0 sats \ 8 replies \ @k00b 1 Feb 2023 \ on: I'm Hugo Nguyen. AMA! bitcoin
Can you explain how Honey Badger works?
Sure !
Honey Badger is an 2-of-4 "assisted" multisig wallet. The platform holds one key (the "platform key"), while the owner hold three keys, including a designated inheritance key. The designated inheritance key is exclusively reserved for inheritance planning, and not daily spending.
This design was inspired by the separation-of-concerns principle. The inheritance key allows us to separate daily security concerns from inheritance concerns.
The inheritance key is timelocked, meaning a beneficiary can only access it to claim the inheritance on a future date set by the owner. Currently the timelock is enforced off-chain by Nunchuk the platform. In the future we will also explore the on-chain timelock option.
Honey Badger also has some other powerful features, such as policy control (for the platform key) and scheduled transactions.
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I am still confused on how this solves the inheritance issue. If a person has multiple utxos across different private key setups how would this product work? Put all of your Stash into this honey badger product? I was considering using this product because the current setup is lacking but I am confused how this solution would work.
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If a person has multiple utxos across different private key setups how would this product work?
The way Honey Badger works is that it is a 2-of-4 multisig wallet. Meaning any spend would require 2 out of the 4 keys.
The platform holds one key. The owner holds three keys, one of which is a designated inheritance key.
It is this inheritance key that will be released to the beneficiary on a date set by the owner. Prior to the date, the inheritance key will not be released no matter what.
Once the beneficiary has access to the inheritance key (again, this happens on a future date set by the owner), they can initiate a transaction that sweeps the original wallet’s balance to a wallet that the beneficiary controls. Like any other spends, this sweep transaction would require 2 signatures. One would come from the inheritance key that the beneficiary now control. The other signature would come from the Nunchuk platform key. That’s how claiming an inheritance works.
This would work regardless of how many UTXOs the wallet has. The sweep transaction will include all UTXOs.
Let me know if anything is unclear and I’ll be happy to elaborate further.
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And if Nunchuck goes bust then what happens?
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Great question.
First, since it's a 2-of-4 multisig wallet. Nunchuk going out of business won't affect the owner as they still hold three keys and are always in full control of their funds. They can use old versions of Nunchuk which are available as APKs, or can be compiled from source. Alternatively they can use other wallets such as Sparrow to recover their Nunchuk wallet and move their funds. If the owner is still alive, this would be our #1 recommendation.
Second, if that does happen we will do our best to (a) have a long wind-down period and (b) notify our users well in advance, so that they have all the information they need to move their funds.
Third, regarding the inheritance plan, we recommend our users to use a rolling short timelock. In the unlikely event that Nunchuk ceases to exist and the owner has passed away, the short timelock (we recommend a 1- or 2-year timelock) would allow the beneficiary to react in a timely manner and claim their inheritance sooner rather than later.
Hope this answers your question.
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Thanks for taking the time to answer my questions. This is something I think about all the time. I know if I die today my stash is as good as gone but I may look into this solution a nice easy button so beneficiaries of my estate can access my BTC
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You’re welcome ! Feel free to reach me directly (@hugohanoi on Twitter, or hugo@nunchuk.io) if you have more questions.
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