Hey JessCoiners
For those who have taken a more in-depth look at the cryptocurrency market and the various projects available, Bitcoin is often seen as a laggard in the innovation space. Ironic considering when it launched, it was the pinnacle of innovation that bought about this entire cryptocurrency gold rush.
DE-FI and dapps have been grabbing most of the headlines and number go up because that's all most of us care about, but you know when number go down, we've got to stay for the tech right?
So for those who do care about the tech and stay for the tech, then BIP85 is a pretty cool solution that solves a problem, a lot of retail investors will have with Bitcoin.
Not your keys, not your coins
As technically savvy Bitcoiners, we often ramble on about not your keys, not your coins and the importance of generating and safeguarding your seed phrase and becoming financially independent.
But we need to face facts; not everyone has the aptitude to handle that kind of responsibility and seed phrases can and will be lost. People aren't going to blame themselves, that's not how we work, we will always try to blame the system, and Bitcoin would become the scapegoat for peoples negligence and stupidity.
This is why many retail investors choose to leave their coins with custodial service, which assumes the liability and storage for the tokens. It's why once banks offer custodial Bitcoin services, people will choose to use it; they simply are engineered to trust authority over trusting themselves.
Custodial wallet generation
BIP85 is a proposal that should be merged with the code in the coming months should all go well, that will allow you to generate multiple seed phrases from one master wallet. If you've created a Bitcoin hot wallet or cold storage, you'll know how the process works.
You set up a wallet, you get your 24-word seed phrase, and you store that in a safe place. This allows you to restore your wallet to any device should you lose or damage a storage device.
You also use the private key to generate public keys tied to that address. The public keys are the ones we share freely to perform transactions.
Once BIP85 goes through, you can create a master seed phrase tied to other seed phrases. This may sound underwhelming, but it has an enormous impact on the management of coins and wallet applications.
Let's say my Nan wants to get some BTC; I can spin up a seed phrase using my seed phrase. She can then take that sub seed phrase and use it to generate her wallet and public keys. She'll be able to manage her wallet independently.
If she cocks it up and losses her keys, I as the master seed phrase can generate a new phrase and restore that wallet, so those funds are never lost.
Dangers of BIP85
Since you're the master of other peoples wallets, you are now the last line of defence, but you can also steal peoples funds. Creating a BIP85 set up requires you to trust the master seed holder.
This could be a company or an individual in your family but remember these wallets are always open to 3rd party attack vector.
I do think BIP85 will bring a new sense of confidence to Bitcoin, where it currently is a case of you fuck up you lose your money for good.
It will allow less tech-savvy Bitcoiners a sandbox to play around in and get used to Bitcoin with the more experienced campaigners able to be a failsafe and hold their hand along the way.
Source: thebitcoinmanual.com
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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Posted Using LeoFinance Beta
So we can transfer some btc to someone without transfer cost right ?
Or we can create a partition of our wealth on a hard wallet, let’s say just enough to have fun for the night without risking our 15 BTC from our Ledger ?
Or am I totally lost ? :)
Posted Using LeoFinance Beta
No this is not a patrician account, in your ledger you can set up XPUBs so you can generate multiple public adddeszes for one account and manage that
But with BIP85 it’s more like you have a master seed phrase! Then you use your master seed phrase to create a sub seed phrase that can be used to create a totally new wallet for a user they can use it as they please but if they ever lose their seed phrase and access to the wallet you can retrieve it via your masterseed
Think of it as an account with admin privileges like the bank can reset your password for you if you lost it
Alright thanks a lot for the explanation !
Posted Using LeoFinance Beta
I like the sound of that. Great for families who want to get into BTC and trust is pretty much assured unless you're a family from Eastenders!
You're right though, hardly anyone will take responsibility of their cock-ups and so it must be something else's fault! 3rd party delegation is the norm these days but it's great people have the option to be their own bank with BTC.
Posted Using LeoFinance Beta
Indeed and also for a training wheels program you can spin up their first wallet and when they are old enough or experienced enough they can go off and have their own wallet
Lol it’s going to be fun, each frenzy for BTC brings in new people who will lose their coins so that 21 million is pretty much getting a another supply cut! We could be a 16 million club soon
Lol! Yeah some think it's even as low as 15 million total coins available that haven't been lost, adds even more scarcity to the mix and the importance of not losing any sats at any cost!
Posted Using LeoFinance Beta
This will be great comfort for our friends and family how are still afraid of using the currency.
If I have a wallet and I can share something out of it they will also trust it I guess
Indeed, and can even be for people who want to have mutliple wallets to manage things lets say you have a wallet for your work, a wallet for your savings and a wallet for your investment, then you can keep theme seperate so its easier for accounting and management
Well written article, can be used as a future saving for children👌🏻
Thanks and i agree, will be a great way to introduce kids into Bitcoin teach them the power of saving and getting comfortable with the technology and watching their little savings grow without them losing it by doing something silly
Perfect for "child accounts" Love it!!
Hive has Similar with masteraccount in Some way
Exactly, you could even set them up for companies and pay people their salaries and they can move it to another account later but you as the companies can always have control and manage the payment account it’s great for auditing
How do you set up a master account on HIVE?
I am not sure if it called masteraccount . But something similar. IF I loose my password that account is my recoveryaccount. But where .....I dont remember. It was a long time ago - or maybe was it only in steemit?
I have to check and be back in this subject