Liquid Vault: backup

One use-case of FCTs is a core security feature of the Liquid Vault: backup.

Background

Ownership of the contents of a cryptocurrency wallet is defined by a person’s ability to access that wallet. This is because that wallet is the only way to access that part of the blockchain. If a person loses or forgets the access credentials - a private key, password, seed phrase – the assets in the wallet are irreversibly lost.

Kirobo backup solves the issue of private key loss by enabling you to set up a transfer of ownership of your Liquid Vault wallet to a backup wallet in case of inactivity. The user’s vault thus has two access points – via their external wallet, and to a second external wallet to which access will automatically be transferred if they do not reset the timer.

The user deploys their own version of the Liquid Vault using their wallet. Sole Owner, Sole operator and is the only wallet with access to the vault.

If access to the original wallet is lost that ownership shifts to the secondary wallet.

How it works

Setting a backup involves defining a secondary wallet and setting a timer, which requires a small amount of KIRO. To activate the backup, the user must deposit a certain amount of KIRO. The user may retrieve this stake whenever they like. When the timer reaches zero, a random system activator will be alerted and will activate that user’s backup by sending a transaction to the user’s vault. The smart contract transfers access to the inactive wallet defined by the user.

Note: when a backup is activated, the funds do not leave the Liquid Vault. The only thing that changes is the access point to them.