# kaal:claim:3936876-039

**Claim.** Where owners do not rely on the cryptography of the wallet and of each transaction to avoid trusted third parties, single points of failure, rent seeking behaviors and other suboptimal outcomes of legacy systems inevitably seep back into decentralized solutions.

**Type.** failure  **Support.** argued

**Holds when.**

- decentralized systems that reintroduce trusted third parties

**Source quote.**

> Without it, single points of failure, rent- seeking behaviors and other suboptimal outcomes of legacy systems are inevitably seeping back into decentralized solutions.

**From.** Wulf A. Kaal, Hayley Howe, *Custody of Digital Assets* (2021), IV. Conclusion, page 32

**Cite as.** Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

**Verify.** sha256 of source PDF `9bc0903d01910460298e754c451f027df4324367359800a98ee8e638d94aff55` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Howe%20-%202021%20-%20Custody%20of%20Digital%20Assets.pdf

**Failure mode.** legacy suboptimality seepage  (family: recentralization-drift)

**Topics.** reputation, decentralization

**Keywords.** single-point-of-failure, rent-seeking, trusted-third-parties, decentralization

**Related claims.**

- generalizes: https://wulfkaal.github.io/claims/6192998-002

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.