I would like to leave a small note here for consideration as it might just get looked at here where my emails could be missed.
If a private key to a wallet, validator node or smart contract is breached, there is currently no way to identify the lawful owner, this makes no sense in the financial world, it incentivises fraud, this is specifically an issue when the ownership can be proven but due to current decentralisation ethos in DeFi where KYC is not being used, decentralised Fintech entities stand firmly that they cannot and will not identify the lawful owner of the assets.
Protocols and contracts digital or otherwise are bound by law to protect consumers and their assets, the legal definition used for litigation is “Money had & Received” it is related to the legal governance of torts, constructive remedies, and Quasi-Contracts.
By refusing proof of ownership to a private key the entity is not protecting ownership or consumer rights of the digital assets which is under general and contractual law and this oversight does facilitate theft and fraud. The jurisdictional issues involved are not clear legally and that that could; render a DAO, Foundation, Private Fintech Business and its Client Devs, and people connected with it personally liable in legal jurisdictions across the world.
To mitigate theft of assets and reduce litigation while restoring trust in the wild west of the crypto world, the solution is to add biometric DID to private keys, this could help eliminate theft of crypto assets and ultimately protect global financial stability.
Smart money & smart contracts are not smart enough if they are open to abuse, this loophole must be closed globally and can only be achieved by regulatory intervention. It is illegal to refuse the lawful ownership of an asset (digital or otherwise) via their human or company identity, whether the assets are personal or business, especially with smart contracts and POS validator nodes, the assets cannot be secured solely with a private key it is just not secure.
Example: A key to a house is lost or stolen, thanks to laws and regulations, it would be inconceivable that a thief could move in and claim ownership of the property, yet in the decentralised crypto world this is currently acceptable, yet the theft of a house is entirely illegal and an imprisonable offence, the same must be true within the Fintech and crypto asset world.
One solution is to add biometric digital identity (DID) to all private keys to prove ownership of all digital assets & stop bad actors having the ability to abuse stolen/breached private keys.
Additionally, a thief of a key would be hesitant to attempt to identify him/herself so this Biometric DID protocol can be retrofitted to already breached keys, this is critical for Fintech projects currently under development with billions of £ already invested.
TobesVibration
commented
2 years ago
I would like to leave a small note here for consideration as it might just get looked at here where my emails could be missed.
If a private key to a wallet, validator node or smart contract is breached, there is currently no way to identify the lawful owner, this makes no sense in the financial world, it incentivises fraud, this is specifically an issue when the ownership can be proven but due to current decentralisation ethos in DeFi where KYC is not being used, decentralised Fintech entities stand firmly that they cannot and will not identify the lawful owner of the assets.
Protocols and contracts digital or otherwise are bound by law to protect consumers and their assets, the legal definition used for litigation is “Money had & Received” it is related to the legal governance of torts, constructive remedies, and Quasi-Contracts.
By refusing proof of ownership to a private key the entity is not protecting ownership or consumer rights of the digital assets which is under general and contractual law and this oversight does facilitate theft and fraud. The jurisdictional issues involved are not clear legally and that that could; render a DAO, Foundation, Private Fintech Business and its Client Devs, and people connected with it personally liable in legal jurisdictions across the world.
To mitigate theft of assets and reduce litigation while restoring trust in the wild west of the crypto world, the solution is to add biometric DID to private keys, this could help eliminate theft of crypto assets and ultimately protect global financial stability.
Smart money & smart contracts are not smart enough if they are open to abuse, this loophole must be closed globally and can only be achieved by regulatory intervention. It is illegal to refuse the lawful ownership of an asset (digital or otherwise) via their human or company identity, whether the assets are personal or business, especially with smart contracts and POS validator nodes, the assets cannot be secured solely with a private key it is just not secure.
Example: A key to a house is lost or stolen, thanks to laws and regulations, it would be inconceivable that a thief could move in and claim ownership of the property, yet in the decentralised crypto world this is currently acceptable, yet the theft of a house is entirely illegal and an imprisonable offence, the same must be true within the Fintech and crypto asset world.
One solution is to add biometric digital identity (DID) to all private keys to prove ownership of all digital assets & stop bad actors having the ability to abuse stolen/breached private keys.
Additionally, a thief of a key would be hesitant to attempt to identify him/herself so this Biometric DID protocol can be retrofitted to already breached keys, this is critical for Fintech projects currently under development with billions of £ already invested.
Thanks for reading