Published on: 2014-08-21T02:32:29+00:00
The author of this message is proposing the creation of an optional identity layer for Bitcoin called Custodial Identities. This layer would be managed by a Bitcoin Assigned Custodial Identities Authority (BACIA), which would delegate Custodial Identity Spaces to Regional Bitcoin Custodial Identity Registries (RBCIRs). Similar to how Regional Internet Registries manage the allocation of Internet number resources, the BACIA would oversee global Custodial Identity allocation.A Bitcoin Custodial Identity (BCI) account address would consist of a Custodial Identifier allocated by the BACIA/RBCIRs, similar to a bank's routing number, and an account address like an account number. This proposal suggests that Custodial Identities could be applied to coinbase transactions as well, providing further incentive to keep nodes honest or enabling a recovery mechanism in catastrophic failure events.One benefit of implementing Custodial Identities is that custodians would provide account addresses out of unused address space, reducing the likelihood of address collisions and serving as a psychological barrier to adoption. Additionally, the proposal suggests that custodial to non-custodial transactions could behave similarly to the unspent transaction output (UTXO) of a coinbase transaction, based on open market competition.The main purpose of Bitcoin Custodial Identities is to allow for dispute resolution in the legal system for transactions in the BCI address space. By injecting Custodial Identities into the blockchain, the proposal aims to create greater transparency and accountability in transactions. The author believes that there are many applications beyond dispute resolution for Custodial Identities if they can be seamlessly integrated into the blockchain as easily as providing 1-of-2 public keys.The proposal is open for feedback and discussion on the mailing list, inviting input from the community.
Updated on: 2023-08-01T10:16:41.436485+00:00