1 00:00:00,800 --> 00:00:05,880 Speaker 1: So what is a crypto wallet. You've likely you likely 2 00:00:05,960 --> 00:00:09,880 Speaker 1: have a wallet, you know, sitting nearby you somewhere, probably 3 00:00:10,360 --> 00:00:13,240 Speaker 1: in your pocket, maybe it's in your backpack or you 4 00:00:13,360 --> 00:00:16,480 Speaker 1: tell far back. Maybe you know the concept. But your 5 00:00:16,520 --> 00:00:21,000 Speaker 1: wallet is likely where you store your physical credit cards, 6 00:00:21,000 --> 00:00:23,840 Speaker 1: your ID. Maybe you even have a little cash in 7 00:00:23,880 --> 00:00:28,120 Speaker 1: your wallet. The point is we're all familiar with this concept. 8 00:00:28,200 --> 00:00:32,920 Speaker 1: You have a physical storage container, usually like leather or 9 00:00:33,040 --> 00:00:35,960 Speaker 1: full leather, where you store things that you need access 10 00:00:36,000 --> 00:00:39,640 Speaker 1: to but you want to keep them secure and somewhat organized. 11 00:00:40,360 --> 00:00:44,000 Speaker 1: Typically these things have to do with storing currency. These 12 00:00:44,000 --> 00:00:47,680 Speaker 1: wallets do paying for things or validating who you are, 13 00:00:47,760 --> 00:00:49,599 Speaker 1: like in the case of having your ID in it. 14 00:00:50,360 --> 00:00:54,480 Speaker 1: A crypto wallet is effectively the same thing, but it's 15 00:00:54,520 --> 00:01:00,800 Speaker 1: specifically designed to store crypto and like passwords. There are 16 00:01:01,600 --> 00:01:08,160 Speaker 1: hardware wallets, cold wallets, and hot wallets, and we'll let's 17 00:01:08,160 --> 00:01:10,319 Speaker 1: not get ahead of ourselves, all right, So let's just 18 00:01:10,360 --> 00:01:12,360 Speaker 1: walk this out because I don't want to like jump 19 00:01:12,440 --> 00:01:14,839 Speaker 1: too far ahead, because it's very attempting to right now. 20 00:01:15,040 --> 00:01:17,959 Speaker 1: But hardware wallets we call them cold wallets, or you 21 00:01:18,040 --> 00:01:22,200 Speaker 1: have like online wallets that are called hot wallets. But 22 00:01:22,240 --> 00:01:24,639 Speaker 1: first let's talk about the purpose of a crypto wallet 23 00:01:25,040 --> 00:01:29,680 Speaker 1: in any case. All right, So, if you've been listening 24 00:01:29,840 --> 00:01:33,360 Speaker 1: to this show for any length of time, specifically like 25 00:01:33,360 --> 00:01:36,480 Speaker 1: in the last well since twenty twenty two, specifically, we've 26 00:01:36,680 --> 00:01:40,080 Speaker 1: been talking a lot about crypto NFTs, things like that, 27 00:01:40,160 --> 00:01:43,520 Speaker 1: and hopefully by now I've built up some kind of 28 00:01:43,640 --> 00:01:47,840 Speaker 1: appetite in you to invest in yourself in Web three, 29 00:01:48,800 --> 00:01:53,600 Speaker 1: whether it be buying an NFT, exchanging your US dollars 30 00:01:53,720 --> 00:01:58,000 Speaker 1: or rubles for ethereum or a sheep of coin. But 31 00:01:58,160 --> 00:02:02,680 Speaker 1: just like we describe what we're all pretty used to, 32 00:02:02,920 --> 00:02:07,760 Speaker 1: the wallet and the crypto wallet, these things store things 33 00:02:07,760 --> 00:02:11,160 Speaker 1: that you might need access to, like your currency cryptocurrency. 34 00:02:11,639 --> 00:02:13,920 Speaker 1: It allows you to pay for things in Web three, 35 00:02:14,280 --> 00:02:17,120 Speaker 1: and it allows you to validate who you are. Your 36 00:02:17,240 --> 00:02:21,760 Speaker 1: crypto wallet does. And among the most important things a 37 00:02:21,800 --> 00:02:24,079 Speaker 1: crypto while it does, and I just alluded to this, 38 00:02:24,720 --> 00:02:28,600 Speaker 1: is regarding the storage of things you may need access to. 39 00:02:29,360 --> 00:02:31,920 Speaker 1: Now I set this up in the form of storing crypto, 40 00:02:32,320 --> 00:02:36,280 Speaker 1: but there's a level deeper that are wallet stores, and 41 00:02:36,639 --> 00:02:41,519 Speaker 1: that's what we call keys. So not like physical keys 42 00:02:41,560 --> 00:02:44,639 Speaker 1: today that you know may turn on your vehicle or 43 00:02:45,200 --> 00:02:47,720 Speaker 1: let you in your house and one day, I'm sure 44 00:02:47,760 --> 00:02:50,840 Speaker 1: we'll get there. But I'm talking about your public and 45 00:02:50,960 --> 00:02:56,520 Speaker 1: private keys, the passwords that give you access to your cryptocurrencies. 46 00:02:57,280 --> 00:02:59,280 Speaker 1: Now you might be asking, you know, I thought my 47 00:02:59,280 --> 00:03:03,520 Speaker 1: crypto was or on or in the wallet. Well, you 48 00:03:03,600 --> 00:03:07,120 Speaker 1: may have crypto, but it's not like physically in your 49 00:03:07,120 --> 00:03:10,360 Speaker 1: crypto wallet, like your US dollars might be in your 50 00:03:10,919 --> 00:03:14,880 Speaker 1: Louis Vatan wallet. In Web three, your currency is basically 51 00:03:15,000 --> 00:03:19,280 Speaker 1: just a recording on a ledger. There's no physical coin 52 00:03:19,480 --> 00:03:22,400 Speaker 1: or token you can see. It's a record, it's a 53 00:03:22,440 --> 00:03:26,480 Speaker 1: line of code. It's an instance that is secured by 54 00:03:26,480 --> 00:03:30,600 Speaker 1: the blockchain. It can be altered or forged. It can 55 00:03:30,919 --> 00:03:33,480 Speaker 1: it can be stolen. But again let's not get ahead 56 00:03:33,480 --> 00:03:35,320 Speaker 1: of ourselves. We're going to talk about that. But the 57 00:03:35,400 --> 00:03:40,760 Speaker 1: record does last forever that it was in your proverbial hands. 58 00:03:41,360 --> 00:03:44,760 Speaker 1: I want to give again a quick primer on how 59 00:03:44,840 --> 00:03:48,800 Speaker 1: the blockchain works, because it's important for this conversation. The 60 00:03:48,800 --> 00:03:54,480 Speaker 1: blockchain is a distributed database. Think of it like a 61 00:03:54,560 --> 00:03:58,600 Speaker 1: hard drive or a computer that is replicated in a 62 00:03:58,680 --> 00:04:00,640 Speaker 1: gang of people all over the world. World have the 63 00:04:01,160 --> 00:04:04,760 Speaker 1: same copy, the same version of this hard drive or 64 00:04:04,800 --> 00:04:08,640 Speaker 1: computer with the storage device in it, and they're constantly 65 00:04:08,760 --> 00:04:12,160 Speaker 1: validating the files on each other. So the computer, the 66 00:04:12,480 --> 00:04:18,160 Speaker 1: hard drive that's in you know, Mississippi, is validating the 67 00:04:18,240 --> 00:04:22,800 Speaker 1: same storage and records of the computer that I may 68 00:04:22,880 --> 00:04:26,440 Speaker 1: have in Las Vegas, or in Atlanta or in New York. 69 00:04:26,839 --> 00:04:29,480 Speaker 1: So they're all like you know, validating each other to 70 00:04:29,480 --> 00:04:33,279 Speaker 1: make sure they're correct and to verify transactions that happen 71 00:04:33,440 --> 00:04:36,440 Speaker 1: on the blockchain. So you can't say, like, you know, 72 00:04:36,480 --> 00:04:39,400 Speaker 1: I have a valid copy of don to two on 73 00:04:39,480 --> 00:04:42,360 Speaker 1: my node with your computers, like your node, that node 74 00:04:42,440 --> 00:04:45,479 Speaker 1: on the blockchain network, because all the other nodes, all 75 00:04:45,480 --> 00:04:47,479 Speaker 1: the other computers out there are going to check the 76 00:04:47,520 --> 00:04:50,440 Speaker 1: record and say no, no, no, no, no, it's not valid. 77 00:04:51,080 --> 00:04:54,839 Speaker 1: And then when they verify that your node has you know, 78 00:04:54,960 --> 00:04:58,400 Speaker 1: malicious file on it or you know, an invalid file. 79 00:04:58,600 --> 00:05:02,120 Speaker 1: It's not necessarily be malicious, but it's invalid. Your know, 80 00:05:02,279 --> 00:05:05,320 Speaker 1: then your computer, your hard drive that's trying to insert 81 00:05:05,360 --> 00:05:08,360 Speaker 1: that file, that invalid or malicious file is going to 82 00:05:08,400 --> 00:05:11,599 Speaker 1: get banned from the blockchain network because they tried to 83 00:05:11,720 --> 00:05:17,440 Speaker 1: insert an invalid transaction. So anyway, the blockchain is a 84 00:05:17,839 --> 00:05:23,960 Speaker 1: database that stores information electronic electronically, uh, digitally and it's redundant, 85 00:05:24,000 --> 00:05:27,120 Speaker 1: so it's there's same copies all around the world. Then 86 00:05:27,160 --> 00:05:30,240 Speaker 1: they're being stored by minors, which we don't have to 87 00:05:30,240 --> 00:05:32,680 Speaker 1: get into that today. But what's so cool about the 88 00:05:32,720 --> 00:05:39,520 Speaker 1: blockchain is that it's NonStop guaranteeing the purity, fidelity, or 89 00:05:39,800 --> 00:05:45,359 Speaker 1: you know, the cleanliness of the data that's being generated, 90 00:05:45,839 --> 00:05:47,760 Speaker 1: and you don't have to rely on like a government 91 00:05:48,360 --> 00:05:53,960 Speaker 1: or any institution to protect that data. It's you know, 92 00:05:54,000 --> 00:05:58,719 Speaker 1: it's a democratized authority. So it's probably about as far 93 00:05:58,760 --> 00:06:01,680 Speaker 1: as I'm going to go with explaining what the blockchain 94 00:06:01,760 --> 00:06:04,200 Speaker 1: is in this episode, because I really only reference that 95 00:06:04,240 --> 00:06:08,560 Speaker 1: to help us understand cryptocurrency not being in our wallets 96 00:06:08,760 --> 00:06:13,320 Speaker 1: physically up the record of how much ethereum or light 97 00:06:13,400 --> 00:06:18,839 Speaker 1: coin or sheiba i have is stored in this distributed 98 00:06:19,160 --> 00:06:25,520 Speaker 1: decentralized ledger miles long spreadsheet, if you will. So your 99 00:06:25,560 --> 00:06:31,440 Speaker 1: wallet then stores the keys that unlock your crypto. Your 100 00:06:31,440 --> 00:06:34,800 Speaker 1: wallet opens the door for your crypto to be used 101 00:06:34,960 --> 00:06:38,800 Speaker 1: in a transaction. So like you're buying an NFT or 102 00:06:38,839 --> 00:06:43,400 Speaker 1: a cup of coffee in some innovative, forward thinking coffee house, 103 00:06:43,839 --> 00:06:48,280 Speaker 1: your wallet allows others to send you crypto as your 104 00:06:48,320 --> 00:06:51,360 Speaker 1: wallet has an address that anyone can see. Again, we'll 105 00:06:51,360 --> 00:06:55,919 Speaker 1: get into that private first public concept shortly, and it 106 00:06:55,960 --> 00:06:59,159 Speaker 1: can serve as an actual key like instead of using 107 00:06:59,200 --> 00:07:02,640 Speaker 1: an email address and password like you might sign in 108 00:07:02,680 --> 00:07:05,440 Speaker 1: to like you might use to sign them too, like Instagram. 109 00:07:05,720 --> 00:07:08,600 Speaker 1: You could use your crypto wallet to sign into an 110 00:07:08,600 --> 00:07:12,120 Speaker 1: online service, for instance, open Sea, which we've talked a 111 00:07:12,200 --> 00:07:15,600 Speaker 1: lot about on our episodes about NFTs open cs in 112 00:07:15,680 --> 00:07:19,280 Speaker 1: exchange like the Amazon of NFTs, you can use your 113 00:07:19,400 --> 00:07:23,080 Speaker 1: wallet to sign in to open see without using like 114 00:07:23,120 --> 00:07:26,880 Speaker 1: an email addressing, password, passwords and email justice to log 115 00:07:26,920 --> 00:07:31,680 Speaker 1: in are so web too, right, and so the wallet 116 00:07:31,960 --> 00:07:36,760 Speaker 1: could also store your dial token, your distributed your decentralized 117 00:07:36,800 --> 00:07:41,480 Speaker 1: autonomous organization token, the thing that you use to give 118 00:07:41,480 --> 00:07:45,200 Speaker 1: you access to a party at the upcoming Afrotech conference 119 00:07:45,240 --> 00:07:48,360 Speaker 1: in Austin. You know that could be stored in your 120 00:07:48,480 --> 00:07:51,520 Speaker 1: crypto wallet, the token that you use to get into 121 00:07:52,080 --> 00:07:55,400 Speaker 1: the dial like Friends with Benefits is a dial created 122 00:07:55,440 --> 00:07:58,440 Speaker 1: by a black man. To get into that party, you 123 00:07:58,440 --> 00:08:00,680 Speaker 1: know you're gonna have to bring your crypt the wallet 124 00:08:00,800 --> 00:08:03,880 Speaker 1: to get access because your wallet is storing the token 125 00:08:04,280 --> 00:08:09,040 Speaker 1: that validates that you have access to said party your wallet. 126 00:08:09,200 --> 00:08:11,920 Speaker 1: So as you can tell, your wallet has a variety 127 00:08:12,000 --> 00:08:14,640 Speaker 1: of functions, and we just talked about some of the 128 00:08:14,640 --> 00:08:19,360 Speaker 1: most critical ons. So what else should we know about 129 00:08:19,360 --> 00:08:22,400 Speaker 1: a crypto wallet? Then? Well, how do you get one? 130 00:08:24,080 --> 00:08:26,040 Speaker 1: I'm going to say that conversation for a little later 131 00:08:26,120 --> 00:08:30,400 Speaker 1: because there's a bit more foundation I want to lay 132 00:08:30,600 --> 00:08:33,040 Speaker 1: so you really get a handle on what it is 133 00:08:33,720 --> 00:08:37,319 Speaker 1: the wallet is, and what it does and the implications 134 00:08:37,360 --> 00:08:40,559 Speaker 1: of having one. I've said this a few times, use 135 00:08:40,679 --> 00:08:44,360 Speaker 1: these terms, these phrases A few times. I mentioned keys, 136 00:08:44,640 --> 00:08:49,040 Speaker 1: private keys, and public keys, so there's a few times already, 137 00:08:49,040 --> 00:08:50,839 Speaker 1: and I want to dig in right now on what 138 00:08:52,760 --> 00:08:55,600 Speaker 1: they are because when I say things like a public 139 00:08:55,679 --> 00:09:00,000 Speaker 1: key that allows anyone to see you on the blockchain 140 00:09:00,160 --> 00:09:03,560 Speaker 1: and your activity on the blockchain, that might scare you. 141 00:09:03,559 --> 00:09:06,560 Speaker 1: You're like, you know, why does everybody get to see 142 00:09:07,000 --> 00:09:09,840 Speaker 1: that I bought? Said nft? Why does everybody get to 143 00:09:09,880 --> 00:09:13,360 Speaker 1: see that I sent John? You know? One? Eight? Like 144 00:09:13,480 --> 00:09:16,560 Speaker 1: why is that public knowledge? Well, you know number one, like, 145 00:09:16,679 --> 00:09:21,400 Speaker 1: there's no more privacy. That concept of privacy is you 146 00:09:21,440 --> 00:09:25,400 Speaker 1: know a web two thing. Again, the world is changing, 147 00:09:25,800 --> 00:09:28,480 Speaker 1: So that's a different conversation for a different thing. But 148 00:09:28,600 --> 00:09:33,280 Speaker 1: the public key is something that anybody can see, and 149 00:09:33,320 --> 00:09:36,800 Speaker 1: you're not at risk of being hacked or someone stealing 150 00:09:36,840 --> 00:09:40,040 Speaker 1: your crypto because they have access to your public key. 151 00:09:40,080 --> 00:09:42,720 Speaker 1: Your public key is supposed to be used. It's supposed 152 00:09:42,760 --> 00:09:48,680 Speaker 1: to be seeable because that's how you can make transactions. 153 00:09:49,200 --> 00:09:52,920 Speaker 1: Your public key is is a cryptographic code. It's a 154 00:09:52,960 --> 00:09:58,480 Speaker 1: set of numbers and letters that allows you to receive crypto, 155 00:09:59,480 --> 00:10:02,760 Speaker 1: or better, it allows the record of an amount of 156 00:10:02,800 --> 00:10:08,080 Speaker 1: crypto to move from my point on the ledger, the 157 00:10:08,160 --> 00:10:12,040 Speaker 1: global ledger, to your name on the global ledger. So 158 00:10:12,920 --> 00:10:15,080 Speaker 1: walk with me for a minute, because I don't want 159 00:10:15,120 --> 00:10:18,920 Speaker 1: you to get confused about this concept, and if it does, 160 00:10:19,000 --> 00:10:23,199 Speaker 1: just hit rewind and listen again. The public key that 161 00:10:23,240 --> 00:10:26,600 Speaker 1: you have if you have a wallet, everybody has one. 162 00:10:26,640 --> 00:10:28,640 Speaker 1: If you have a wallet, it's it's like a two 163 00:10:28,760 --> 00:10:31,840 Speaker 1: hundred and fifty six bit number. So but you will 164 00:10:31,960 --> 00:10:35,680 Speaker 1: likely see more often is the wallet address, which is 165 00:10:35,720 --> 00:10:40,320 Speaker 1: a scrambled version of that number. The address is a 166 00:10:40,360 --> 00:10:44,240 Speaker 1: set of random characters. They're not Russian say random, but 167 00:10:44,280 --> 00:10:47,600 Speaker 1: there are a set of characters that have both letters 168 00:10:47,600 --> 00:10:50,600 Speaker 1: and numbers in it. And the address will always begin 169 00:10:50,720 --> 00:10:55,160 Speaker 1: with a one, A three, or a BC one. Digging 170 00:10:55,200 --> 00:10:58,240 Speaker 1: deeper into that is outside of the scope of this episode, 171 00:10:58,320 --> 00:11:00,720 Speaker 1: but it's good to know that. So let's say you 172 00:11:00,760 --> 00:11:03,880 Speaker 1: want to send me your address to send you an ETH, 173 00:11:04,000 --> 00:11:09,000 Speaker 1: a single ethereum coin. What you could do is on 174 00:11:09,720 --> 00:11:15,880 Speaker 1: almost every wallet, cold wallet or hot wallet software or hardware, 175 00:11:16,440 --> 00:11:20,200 Speaker 1: there is a copy paste feature that allows you to 176 00:11:20,320 --> 00:11:22,960 Speaker 1: copy the set of characters like a forty two you 177 00:11:23,000 --> 00:11:27,280 Speaker 1: know character address, which is the public address of your 178 00:11:27,320 --> 00:11:31,960 Speaker 1: wallet or in most wallets give you this feature. You 179 00:11:32,000 --> 00:11:36,040 Speaker 1: can just pull up the QR code that I can 180 00:11:36,520 --> 00:11:40,800 Speaker 1: read with my smart device, my you know, iPhone or whatever, 181 00:11:41,160 --> 00:11:45,400 Speaker 1: and the QR code references your address that forty two 182 00:11:45,520 --> 00:11:49,960 Speaker 1: character a code. So then just by doing that, I 183 00:11:49,960 --> 00:11:52,560 Speaker 1: can send you the ETH that I owe you. The 184 00:11:52,600 --> 00:11:56,720 Speaker 1: private key, however, is what allows anyone to put their 185 00:11:56,800 --> 00:12:01,320 Speaker 1: hands in your cookie jar. So stick the nubs into 186 00:12:01,400 --> 00:12:04,439 Speaker 1: your wallet and snatch your crypto. You don't want that. 187 00:12:04,880 --> 00:12:08,760 Speaker 1: Your private key is something you should never share. There's 188 00:12:08,840 --> 00:12:13,440 Speaker 1: no reason any reputable transaction on the blockchain requires you 189 00:12:13,520 --> 00:12:17,600 Speaker 1: to share your private key. Any transaction you may engage 190 00:12:17,600 --> 00:12:21,800 Speaker 1: in should only require your public key. Think of it 191 00:12:21,880 --> 00:12:25,319 Speaker 1: as your token or ticket into the door. Or on 192 00:12:26,080 --> 00:12:29,040 Speaker 1: the one way door that allows money to put into 193 00:12:29,080 --> 00:12:32,880 Speaker 1: your wallet. But by providing your private key to others, 194 00:12:32,920 --> 00:12:36,520 Speaker 1: you allow their unfettered access into your chips. You don't 195 00:12:36,559 --> 00:12:41,120 Speaker 1: want that. Typically, the private key is another set of 196 00:12:41,480 --> 00:12:47,280 Speaker 1: alpha numeric characters, and you unlock access to those characters, 197 00:12:47,760 --> 00:12:52,520 Speaker 1: which really don't do often, but should you like to. 198 00:12:52,559 --> 00:12:57,000 Speaker 1: These wallets give you a recovery phrase. So I'm going 199 00:12:57,080 --> 00:13:00,000 Speaker 1: to dig into a cold wallet that I use really quickly. 200 00:13:00,640 --> 00:13:03,559 Speaker 1: Cold means it's hardware. It's like not on the internet. 201 00:13:04,320 --> 00:13:07,360 Speaker 1: It's a device, you know. Most of them look like 202 00:13:07,440 --> 00:13:10,960 Speaker 1: a USB like little thumb drive. So Ledger is the 203 00:13:10,960 --> 00:13:13,880 Speaker 1: one that I use, a Ledger nano X. It's a 204 00:13:13,920 --> 00:13:17,800 Speaker 1: cold wallet. More on that soon. But they provide a 205 00:13:17,960 --> 00:13:24,240 Speaker 1: recovery phrase which I have stored, and once I enter 206 00:13:24,360 --> 00:13:29,439 Speaker 1: that recovery phrase, it unlocks my private key. Again. Without 207 00:13:29,480 --> 00:13:32,800 Speaker 1: that recovery phrase, I have no access to my crypto, 208 00:13:33,880 --> 00:13:38,000 Speaker 1: no reputable wallet. Again, hot or cold should be storing 209 00:13:38,120 --> 00:13:42,000 Speaker 1: my recovery phrase. In fact, when I sign up for Ledger, 210 00:13:42,400 --> 00:13:45,120 Speaker 1: they give you a couple like pieces of paper, a 211 00:13:45,120 --> 00:13:48,560 Speaker 1: couple of little cards like physical pieces of paper that 212 00:13:48,640 --> 00:13:53,000 Speaker 1: I can copy down with a pen. My recovery phrase 213 00:13:53,080 --> 00:13:56,200 Speaker 1: and store it in a safe place like why choices 214 00:13:56,280 --> 00:13:58,920 Speaker 1: may be a safe deposit box or a fire proof 215 00:13:59,000 --> 00:14:02,080 Speaker 1: box or in your gun safe or whatever. And so 216 00:14:02,200 --> 00:14:07,160 Speaker 1: your private key is protected by a recovery phrase that 217 00:14:07,920 --> 00:14:13,600 Speaker 1: are typically like words like these random words. Alleger gives 218 00:14:13,640 --> 00:14:16,079 Speaker 1: you twenty four words that are that are in your 219 00:14:16,280 --> 00:14:20,200 Speaker 1: recovery phrase, and they're like super random words like have 220 00:14:21,200 --> 00:14:26,760 Speaker 1: house chair bright like these they're just random words or 221 00:14:26,800 --> 00:14:31,160 Speaker 1: they seem random words that don't make any sense otherwise, 222 00:14:31,920 --> 00:14:35,200 Speaker 1: but they are the recovery phrase that is used to 223 00:14:35,480 --> 00:14:41,720 Speaker 1: unlock your private key. So there are types of wallets 224 00:14:41,760 --> 00:14:45,520 Speaker 1: that I want to discuss. There are three types that 225 00:14:45,560 --> 00:14:49,800 Speaker 1: are most prominent, or really there's three types I should 226 00:14:49,880 --> 00:14:53,000 Speaker 1: say that you should be familiar with. Though you'll find 227 00:14:53,160 --> 00:14:57,240 Speaker 1: I'm sure your groove with probably one, maybe two of them, 228 00:14:57,280 --> 00:15:00,240 Speaker 1: but I'm sure you'll find one that you probably prefer. 229 00:15:00,360 --> 00:15:03,560 Speaker 1: First up. I would say it's probably lesser used, but 230 00:15:03,760 --> 00:15:08,880 Speaker 1: that's speculation because it's just harder to do it. It's 231 00:15:09,120 --> 00:15:13,920 Speaker 1: it's paper wallet. It's a paper wallet. As I mentioned before, 232 00:15:14,640 --> 00:15:17,840 Speaker 1: your your crypto, your wallet, I'm sorry, it is just 233 00:15:17,920 --> 00:15:21,680 Speaker 1: like a set of alpha numeric characters that are your 234 00:15:21,720 --> 00:15:26,280 Speaker 1: private key that unlock your crypto. So a paper wallet 235 00:15:26,400 --> 00:15:30,400 Speaker 1: is a sheet of paper that you write down your 236 00:15:30,480 --> 00:15:35,080 Speaker 1: characters and using those characters, you can unlock your assets. 237 00:15:35,680 --> 00:15:39,280 Speaker 1: It's clunky this way, but it's legitimate. You just need 238 00:15:39,320 --> 00:15:41,400 Speaker 1: a sheet of paper that has you can you can 239 00:15:41,600 --> 00:15:44,600 Speaker 1: you can memorize them, you know, if you want it. 240 00:15:44,680 --> 00:15:47,040 Speaker 1: But it's a piece of paper. A paper wallet is 241 00:15:47,080 --> 00:15:55,040 Speaker 1: that records the characters of your private key. Paper wallet 242 00:15:56,840 --> 00:16:01,560 Speaker 1: more common because it's easier. Isn't on line wallet. These 243 00:16:01,600 --> 00:16:04,600 Speaker 1: are things like the coin base wallet, which I have. 244 00:16:04,720 --> 00:16:07,120 Speaker 1: I have one, I don't use it as much anymore, 245 00:16:08,080 --> 00:16:12,000 Speaker 1: which will discuss my reasons why. But a coin based wallet, 246 00:16:12,160 --> 00:16:16,120 Speaker 1: and there are others, is software. It's an app that 247 00:16:16,280 --> 00:16:20,920 Speaker 1: is typically protected by like a two step encryption, So 248 00:16:20,960 --> 00:16:23,080 Speaker 1: it's likely gonna need like it's going to send you 249 00:16:23,120 --> 00:16:25,160 Speaker 1: a text when you're trying to sign in, or it's 250 00:16:25,160 --> 00:16:30,320 Speaker 1: going to require something like Google Authenticator that code when 251 00:16:30,400 --> 00:16:34,120 Speaker 1: you try to sign in. But with your online wallet, 252 00:16:34,840 --> 00:16:38,280 Speaker 1: they're largely easy to use, which makes them attractive to 253 00:16:38,360 --> 00:16:41,800 Speaker 1: many because for people who are looking for simplicity and 254 00:16:41,840 --> 00:16:45,040 Speaker 1: don't want to have all the responsibility of maining maintaining 255 00:16:45,040 --> 00:16:48,080 Speaker 1: a small device, like a hardware wallet. It typically is 256 00:16:48,840 --> 00:16:54,720 Speaker 1: keeping it safe and remembers location. A hot wallet, which 257 00:16:54,760 --> 00:16:59,920 Speaker 1: is the software wallet, is attractive, which brings me to 258 00:17:00,080 --> 00:17:04,399 Speaker 1: a hardware wallet. The this is called a cold wallet. 259 00:17:05,680 --> 00:17:08,880 Speaker 1: A hot wallet again is the software the app that 260 00:17:09,000 --> 00:17:13,560 Speaker 1: does it. The cold wallet is hardware. Again, I use Ledger. 261 00:17:13,680 --> 00:17:16,919 Speaker 1: I have a nano x is by Ledger. It is 262 00:17:16,960 --> 00:17:21,560 Speaker 1: a wallet that is not connected to the internet unless 263 00:17:21,560 --> 00:17:26,159 Speaker 1: I plug it in. But it's it's storing my keys offline. 264 00:17:27,000 --> 00:17:30,640 Speaker 1: It's stored. My keys are stored on the device. It's 265 00:17:30,680 --> 00:17:35,879 Speaker 1: safer provided I don't lose it. But it does require 266 00:17:36,400 --> 00:17:41,960 Speaker 1: me to be incredibly more responsible. Does that all makes sense? 267 00:17:42,400 --> 00:17:47,879 Speaker 1: It does. Cold wallet is hardware, is offline. It's not online, 268 00:17:48,000 --> 00:17:51,240 Speaker 1: you know, unless I plug it in. A hot wallet 269 00:17:51,480 --> 00:17:55,440 Speaker 1: software which is like coin based wallet, and there are 270 00:17:55,520 --> 00:17:59,879 Speaker 1: many many others, but they are online and they are 271 00:18:00,119 --> 00:18:07,000 Speaker 1: third parties managing your crypto, managing your keys. They both 272 00:18:07,080 --> 00:18:09,919 Speaker 1: have their own bit of attractiveness. If you are if 273 00:18:09,960 --> 00:18:13,479 Speaker 1: you do not want to be responsible for knowing where 274 00:18:13,960 --> 00:18:17,680 Speaker 1: your device is, knowing where that paper is, knowing where 275 00:18:17,720 --> 00:18:20,720 Speaker 1: that little thumb drive that we call a that I 276 00:18:20,800 --> 00:18:24,320 Speaker 1: call a ledger in my in my respects a nano 277 00:18:24,600 --> 00:18:27,200 Speaker 1: x or other device that you use. If you don't 278 00:18:27,200 --> 00:18:29,440 Speaker 1: want to be responsible for that, something like a Coinbase 279 00:18:29,520 --> 00:18:34,080 Speaker 1: wallet might work for you, Which brings me to the 280 00:18:34,160 --> 00:18:38,159 Speaker 1: topic of a custodial or non custodiol at this stage. 281 00:18:38,840 --> 00:18:43,080 Speaker 1: Because they have so many implications to hot or cold wallets, 282 00:18:43,440 --> 00:18:48,600 Speaker 1: hardware or software wallets, custodio and non custodial, it makes 283 00:18:48,600 --> 00:18:52,240 Speaker 1: sense to discuss those now because the definitions go hand 284 00:18:52,280 --> 00:18:57,879 Speaker 1: in hand with the wallet types. Custodio wallets are like software. 285 00:18:58,000 --> 00:19:03,520 Speaker 1: Those are the wallets that we are trusting knowingly or 286 00:19:03,600 --> 00:19:09,080 Speaker 1: unknowingly a third party like Coinbase or some other company 287 00:19:09,280 --> 00:19:14,199 Speaker 1: to manage our crypto With a custodia wallet, while it 288 00:19:14,280 --> 00:19:18,560 Speaker 1: might be encrypted, it's stored on somebody's server somewhere like 289 00:19:18,640 --> 00:19:22,920 Speaker 1: maybe AWS, or maybe that company has their own server farm. 290 00:19:23,400 --> 00:19:29,160 Speaker 1: But in any case, somebody else the custodian is managing. 291 00:19:29,720 --> 00:19:34,239 Speaker 1: They're holding tight to our private keys. The benefits of 292 00:19:34,280 --> 00:19:38,800 Speaker 1: this custodia wallet is just what we discussed, convenience, play 293 00:19:38,800 --> 00:19:41,639 Speaker 1: and simple. They're a lot easier to use. They're built 294 00:19:41,680 --> 00:19:44,520 Speaker 1: for the lowest common denominator, not to say that cold 295 00:19:44,520 --> 00:19:47,359 Speaker 1: wallets are not built for the lowest common denominators, but 296 00:19:47,920 --> 00:19:51,680 Speaker 1: they are custodio that they're somewhere we get to hold 297 00:19:51,680 --> 00:19:56,400 Speaker 1: somebody's hand when we cross the street. Right, so beautifully designed, 298 00:19:57,320 --> 00:19:59,760 Speaker 1: but we don't have to hold a lot of responsibility 299 00:20:00,080 --> 00:20:02,919 Speaker 1: to get to point B from where we are in 300 00:20:02,920 --> 00:20:08,600 Speaker 1: point A. God forbid that coinbase gets hacked, because that 301 00:20:08,680 --> 00:20:13,119 Speaker 1: means you are susceptible, and whatever you know, coins I 302 00:20:13,119 --> 00:20:15,760 Speaker 1: have left in my coinbase is susceptible. So I don't 303 00:20:15,840 --> 00:20:21,119 Speaker 1: leave my crypto in my coinbase app I choose to 304 00:20:21,160 --> 00:20:25,800 Speaker 1: be responsible, so I choose to go the non custodial route, 305 00:20:25,880 --> 00:20:29,200 Speaker 1: which means that I am fully grown, no longer holding 306 00:20:29,240 --> 00:20:33,080 Speaker 1: anyone's hand when I cross the street. I am taking 307 00:20:33,160 --> 00:20:36,680 Speaker 1: full ownership of my future. In Web three, my data 308 00:20:36,760 --> 00:20:42,520 Speaker 1: isn't stored on some company servers. The only records present 309 00:20:43,920 --> 00:20:48,359 Speaker 1: of my private keys are you know the record. Actually, 310 00:20:48,400 --> 00:20:52,600 Speaker 1: the only records present about anything about my activity are 311 00:20:52,680 --> 00:20:55,960 Speaker 1: either on the blockchain or on my device. There is 312 00:20:56,040 --> 00:21:00,720 Speaker 1: no like online service holding on to will look is data? 313 00:21:01,320 --> 00:21:03,840 Speaker 1: I own it. It's in my It's right now, sitting 314 00:21:03,920 --> 00:21:09,080 Speaker 1: right in front of me, and whoever records, whatever records 315 00:21:09,119 --> 00:21:12,600 Speaker 1: I keep on my person or in my house, let 316 00:21:12,720 --> 00:21:16,879 Speaker 1: that be my private keys or whatever. There is no 317 00:21:17,080 --> 00:21:20,879 Speaker 1: authority or company or app holding onto it but me. 318 00:21:21,800 --> 00:21:25,639 Speaker 1: I own it fully and outright, both the benefits and 319 00:21:25,680 --> 00:21:32,280 Speaker 1: the responsibility. Lastly, as we've talked a lot about coinbase 320 00:21:32,560 --> 00:21:35,080 Speaker 1: and Ledger in this episode, I want to take a 321 00:21:35,119 --> 00:21:39,000 Speaker 1: final few minutes here and set the record clear about 322 00:21:39,000 --> 00:21:44,600 Speaker 1: the differences between an exchange and a wallet. In most 323 00:21:44,880 --> 00:21:49,760 Speaker 1: in the most basic terms, a crypto exchange is like 324 00:21:50,600 --> 00:21:52,800 Speaker 1: you ever been in the airport in next to like 325 00:21:52,960 --> 00:21:56,240 Speaker 1: Chick fil a. They have a counter where you can 326 00:21:56,320 --> 00:22:02,159 Speaker 1: exchange your euros for US dollars or exchange your US 327 00:22:02,320 --> 00:22:07,720 Speaker 1: dollars for renmand b. It's an exchange desk, and there 328 00:22:07,760 --> 00:22:10,199 Speaker 1: is an exchange rate. So I'm gonna make this up 329 00:22:10,240 --> 00:22:14,080 Speaker 1: because I could look. But let's matter of fact, let's 330 00:22:14,280 --> 00:22:19,600 Speaker 1: let's do the real work here and find exchange rate 331 00:22:19,920 --> 00:22:27,960 Speaker 1: from usd to euro boom okay, So for one US 332 00:22:28,200 --> 00:22:34,520 Speaker 1: dollar I can get eighty nine cents in euros. Okay, 333 00:22:34,240 --> 00:22:39,480 Speaker 1: one dollar equals eighty nine cents in Europe. So it 334 00:22:39,640 --> 00:22:41,760 Speaker 1: kind of works the same, well it does. It works 335 00:22:41,760 --> 00:22:46,680 Speaker 1: the same way. So one dollar one. I'm type of 336 00:22:46,720 --> 00:22:55,080 Speaker 1: saying one US dollar to one eth. So for one dollar, 337 00:22:55,840 --> 00:22:58,359 Speaker 1: well not much. Let's just do it backwards. If I 338 00:22:58,400 --> 00:23:01,960 Speaker 1: want one eth, I have to pay two thousand, eight 339 00:23:02,040 --> 00:23:05,520 Speaker 1: hundred and twenty eight dollars as of right now. Okay, 340 00:23:06,720 --> 00:23:09,120 Speaker 1: that's diet it backwards, because it's gonna be like points, zeros, 341 00:23:09,160 --> 00:23:10,800 Speaker 1: years years years, yeos or something if I do it 342 00:23:10,840 --> 00:23:12,880 Speaker 1: the other way. You guys are pretty good at math. 343 00:23:13,400 --> 00:23:18,040 Speaker 1: So for one for two eight hundred and twenty five dollars, 344 00:23:18,119 --> 00:23:21,639 Speaker 1: I can buy one eth at present value that is 345 00:23:21,960 --> 00:23:25,840 Speaker 1: the exchange rate, and so on an exchange, I can 346 00:23:25,960 --> 00:23:31,040 Speaker 1: trade my US dollars for ethereum or for a bitcoin, 347 00:23:31,280 --> 00:23:35,080 Speaker 1: or for doge or for Shiva. And exchange is not 348 00:23:35,240 --> 00:23:40,480 Speaker 1: a wallet. But in this case, like Coinbase, a company 349 00:23:40,480 --> 00:23:44,920 Speaker 1: who develops an exchange can also develop a wallet. They 350 00:23:45,160 --> 00:23:48,800 Speaker 1: are mutually exclusive, but they don't have to be. They 351 00:23:48,920 --> 00:23:50,879 Speaker 1: Coinbase could have just said we're gonna think in the 352 00:23:50,920 --> 00:23:53,080 Speaker 1: exchange game, we're not going to do a wallet, but 353 00:23:53,080 --> 00:23:56,439 Speaker 1: they decided to play in the wallet game. Two. I 354 00:23:56,520 --> 00:23:59,159 Speaker 1: mentioned that I also have a coin Base wallet, So 355 00:23:59,240 --> 00:24:02,919 Speaker 1: that wallet, whether or not it's developed by Coinbase, is 356 00:24:02,960 --> 00:24:06,080 Speaker 1: software or hardware in the case of my ledger that 357 00:24:06,200 --> 00:24:10,159 Speaker 1: allows me to store my coins. I can make transactions 358 00:24:10,240 --> 00:24:13,879 Speaker 1: using my wallet. I cannot make transactions with dollars that 359 00:24:13,920 --> 00:24:17,160 Speaker 1: are stored on the exchange. The exchange is just where 360 00:24:17,200 --> 00:24:19,320 Speaker 1: I'm playing the money game. I'm going back and forth 361 00:24:19,680 --> 00:24:22,520 Speaker 1: exchanging my dollars for more bitcoin or for more ethereum, 362 00:24:22,560 --> 00:24:24,679 Speaker 1: et cetera. But if I want to go buy a 363 00:24:24,680 --> 00:24:29,160 Speaker 1: cup of coffee at some cool, you know coffee house, 364 00:24:29,640 --> 00:24:32,480 Speaker 1: I need to have my money moved off of the 365 00:24:32,600 --> 00:24:37,240 Speaker 1: exchange and into a wallet. I can't also sign in 366 00:24:37,280 --> 00:24:41,879 Speaker 1: to a service using an exchange my exchange account. I 367 00:24:42,000 --> 00:24:45,960 Speaker 1: need to have my wallet setup. So let's use open Seed. 368 00:24:46,000 --> 00:24:49,040 Speaker 1: We use open seed a lot as an example, because 369 00:24:49,200 --> 00:24:52,439 Speaker 1: I mean, we're heavy users of open seed, the amazon 370 00:24:52,760 --> 00:24:56,480 Speaker 1: of NFTs, and so if I want to sign in 371 00:24:56,520 --> 00:25:00,040 Speaker 1: to open seed to buy an NFT, I cannot do 372 00:25:00,440 --> 00:25:04,720 Speaker 1: using any you know password or use the name that 373 00:25:04,800 --> 00:25:08,400 Speaker 1: I have on Coinbase the exchange. I need to have 374 00:25:08,440 --> 00:25:12,240 Speaker 1: a coinbas wallet set up in order to sign in 375 00:25:12,359 --> 00:25:16,840 Speaker 1: to open Sea and many many other web three platforms 376 00:25:17,080 --> 00:25:20,639 Speaker 1: require you to have a wallet. You got to have 377 00:25:20,680 --> 00:25:23,119 Speaker 1: a wallet to sign into these things. So whether or 378 00:25:23,200 --> 00:25:26,560 Speaker 1: not you use something like Ledger or coinbase. One of 379 00:25:26,600 --> 00:25:30,200 Speaker 1: the features of the wallet is also that they show 380 00:25:30,240 --> 00:25:33,879 Speaker 1: you how much you own of a particular coin, and 381 00:25:34,040 --> 00:25:38,399 Speaker 1: some may even show you the present value of those things. 382 00:25:38,400 --> 00:25:43,240 Speaker 1: So if I own one eth Ledger, the dashboard might 383 00:25:43,320 --> 00:25:47,359 Speaker 1: show me that that one eth present value is two 384 00:25:47,800 --> 00:25:51,879 Speaker 1: eight hundred and twenty five dollars. So I love doing 385 00:25:51,920 --> 00:25:56,879 Speaker 1: these episodes about crypto, blockchain, NFTs and more with you guys, 386 00:25:56,920 --> 00:25:59,320 Speaker 1: and I want to know what questions you guys have 387 00:25:59,480 --> 00:26:02,160 Speaker 1: because I'm going to be having some really really cool 388 00:26:02,160 --> 00:26:07,840 Speaker 1: conversations with even more experts in the field of crypto 389 00:26:08,480 --> 00:26:10,480 Speaker 1: on this show, and so I want to know what 390 00:26:10,560 --> 00:26:14,120 Speaker 1: you guys have questions about. If you have specific questions 391 00:26:14,160 --> 00:26:17,320 Speaker 1: that you want answered, and you know nobody answers questions 392 00:26:17,320 --> 00:26:21,560 Speaker 1: like we do, send me your questions DM me I 393 00:26:21,600 --> 00:26:25,000 Speaker 1: am on Instagram, I am on Twitter. On Twitter, it's 394 00:26:25,200 --> 00:26:29,480 Speaker 1: Will Underscore Lucas. On Instagram, it's just Will Lucas, WI 395 00:26:29,640 --> 00:26:33,080 Speaker 1: l l l uc As, follow me, shoot me a DM, 396 00:26:33,280 --> 00:26:36,119 Speaker 1: ask me what you got. And I'm going to be 397 00:26:36,119 --> 00:26:39,320 Speaker 1: having more interviews and conversations where I will do things solo, 398 00:26:40,040 --> 00:26:44,760 Speaker 1: just talking about getting you educated in order to play 399 00:26:44,920 --> 00:26:47,600 Speaker 1: well in the game of Web three. Whether it be 400 00:26:47,600 --> 00:26:51,560 Speaker 1: about NFTs you have questions, send them to me, crypto currencies, 401 00:26:51,680 --> 00:26:55,520 Speaker 1: you have questions, send it to me, blockchain, send it 402 00:26:55,560 --> 00:26:57,720 Speaker 1: to me, because I want to make sure we're giving 403 00:26:57,760 --> 00:27:01,000 Speaker 1: you value on this show. If you love this episode, 404 00:27:01,400 --> 00:27:05,680 Speaker 1: please go to iTunes and drop five stars and there. 405 00:27:05,720 --> 00:27:07,920 Speaker 1: It means a lot when you do that. I really 406 00:27:08,000 --> 00:27:10,639 Speaker 1: appreciate you guys for taking this. Rye Woods. I hope 407 00:27:10,680 --> 00:27:15,000 Speaker 1: to see you in real life and even Brooklyn coming 408 00:27:15,080 --> 00:27:16,800 Speaker 1: up that we announced it at the top of this 409 00:27:16,920 --> 00:27:22,400 Speaker 1: episode or Austin this November. So afro Tech is back 410 00:27:22,520 --> 00:27:26,520 Speaker 1: and we're gonna have a ton of conversations about crypto, 411 00:27:26,720 --> 00:27:30,120 Speaker 1: NFTs and more this November. So we're gonna just keep 412 00:27:30,119 --> 00:27:33,760 Speaker 1: building this thing up, keep building. You know your expertise 413 00:27:33,800 --> 00:27:37,639 Speaker 1: and domain knowledge about the blockchain, so stick with us. 414 00:27:37,680 --> 00:27:54,560 Speaker 1: I promise you will not regret it. Black Tech Green 415 00:27:54,600 --> 00:27:57,199 Speaker 1: Money is a production the Blavity Afro Tech on the 416 00:27:57,240 --> 00:28:00,720 Speaker 1: Black Effect podcast Networking Nightheart Media, and it's produced by 417 00:28:00,760 --> 00:28:04,840 Speaker 1: Morgan Debonne and me Well Lucas, with additional production support 418 00:28:04,840 --> 00:28:09,040 Speaker 1: by love Vechim Marissa Lewis. Special thank you to Michael Davis, 419 00:28:09,240 --> 00:28:12,960 Speaker 1: Jermain Hall, in Secrosavon Young you know like the Wine. Yes, 420 00:28:13,040 --> 00:28:16,160 Speaker 1: that's his real name. Learn more about this topic over 421 00:28:16,160 --> 00:28:19,280 Speaker 1: at afrotech dot com and if you're enjoying yourself, leave 422 00:28:19,320 --> 00:28:23,639 Speaker 1: us the five star rating on iTunes, Go get your money, 423 00:28:24,359 --> 00:28:25,000 Speaker 1: peace and love,