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Custody Architecture

The Custody Atrophy Effect

Why Bitcoin custody systems quietly decay until recovery fails.

1 min read

Most Bitcoin custody failures do not happen suddenly.

They happen quietly, over time, as assumptions decay.

Why Custody Rarely Fails the Way People Expect

When people think about custody risk, they imagine theft or hacking.

In practice, most failures occur during recovery or inheritance events.

The system does not fail because it was attacked, but because it was never validated.

Decay Is Structural, Not Technical

Hardware changes. Software updates. People move. Relationships evolve.

Each change introduces small gaps between assumption and reality.

Over time, these gaps compound.

Why Multisig Does Not Prevent Atrophy

Multisig reduces certain risks but introduces others.

Key distribution, signer availability, and coordination are all assumptions.

Without validation, multisig setups decay like any other system.

The Moment Atrophy Becomes Visible

Atrophy becomes visible only under stress.

Death, incapacity, coercion, or urgency expose untested recovery paths.

By then, remediation is often impossible.

Custody that is not reviewed will eventually fail.

Atrophy is not a possibility. It is the default.

Validation is the only countermeasure.