Key Takeaways

In this episode of the Stephan Livera Podcast, we delve into the intricate world of Bitcoin self-custody, focusing on the advanced security measures and products offered by Wizardsardine, namely Revault and Liana. Kevin Lowak, the company's founder, shares insights into Bitcoin vaults, time-locking features, and their application in inheritance planning, business operations, and enhancing backup security.

The discussion unveils the technical complexities and trade-offs involved in creating Bitcoin vaults without relying on yet-to-be-implemented Bitcoin features, such as covenants. Kevin emphasizes the company's philosophy of building practical solutions with the current Bitcoin protocol, showcasing their commitment to product usability and future adaptability.

We explore the unique characteristics of Revault, a multi-party vault architecture that challenges the previously held belief that vaults are unachievable without covenants. Kevin explains how Revault's design negates the need for precomputed transactions and provides robust security against theft, albeit with the caveat of not protecting against loss.

Liana, on the other hand, is presented as a more user-friendly Bitcoin wallet that prioritizes loss protection. This wallet allows users to create advanced setups, including time-locked backups and multi-signature arrangements, using MiniScript—a safer scripting language for Bitcoin.

Throughout the episode, Kevin also addresses the importance of hardware wallet compatibility, the potential use of cosigners in organizational security, and the promising future of Bitcoin vaults as covenants become a reality.

Best Quotes

1. "Revault is always the kind of the first and maybe only practical bitcoin vault architecture that you can actually use right now on bitcoin."
2. "What we're building is with the bitcoin we have today... It's very, very important not to be stuck as a product company into potential things that... would basically kill our company if it doesn't happen on bitcoin."
3. "Liana is the complete opposite [of Revault]... It's a protection against loss. It's really trying to help you have more redundancy, make sure that if you lose a key, you have backups and things like that."
4. "The main trade off with the current Revault mechanism is that it doesn't protect you against loss. You really have to make sure you have your keys and your backups, because if you lose a single key, you would actually lose your funds."
5. "We're not going to be able to go to Coinbase and tell them, hey, we have a vault, please deploy it... We really thought they would focus on the security first... But that's not the case."

Conclusion

The episode offers a comprehensive look into the world of advanced Bitcoin self-custody, with Kevin Lowak providing an in-depth analysis of Revault and Liana. These products represent a significant step forward in enabling users to secure their Bitcoin with sophisticated, layered security features that operate within the constraints of the existing Bitcoin protocol.

Through the discussion, we gain a nuanced understanding of the balance between maintaining operational security and preparing for potential loss. The episode highlights the evolving nature of Bitcoin security and the ongoing efforts to develop practical solutions that do not rely on speculative future enhancements.