A new story from CRYPTO 101



Extra trouble to get one of these cold wallets to get one of these hard wallets and Then all of a sudden just put their information in in a centralized way. It just doesn't make any sense They they're appealing to the wrong audience here their people are coming to them for decentralized and extra security measures And now all of a sudden They're offering an alternative to that and people who don't know any better Could be the ones to show up here and say oh that sounds great That sounds useful. Maybe I will maybe i'll lose my seed phrase one days. Maybe i'll forget it Whatever happens and you have people who who don't know any better just say oh, that's a cool feature Let me try that out and then god forbid something does happen Then they're the ones who innocently like just lose their money And they were the ones that were told that a device like a ledger could never ever be hacked or stolen And now all of a sudden, you know, god forbid it does happen You know, those are the people who are never going to come back to the space because they felt like they were betrayed so, you know in a worst case scenario here, I only see this causing more problems and doing more harm than it does good and For what for them to be a little bit more profitable for them to appeal to you know, people who don't know any better It's probably not malicious But I think they're just doing it strictly as a way to increase business and revenue in a time where it's maybe a little bit harder But again, just know your audience here I think they're basically selling out their audience like so many beer companies are right now They're deciding to appeal to the next 100 million customers And throw out their current 100 million because they've already bought their products so why not start appealing to the next wave of Inflowing people into the space that don't already own a ledger And now maybe this offering seems a little more safe than Writing down the secret thing and having to actually take control and responsibility For all their money or some people are just not ready for that so I'm sure there's somebody in their marketing department that gave that speech To the executive board and to the product department. They all said yeah, it sounds like we're gonna make a lot of money that way But for people that are crypto native They've just been stabbed in the back. Yeah Is there ever a scenario? I think this would be A long time down the road, but the from a marketing perspective and a sales perspective pizza nailed it It's like oh well We have our community of people that use our wallet. Like how do we get more people to adopt this? They're scared of losing everything so we got to come up with some type of recovery phrase idea right Is there ever a world in in the future where these companies are offering their wallets? And offering, you know seed recovery stuff But also offer some type of insurance like some big reinsurer partners with a crypto wallet actually offering that And that's happening today already. So coinbase rolled out their wallet as a service a few months ago So they're going to be the back end for some of these next generation Applications that want to have Web3 features in there and then there's a company called meta keep That is doing a similar thing, but they already have an insurance provider. I think it's loids of london or something so They're also sharding Encrypted keys over several centralized servers using Something called fully homomorphic encryption I don't know a whole lot about that. I'm not a cryptographer, but i've talked to several since I heard about this thing What do you think about this idea storing seed phrases in a cloud goes against literally everything we've ever been taught And as i've explained the way it works, they say yeah, it sounds like it's okay Um, there hasn't been any breaches of homomorphic encryptions in the 10 years or so that it's been uh out in the wild so While I still don't feel completely safe about it. You're right tivo There are some products that are coming out now and they're able to convince Some of the biggest insurance companies in the world to take a bet on it Yeah, so loids of london is one of the famous ones like they uh insured like uh, what david beckham's leg And yeah, it'll do all the wild ones. So it definitely would be the right people Yeah, the thing is though, um if meta keep is cut in custody of 10 billion dollars of millions of users crypto and their insurance policy is only for 1 billion And something really really bad does happen Yeah, is that insurance policy gonna be enough and I don't know If you're loids of london, you're looking through every last little line of things to say Oh something was in violation. Therefore. We're not paying out. Yeah as well. So I think insurance is kind of a a false sense of security, but the insurance industry online was something that was toyed around with the past couple years with nexus mutual and cover protocol And things like that where you can have insurance from a smart contract That isn't going to have a human on the other side try and screw you when you come to make your claim So there's more and more things that are going to happen on that front as well that I think will eventually circle back around Because this is something that is necessary in this space given How one little character? Being in the wrong place with the wrong code version Can

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