What is an inheritance wallet for?
An inheritance wallet allows family members to recover digital assets in the event of password loss, death or incapacity of the holder
Losing or forgetting the password of a digital asset wallet does not necessarily have to be a headache, since there are inheritance wallets, which allow family members to recover said assets in this case, when the holder dies or is incapacitated.
Inheritance wallets are emerging as a solution to avoid losing the cryptocurrency balance, as has happened to thousands of people around the world for different reasons.
If it is a case of forgetting or losing the password, guardians or beneficiaries can be designated who are able to help recover this information without compromising privacy.
In the event that the holder is still alive but cannot manage his assets, the heirs can activate these wallets through scheduled inactivity mechanisms, such as six months or a year, and if during that period there are no movements or authentication, the transfer of funds to the registered beneficiaries is activated.
Other fund transfer mechanisms are smart contracts or multi-signatures in cases where the conditions specified in such mechanisms are met.
It is important to remember that solutions must be foreseen to resort to in case of loss of the password of an inherited wallet so that the beneficiaries can restore it from other devices.
M.Pino
With information from Criptonoticias
(Reference image source: Ewan Kennedy on Unsplash)
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