Adam Back, Blockstream CEO, recently said that the company wants to implement a new method through which lost Bitcoin becomes recoverable. Obviously, he was not talking about BTC that was lost in the past.
Back talked at Berlin’s Lighting Conference about future Green Wallet plans. The wallet was launched in March and included different security features. One of the interesting one is 2-of-2 multi-sig. A key is basically kept on the device and the other one stays on the servers of the company. This protects funds in the event that the wallet is stolen or lost.
The security feature does not actually protect the user in the event that the key is lost. When the login password is lost, it can be recovered with a proper identification channel. However, funds are not recuperated.
Green Wallet cannot recuperate your funds now but Adam Back did say that Blockstream now wants to add a possibility to use extra authentication as recovery method. He declared:
“…we should be able to have user-control… bank-like two-factor authentication… and the ability to recover from backup failure.”
The only problem is that the private key of the Bitcoin wallet would need to be backed up in a server that is owned by the company. During the conference, Adam Back also discussed the latest Lighting Network innovations. This includes Splice-Out and Splice-In, which blur distinction present between the coins that are put on layer one and those that are put on layer two. Effectively, the feature simplifies user experience.