Block-the-Talk; Joseph Massey of 3.0 Verses on the importance of cold and hot wallets for the security of digital assets
Joseph Massey, CEO, 3.0 Verse, a Web3.0-based platform, talks about the importance of blockchain in creating digital wallets with FE Blockchain.
What are the three best practices that today’s youth should follow when it comes to digital assets?
Today’s youth are well rooted in technology, and the first thing they need to do when it comes to digital assets is to understand the underlying technology of Blockchain. A user should know what Blockchain is and what are the use cases and benefits of Blockchain. The second thing the youth should understand is the usefulness of the use-case, which represents the token in relation to similar other use-cases and their tokens. Finally, like any other asset class, digital assets have their inherent risks and rewards based on which the user must decide whether to invest, how much risk they can take and how diversified their investment risk is. Social media/whitepapers provide a lot of information that can provide the details of the digital asset and its journey.
How can Blockchain be used to keep digital assets safe?
Digital assets are held in a wallet and these wallets are created on the Blockchain, which ensures that trust, transparency and traceability issues are addressed. A person operates a wallet only with a secret private key; therefore, the wallet is safe until the private key is disclosed. The pocket books are of several types. A cold wallet keeps your data offline as it is not connected to a live network. In contrast, a hot wallet is connected via the internet with service providers for debit and credit. It is usually connected to CeFi exchanges or custodians, or DeFi platforms. You can make several wallets. One can keep digital assets safe by keeping most of the holdings in a cold wallet and some in a hot wallet for transfers.
Which are the apps consumers can use?
Consumers can use exchange-specific apps or 3.0 vers App, an aggregation app that converges all major CEX and DEX markets and multiple coins/tokens into a single app, allowing customers to keep information on a single app instead of multiple apps. There are many data security measures implemented by the 3.0-verse.
What are three tips you would give to people doing crypto trading?
Read, research and know the market information before taking a deep dive into the market or the asset. Any market at this early stage of development exhibits very high volatility, and information asymmetry is at the root of it. While most of the coins represent the efficiency and innovation of the use case represented by these coins, a few lack governance, either innocently or intentionally, and that is not uncommon. Due diligence is important.
Another critical point is to understand the risk and assess the comfort with price variation. The point in context is 20% variation in a stock portfolio, which causes discomfort for many, while it is widespread in a crypto portfolio.
The third piece of advice would be to consider crypto assets as part of a diversified portfolio and allocate the resource to suit the individual’s wealth planning.
Which, according to you, is the country leading in the space and can the Indian startup ecosystem pick up the best use cases?
Any business that deals with a lot of data, use of data, data integrity and change in data has a potential application area for using Blockchain. Public registers, healthcare, FinTech, banking, education, e-commerce, etc. are some industries that can easily see the use of increasing the efficiency of their businesses.
What are the disadvantages of Blockchain?
Blockchain sometimes takes longer to reconcile records and associated costs. However, progress in recent years has led to efficiency and cost-effectiveness. Also, there are hacking issues at different levels of the Blockchain ecosystem. However, custodial solutions and other measures can help reduce these risks. We are gradually seeing more security features, assurance, compliance expectation will build greater security, ease of use and protection to this technology and its wider use and application.
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