Author: 21E14 2015-01-09 19:36:18
Published on: 2015-01-09T19:36:18+00:00
The author suggests that an optional identity layer should be provided to address the acute need for Bitcoin to become institutional and to allow billions of dollars of value to flow through it. This identity layer should be modeled after the Internet itself and could potentially allow for the legacy financial system to migrate to a more regulated sidechain with a stronger identity layer. The author believes that the market forces should regulate this nexus between custodial and non-custodial address spaces, similar to the rules currently governing coin issuance. The author also suggests that the hardware needed to defend private keys adequately for large sums of money can be developed, such as minimalist secure hardware with additional policies on top, like refusing to sign transactions without an identity proof of who controls the target address. Finally, the author urges the development of new technologies for securing private keys to move forward in light of recent events, such as the Bitstamp hack.
Updated on: 2023-06-09T15:17:21.944974+00:00