Main menu

Pages

Why NFT Technology Will Be The Solution You Need For Crypto Succession

The digital asset market may have started with Bitcoin’s humble beginnings, but its fortunes have changed over the past decade.

At the time of writing, the total crypto market capitalization is $1 trillion Despite continued turmoil and uncertainty in macro factors. More interestingly, not only has this ecosystem introduced his 24/7 decentralized marketplace, but it has created an opportunity for internet natives to build wealth across generations.

In retrospect, Bitcoin and Ethereum were the dominant cryptocurrencies until 2017, when the initial coin offering (ICO) boom set the stage for the debut of hundreds of digital tokens. Today, the market hosts nearly 13,000 digital assets, with decentralized finance (DeFi) and non-fungible tokens (NFTs) topping the list. The latter has been touted as the future of gaming, entertainment and digital art.

Crypto inheritance question

And now the big question. Can crypto assets and NFT collectibles be passed on to future generations? The short answer is yes, but given the current structure of cryptocurrency wallets, this comes with an opportunity cost. In most cases, non-custodial wallets designed to interact with decentralized marketplaces have a seed recovery phrase. This is the last line of defense for recovering lost crypto funds.

But how effective is the phrase recovery of seeds when it comes to heritage issues? Currently, over 4 million BTC are held in inaccessible wallets, and a significant number of these coins are It belongs to people who have already died. Additionally, a study by the Creation Institute revealed that 90% of digital asset owners were concerned about what would happen to their assets if they kicked the bucket.

For those who prefer non-custodial wallets, it comes down to their willingness to share their seed phrase with potential heirs. Considering that it is possible to betray even, it is not completely reliable.

Another option is to store funds on centralized crypto exchanges such as Binance and Coinbase, which have established procedures for releasing funds to heirs. Definitely not a cup of coffee for crypto investors who believe in self-sovereignty.

NFT Value Proposition

According to the latest information from Dapp Radar report, demand for NFTs surged in the second quarter compared to last year’s volume and sales for the same period. Most of these gains can be attributed to the emergence of NFT-oriented games and the metaverse hype in recent months. Unlike most of the early cryptographic innovations, NFTs have proven to be of fundamental utility.

This value is now slowly infiltrating to solve important problems, including crypto heritage. By design, NFTs are unique (and indistinguishable), making them the perfect tool for developing a crypto “StrongBox” for fund collection and inheritance. Digital asset owners can now create their StrongBox powered by NFTs through his DApps like Serenity Shield, which recently launched MVP.

So how exactly Serenity Shield Work for Strongbox? This trustless crypto wallet solution utilizes 3 unique NFT accounts to provide users with secure storage for their funds. The first NFT is held by its owner, the second by its intended heir, and the final piece of the puzzle is held in Serenity’s smart contract vault. If you die, you can unlock the funds using NFTs and Serenity Shields held by your heirs.

Less sophisticated crypto users may choose to stay with centralized exchanges, but it is clear that NFT infrastructure can provide a traditional solution for DeFi enthusiasts. This type of crypto storage maintains anonymity, so investors do not need to provide any personally identifiable information to use the service. Moreover, based on the terms of her pre-coded smart contract, the heirs are almost guaranteed to receive what they intended.

wrap up

Cryptocurrencies have great potential to become the next frontier asset in tomorrow’s financial market ecosystem. But it’s a fine line if current investors don’t properly plan how to transfer their wealth. As highlighted in the article, stakeholders now have the option of using centralized custodians or decentralized wallets to ensure their efforts are not wasted. More importantly, you need to understand market dynamics to make the right strategic decisions.