Proxy Re-Encryption for Heirs vs. Direct Key Handover

Zero-trust key management: The heir's private key is never exposed to the executor or service provider. The original private key is never shared; a re-encrypted ciphertext is created using the heir's public key. This matters for high-value estates or institutional custody where minimizing single points of failure is critical.

Higher technical complexity: Requires integration with a PRE service (e.g., NuCypher, Secret Network) or a dedicated smart contract. This adds dependency on an active network and may incur gas fees for re-encryption transactions. This matters if you prioritize simplicity or have concerns about protocol longevity.

Deterministic, offline transfer: The heir receives the private key or seed phrase directly via a physical medium (e.g., steel plate, sealed envelope) or a dead man's switch service. Access is guaranteed upon physical handover, with no blockchain dependencies. This matters for individuals seeking a foolproof, low-tech solution.

Single point of failure pre-transfer: The executor or storage method becomes a high-value target. A compromised executor or discovered backup can lead to immediate theft. Post-transfer, all security is on the heir. This matters if the estate involves multiple assets across chains where key management expertise cannot be assumed.

Operational Simplicity: No smart contracts, no proxy servers. The heir receives the private key directly via a secure channel (e.g., physical hardware wallet in a safe). This matters for low-complexity estates where heirs are technically capable and the primary risk is physical loss, not compromise.

All-or-Nothing Transfer: The moment the key is handed over, the original owner loses all control and future access. This matters for high-value, single-heir scenarios where a catastrophic, permanent transfer is acceptable. The major risk is key compromise before the handover, which exposes the entire estate prematurely.

Infrastructure Dependency: Requires a live network of proxy nodes (e.g., Ursula network in NuCypher) and potentially smart contract execution. This matters for long-term planning where you must trust the protocol's continued operation and security. Introduces gas costs for re-encryption policies and relies on the cryptographic soundness of the PRE scheme.

Operational Simplicity: No reliance on third-party cryptographic services or smart contract protocols. The heir's access is guaranteed if the private key or seed phrase is physically delivered. This matters for high-value, time-sensitive estates where complex setup or conditional logic introduces risk.

Catastrophic Security Risk: The secret is exposed in plaintext during transfer (e.g., written, emailed, spoken). It's vulnerable to interception, theft, or coercion. This matters for high-net-worth individuals or public figures where the attack surface is large and the consequence of a leak is total, irreversible loss.

Zero-Knowledge Transfer: The private key never leaves secure storage. A proxy transforms encrypted data so only the heir's key can decrypt it. This matters for institutional custody or multi-sig setups where key material must remain distributed and never be reconstituted in one place.

Dependency on Active Infrastructure: Requires the PRE service (e.g., NuCypher, Oasis, Lit Protocol) or smart contract to be operational at the time of inheritance. This matters for long-term planning (decades) where protocol deprecation or blockchain forks could render the mechanism inoperable.

No Protocol Fees or Gas: Avoids the cost of deploying and maintaining smart contracts or paying for PRE network services. Works with any wallet or chain (Bitcoin, Ethereum, Solana) without compatibility checks. This matters for diverse, low-maintenance portfolios spread across many assets.

Steep Initial Configuration: Requires generating and managing delegate keys, understanding re-encryption policies, and potentially locking assets in a specific smart contract (e.g., using Safe{Wallet} with Zodiac module). This matters for non-technical users or estates with frequent beneficiary changes, where setup errors are likely.