Un-custody: A New Approach To Permissionless Transactions
There are currently two main approaches to Bitcoin custody: self-custody, e.g. the use of non-custodial wallets or cold storage, and centralized custody, through trusted 3rd parties and multisignature schemes. In an abstracted environment (which maintains Bitcoin finality and proximity) there is a third option: un-custody - or custody-by-consensus - a custody scheme completely foregoing cryptographic proofs. This talk explores un-custody and its benefits and applications, particularly with respect to DeFi systems like ecash implementations.