WEBVTT - Black Tech REPLAY: Will Lucas Breaks Down Crypto Wallets 0:00:00.800 --> 0:00:05.880 So what is a crypto wallet. You've likely you likely 0:00:05.960 --> 0:00:09.880 have a wallet, you know, sitting nearby you somewhere, probably 0:00:10.360 --> 0:00:13.240 in your pocket, maybe it's in your backpack or you 0:00:13.360 --> 0:00:16.480 tell far back. Maybe you know the concept. But your 0:00:16.520 --> 0:00:21.000 wallet is likely where you store your physical credit cards, 0:00:21.000 --> 0:00:23.840 your ID. Maybe you even have a little cash in 0:00:23.880 --> 0:00:28.120 your wallet. The point is we're all familiar with this concept. 0:00:28.200 --> 0:00:32.920 You have a physical storage container, usually like leather or 0:00:33.040 --> 0:00:35.960 full leather, where you store things that you need access 0:00:36.000 --> 0:00:39.640 to but you want to keep them secure and somewhat organized. 0:00:40.360 --> 0:00:44.000 Typically these things have to do with storing currency. These 0:00:44.000 --> 0:00:47.680 wallets do paying for things or validating who you are, 0:00:47.760 --> 0:00:49.599 like in the case of having your ID in it. 0:00:50.360 --> 0:00:54.480 A crypto wallet is effectively the same thing, but it's 0:00:54.520 --> 0:01:00.800 specifically designed to store crypto and like passwords. There are 0:01:01.600 --> 0:01:08.160 hardware wallets, cold wallets, and hot wallets, and we'll let's 0:01:08.160 --> 0:01:10.319 not get ahead of ourselves, all right, So let's just 0:01:10.360 --> 0:01:12.360 walk this out because I don't want to like jump 0:01:12.440 --> 0:01:14.839 too far ahead, because it's very attempting to right now. 0:01:15.040 --> 0:01:17.959 But hardware wallets we call them cold wallets, or you 0:01:18.040 --> 0:01:22.200 have like online wallets that are called hot wallets. But 0:01:22.240 --> 0:01:24.639 first let's talk about the purpose of a crypto wallet 0:01:25.040 --> 0:01:29.680 in any case. All right, So, if you've been listening 0:01:29.840 --> 0:01:33.360 to this show for any length of time, specifically like 0:01:33.360 --> 0:01:36.480 in the last well since twenty twenty two, specifically, we've 0:01:36.680 --> 0:01:40.080 been talking a lot about crypto NFTs, things like that, 0:01:40.160 --> 0:01:43.520 and hopefully by now I've built up some kind of 0:01:43.640 --> 0:01:47.840 appetite in you to invest in yourself in Web three, 0:01:48.800 --> 0:01:53.600 whether it be buying an NFT, exchanging your US dollars 0:01:53.720 --> 0:01:58.000 or rubles for ethereum or a sheep of coin. But 0:01:58.160 --> 0:02:02.680 just like we describe what we're all pretty used to, 0:02:02.920 --> 0:02:07.760 the wallet and the crypto wallet, these things store things 0:02:07.760 --> 0:02:11.160 that you might need access to, like your currency cryptocurrency. 0:02:11.639 --> 0:02:13.920 It allows you to pay for things in Web three, 0:02:14.280 --> 0:02:17.120 and it allows you to validate who you are. Your 0:02:17.240 --> 0:02:21.760 crypto wallet does. And among the most important things a 0:02:21.800 --> 0:02:24.079 crypto while it does, and I just alluded to this, 0:02:24.720 --> 0:02:28.600 is regarding the storage of things you may need access to. 0:02:29.360 --> 0:02:31.920 Now I set this up in the form of storing crypto, 0:02:32.320 --> 0:02:36.280 but there's a level deeper that are wallet stores, and 0:02:36.639 --> 0:02:41.519 that's what we call keys. So not like physical keys 0:02:41.560 --> 0:02:44.639 today that you know may turn on your vehicle or 0:02:45.200 --> 0:02:47.720 let you in your house and one day, I'm sure 0:02:47.760 --> 0:02:50.840 we'll get there. But I'm talking about your public and 0:02:50.960 --> 0:02:56.520 private keys, the passwords that give you access to your cryptocurrencies. 0:02:57.280 --> 0:02:59.280 Now you might be asking, you know, I thought my 0:02:59.280 --> 0:03:03.520 crypto was or on or in the wallet. Well, you 0:03:03.600 --> 0:03:07.120 may have crypto, but it's not like physically in your 0:03:07.120 --> 0:03:10.360 crypto wallet, like your US dollars might be in your 0:03:10.919 --> 0:03:14.880 Louis Vatan wallet. In Web three, your currency is basically 0:03:15.000 --> 0:03:19.280 just a recording on a ledger. There's no physical coin 0:03:19.480 --> 0:03:22.400 or token you can see. It's a record, it's a 0:03:22.440 --> 0:03:26.480 line of code. It's an instance that is secured by 0:03:26.480 --> 0:03:30.600 the blockchain. It can be altered or forged. It can 0:03:30.919 --> 0:03:33.480 it can be stolen. But again let's not get ahead 0:03:33.480 --> 0:03:35.320 of ourselves. We're going to talk about that. But the 0:03:35.400 --> 0:03:40.760 record does last forever that it was in your proverbial hands. 0:03:41.360 --> 0:03:44.760 I want to give again a quick primer on how 0:03:44.840 --> 0:03:48.800 the blockchain works, because it's important for this conversation. The 0:03:48.800 --> 0:03:54.480 blockchain is a distributed database. Think of it like a 0:03:54.560 --> 0:03:58.600 hard drive or a computer that is replicated in a 0:03:58.680 --> 0:04:00.640 gang of people all over the world. World have the 0:04:01.160 --> 0:04:04.760 same copy, the same version of this hard drive or 0:04:04.800 --> 0:04:08.640 computer with the storage device in it, and they're constantly 0:04:08.760 --> 0:04:12.160 validating the files on each other. So the computer, the 0:04:12.480 --> 0:04:18.160 hard drive that's in you know, Mississippi, is validating the 0:04:18.240 --> 0:04:22.800 same storage and records of the computer that I may 0:04:22.880 --> 0:04:26.440 have in Las Vegas, or in Atlanta or in New York. 0:04:26.839 --> 0:04:29.480 So they're all like you know, validating each other to 0:04:29.480 --> 0:04:33.279 make sure they're correct and to verify transactions that happen 0:04:33.440 --> 0:04:36.440 on the blockchain. So you can't say, like, you know, 0:04:36.480 --> 0:04:39.400 I have a valid copy of don to two on 0:04:39.480 --> 0:04:42.360 my node with your computers, like your node, that node 0:04:42.440 --> 0:04:45.479 on the blockchain network, because all the other nodes, all 0:04:45.480 --> 0:04:47.479 the other computers out there are going to check the 0:04:47.520 --> 0:04:50.440 record and say no, no, no, no, no, it's not valid. 0:04:51.080 --> 0:04:54.839 And then when they verify that your node has you know, 0:04:54.960 --> 0:04:58.400 malicious file on it or you know, an invalid file. 0:04:58.600 --> 0:05:02.120 It's not necessarily be malicious, but it's invalid. Your know, 0:05:02.279 --> 0:05:05.320 then your computer, your hard drive that's trying to insert 0:05:05.360 --> 0:05:08.360 that file, that invalid or malicious file is going to 0:05:08.400 --> 0:05:11.599 get banned from the blockchain network because they tried to 0:05:11.720 --> 0:05:17.440 insert an invalid transaction. So anyway, the blockchain is a 0:05:17.839 --> 0:05:23.960 database that stores information electronic electronically, uh, digitally and it's redundant, 0:05:24.000 --> 0:05:27.120 so it's there's same copies all around the world. Then 0:05:27.160 --> 0:05:30.240 they're being stored by minors, which we don't have to 0:05:30.240 --> 0:05:32.680 get into that today. But what's so cool about the 0:05:32.720 --> 0:05:39.520 blockchain is that it's NonStop guaranteeing the purity, fidelity, or 0:05:39.800 --> 0:05:45.359 you know, the cleanliness of the data that's being generated, 0:05:45.839 --> 0:05:47.760 and you don't have to rely on like a government 0:05:48.360 --> 0:05:53.960 or any institution to protect that data. It's you know, 0:05:54.000 --> 0:05:58.719 it's a democratized authority. So it's probably about as far 0:05:58.760 --> 0:06:01.680 as I'm going to go with explaining what the blockchain 0:06:01.760 --> 0:06:04.200 is in this episode, because I really only reference that 0:06:04.240 --> 0:06:08.560 to help us understand cryptocurrency not being in our wallets 0:06:08.760 --> 0:06:13.320 physically up the record of how much ethereum or light 0:06:13.400 --> 0:06:18.839 coin or sheiba i have is stored in this distributed 0:06:19.160 --> 0:06:25.520 decentralized ledger miles long spreadsheet, if you will. So your 0:06:25.560 --> 0:06:31.440 wallet then stores the keys that unlock your crypto. Your 0:06:31.440 --> 0:06:34.800 wallet opens the door for your crypto to be used 0:06:34.960 --> 0:06:38.800 in a transaction. So like you're buying an NFT or 0:06:38.839 --> 0:06:43.400 a cup of coffee in some innovative, forward thinking coffee house, 0:06:43.839 --> 0:06:48.280 your wallet allows others to send you crypto as your 0:06:48.320 --> 0:06:51.360 wallet has an address that anyone can see. Again, we'll 0:06:51.360 --> 0:06:55.919 get into that private first public concept shortly, and it 0:06:55.960 --> 0:06:59.159 can serve as an actual key like instead of using 0:06:59.200 --> 0:07:02.640 an email address and password like you might sign in 0:07:02.680 --> 0:07:05.440 to like you might use to sign them too, like Instagram. 0:07:05.720 --> 0:07:08.600 You could use your crypto wallet to sign into an 0:07:08.600 --> 0:07:12.120 online service, for instance, open Sea, which we've talked a 0:07:12.200 --> 0:07:15.600 lot about on our episodes about NFTs open cs in 0:07:15.680 --> 0:07:19.280 exchange like the Amazon of NFTs, you can use your 0:07:19.400 --> 0:07:23.080 wallet to sign in to open see without using like 0:07:23.120 --> 0:07:26.880 an email addressing, password, passwords and email justice to log 0:07:26.920 --> 0:07:31.680 in are so web too, right, and so the wallet 0:07:31.960 --> 0:07:36.760 could also store your dial token, your distributed your decentralized 0:07:36.800 --> 0:07:41.480 autonomous organization token, the thing that you use to give 0:07:41.480 --> 0:07:45.200 you access to a party at the upcoming Afrotech conference 0:07:45.240 --> 0:07:48.360 in Austin. You know that could be stored in your 0:07:48.480 --> 0:07:51.520 crypto wallet, the token that you use to get into 0:07:52.080 --> 0:07:55.400 the dial like Friends with Benefits is a dial created 0:07:55.440 --> 0:07:58.440 by a black man. To get into that party, you 0:07:58.440 --> 0:08:00.680 know you're gonna have to bring your crypt the wallet 0:08:00.800 --> 0:08:03.880 to get access because your wallet is storing the token 0:08:04.280 --> 0:08:09.040 that validates that you have access to said party your wallet. 0:08:09.200 --> 0:08:11.920 So as you can tell, your wallet has a variety 0:08:12.000 --> 0:08:14.640 of functions, and we just talked about some of the 0:08:14.640 --> 0:08:19.360 most critical ons. So what else should we know about 0:08:19.360 --> 0:08:22.400 a crypto wallet? Then? Well, how do you get one? 0:08:24.080 --> 0:08:26.040 I'm going to say that conversation for a little later 0:08:26.120 --> 0:08:30.400 because there's a bit more foundation I want to lay 0:08:30.600 --> 0:08:33.040 so you really get a handle on what it is 0:08:33.720 --> 0:08:37.319 the wallet is, and what it does and the implications 0:08:37.360 --> 0:08:40.559 of having one. I've said this a few times, use 0:08:40.679 --> 0:08:44.360 these terms, these phrases A few times. I mentioned keys, 0:08:44.640 --> 0:08:49.040 private keys, and public keys, so there's a few times already, 0:08:49.040 --> 0:08:50.839 and I want to dig in right now on what 0:08:52.760 --> 0:08:55.600 they are because when I say things like a public 0:08:55.679 --> 0:09:00.000 key that allows anyone to see you on the blockchain 0:09:00.160 --> 0:09:03.560 and your activity on the blockchain, that might scare you. 0:09:03.559 --> 0:09:06.560 You're like, you know, why does everybody get to see 0:09:07.000 --> 0:09:09.840 that I bought? Said nft? Why does everybody get to 0:09:09.880 --> 0:09:13.360 see that I sent John? You know? One? Eight? Like 0:09:13.480 --> 0:09:16.560 why is that public knowledge? Well, you know number one, like, 0:09:16.679 --> 0:09:21.400 there's no more privacy. That concept of privacy is you 0:09:21.440 --> 0:09:25.400 know a web two thing. Again, the world is changing, 0:09:25.800 --> 0:09:28.480 So that's a different conversation for a different thing. But 0:09:28.600 --> 0:09:33.280 the public key is something that anybody can see, and 0:09:33.320 --> 0:09:36.800 you're not at risk of being hacked or someone stealing 0:09:36.840 --> 0:09:40.040 your crypto because they have access to your public key. 0:09:40.080 --> 0:09:42.720 Your public key is supposed to be used. It's supposed 0:09:42.760 --> 0:09:48.680 to be seeable because that's how you can make transactions. 0:09:49.200 --> 0:09:52.920 Your public key is is a cryptographic code. It's a 0:09:52.960 --> 0:09:58.480 set of numbers and letters that allows you to receive crypto, 0:09:59.480 --> 0:10:02.760 or better, it allows the record of an amount of 0:10:02.800 --> 0:10:08.080 crypto to move from my point on the ledger, the 0:10:08.160 --> 0:10:12.040 global ledger, to your name on the global ledger. So 0:10:12.920 --> 0:10:15.080 walk with me for a minute, because I don't want 0:10:15.120 --> 0:10:18.920 you to get confused about this concept, and if it does, 0:10:19.000 --> 0:10:23.199 just hit rewind and listen again. The public key that 0:10:23.240 --> 0:10:26.600 you have if you have a wallet, everybody has one. 0:10:26.640 --> 0:10:28.640 If you have a wallet, it's it's like a two 0:10:28.760 --> 0:10:31.840 hundred and fifty six bit number. So but you will 0:10:31.960 --> 0:10:35.680 likely see more often is the wallet address, which is 0:10:35.720 --> 0:10:40.320 a scrambled version of that number. The address is a 0:10:40.360 --> 0:10:44.240 set of random characters. They're not Russian say random, but 0:10:44.280 --> 0:10:47.600 there are a set of characters that have both letters 0:10:47.600 --> 0:10:50.600 and numbers in it. And the address will always begin 0:10:50.720 --> 0:10:55.160 with a one, A three, or a BC one. Digging 0:10:55.200 --> 0:10:58.240 deeper into that is outside of the scope of this episode, 0:10:58.320 --> 0:11:00.720 but it's good to know that. So let's say you 0:11:00.760 --> 0:11:03.880 want to send me your address to send you an ETH, 0:11:04.000 --> 0:11:09.000 a single ethereum coin. What you could do is on 0:11:09.720 --> 0:11:15.880 almost every wallet, cold wallet or hot wallet software or hardware, 0:11:16.440 --> 0:11:20.200 there is a copy paste feature that allows you to 0:11:20.320 --> 0:11:22.960 copy the set of characters like a forty two you 0:11:23.000 --> 0:11:27.280 know character address, which is the public address of your 0:11:27.320 --> 0:11:31.960 wallet or in most wallets give you this feature. You 0:11:32.000 --> 0:11:36.040 can just pull up the QR code that I can 0:11:36.520 --> 0:11:40.800 read with my smart device, my you know, iPhone or whatever, 0:11:41.160 --> 0:11:45.400 and the QR code references your address that forty two 0:11:45.520 --> 0:11:49.960 character a code. So then just by doing that, I 0:11:49.960 --> 0:11:52.560 can send you the ETH that I owe you. The 0:11:52.600 --> 0:11:56.720 private key, however, is what allows anyone to put their 0:11:56.800 --> 0:12:01.320 hands in your cookie jar. So stick the nubs into 0:12:01.400 --> 0:12:04.439 your wallet and snatch your crypto. You don't want that. 0:12:04.880 --> 0:12:08.760 Your private key is something you should never share. There's 0:12:08.840 --> 0:12:13.440 no reason any reputable transaction on the blockchain requires you 0:12:13.520 --> 0:12:17.600 to share your private key. Any transaction you may engage 0:12:17.600 --> 0:12:21.800 in should only require your public key. Think of it 0:12:21.880 --> 0:12:25.319 as your token or ticket into the door. Or on 0:12:26.080 --> 0:12:29.040 the one way door that allows money to put into 0:12:29.080 --> 0:12:32.880 your wallet. But by providing your private key to others, 0:12:32.920 --> 0:12:36.520 you allow their unfettered access into your chips. You don't 0:12:36.559 --> 0:12:41.120 want that. Typically, the private key is another set of 0:12:41.480 --> 0:12:47.280 alpha numeric characters, and you unlock access to those characters, 0:12:47.760 --> 0:12:52.520 which really don't do often, but should you like to. 0:12:52.559 --> 0:12:57.000 These wallets give you a recovery phrase. So I'm going 0:12:57.080 --> 0:13:00.000 to dig into a cold wallet that I use really quickly. 0:13:00.640 --> 0:13:03.559 Cold means it's hardware. It's like not on the internet. 0:13:04.320 --> 0:13:07.360 It's a device, you know. Most of them look like 0:13:07.440 --> 0:13:10.960 a USB like little thumb drive. So Ledger is the 0:13:10.960 --> 0:13:13.880 one that I use, a Ledger nano X. It's a 0:13:13.920 --> 0:13:17.800 cold wallet. More on that soon. But they provide a 0:13:17.960 --> 0:13:24.240 recovery phrase which I have stored, and once I enter 0:13:24.360 --> 0:13:29.439 that recovery phrase, it unlocks my private key. Again. Without 0:13:29.480 --> 0:13:32.800 that recovery phrase, I have no access to my crypto, 0:13:33.880 --> 0:13:38.000 no reputable wallet. Again, hot or cold should be storing 0:13:38.120 --> 0:13:42.000 my recovery phrase. In fact, when I sign up for Ledger, 0:13:42.400 --> 0:13:45.120 they give you a couple like pieces of paper, a 0:13:45.120 --> 0:13:48.560 couple of little cards like physical pieces of paper that 0:13:48.640 --> 0:13:53.000 I can copy down with a pen. My recovery phrase 0:13:53.080 --> 0:13:56.200 and store it in a safe place like why choices 0:13:56.280 --> 0:13:58.920 may be a safe deposit box or a fire proof 0:13:59.000 --> 0:14:02.080 box or in your gun safe or whatever. And so 0:14:02.200 --> 0:14:07.160 your private key is protected by a recovery phrase that 0:14:07.920 --> 0:14:13.600 are typically like words like these random words. Alleger gives 0:14:13.640 --> 0:14:16.079 you twenty four words that are that are in your 0:14:16.280 --> 0:14:20.200 recovery phrase, and they're like super random words like have 0:14:21.200 --> 0:14:26.760 house chair bright like these they're just random words or 0:14:26.800 --> 0:14:31.160 they seem random words that don't make any sense otherwise, 0:14:31.920 --> 0:14:35.200 but they are the recovery phrase that is used to 0:14:35.480 --> 0:14:41.720 unlock your private key. So there are types of wallets 0:14:41.760 --> 0:14:45.520 that I want to discuss. There are three types that 0:14:45.560 --> 0:14:49.800 are most prominent, or really there's three types I should 0:14:49.880 --> 0:14:53.000 say that you should be familiar with. Though you'll find 0:14:53.160 --> 0:14:57.240 I'm sure your groove with probably one, maybe two of them, 0:14:57.280 --> 0:15:00.240 but I'm sure you'll find one that you probably prefer. 0:15:00.360 --> 0:15:03.560 First up. I would say it's probably lesser used, but 0:15:03.760 --> 0:15:08.880 that's speculation because it's just harder to do it. It's 0:15:09.120 --> 0:15:13.920 it's paper wallet. It's a paper wallet. As I mentioned before, 0:15:14.640 --> 0:15:17.840 your your crypto, your wallet, I'm sorry, it is just 0:15:17.920 --> 0:15:21.680 like a set of alpha numeric characters that are your 0:15:21.720 --> 0:15:26.280 private key that unlock your crypto. So a paper wallet 0:15:26.400 --> 0:15:30.400 is a sheet of paper that you write down your 0:15:30.480 --> 0:15:35.080 characters and using those characters, you can unlock your assets. 0:15:35.680 --> 0:15:39.280 It's clunky this way, but it's legitimate. You just need 0:15:39.320 --> 0:15:41.400 a sheet of paper that has you can you can 0:15:41.600 --> 0:15:44.600 you can memorize them, you know, if you want it. 0:15:44.680 --> 0:15:47.040 But it's a piece of paper. A paper wallet is 0:15:47.080 --> 0:15:55.040 that records the characters of your private key. Paper wallet 0:15:56.840 --> 0:16:01.560 more common because it's easier. Isn't on line wallet. These 0:16:01.600 --> 0:16:04.600 are things like the coin base wallet, which I have. 0:16:04.720 --> 0:16:07.120 I have one, I don't use it as much anymore, 0:16:08.080 --> 0:16:12.000 which will discuss my reasons why. But a coin based wallet, 0:16:12.160 --> 0:16:16.120 and there are others, is software. It's an app that 0:16:16.280 --> 0:16:20.920 is typically protected by like a two step encryption, So 0:16:20.960 --> 0:16:23.080 it's likely gonna need like it's going to send you 0:16:23.120 --> 0:16:25.160 a text when you're trying to sign in, or it's 0:16:25.160 --> 0:16:30.320 going to require something like Google Authenticator that code when 0:16:30.400 --> 0:16:34.120 you try to sign in. But with your online wallet, 0:16:34.840 --> 0:16:38.280 they're largely easy to use, which makes them attractive to 0:16:38.360 --> 0:16:41.800 many because for people who are looking for simplicity and 0:16:41.840 --> 0:16:45.040 don't want to have all the responsibility of maining maintaining 0:16:45.040 --> 0:16:48.080 a small device, like a hardware wallet. It typically is 0:16:48.840 --> 0:16:54.720 keeping it safe and remembers location. A hot wallet, which 0:16:54.760 --> 0:16:59.920 is the software wallet, is attractive, which brings me to 0:17:00.080 --> 0:17:04.399 a hardware wallet. The this is called a cold wallet. 0:17:05.680 --> 0:17:08.880 A hot wallet again is the software the app that 0:17:09.000 --> 0:17:13.560 does it. The cold wallet is hardware. Again, I use Ledger. 0:17:13.680 --> 0:17:16.919 I have a nano x is by Ledger. It is 0:17:16.960 --> 0:17:21.560 a wallet that is not connected to the internet unless 0:17:21.560 --> 0:17:26.159 I plug it in. But it's it's storing my keys offline. 0:17:27.000 --> 0:17:30.640 It's stored. My keys are stored on the device. It's 0:17:30.680 --> 0:17:35.879 safer provided I don't lose it. But it does require 0:17:36.400 --> 0:17:41.960 me to be incredibly more responsible. Does that all makes sense? 0:17:42.400 --> 0:17:47.879 It does. Cold wallet is hardware, is offline. It's not online, 0:17:48.000 --> 0:17:51.240 you know, unless I plug it in. A hot wallet 0:17:51.480 --> 0:17:55.440 software which is like coin based wallet, and there are 0:17:55.520 --> 0:17:59.879 many many others, but they are online and they are 0:18:00.119 --> 0:18:07.000 third parties managing your crypto, managing your keys. They both 0:18:07.080 --> 0:18:09.919 have their own bit of attractiveness. If you are if 0:18:09.960 --> 0:18:13.479 you do not want to be responsible for knowing where 0:18:13.960 --> 0:18:17.680 your device is, knowing where that paper is, knowing where 0:18:17.720 --> 0:18:20.720 that little thumb drive that we call a that I 0:18:20.800 --> 0:18:24.320 call a ledger in my in my respects a nano 0:18:24.600 --> 0:18:27.200 x or other device that you use. If you don't 0:18:27.200 --> 0:18:29.440 want to be responsible for that, something like a Coinbase 0:18:29.520 --> 0:18:34.080 wallet might work for you, Which brings me to the 0:18:34.160 --> 0:18:38.159 topic of a custodial or non custodiol at this stage. 0:18:38.840 --> 0:18:43.080 Because they have so many implications to hot or cold wallets, 0:18:43.440 --> 0:18:48.600 hardware or software wallets, custodio and non custodial, it makes 0:18:48.600 --> 0:18:52.240 sense to discuss those now because the definitions go hand 0:18:52.280 --> 0:18:57.879 in hand with the wallet types. Custodio wallets are like software. 0:18:58.000 --> 0:19:03.520 Those are the wallets that we are trusting knowingly or 0:19:03.600 --> 0:19:09.080 unknowingly a third party like Coinbase or some other company 0:19:09.280 --> 0:19:14.199 to manage our crypto With a custodia wallet, while it 0:19:14.280 --> 0:19:18.560 might be encrypted, it's stored on somebody's server somewhere like 0:19:18.640 --> 0:19:22.920 maybe AWS, or maybe that company has their own server farm. 0:19:23.400 --> 0:19:29.160 But in any case, somebody else the custodian is managing. 0:19:29.720 --> 0:19:34.239 They're holding tight to our private keys. The benefits of 0:19:34.280 --> 0:19:38.800 this custodia wallet is just what we discussed, convenience, play 0:19:38.800 --> 0:19:41.639 and simple. They're a lot easier to use. They're built 0:19:41.680 --> 0:19:44.520 for the lowest common denominator, not to say that cold 0:19:44.520 --> 0:19:47.359 wallets are not built for the lowest common denominators, but 0:19:47.920 --> 0:19:51.680 they are custodio that they're somewhere we get to hold 0:19:51.680 --> 0:19:56.400 somebody's hand when we cross the street. Right, so beautifully designed, 0:19:57.320 --> 0:19:59.760 but we don't have to hold a lot of responsibility 0:20:00.080 --> 0:20:02.919 to get to point B from where we are in 0:20:02.920 --> 0:20:08.600 point A. God forbid that coinbase gets hacked, because that 0:20:08.680 --> 0:20:13.119 means you are susceptible, and whatever you know, coins I 0:20:13.119 --> 0:20:15.760 have left in my coinbase is susceptible. So I don't 0:20:15.840 --> 0:20:21.119 leave my crypto in my coinbase app I choose to 0:20:21.160 --> 0:20:25.800 be responsible, so I choose to go the non custodial route, 0:20:25.880 --> 0:20:29.200 which means that I am fully grown, no longer holding 0:20:29.240 --> 0:20:33.080 anyone's hand when I cross the street. I am taking 0:20:33.160 --> 0:20:36.680 full ownership of my future. In Web three, my data 0:20:36.760 --> 0:20:42.520 isn't stored on some company servers. The only records present 0:20:43.920 --> 0:20:48.359 of my private keys are you know the record. Actually, 0:20:48.400 --> 0:20:52.600 the only records present about anything about my activity are 0:20:52.680 --> 0:20:55.960 either on the blockchain or on my device. There is 0:20:56.040 --> 0:21:00.720 no like online service holding on to will look is data? 0:21:01.320 --> 0:21:03.840 I own it. It's in my It's right now, sitting 0:21:03.920 --> 0:21:09.080 right in front of me, and whoever records, whatever records 0:21:09.119 --> 0:21:12.600 I keep on my person or in my house, let 0:21:12.720 --> 0:21:16.879 that be my private keys or whatever. There is no 0:21:17.080 --> 0:21:20.879 authority or company or app holding onto it but me. 0:21:21.800 --> 0:21:25.639 I own it fully and outright, both the benefits and 0:21:25.680 --> 0:21:32.280 the responsibility. Lastly, as we've talked a lot about coinbase 0:21:32.560 --> 0:21:35.080 and Ledger in this episode, I want to take a 0:21:35.119 --> 0:21:39.000 final few minutes here and set the record clear about 0:21:39.000 --> 0:21:44.600 the differences between an exchange and a wallet. In most 0:21:44.880 --> 0:21:49.760 in the most basic terms, a crypto exchange is like 0:21:50.600 --> 0:21:52.800 you ever been in the airport in next to like 0:21:52.960 --> 0:21:56.240 Chick fil a. They have a counter where you can 0:21:56.320 --> 0:22:02.159 exchange your euros for US dollars or exchange your US 0:22:02.320 --> 0:22:07.720 dollars for renmand b. It's an exchange desk, and there 0:22:07.760 --> 0:22:10.199 is an exchange rate. So I'm gonna make this up 0:22:10.240 --> 0:22:14.080 because I could look. But let's matter of fact, let's 0:22:14.280 --> 0:22:19.600 let's do the real work here and find exchange rate 0:22:19.920 --> 0:22:27.960 from usd to euro boom okay, So for one US 0:22:28.200 --> 0:22:34.520 dollar I can get eighty nine cents in euros. Okay, 0:22:34.240 --> 0:22:39.480 one dollar equals eighty nine cents in Europe. So it 0:22:39.640 --> 0:22:41.760 kind of works the same, well it does. It works 0:22:41.760 --> 0:22:46.680 the same way. So one dollar one. I'm type of 0:22:46.720 --> 0:22:55.080 saying one US dollar to one eth. So for one dollar, 0:22:55.840 --> 0:22:58.359 well not much. Let's just do it backwards. If I 0:22:58.400 --> 0:23:01.960 want one eth, I have to pay two thousand, eight 0:23:02.040 --> 0:23:05.520 hundred and twenty eight dollars as of right now. Okay, 0:23:06.720 --> 0:23:09.120 that's diet it backwards, because it's gonna be like points, zeros, 0:23:09.160 --> 0:23:10.800 years years years, yeos or something if I do it 0:23:10.840 --> 0:23:12.880 the other way. You guys are pretty good at math. 0:23:13.400 --> 0:23:18.040 So for one for two eight hundred and twenty five dollars, 0:23:18.119 --> 0:23:21.639 I can buy one eth at present value that is 0:23:21.960 --> 0:23:25.840 the exchange rate, and so on an exchange, I can 0:23:25.960 --> 0:23:31.040 trade my US dollars for ethereum or for a bitcoin, 0:23:31.280 --> 0:23:35.080 or for doge or for Shiva. And exchange is not 0:23:35.240 --> 0:23:40.480 a wallet. But in this case, like Coinbase, a company 0:23:40.480 --> 0:23:44.920 who develops an exchange can also develop a wallet. They 0:23:45.160 --> 0:23:48.800 are mutually exclusive, but they don't have to be. They 0:23:48.920 --> 0:23:50.879 Coinbase could have just said we're gonna think in the 0:23:50.920 --> 0:23:53.080 exchange game, we're not going to do a wallet, but 0:23:53.080 --> 0:23:56.439 they decided to play in the wallet game. Two. I 0:23:56.520 --> 0:23:59.159 mentioned that I also have a coin Base wallet, So 0:23:59.240 --> 0:24:02.919 that wallet, whether or not it's developed by Coinbase, is 0:24:02.960 --> 0:24:06.080 software or hardware in the case of my ledger that 0:24:06.200 --> 0:24:10.159 allows me to store my coins. I can make transactions 0:24:10.240 --> 0:24:13.879 using my wallet. I cannot make transactions with dollars that 0:24:13.920 --> 0:24:17.160 are stored on the exchange. The exchange is just where 0:24:17.200 --> 0:24:19.320 I'm playing the money game. I'm going back and forth 0:24:19.680 --> 0:24:22.520 exchanging my dollars for more bitcoin or for more ethereum, 0:24:22.560 --> 0:24:24.679 et cetera. But if I want to go buy a 0:24:24.680 --> 0:24:29.160 cup of coffee at some cool, you know coffee house, 0:24:29.640 --> 0:24:32.480 I need to have my money moved off of the 0:24:32.600 --> 0:24:37.240 exchange and into a wallet. I can't also sign in 0:24:37.280 --> 0:24:41.879 to a service using an exchange my exchange account. I 0:24:42.000 --> 0:24:45.960 need to have my wallet setup. So let's use open Seed. 0:24:46.000 --> 0:24:49.040 We use open seed a lot as an example, because 0:24:49.200 --> 0:24:52.439 I mean, we're heavy users of open seed, the amazon 0:24:52.760 --> 0:24:56.480 of NFTs, and so if I want to sign in 0:24:56.520 --> 0:25:00.040 to open seed to buy an NFT, I cannot do 0:25:00.440 --> 0:25:04.720 using any you know password or use the name that 0:25:04.800 --> 0:25:08.400 I have on Coinbase the exchange. I need to have 0:25:08.440 --> 0:25:12.240 a coinbas wallet set up in order to sign in 0:25:12.359 --> 0:25:16.840 to open Sea and many many other web three platforms 0:25:17.080 --> 0:25:20.639 require you to have a wallet. You got to have 0:25:20.680 --> 0:25:23.119 a wallet to sign into these things. So whether or 0:25:23.200 --> 0:25:26.560 not you use something like Ledger or coinbase. One of 0:25:26.600 --> 0:25:30.200 the features of the wallet is also that they show 0:25:30.240 --> 0:25:33.879 you how much you own of a particular coin, and 0:25:34.040 --> 0:25:38.399 some may even show you the present value of those things. 0:25:38.400 --> 0:25:43.240 So if I own one eth Ledger, the dashboard might 0:25:43.320 --> 0:25:47.359 show me that that one eth present value is two 0:25:47.800 --> 0:25:51.879 eight hundred and twenty five dollars. So I love doing 0:25:51.920 --> 0:25:56.879 these episodes about crypto, blockchain, NFTs and more with you guys, 0:25:56.920 --> 0:25:59.320 and I want to know what questions you guys have 0:25:59.480 --> 0:26:02.160 because I'm going to be having some really really cool 0:26:02.160 --> 0:26:07.840 conversations with even more experts in the field of crypto 0:26:08.480 --> 0:26:10.480 on this show, and so I want to know what 0:26:10.560 --> 0:26:14.120 you guys have questions about. If you have specific questions 0:26:14.160 --> 0:26:17.320 that you want answered, and you know nobody answers questions 0:26:17.320 --> 0:26:21.560 like we do, send me your questions DM me I 0:26:21.600 --> 0:26:25.000 am on Instagram, I am on Twitter. On Twitter, it's 0:26:25.200 --> 0:26:29.480 Will Underscore Lucas. On Instagram, it's just Will Lucas, WI 0:26:29.640 --> 0:26:33.080 l l l uc As, follow me, shoot me a DM, 0:26:33.280 --> 0:26:36.119 ask me what you got. And I'm going to be 0:26:36.119 --> 0:26:39.320 having more interviews and conversations where I will do things solo, 0:26:40.040 --> 0:26:44.760 just talking about getting you educated in order to play 0:26:44.920 --> 0:26:47.600 well in the game of Web three. Whether it be 0:26:47.600 --> 0:26:51.560 about NFTs you have questions, send them to me, crypto currencies, 0:26:51.680 --> 0:26:55.520