0 sats \ 7 replies \ @frostdragon 2 Aug 2023 \ on: Smart Vaults (Bitcoin+Nostr) launching soon - sign up for wait list bitcoin
Someone explain this to me like I’m 5, including why this is needed. Sounds a little sketch.
They're using nostr to communicate.
Just period dot, leave it like that.
Okay, so then they're trying to create "distributed custody" vaults. Its where you can give a friend access to your money in case you lose access to your money.
Except more than one person has to sign off in order to actually spend the money.
This is how glacier explains the usecase for distributed custody: https://glacierprotocol.org/docs/overview/multi-signature-security/
But remember Bitcoin beach had something similar to this, their system was "community custody" but it was still just Galoy always had the ability to spend the Bitcoin if the users lost their money: https://galoy.io/bitcoin-banking-for-communities-lessons-learned-from-el-zonte/
So in this case, you're giving keys to your friends rather than companies.
Nunchuck also had this "multi-sig with your friends and family" idea: https://nunchuk.io/
And again, the nostr part is literally just communicating xpubs and partially signed bitcoin transactions (PSBT) files with the other key holders.
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Great summary, thanks. Since Smart Vaults only rely on a bitcoin node and a nostr relay, it is also self-hostable.
This is not possible with Nunchuk, Fireblocks, BitGo, etc.
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Right....just can you use the NIP-88 binary transmission method rather than the json method?
https://github.com/nostr-protocol/nips/pull/512/files/a2cf31aaa95e7cb80501d54a04ce0256436e7d92
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Gotcha. Seems like just setting up multisig with unchained is way simpler.
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But you're setting up multi-sig with a company that has to comply with regulations, like handing over all your KYC information and transaction history rather than with your friends and your family who are just people and might give up information if like arrested, but still have 5th amendment rights for the most part.
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Bitcoin is a public ledger, and digital forensics makes privacy impossible if you’re concerned about nation states.
Bitcoin doesn’t fix the internet privacy problem. But confiscating each individual’s bitcoin is also impossible, even for a nation state.
In the meantime, why do I need an internet protocol to set up multisig with friends or family? Still seems like I could just generate the wallet myself and hand over hardware wallets.
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One of the reasons we built Smart Vaults is because we were tired of dealing with distributed multisig hardware wallets for day-to-day needs. They absolutely have a use case of course, and will be supported by Smart Vaults.
We wanted a smooth, high grade experience where users can approve quickly from their phone.
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