Have you ever worried about losing your private keys and access to your crypto forever? Vault12 has devised a new solution that may interest you. The company, which has backing from important venture capital firms such as True Ventures, Winklevoss Capital, Data Collective and Naval Ravikant, and went online this week and it offers a very innovative system.
By using the product offered by the company, you can protect your keys by sending them to your friends. The system uses something called “Shamir’s Secret Sharing”, which is a technology that was created by Adi Shamir, a prominent cryptographer from Israel.
Vault12 lets you choose a number of “guardians”, which are people who will receive parts of seed phrases to access your funds in case you ever lose your keys. These people will be paid to hold the information and will give it to you if you ever need it.
All of the transactions are made with smart contracts, so they are automatic and easy to enforce. People can set their price for whatever they choose. For instance, someone can charge $10 USD monthly, while another person may even charge more, but offer a better service.
Wasim Ahmad, the chief crypto officer of Vault12, was interviewed by Coindesk recently and he confirmed that the company does not access the seed phrases and that the whole process is fully decentralized.
“It’s all on people’s individual phones and their individual devices and it doesn’t pass through any servers, … the company doesn’t have any ability to see any of that. From an external risk perspective, that’s a big deal.”
The idea behind this important project is to take responsibility away from a single person and to share it with a group of people who can be trusted. While the concept is not necessarily new, it is one of the most advanced offerings of the sort on the market.