[Excerpt of a discussion I had on the EOS NATION Facebook group]
Link: https://www.facebook.com/groups/EOSNation/permalink/2222677801312039/
David Adams:
Juni I know you have been involved with this since the very beginning. Do you think account holders should be entered into arbitration-enabled contracts by default? I think yes. Most people won't take the time look into arbitration until it is too late.
Me:
I don't think that is a bad idea for accounts to default with arbitration enabled, where more experienced users can then immediately choose to op-out (with a wait period of 3 days perhaps -- by removing all their funds from the contract). Those who op-out can transfer their funds to any accounts, while "safe-mode" or "protected" accounts are only able to transfer funds to another arbitration accounts. Will be helpful if people can have only a portion of their funds protected, and the unprotected funds can then be transferred to a different unprotected account under (hardware wallet) cold storage, etc.
David Adams:
No one would have a reason to complain with this kind of flexibility. The main reason people diss EOS, is because they think they have centralized control over freezing and reversing accounts. If users can opt in our out at will, it's the best of both worlds.
Juni:
A hybrid system can be very appealing.
- In a way the arb-protected-accounts can be viewed as our normal spending account in a bank.
- While accounts that have opted out of arbitration access/power (secured by multi-sig + hardware-wallet as one of the signatory) can be viewed as a longer-term fix-deposit account in a way (where those fraction of funds is rarely touched), and there is no concern by more paranoid individuals that their funds may be at risk of fluke arbitration or put at risk in case of bad governmental groups momentarily gaining power.
A further (very crude) idea I have also considered is if EOS and ETH can be linked in some way, such at individuals can opt in for further security where one of the multi-sig accounts is provided by an ETH private key.
Periodic "backups" of fund numbers on the EOS blockchain can be made on the ETH blockchain (with gas paid for with ETH of course); and for funds to be transferred beyond a certain limit out of this account/contract, the ledger on the ETH blockchain need to be updated first to enable the actual transfer on the EOS blockchain to go forth. i.e. If there are 500 EOS tokens secured and the amount updated on the ETH blockchain, and the threshold is set of 10%, then only 50 EOS tokens can be moved unless the ETH ledger is updated or the threshold is modified.
This allow the security level necessary for institutional level of custodians trying to operate on the EOS platform, while also keeping the large sort of funds on the EOS platform w/o having to trade them for something else that they might deem more secure (in terms of centralisation-risks).
Perhaps, alt-chain linking can be further expanded to include say Cardano (once their smart contract layer is up), or Nano, and so on.