Introduction
Onramp Bitcoin, a pioneering platform in the world of Bitcoin asset management, has introduced a groundbreaking approach to Bitcoin custody. Headed by Cam Stromme, the company aims to provide a secure and decentralized solution for long-term Bitcoin storage, challenging the traditional custodial models. In this new Bitcoin Equities Talks episode, we discuss all the intricacies of their innovative custody model, the importance of multi-institutional trust, and the potential impact on the future of Bitcoin storage.
Decentralized Custody: A New Paradigm
Starting the conversation, Stromme and Comair delved into the concept of decentralizing custody, moving away from the traditional reliance on a single institution. Onramp Bitcoin’s model spreads trust across three separate entities – Onramp, BitGo, and CoinCover – ensuring that even if one fails, the client’s Bitcoin remains secure. This innovative approach addresses the central point of failure that Satoshi Nakamoto warned against.
Self-Custody vs. Multi-Institution Custody
The discussion highlights the challenges faced by individuals practicing self-custody, such as technical difficulties, user error, and the risk of theft. Multi-institution custody emerges as a superior solution, offering a balance between security and accessibility. Onramp Bitcoin’s model ensures that clients can travel without worry, knowing their Bitcoin is safe and accessible when needed.
Inheritance and Security: A Critical Consideration
Inheritance planning for Bitcoin holders is a critical yet often overlooked aspect. Onramp Bitcoin’s approach ensures that Bitcoin can be securely passed down to heirs, addressing the significant concern of what happens to one’s Bitcoin after death. In addition, the platform’s multi-institution custody model provides a robust solution to this complex issue.
Operational Mechanism: A Secure Withdrawal Process
Additionally, the process for accessing and withdrawing Bitcoin is carefully designed for security. Specifically, it includes a 48 to 72-hour authentication period. This involves live video calls and several verification steps to ensure client safety. Moreover, these checks confirm the legitimacy of each withdrawal request. Therefore, this system highlights Onramp Bitcoin’s dedication to protecting clients and maintaining the highest security standards. Ultimately, it reinforces the platform’s commitment to safeguarding Bitcoin assets at every step.
Conclusion: A New Standard in Bitcoin Custody
The creation of Onramp Bitcoin’s decentralized custody model is a significant leap in the crypto world. It solves key challenges posed by self-custody, such as technical difficulties, and the risks tied to centralized services. By spreading trust across multiple institutions, it enhances security for Bitcoin holders. As this platform evolves, it sets a new industry standard for Bitcoin storage, ensuring safer and more accessible management of assets, shaping the future of cryptocurrency asset management.
