce the cryptographic security of your private key, a user share is as impossible to break cryptographically as a full private key*
- you then are given different low-friction options for securing the user share, for example passkeys, walrus seal, other wallets etc. multiple options can be chosen, and some can be premium only requiring a subscription.
- finally you are given different low-friction options for a policy to determine whether ika will complete a signature request from a user share, for example threshold of approvals from regular/zklogin accounts, timelocks, video call approvals etc. also here multiple options can be chosen, and some can be premium only requiring a subscription.
- the whole process should take 5 minutes, super easy ux, peace of mind, freemium with a very cheap subscription (or like a one time $200 for life) for premium features
3 user examples
- a super hardcore self custody user encrypts the user share with passkeys on 2 different devices and an encryption key they keep in cold storage. the policy for the network share will be super strict, where 3 out of 6 accounts are required, 3 are self-custody private key accounts that don’t hold any assets, and 3 are zklogin accounts from different providers - google, facebook and apple. on top of that, the policy only allows to sign a message that triggers a timelock and only a month after that signed message is submitted to the policy contract, other transactions can be signed. the product monitors the policy contract, notifies the user via email, text and telegram when the timelock initiates (premium feature) so if somehow someone else triggered it (a passkey 3 accounts compromised) there’s 30 days to remove all assets.
5 min setup, premium subscription, practically impossible to break.
- a high net worth retail investor could store their user key on walrus and encrypt it with a reputable Seal committee (premium feature) and have a policy requiring either 1 out of 3 zklogin accounts (google, fb, apple) plus video call approval (premium feature) or 3 out of 3 zklogin accounts without video call approval.
5 min setup, premium subscription, institutional level security.
- a regular retail user would just take passkey protection for user share and 1 out of 2 zklogin accounts (google, apple) for policy.
5 min setup, free, peace of mind.
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ZUD is going to take over and it's going to change everything
btw, @0xLegacyLink, i think this is it. this is your business. inheritance can be a feature of this product.