Block states that this is a solution to a multibillion-dollar problem waiting to happen. Owners of Bitkey, the company’s hardware wallet, will be able to link a partner address where the funds will be deposited six months after the owner’s death.
Block Rolls out Bitcoin Inheritance Feature for Bitkey Users
Block, the Bitcoin company co-founded and helmed by Jack Dorsey, has implemented a new feature that solves one of the biggest problems in the crypto space: inheritance. While fiat systems are usually identity-based, allowing for the transfer of assets to next of kin in case of death, bitcoin is different.
Crypto is based on data access, where a private key is what allows funds to be moved without third parties. This means that if access to this key is lost with the death of its owner, funds risk being lost forever.
Block’s system, which was first announced back in November and works in tandem with its in-house developed Bitkey hardware wallet, seeks to solve this issue by linking a wallet to another private key. This will allow for the transfer of funds six months after the user’s death.
Jason Karsh, Bitkey’s head of business, highlighted that the need for this kind of solution in the crypto space would only grow in the future. He stated:
A lot of people have significant amounts of bitcoin at this point, or appreciating bitcoin, that’s sitting in a place where it’s not going to get to their loved one.
Karsh stated that this was a solution for a multibillion-dollar problem waiting to happen, allowing family or loved ones to reclaim the funds after the user’s demise. He also differentiated Block’s system, which doesn’t involve third parties, with more elaborate schemes, that might require extensive documentation from the people involved.
Hardware wallets are but one of Block’s growth areas. The company is also working to produce its mining chips, which might be vertically integrated with another of Block’s envisioned businesses: bitcoin mining infrastructure.
Read more: Jack Dorsey’s Block Targets Chip Advancement With 3nm Bitcoin ASIC Mining Rig
Read more: Jack Dorsey’s Block Bets Big on Bitcoin Mining
