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 - 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 an automatic transfer of ownership of your Liquid Vault wallet to a backup wallet in case of inactivity. The user’s vault thus has three access points – directly, via their external wallet, and to a third external wallet to which access will automatically be transferred if they do not reset the timer.
How it works
Setting a backup involves defining a secondary wallet and setting a timer via the interface:
Setting the backup timer requires a small amount of KIRO, and to activate the backup the user must deposit a certain amount of KIRO into the smart contract. The user may retrieve this stake whenever they like, but they’re motivated to remain – first by the assurance provided by the system, and secondly by economic benefits as described in the tokenomics section.
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 smart contract. The smart contract transfers access to the inactive wallet defined by the user. When this happens, that user’s activation stake will be distributed throughout the ecosystem, as described in the tokenomics section.