The digital asset market may have started with the inception of Bitcoin but its fortunes have changed over the past decade.
At the time of writing, the total crypto market cap stands at $1 trillion despite turbulence and uncertainty in macro factors. More interestingly, this ecosystem not only introduces a 24/7 decentralized market but creates an opportunity for internet natives to create generational wealth.
Looking back, Bitcoin and Ethereum were the main cryptocurrencies until 2017 when the Initial Coin Offering (ICO) boom set the stage for the debut of hundreds of digital tokens. Today, the market is close to 13,000 digital assets, with Decentralized Finance (DeFi) and Non-fungible tokens (NFT) ranking on the list. The latter has been called the future of games, entertainment and digital art.
Crypto Legacy Questions
And now the big question; can crypto wealth or NFT collections be passed down to the next generation? The simple answer is yes, but this comes at an opportunity cost due to the current structure of crypto wallets. In some cases, non-custodial wallets designed to interact with decentralized markets have seed recovery phrases; it is the last line of defense to recover your lost crypto funds.
But how efficient is the word seed recovery when it comes to inheritance issues? Currently, more than 4 million BTC are sitting in inaccessible wallets, many of which belong to people who have passed away. Furthermore, research by the Crenation Institute revealed that 90% of digital asset owners are concerned about what will happen to their wealth if they kick the bucket.
For those who prefer a non-custodial wallet, explain that someone is willing to share the seed phrase with potential beneficiaries. Although it can be a viable option, it is not reliable, because the closest family members can betray you when money is involved.
Another alternative is to store funds with centralized crypto exchanges like Binance and Coinbase that have established procedures for releasing funds to beneficiaries; definitely not the cup of coffee for crypto investors who believe in their own sovereignty.
NFT Value Proposition
According to the latest Dapp Radar report, NFT demand increased in Q2 compared to last year’s volume and sales during the same period. Most of these gains can be attributed to the emergence of NFT-oriented games and metaverse hype in recent months. Unlike most early crypto innovations, NFTs have proven to be fundamental utilities.
This value is now down to solving critical issues, including crypto legacy. By design, NFT is unique (indistinguishable), making it the perfect tool for the development of a crypto ‘StrongBox’ for fund recovery and inheritance. Today, digital asset owners can create StrongBox with NFT through DApps like Serenity Shield, which recently launched its MVP.
So, how exactly Serenity Shield Does StrongBox work? This trustless crypto wallet solution provides users with secure storage for their funds, backed by three unique NFT accounts. The first NFT is held by the owner, the second by the intended heir while the final piece of the puzzle is held in the Serenity smart contract vault. In the event of death, NFTs held by heirs and Serenity Shield can be used to unlock funds.
While less sophisticated crypto users may choose to stick with centralized exchanges, it’s clear that NFT infrastructure can provide a legacy solution for DeFi diehards. This type of crypto storage maintains anonymity which means investors do not have to give up any personally identifiable information to use the service. Moreover, it is almost a guarantee that the beneficiaries will receive what is meant for them based on the conditions of the smart contract that has been coded.
Wrap it up
Cryptocurrencies have great potential to become the next frontier asset in the financial market ecosystem of tomorrow. However, there is a thin line that today’s investors are not planning on how to transfer their wealth. As highlighted through the article, stakeholders now have the option of using a centralized custodian or a decentralized wallet to ensure that their efforts do not go down. More importantly, one must understand the market dynamics to make the right strategic decisions.
