A group of cryptocurrency developers have introduced a new concept to the crypto community. It’s called the “Open Savings Initiative,” (OSI) and allows users to save their crypto in a time-locked account. Currently, it’s available only for Bitcoin BCH and Bitcoin Core (BTC) and is “like a certificate of deposit that you can add more money to anytime, but doesn’t require a bank.”
Users are able to assign any amount of time to their accounts to keep their assets locked up. Only after the expiration of that time can the accounts be accessed, ensuring that those who would be tempted to go out and buy something like a new Ferrari or a house in Hollywood Hills are forced to think twice before doing so.
OSI also has an offline version that enables the user to generate addresses even when the account is disconnected from the Internet. This capability, referred to as a “cold wallet,” provides an extra layer of security. According to the developers, “We coded up this application in the hope that ALL the wallets in the Bitcoin Cash / Bitcoin Core ecosystems adopt this feature, either by leveraging our code or implementing it themselves.”
OSI doesn’t store any personal user data. If the private key is lost, so is access. Private keys cannot be shared, as the key is changed each time the account is accessed.
The platform works by using the Op_Code “OP_checklocktimeverify.” This queues the system to build a pay-to-script hash address (P2SH), a form of standardized code that enables transactions to an address that begins with the number “3” instead of a public key, which normally begins with “1.”
The application was developed by Ransom Christofferson and Prestige IT. Yeoman’s Capital provided guidance and funding for the project came, in part, from Ricardo Jimenezh, a technology investor and senior product manager at creditcards.com.
Christofferson states, “Thanks to the “nlocktime” parameter and scripts such as ‘OP_checklocktimeverify’ being introduced into Bitcoin and continued on Bitcoin Cash, there is now a straightforward way of securely locking up funds on the blockchain without a custodian, which can only be spent at a future date.”
According to the OSI website, Open Savings Initiative lets you set aside cryptocurrency that can only be spent after a certain date. It’s like a certificate of deposit that you can add more money to anytime, but doesn’t require a bank.
“If you intend to give cryptocurrency to someone else, you can use Open Savings Initiative to create the crypto equivalent of writing a cheque for a future date. Unlike traditional cheques, the crypto cheque can’t bounce, can’t be cancelled, and is guaranteed to have the funds.”