Post
Topic
Board Bitcoin Discussion
Re: Bitcoin Passphrase Recovery
by
teukon
on 25/10/2015, 02:54:19 UTC
As Small link mentioned, for split keys multisig is the way to go.  This general idea was discussed years ago and is very well established albeit rarely used.

Q: What if a trustee loses its piece of the passphrase?
A: You can send copies of the same piece to multiple trustees using a "split" technique:
  • Split the passphrase in 2 pieces
  • Send the 1st piece to mom and wife
  • Send the 2nd piece to dad and best friend

This is fine but notice that a more efficient arrangement is possible with 2-of-3 multisig.  2-of-3 multisig means that you have 3 pieces, any 2 pieces can unlock, and any number of pieces less than 2 cannot unlock.

For myself, I'd prefer a locktime-based dead man's switch.