The blockchain story began in 2009, then the attitude towards digital money was rather frivolous. Few people viewed this as a long-term investment. Thus, over the course of 10 years, the same problem of losing millions of wallets, and consequently billions of dollars in crypto savings, has surfaced.
What comes out, if you have lost your access code to your wallet, you cannot recover it. It is also impossible to remember. The blockchain experts have a serious task: a cryptocurrency lost due to the user’s forgetfulness or death, broken hardware or deliberate destruction cannot be restored for security reasons.
After all, losing your crypto savings is quite simple, even without the attempt on them of fraudsters and hackers. The question arises why users and responsible funds do not apply new technologies that can protect financial assets.
Such safe solutions exist since 2017. The MyWish platform offers users to create a smart contract that will transfer your crypto savings to a backup wallet in case of loss of access to the main one. It is so easy because it doesn’t require special skills or programming knowledge.
How is this technically possible?
Let’s review an example based on an Ethereum cold wallet with ERC-20 tokens.
- So, you have Ethereum address (address #1) with ERC20 tokens.
- You create a reserve ETH address (address #2) or use your friend/family address.
- You create & deploy a smart contract. Smart contract implements the following logic: if <condition> is met then transfer tokens from <address #1> to <address #2>.
- Call allowance function for tokens on address #1 to give rights to the contract to make the transfer.
- Call the contract if lost access to address #1 and it will transfer the tokens if conditions are met (for example, 1 year has passed ).
- Get tokens on the reserved address.
Why it’s good? Because:
- nobody can initiate transfer tokens until the conditions are met,
- you have full control of everything (can stop/prolong contract anytime),
- you don’t have to share your private key to anyone.
- you don’t need to store your funds in a 3rd party wallet/site
To make it even easier to understand, consider the options for the real application of such a smart contract in life.
Will Smart Contract
Such a contract allows you to manage funds as if they were located at the usual address. But in case the management ceases for some reason, the funds are transferred to the heirs. This could prevent the sad outcome due to the unexpected death of a Canadian crypto millionaire, when his wife did not receive payment by will $ 137 million.
This works in a very simple way, the contract requests external verification actions in the form of confirmation of the user’s transaction at a certain point in time, which is configured in the parameters of the smart contract.
Lost Key Smart Contract
This contract is a special case that also manages the funds as a wallet contract, but if the user loses the private key, then after a specified time the funds transfer to the backup wallet or to another contract.
In this regard, there is a big question to the exchanges, which act as a guarantor of the storage and use of cryptocurrency assets. Why exchanges do not want to protect and enhance security, because they are responsible for storing user’s funds.
Today’s crypto owners treat their crypto in a more responsible way so that it increases the chances that financial losses in the future decrease. Since you no longer need to have special knowledge to create a secure smart contract on the MyWish platform.
Now, in order to protect your assets, you know one simple way where any user can be confident in the invulnerability of the contract created on the platform. MyWish offers its customers a ready template of a smart contract, which is verified using automated tests and external audit.