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The “key” problem in cryptocurrency

An ideal approach, hopefully, will consist of decentralized smart contracts comprised of multiple keys tied to the same passphrase with a different set of transfer limits. So that, if one forgets one word in the passphrase and cannot access 100% of the funds now but can access at most 1% funds every day and slowly drain out their account to a newer account. Further, some of these unlocking codes can thus, be held at different places, some centralized services for custody and ease of use, some kept on the personal device for ease of use where even if they get stolen the damage is contained.