Does locality matter to the collaborative custody market? Like being able to shake people's hands and live nearby.

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I don't think not having that would be a deal breaker, but I would certainly want to use that over other options if it were available to me.

Does that not introduce some risk that collaborative custody is supposed to remove (having multiple keys nearby)?

It's a repsonsibility tradeoff but with more direct consequences. "Proof of punch". Only would work in communities in it for the long haul.

Makes sense