Cold, Warm, or MPC? Choosing Enterprise Custody

Summary

The conversation delves into the complexities of Bitcoin custody, focusing on the distinctions between cold and hot storage, the implications of multi-party computation (MPC), and the evolving landscape of corporate custody solutions. It highlights the trade-offs between security and accessibility, the importance of cryptographic controls, and the innovative potential of Bitcoin's programmability. The discussion emphasizes the need for businesses to understand these dynamics to effectively manage their Bitcoin assets.

Takeaways

• Cold storage offers the highest level of security but comes with operational costs.
• MPC can be used in both cold and hot environments, providing flexibility.
• Corporate clients need to educate themselves on the trade-offs of custody solutions.
• The spectrum of custody solutions ranges from self-custody to fully managed services.
• Cryptographic security is becoming more accepted in corporate culture.
• MPC allows for proactive security measures that raise the cost for attackers.
• The programmability of Bitcoin enables unique security and operational strategies.
• Multi-sig can be enhanced with MPC for better security and privacy.
• The risk of internal theft decreases with multiple custodians involved.
• Understanding the political implications of Bitcoin custody is crucial for businesses.

Chapters

00:00 Bitcoin Custody and Treasury Summit

00:41 Institutional Custody: Definitions and Concepts

01:39 Cold vs. Hot Storage: Trade-offs

04:23 Operationalizing Keys in Bitcoin Custody

09:25 The Spectrum of Custody Solutions

16:44 The Political Perspective of Bitcoin Custody

19:29 Advanced Techniques in Bitcoin Security

27:06 bp-introoutro_v2.mp4