E270 3 Bitcoin Wallets Executors Overlook

<p>When someone passes away, it is the executor’s job to gather the decedent's assets. What are the Bitcoin wallets executors may overlook? We’ve discussed how to look for common bitcoin key storage (<a href= "https://anthonyspark.com/e253-3-steps-when-a-bitcoin-owner-dies/">Episode 253 3 Steps When a Bitcoin Owner Dies</a>), such as hardware wallets, software wallets, and seed phrases. But a professional bitcoin executor will also find these others.</p> <h2>Wallets on nodes</h2> <p><img class="aligncenter size-medium wp-image-42358" src= "https://anthonyspark.com/wp-content/uploads/2022/05/Wallets-on-nodes-300x169.jpg" alt="Wallets on nodes" width="300" height="169" /></p> <p>Think of a node as your own server on the bitcoin network. Bitcoin is a digital currency, and the way it travels through the world is through nodes. Nodes are intentionally inexpensive and meant for individuals to be able to afford and maintain. Nodes are meant for the individuals to be the backbone of the system, not big companies.</p> <p>If a professional bitcoin executor sees the decedent was serious about bitcoin, privacy, and decentralization, the executor knows to look for a node. These nodes can even be on a Raspberry Pi or an old laptop, as long as there is sufficient memory space. Why look there? Because these nodes will often have a wallet inside them.</p> <h2>Lightning channels</h2> <p><img class="aligncenter size-medium wp-image-42359" src= "https://anthonyspark.com/wp-content/uploads/2022/05/Lightning-channels-300x169.jpg" alt="Lightning channels" width="300" height="169" /></p> <p>On a high level, the lightning network is a second layer on top of the main bitcoin network. The lightning layer relies on “channels” between lightning nodes.</p> <p>Say you use Vemno, and you are hanging out with your friend for dinner. Maybe you owe her $5 for the drink and she owes you $10 for dinner. Venmo is not actually transmitting money back and forth each time you do. Venmo keeps a tally of what is moving back and forth between you, and at t