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I disagree that we should be ok with a user experience that requires human onboarding.
Sure, I can explain to my grandmother how to move funds to a multisig output. My grandmother trusts me, and I can explain things simply enough that she can mostly follow along.
But not everyone has that. We should be making consumer experiences that are seamless to use, and seamless to understand. Bitcoin self-custody should be self-serve, and it should be designed in a way that is simple to understand.
Step 1) Write down 3 seed phrases Step 2) Create an address to receive funds Step 3) Move funds from Coinbase to that vault’s address
Anything more complicated than that makes it scary for a first time user to follow, unless they have a person they know holding their hand.
Who is going to tell her to do step 1? That person can also tell her to do this alternative process:
Step 1) Write down 3 seed phrases Step 2) Create bare multisig address Step 3) Move funds from Coinbase to site that supports bare multisig Step 4) Move funds to bare multisig address
Anything more complicated than that makes it scary
It is an irrational fear and you can help any first time user overcome it easily
I disagree that we should be ok with a user experience that requires human onboarding
There is no service anywhere that does not require human onboarding. They all require human onboarding. Literally, every single one, there are no exceptions. That one you're thinking of that might be an exception? Yeah, that one requires human onboarding too.