Thank you for your feedback regarding Custodial Identities. I will address
it to the mailing list for transparency.

Think of it as a 1-of-2 multisig edge case where Custodian Identities are
actively managed by the Bitcoin Assigned Custodial Identities
Authority/Regional Bitcoin Custodial Identity Registries. Once the optional
identity layer is integrated, there are so many applications beyond dispute
resolution, if you could effortlessly inject Custodian Identities into the
blockchain itself as easily as providing 1-of-2 public keys.

Bitcoin Custodial Identities can be applied to coinbase transactions as
well, in any or all jurisdictions, thus providing further incentive to keep
nodes honest, or enabling a recovery mechanism in catastrophic failure
events, such as a break in SHA-256. Custodians provide account addresses
out of unused address space further alleviating address collisions as a
psychological barrier to adoption. Custodial to non-custodial transactions
could behave much like the UTXO of a coinbase transaction, which has the
special condition that it cannot be spent (used as an input) for at least
100 blocks. It's based on open market competition, and there will probably
always be users willing to live outside of the BCI address space.


>>On Tue, Aug 19, 2014 at 10:23 PM, 21E14 <21xe14@gmail.com> wrote:
>>
>>As suggested before submitting a BIP, I am sending this to the mailing
list.
>>
>>
>>Bitcoin is often described as “the currency of the Internet”, “the TCP/IP
of money”, or simply “the Internet of Money”. What is needed is an optional
identity layer — a Bitcoin Assigned Custodial Identities >>Authority, much
like the Internet Assigned Numbers Authority, to oversee global Custodial
Identity allocation. Such an authority delegates Custodial Identity Spaces
to Regional Bitcoin Custodial Identity >>Registries, much like the RIRs
(Regional Internet Registries) managing the allocation of Internet number
resources.
>>
>>A Bitcoin Custodial Identity (BCI) account address would consist of a
Custodial Identifier allocated by the BACIA/RBCIRs (much like a bank’s
routing number), and an account address (much like an account >>number).
Bitcoin Custodial Identities allow dispute resolution in the legal system
for transactions in the BCI address space. Free market would drive and
determine the demand for custodial accounts. P2PKH >>users not affected.
>>
>>Feedback is appreciated.