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Even the password itself is a workaround to the fact holding keys is not realistic for most users, a seed phrase isn't materially any different than a post-it note on your monitor.
compliance traps
That's always the gorilla in the room for sure, it'd actually be relatively easy for me to do a GreenAddress with Sanctum + ShockWallet directly... but then at what point would we be liable for signing transactions that are verboten?
One argument is that's not control, might be something to glean from the terms highly resourced companies like Unchained and others have... but even then it ultimately doesn't matter what any one entities interpretation of the law is. Law is made up, arbitrarily in large part, as we go.
That introduces the complexity of it needing to be protocolized and distributed. Pub at least puts us in a good position because we're already getting servers distributed, Pub's can make anyone a highly online co-signatory and descriptor backup... but that adds a ton of surface to secure... which ties into your latter point.
This is why the state of things is so bad. Lucid people are incentivized to do nothing.
As old as passwords. We've never solved it and only worked around it. Just like the poor guy standing in the rain in front of the Tower (of London) because he forgot today's word, and the other guy that got literally rubberhosed and then stabbed and then there was an intrusion into the impenetrable. We see ourselves in digitally equivalent trouble all the time.
Wish I could help re: making another GreenAddress, it's the one thing I can't convince myself to do anymore - too many people captured by compliance traps leading to too many victims with coin loss. #1063754 - I do not want to be part of putting anyone in that situation ever again.