This is Charles Hoskinson broadcasting live from very warm, very sunny Nevada, out here in Las Vegas. I got up at 5:00 AM, and it's almost midnight—a long day with a lot of meetings and a lot of people. I'm finally finishing it off, but I wanted to make a video before I went to bed about something near and dear to my heart that I announced at the Rare Evo Summit during my keynote.
Let me show you a little something here, guys. This is a paper wallet. The program we set up is a mechanism that allows you to encrypt a paper wallet you generate with Lace and encrypt it using PGP. It has two QR codes: a public and a private QR code. The private QR code is actually encrypted with the PGP key that you provide. What that means is you have the same level of security with your paper wallet as you would with a PGP-encrypted email, which is pretty good.
We are very confident in this scheme that we've announced a bug bounty program running until the end of the year in partnership with our good friends at Moneta USDM. We put a million USDM worth of paper wallets out there, and if you can hack it, you can keep it. Now, all the rules and details are outlined in the NFT on the paper wallet. Claim the NFT, and then you can claim the million dollars because we apparently have to deal with tax withholding, KYC, and all this other regulatory stuff. Thank you to the law for that.
We've published the paper wallet template, which includes the public key and the private key. It's all there. The private key is encrypted using a PGP key that we generated for this event, and you guys are welcome to play around with it. I think this is the most secure paper wallet ever generated in the history of our industry. As Lace Wallet goes multi-asset and multi-chain, every card, a native asset, and ADA can be secured this way as a way of backing up your wallet.
Long term, we're adding support for Bitcoin and other cryptocurrencies as well, so Lace will be the most secure place to generate a paper wallet. You can store these as a PDF as well as an actual piece of paper. See, I'm holding it right here. Paper wallets suffer from a very specific attack: the replay attack. If you generate a paper wallet and print it out, the problem is printers are not very secure. Oftentimes, you can actually tell the printer to simply reprint things it printed before. So if you print your paper wallet with unshielded keys, someone can reprint it and now have a duplicate copy of your paper wallet.
Another issue is that people tend to put paper wallets in safes, and if a person breaks in and sees your keys, they get your wallet. By PGP encrypting this, you cannot suffer from the replay attack because even if they print it out, no one can hack it. If you put it in your safe, no one can hack it. The PGP key can be stored in Ubi keys and other secure devices. In addition to just having PGP keys in a secure place, it also means you can back up your paper wallet as a PDF, email it, and store it in other safe places.
We've been wanting to do this for a really long time. To be able to take a million dollars worth of USDM, mint it, put it into a wallet as a bug bounty, and say, "Hey, if you can hack it, you can keep it," is pretty special. It shows that we put our money where our mouth is; we're very confident in the security of this solution.
I just wanted to make a quick video before I went to bed to let you guys know about it. If you go to the website I have right there, you can read all about it and download the template. I wish everybody well, especially cybersecurity professionals. If you find a way to somehow break this and get that NFT, guess what? Keep it—1 million USDM. How about that? It will run until the end of the year, and we’ll keep iterating and evolving. This is just the beginning. There’s a partners program, and eventually, we’re going to run through this where people can actually brand it with their own templates. This is kind of a generic template, and we’re pretty proud of it.
You can imagine that for whatever CNA you have, there will be templates for that stuff, complete with cool logos and designs. For the digital variants of this, I would like to eventually put animated QR codes in as well because they’re super cool. This is just the beginning, and we’re going to keep expanding and growing this functionality. Lace is getting to a point where the infrastructure is allowing us to deploy a lot of features quickly. As you know, we have multi-delegation already, and a lot of cool work is being done on multisig. Obviously, we want this to be the best place for the use of dApps as well.
So, if you can hack it, you can keep it. Paper wallets are just another thing we got to announce here at Rare Evo. I had a lot of fun and met a lot of great people here, and I hope you all really enjoy the things that are coming in the next few months. Cheers!
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