Creating a New, Real World Use Case For a Social Recovery Wallet

I want to create a real world use case, hopefully using the Loopring Wallet.

This concept would be used by any existing business that has a yearly fund drive to collect fiat then convert that fiat into cryptocurrency may have a use case for this type of mutually accessible wallet.

For example, a church having a yearly Capital Campaigns fund drive or a live theater that sells a pre-seasonal ticket package to their patrons.

Can a Loopring Wallet be used in a business format where a number of Directors or Officers are needed to approve transactions as far as spending, investing, or releasing funds from a general pool?

Would a hardware wallet such as a Ledger be beneficial and practical to work with a Loopring Wallet in a shared business environment where a large fund of cryptocurrency is at stake?

I guess what I am asking, is a Loopring Wallet safe and practical as a Social Recovery Wallet for an existing business?

And, if so, how would this work?

Hi Kentucky,

What you describe above is the ideal use case for such a Social Recovery Wallet and the Loopring Smart Wallet has all of these functions and features that you need.

This is the role of the Guardians and in your example the Directors or Officers would be the Guardians to the wallet. The way it works is that you can set a limit on the amount of funds that can be withdrawn by the wallet. Anything over that amount requires approval from the Guardians. This is set up within the smart contract via the wallet GUI. To achieve approval you need to have a majority, i.e. greater than 50% of the Guardians need to approve the transaction before the withdrawal can be processed.

The Loopring Smart Wallet is a smart contract which means it will have its own ETH address. It is not possible to currently link a hardware wallet address with a Loopring Smart Wallet address as a single wallet. What can be done is that the hardware wallet can be set as a Guardian for the Loopring wallet. Additionally, the hardware wallet can also be whitelisted so that any funds withdrawn to the hardware wallet from the Loopring Smart Wallet does not need the Guardians approval each time which would save in some admin time and waiting for approvals.

Absolutely based on the above criteria. The importance is to ensure you have enough Guardians so no collusion can occur.