Eleven Billion Dollars, London, Matt discussed on Crypto Current

Crypto Current


With max you know. He came and introduced all twelve. All the different things that you're able to do with it. One of the coolest things i remember being digital inheritance and having a way to have all these digital aspects of crypto away for your family. But today's conversation is going to be very different gonna be focusing on security and be focusing on a new project that actually that she'll just lost about some education around security which i'm really excited to learn more about into talk through but before we get into all that let's learn little bit more about you. Can you give some background about yourself. Sure so i'm a from london. I'm a physicist by training and moved over to the us to be an entrepreneur and be part of that that whole cycle. I joined eventually joined a company called voltage security which was in the cryptography space. Which was used to call crypto at that time but the cryptography was focused on a new way to do public key encryption and it was used in email encryption and then lay told us that we developed some encryption techniques for securing data in the payment system so every time you swipe to credit card that would be encrypted into and throughout the payments system. And this this achieved was when has went in and stole databases of customer records. They couldn't do anything with credit card numbers because they were encrypted. Wow so that's where i met. Max that's where. I met matt and terence who the two people that introduced me to the blockchain and bitcoin. Yeah wow i mean great place to be It's amazing that you're able to come from a security background and then learn about crypto and just see the implications of what it could be. I don't want to spend two seconds on that your first introduction to the crypto space once you learn like okay. This is the thing. What excited you about its. It'd be like wow. This is something that we should go build something for. I mean tow. It has its basis in mathematics. Right which is. The language of the internet is the language of calm us. So there was a media kind of affinity to that. And while i was a to security matt had gone and created twenty-one belco which was the largest privately held company with the most funding at that time turned into dot com and then eventually went into coin base. Both of them are advisers to both twelve so i also on that journey of learning more about bitcoin and blockchain worked with the founders of alpha point so alpha point if you go back to twenty twelve that timeframe with first to create exchanges. They had software that they had developed for wall street. it turned into exchanges. The only places that you could implement them were outside the us in no and the caribbean and places like a lot of compliance issues. Now ten years later de facto standards for exchanges. That was really the fuss kind of real working in this space and it took me a while. I did that and then i went and did other things and then i came back to join max in two thousand eighteen and i mean talk about timing so you know you're at the top of what was the last bull cycle crypto getting nominee bitcoin. Way to the near twenty thousand dollars and then to come into a space where you go through the bear market of two thousand eighteen in two thousand and nineteen as it rolls into twenty twenty with starts this next bull cycle that were currently experiencing the need for security. I don't think can be undermined especially as a ton of new money starting to enter this market and everyone is trying to quickly go and buy all these cryptos and are trying to have access to all of these things without necessarily knowing how to secure themselves with a lot of people again filled a realize as newbies is that you are the wall. I mean you are the bane like you. The actual the key like you're right so like if if someone comes in stills from the banks stills from you guys did from nothing to come in and claw that back right. There's no like credit card. If you have fraud some happens you got somebody like taking care of that. For you with crypto as someone comes and steals your stuff it just got stolen so we're going to spend some time here and i really want you to kind of breakdown some true importance around security in just like you said before we came on the show some time things there's two major security breaches leading up to this conversation. So let's start there like tell us about security in some basic things first of what people should be looking for but then even for your people that are already in the crypto game like things that they should be keeping their ears to the ground and make sure that they're keeping the learn more about let me start with kind of restating. What you said about your bank so most people's experience with financial institutions up till now. Is you lose your your bank password to log into your portal. You press the button and you get a password reset you get a code over the phone or however they they do it but someone took care of it for you amazing wonderful. You can't do that. With crypto with crypto. You've got seed phrase which identifies your wallet that you have all your funds in and if you lose that seat phrase it's like you lost the actual cash itself. It's like losing the combination to a safety deposit box which has golden so. Once it's gone it's gone. You get it back. No one can open it for you. Retrieve it so that's kind of the big big difference that i think people you people coming in. Maybe don't maybe don't understand and then if you look at you know what's the default sort of behavior of people while they go to the you know they go to the favorite exchange coin base gemini. Whatever it happens to be and they make it super easy super convenient as an account you set up. You can do your trading. Everything's that is a balanced and guess what on those exchanges. Yes you can kind of get logged back in. If you if you forget your credentials the trouble is is when you veer away from those well known exchanges to other more exotic exchanges where you don't necessarily know the people the you know who who's running at you run into issues like not only unscrupulous owners but just hackers saying oh isn't exchange. It's really popular. Let me go hack because there's a lot of money out there and so if you look at the stats and i was preparing this morning. You know it's something like since twenty seven it's something like eleven billion dollars has been stolen from types of online institutions. Just a huge number if you look at just twenty twenty alone. It's something along the lines of one point eight billion and in the last three or four years multibillion for three four billion dollars so just leaving your money in some account somewhere on. The cloud is just not the best way to go because no matter how hard people work something. Slips through hacker slip through people make mistakes. Some people commit forward and the money disappears. Ben if you look at. What's the alternative you know. What are you supposed to do. So you're supposed to not leave it in the exchange in the cloud. He's supposed to bring it down into a wallet. The you control so now you're responsible responsible for everything now. No one's going to help you and so this is typically done using some type wallet so it could be software could be hardware and you're in control the whole of the pieces which means you have to worry about the security. In this scenario. I looked like the top twenty wallets top twenty software while it's and eighteen of them. Tell you the way that you need to back up your your security backup the of the you can access it. No matter what happens is to write down your seat phrase which is the main credential it down a piece of paper so that's your.

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