Under the Hood – Overview

MISC® is not a single custody architecture, but rather a set of principles that govern a custody solution:

1. Self-custody:

  • Sovereignty: Sole power of disposal rests with the owner.
  • Privacy: Only the owner has visibility of the assets.

2. Institutional custody:

  • Security: The institution is regulated and specialized in digital assets custody. If its security architecture fails the institution is legally liable. Ideally, the institution possesses a government guarantee.
  • Peace of mind: Through coordination, multiple institutions can restore an owner's access to their assets. No single institution ever gains sole power of disposal.

One implementation of MISC® is set out below and on the following pages as an example.

 

Wallet specs

  • Open-source, Bitcoin-only, 2-of-3 native SegWit multi-signature vault
  • Owner controls two geographically distributed keys
  • A US-listed and regulated Fortune 500 institution acts as technology and collaborative custody partner
    • maintaining the soft- and hardware of the vault; and
    • managing the third key
  • An encrypted copy of one owner key is backed up to the cloud. Only the owner can decrypt the cloud backup:
    • With their other key; or
    • With the help of the trusted recovery contact like an attorney of their choice

Key specs

  • Entropy derived differently by every key
  • Owner keys: 1 smartphone-app key + 1 cold hardware key with screen
  • Collaborative custody partner key: AWS Nitro Enclave – hardware-isolated, secure execution environment

Let's walk through how this setup guarantees security, privacy, sovereignty and peace of mind.