Since Bitcoin is a worldwide cryptocurrency, there are issues and topics regarding privacy and security in different transactions made.
In This episode, Mark chats with Justin Moon, a Bitcoin developer, and programmer. Justin created BUILD Bootcamp, a six-week program that teaches users how to make a mini version of Bitcoin, programming, block download, and building a hardware wallet. This podcast talks about the following: impact of Bitcoin as an open application, self custody versus financial exposure, software and hardware wallets, manipulating transactions to your server, and hardware wallets as suitable security for the average user.
TOPIC #1: THE IMPACT OF BITCOIN BEING AN ‘OPEN APPLICATION’
Justin takes pride in Bitcoin being an open application compared to others which makes it easier for developers and users to connect to other apps of the same nature. All you have to do is trust these third-party applications, and you’re good to go. Justin further explains that as long as an application is “open,” multiple stacking is allowed. He sees this status as a technological solution to many transactions. However, some developers fear that having an open application puts their program at risk for hacking and online attacks.
TOPIC #2: SELF-CUSTODY VERSUS FINANCIAL EXPOSURE TO BITCOIN
Matt asks about self-custody in Bitcoin and Justin’s thoughts on the type of security it offers. Justin says that in reality, you choose between owning Bitcoin and having financial exposure to Bitcoin. Owning Bitcoin provides more privacy and control over your numbers while financial Bitcoin exposure lets you buy coins and store them on an exchange. In addition to this, financial Bitcoin exposure doesn’t offer transaction and privacy benefits, and you don’t necessarily own Bitcoin itself (just an I.O.U). If the exchange goes bankrupt, you get nothing.
TOPIC #3: TRYING SOFTWARE WALLETS FIRST VERSUS GOING STRAIGHT TO HARDWARE WALLETS
Justin discusses the difference between software wallets and hardware wallets, as well as the benefits and difficulty in maintaining each. Matt asks Justin if it would be better to skip software wallets and go straight to hardware wallets when handling Bitcoin. Justin explains that there is no better option since he believes that the “best self-defense in Bitcoin is education.” Play around with different software such as mobile applications because these are easier to manipulate, and they are more economical. To fully know your way in Bitcoin handling, try out everything the developers have to offer and then start figuring out what to do from there.
TOPIC #4: THE POSSIBILITY OF RUNNING HARDWARE WALLET TRANSACTIONS ON YOUR SERVER
Running transactions on your server is something only technical people can access at the moment because it can be quite tricky for the average person to do. Justin mentions Electrum wallet and Electrum personal server, which can help users secure their privacy and connect to their servers. However, Justin also says an interface he is currently working on is known as Junction. Junction lets users easily connect hardware wallets to the Bitcoin core. The program is designed to work with multiple keys to control your Bitcoin and only needs a minimum of two fully functioning keys to continue working.
TOPIC #5: HARDWARE WALLET IS GOOD ENOUGH SECURITY FOR THE AVERAGE PERSON
Matt’s curiosity led him to ask if the average person should use hardware wallets it until they’re good enough to connect to their server. According to Justin, the hardware wallet is excellent for the average person. But he also warned users to be careful in developing the firmware to avoid unwanted programs crashing in the future. Always have multiple backups. Justin finishes with a quote saying, “complexity is the enemy of security,” meaning, anyone can use hardware wallets, but the level of security depends on the user. If you overdo it and make every security measure difficult for your technical level, you might have a hard time cracking these codes years later.
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