Keeping Your Crypto Assets Safe — Dead Man’s Switch (DMS)(Day 23) #KryptoSecure
Today, on day 23 of #KryptoSecure, I will be discussing a very critical topic “Dead Man’s Switch”. What is dead man’s switch? Pros and cons of DMS. How can you implement DMS,my personal opinions on Dead Man’s Switch.
What is Dead Man’s Switch?
A dead man’s switch is a mechanism that triggers when the user fails to perform an action. It was originally used with train drivers to stop the vehicle in case of somnolence (a pedal is playing the role of a switch in this case).
DMS is a tool that can be used everywhere, from machinery control to strategic setups, military, inheritance, emergency information distribution, e.t.c.
A dead man’s switch can also be digital, automating the transmission of information in case of incapacity (incarceration, loss of consciousness, death). This type of application might needs to be decentralized to avoid third party failures (hacks, misbehaviour, censorship).
In the event of death, what would happen to your crypto assets?
Would it be lost forever? Or would it be passed to your relative, wife, child(ren), or even friend? If you have no relative nor wife.
Dead Man’s Switch Pros
1. Asset Protection: A dead man’s switch ensures that your crypto assets are not left inaccessible in the event of an accident, illness, or other unforeseen circumstances.
2. Preventing Loss: It helps prevent potential loss or abandonment of assets due to long-term inactivity or forgotten private keys.
3. Estate Planning: It simplifies estate planning by allowing you to designate heirs or beneficiaries who can access your assets in a secure and controlled manner.
Many use this method to leave behind their wealth for loved ones. Instead of trusting a third party, using a tool like this is essentially a trustless form of security that doesn’t have any risks as long as it has been configured correctly. Some crypto wallets also have a similar feature so that the user can transfer their assets to the rightful owners when it’s time.
4. Erase Sensitive or Confidential Information: You could potentially configure it to automatically wipe all of your confidential data from various places, as pre-programmed. So, in the event of your death, your interests are protected. This also sounds useful for undercover agents.
5. Peace of Mind: Knowing that your assets are protected and can be managed according to your wishes in emergencies provides peace of mind.
Dead Man’s Switch Cons
You could fail to verify your presence due to issues other than death, such as illness or a lack of internet connection.
Nominating someone to receive your crypto access information might not necessarily mean you intend for them to take benefit of those assets or that the law will permit this form of asset transfer in your jurisdiction.
In the case of a DMS technique, where all assets are sent to trustee(s) or heir(s) wallet, in the event that the receiver(s) wallet private keys have been compromised, the purpose of DMS might not be fulfiled as the crypto assets might be hijacked or stolen by malicious actors.
If you decide to implement a dead man’s switch in your end-of-life plan, be sure to consult an expert on how to do this safely to ensure that the assets are transferred to your beneficiaries.
How It Can Be Set Up
1. Timer-Based Switch: You can set a predetermined time frame (e.g., six months) during which you need to interact with your account, such as logging in or making a transaction. If you fail to do so within that time frame, the switch is triggered, and your assets are automatically transferred to a designated address or beneficiary.
2. Emergency Contact Verification: Another approach involves designating one or more trusted individuals as emergency contacts. They periodically receive a request for verification or authentication. If you fail to respond to these requests over a certain period, your emergency contacts can trigger the switch to access your assets.
Personal Opinion
Dead Man’s Switch is a needed necessity to ensure the secure passed down of crypto assets from owner/holder to heir(s), it is importance that everything is planned well, from the picking of DMS tool to how the receiver will receive and probably used the assets should be stated and specified.
And also certain elements such as the DMS company shutting down or hacked should also be put into considerations.
Some DMS Tools :
Sarcophagus
Deadmansswitch
Disclaimer: Note that the above tools has not been throughly used or tested, usage of any of the above tools is totally at user(s) risk, I will do due diligence in testing out the tools and reporting on them. I might also add to the tool list in my report.