Tim Bouma on Nostr: Currently for the service I built, I have a custodial wallet for each user where I ...

Currently for the service I built, I have a custodial wallet for each user where I store the privat data in my own database. With this new component, I plan to push all that private data encrypted out to relays with reference to mints and blossom servers. So the only thing I ‘custody’ is the nsec of that wallet instance I am holding that nsec on behalf of that user who ‘trusts’ me. . I will let the user have access to that nsec, if they want it, and if they begin to distrust me, they can sweep the wallet without my permission.

As well, I am no longer storing any unencrypted personal data in my database server so that eliminates a big honeypot risk for me. As for availability, storing on redundant relay servers, is a big plus too.