YouSaid · the spoken record

Nick Neuman

lines on the record
70
first
2021-06-16
most recent
2021-06-16
sittings or episodes
1
sources
podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

  1. “So the mnemonic is another form of the private key, and you can actually, they're interconnected where basically it's the same key, but somebody smart along the way figured out how to make that key human readable in the form of 24 words. And this allows people to actually save that key and back it up in an easier way than this 256-bit string.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  2. “Kind of think about it. Yeah, that's a good way to think about it. And the only nuance I would add in there is with your house, somebody can brute force their way in by breaking a window with a private key. It would take all the world's computers, you know, millions of years kind of thing to try and brute force, guess what a private key is.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  3. “Enables you to actually share that public key out with other people, with the world to receive Bitcoin without having to worry about having that Bitcoin stolen from you.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  4. “So, the public key is actually created from the private key. And what the public key lets you do is it lets you receive Bitcoin. So from the public key, you can create Bitcoin addresses and those addresses you can share with people. And they can send Bitcoin to that address. And that is how Bitcoin gets tied to the private key, which allows that Bitcoin to be spent. And the way you actually create a public key is through some fancy cryptography wording here elliptic curve multiplication. And the important part of this is that this is a calculation that is a one way calculation. And what I mean by one way is that while you can easily calculate a public key from a private key using this equation, it's impossible to go back the other way from a public key to a private key. And so this is what”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  5. “Truly random number that is basically has three really important properties. It is unique because it's so long that nobody else in the world can have this same number. It is unguessable because it's so long and it would take an infeasible amount of time for the world's computers to guess that key. And then it's unforgeable, meaning that to the network that is actually looking at Bitcoin transactions, it's impossible to trick somebody into believing that you have a private key that you don't actually have. So these three U's here basically make private keys an extremely strong form of authentication to prove that you have ownership of an asset like Bitcoin.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  6. “So, a private key is like it's a 256 bit. Piece of information of data. And so this is randomly selected. And it's a randomly selected essentially numbers and characters, 256 bits, so 256 characters. Way that you create it is to just literally randomly choose it. And this could be done by software, or it could be done manually with something like a dice roll.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  7. “So a private and public keys form what's called a key pair. And every Bitcoin wallet has a key pair. The private key allows you to actually spend Bitcoin. And so you keep that a secret because you don't want other people to be able to spend your Bitcoin”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  8. “Whereas in the proof of stake realm, all you can do is just stake your coins so you can maybe go raise capital to stake coins, but you don't really get, there's no innovation advantage there. Whereas somebody who can develop a better chip, find better energy and cheaper energy, and be more efficient overall at mining is going to win, even if they don't have as much capital as some of the bigger players.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  9. “And I think that brings up a really interesting point, which is that. Proof of stake does not incentivize innovation, whereas proof of work incentivizes innovation because of Moore's law and because of the fact that people have the ability to find cheaper energy, that you can still make a startup that is going to go do something crazy, like use flared natural gas to power Bitcoin miners. I think you had those guys on your show a few episodes back.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  10. “Actually, grown to the size where the incentive is really big. The second is around how it benefits people who already hold large amounts of that coin. And so in a way, you could argue that it has a risk of creating like an oligarchy where people who are already rich continue to benefit by staking their coins and receiving more coins and getting richer. And the people at the bottom of the rung maybe don't even have the ability to stake their coins. And so it's just a very unproven system right now that I think has some serious drawbacks to it that people like to paper over. And from a pure technological perspective, I'm really interested to see Ethereum make this transition and whether they can do it successfully and whether the network stays secure over the next three years. Years or three to five years after they make that transition”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  11. “A major way, in a major way, right? And more efficient use of even the energy that we have today, where you can use local energy more efficiently on the grid rather than having it go to waste. There are a ton of reasons why Bitcoin benefits the energy grid. And so I think that the whole argument around energy with proof of work versus proof of stake is just it's unnecessary and it comes from an uninformed point of view. Looking at proof of stake specifically, some of the things that I think remain to be proven that there's a lot of it that is unproven right now and there's also some things that I would consider drawbacks. So on the unproven side, there's just the question of will these system, proof of stake systems work at scale when the incentives are so high to attack the network at a value level like Bitcoin's that hasn't been shown yet because none of the proof of stake networks have actually”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  12. “Is this requiring more energy than proof of stake? Yes. Is that a bad thing? Not in my opinion. Because if I'm storing, like I said, my life savings in Bitcoin, then I want to make sure that there's a lot of energy going towards securing the Bitcoin network. And there's all of these really interesting papers and explanations being put out by people smarter than me around this, like Nick Carter, the Square plus Arc Invest paper, where they're talking about how Bitcoin can actually incentivize green energy and actually incentivize this move to sustainable energy. And so”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  13. “So, some of the benefits around proof of work are that there is each proof of work unit in each minor has the same amount of say in or ability to actually influence the network as every other minor. And so you can simply scale up your operations to actually try to win more Bitcoin through the mining process.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  14. “Yeah, exactly, or a free one. If you have a computer already, you can download it and do it with the Bitcoin core software. And so the thing that I think is important there is to remember the scale of how do all of these different chains and all of the different tokens and stuff that has exploded over the last 10 years, where do they fall on this scale of decentralization? And what do you really care about? And for me personally, when I'm thinking about money that I am storing Some aspects people are storing their entire net worth in Bitcoin. I want to make sure that that is as resilient and robust a system as possible. And that's Bitcoin wins that use case far and away.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  15. “On chain, which makes it more difficult to run a node and therefore makes the network more or less decentralized. It means that more people are trusting a third party like on Ethereum. There's more people that trust in Fura for their data rather than Verifying it themselves. And so”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  16. “So, the most important benefit that Bitcoin brings is that it's this money that really nobody, no sole person has control over. There's no government that can say, I want to print a bunch more Bitcoin. There's no founder of Bitcoin. Satoshi's gone. There's no founder of Bitcoin that can come in and say, we need to remove the supply cap. The decentralization aspect ranges across a huge variety of aspects of any system like Bitcoin. There's how the decisions are made, which is what I was just referring to. There's also how easy it is to run a node so that individuals around the world can actually validate things, transactions and the ledger themselves. For a lot of other chains besides Bitcoin, they've tried to pack more information.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  17. “So they could, I could definitely see use cases in the supply chain management world where you are taking some elements of what Bitcoin has really popularized and made usable in order to make it easier to manage your supply chain, in order to better track where one piece of a good is moving from factory to factory or farm to wherever. But what you don't need is the decentralized ledger because the company that is running their own supply chain management is still the one that's keeping all of this data. They're not sharing that data with every other company that they compete with or anything like that. And so you don't need an actual blockchain from that perspective. What you need are pieces of what Bitcoin has popularized in order to make that more efficient.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  18. “Government wants to be the one controlling the money supply and controlling and seeing what money is going where and making sure that they can, like that's one of the biggest benefits of a CBDC is to be able to inject money very granularly where they want it, et cetera. It doesn't make sense to do that on a blockchain. It's just you can use a database for that and make sure that database is very redundantly securely backed up. And so when people are kind of taking blockchain and kind of trying to smatter it all over the place to give themselves a marketing benefit because it's a hot thing, it just doesn't make sense. There are very narrow use cases for a blockchain that really rely on decentralization and a very high level of authentication certainty. And so those are the reasons why you really would want that to use that technology.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  19. “Yeah, so the reason why it doesn't make sense for a CBDC to be using a blockchain is that the whole point of a blockchain is that you actually have a decentralized ledger where no one party is in control of the ledger of transactions for that chain. So look at Bitcoin. We have thousands, tens of thousands of nodes around the world that all keep a copy of a ledger that says here's who owns what amount of Bitcoin. And that is enabled through the cryptography of Bitcoin, which we'll actually get into a little bit later around public private key cryptography. But with a CBDC, for example, if the US government creates a CBDC, they're going to maintain the ledger of who owns what, because that's the whole point. The U.S.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  20. “Yeah, it was like the podcaster crew. You were hanging out with Peter McCormick and we randomly ran into each other there. It was fun.”

    2021-06-16 · We Study Billionaires · BTC030: Bitcoin Security and Self Custody w/ Nick Neuman (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT