Cryptocurrency Q&A
What is a Bitcoin self-custody & a key agent?
What is a Bitcoin self-custody & a key agent?
CryptoAce
Mon Jul 08 2024
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6 answers
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Could you please elaborate on the concept of Bitcoin self-custody and what role does a key agent play in this arrangement? In Bitcoin self-custody, I'm assuming the owner maintains complete control over their private keys, but how does this differ from traditional custody methods? And regarding the key agent, is it a trusted third party that manages the keys on behalf of the owner? Or does it have a different function? Understanding these concepts is crucial for anyone considering investing in Bitcoin, so a clear explanation would be greatly appreciated.
6 answers
GinsengBoostPowerBoost
Wed Jul 10 2024
Enthusiasts of Bitcoin self-custody have been actively safeguarding the keys for their loved ones in elaborate multisignature arrangements for quite some time.
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Alessandra
Wed Jul 10 2024
This setup differs significantly from traditional Bitcoin custody models, where a custodian typically holds the majority or even all of the keys to their clients' funds.
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KDramaLegend
Tue Jul 09 2024
In a multisignature arrangement, multiple individuals or entities are entrusted with different portions of the required keys.
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KimonoElegance
Tue Jul 09 2024
A key agent, in this context, is entrusted with a minority share of the keys, ensuring that no single party has absolute control over the bitcoins.
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Alessandra
Tue Jul 09 2024
This distributed approach to key management significantly enhances the security of the bitcoins, as it requires the collaboration of multiple parties to authorize any transactions.
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