Bitcoin developer James O’Beirne is working on a Bitcoin Vault feature that would alert users when hackers are trying to steal their bitcoins, and then thwart the theft by moving the funds to a more secure wallet.
The feature, similar to a type of bitcoin smart contract or “deed,” imposes restrictions on how bitcoin can be spent, with vault users having to transmit two separate transactions in two different blocks before spending bitcoin (BTC) , which sends an alert after the first transaction (with a time delay), allowing the user to approve the transaction or sweep tokens to another wallet.
“The risks of custodial bitcoin are well known, and this proposal introduces a mechanism that can significantly mitigate the worst-case outcome of key compromise: lost coins,” O’Beirne wrote in his draft proposal.
