hi this is Charles Hoskinson broadcasting live from warm sunny Colorado a wonderful day snows outside roads are very slick I got frozen today I tried some cryotherapy and I was in a tank that was negative 200 still all have all my hands fingers and toes of that so we'll see what happens tomorrow anyway just wanted to give you guys a quick update on the balance check I noticed there's a lot of stuff floating around the forums reddit twitter and other places where people are really getting certain things and I just wanted to make sure I I made a clarifying video about certain things there have been some concerns or questions related to security or what these keywords actually mean so I just wanted to be as clear and concise as possible and make sure that everybody understands what's actually going on so a blockchain a you TXO based blockchain basically has a Genesis block and then there's an omission of funds usually or some initial distribution of funds and you have addresses and those are the outputs and so what happens is as you transact every block it contains a list of transactions and then if you look at the entire changes from the beginning into the current block you can construct basically a ledger you TXO and that is the the current ownership of everything so this output this output in this output all the way down okay and there's plenty of YouTube videos on on how to do that what that means but the longer the short is that's the state of the system who owns what where so charles owns this collection of utx oh and that's worth 500 ada and bill owns this collection of utx oh this amount of outputs and that's where 780 so what a snapshot is as it traces the entire chain up to a particular block and then it says okay what is the state of the system it takes that and copies it and paste that into basically a new Genesis block so because it's a copy and paste and the addresses are the same whatever graphic credentials you have for the old system will work with the new system so the way we design car Donal we really wanted it to be as user friendly as possible is that we said every wallet is an HD wallet which basically means if you have keywords you can regenerate your wallet and what that does is it allows the wallet to search through the entire UC TXO and find which entries belong to you so because that works on the old system it works on the new system okay so basically what a balance check is doing is when you enter those keywords in it does some cryptography in the background it takes a look at the blockchain of the new system it scans that you TXO and it says which one of those entries if any belong to you now this is done locally on your machine not on a server not on a stake pool we don't do it no one does it this is done on your machine and everybody can do this on their machine once they have the test net client because you have your own copy of the blockchain we will never ask you for a password we will never ask you for keywords anybody who says enter your keywords into this website they're trying to steal from you okay there are some people who are concerned that oh well if I enter my keywords into this new client what happens if that client gets compromised and then you know then people can steal my real aid well if you're really concerned about that here's what you can do since we've already taken the snapshot today if you had a wallet at the time of this thing a snapshot that data hasn't been put into the ledger so before you do the balance check you can rotate credentials and how you do that is you create a new Dedalus wallet and you move your funds from the old wallet to the new wallet then use your old keywords to go ahead and check so even if somehow some way those keywords were compromised somehow some way that private key was compromised it would have no effect on the actual real ADA that's sitting on your Dedalus wall okay and this is the same for Hardware wallet verification so if you want to keep that cold wallet mentality of a hardware wallet after the snapshot occurs when we do the next snapshot and we support Hardware wallet restoration what you can do is before you go ahead and restore your test net ADA on the the test the incentivize test that you can move your ADA from one Hardware wall interest to another Hardware wallet address and what this is those old twenty four key words you have on your ledger for example are useless on main system so you haven't compromised your cold wallet at all okay so this is the first thing to understand that you are in charge of this this is done locally the level of security you have is completely up to you you will never ask you for your key words anyone who's asking you for your key words is trying to steal from you and is a scammer okay so if you get a p.m. private message from me over telegram or Instagram or Twitter first it's a fake account and second if that fake account is asking you for key words they're trying to steal from you you are in charge of this process now there are some advantages to this process and there's a reason why we did it in two stages one we recognize that a lot of people think they understand something they've kind of dunning-kruger dit but then the reality is they don't fully understand something or they thought something is true and they didn't realize that it wasn't true for example I are now have many people in a panic email me saying I thought I had my keywords written down it turns out that my wife shredded the paper or my dog ate the homework okay so the point of this first nap shot was to wake everybody up and try to get everybody on the same frequency and everybody to realize that they have to do something if they want to participate in the instead of ice test that and to make sure that people are actually able to use Dedalus and install it and and so forth and we've already gotten a lot of support tickets a lot of questions and we're gonna get a lot more questions come Friday and so it's it's gonna be fun but that was the point of this was kind of a wake up balance check it's optional you don't have to do anything now and that's actually true for the other snapshot that we do later this month you won't have to do anything if you don't want to do anything but you are losing out on some money if you you know pointed the instead of ice test that is you can actually make revenue now there was some question about moving funds back and there's a whole bunch of misconceptions that have existed so one misconception was that we're now doubling the supply of Ada and so the tests met ADA all of that will be moved back to the mean or something like that I've seen several reddit posts and other things floating around telegram that's not the case the total supply of ADA is conserved so what we've done is we said alright we'll take the rewards for however long the instead of ice test net runs and basically move those rewards and rewards only over to the main net and that what will do is take from the back end so that from the total supply the total amount of rewards and deductive so the total supply is conserved it's just instead of running the first whatever months the instead of ice tests that runs on the main net we're now running it on you know a safe sandbox okay so no new ADA is being created from this process we're just you know basically taking some and putting it here and moving it back and then taking it from the back okay so no ADA is being moved over another thing is there's some people saying oh well the software is very insecure or something like that or there's going to be a major problem we are going through security audits and we'll publish those results hopefully in January but the software that we're writing is quite good and it is using formal methods for example the Haskell wallet back end which is shipping this week it's the first time it's shipped to you guys the new back end it makes heavy use of quick check so property based testing and we're very proud of the software that we're bringing the market this software is considerably better than the software that is in market so we're very happy about that I've seen people say we're going to run the incentivize test net for a year or something like that this is again insane insane foot no we're only going to run it and we're going to collect metrics and we're going to learn from the operations of this and we're learning as you're learning for example we're building a state pool dashboard for state pool operators and that will be available towards the end of the month we're learning about what metrics we should keep and what we should put into our explorers our block explorers now just more than finding a transaction and finding a block our block Explorer also now has to have an opinion about state pools so you need to look up state pools you need to think about things like historical performance we need to think about things about how saturated is that pool and so forth so these metrics how to present these metrics visualizing things all of these things we're kind of learning together and we're building together and so forth and that's the point of having this done in this sandbox is that we can move very rapidly and quickly without exposing the main net to any problems furthermore it gives us an opportunity to have a real frank discussion with exchanges about how will exchanges work with us and work with you the consumer everything from basically staking your funds for you some sixth angel aunt to do this to things like the adherence to enterprise addresses which basically mean that stake pool that's those addresses are unstable for example okay so we have no intention of putting the incentivized test that for a year and quite frankly we'd like to run it as shortly as possible but it's an organic process you know the other thing is the balance check and the snapshot that we do will give us a lot of data on the overall level of decentralisation and participation of Cardinal it's unknown if we're gonna have 10% 20% 30% 50% etc etc and gives us some time to think about an intervene in the event that that level of decentralisation it's not as good as it needs to be so that's the point of this is that it's a global metric that you can actually look at yourself for example because of the way that we've done addresses when you move from the Genesis block to basically redeem your ADA on the test that we can actually follow those transactions it's a many to one transaction so we know how many unique movements have occurred we know the percentage of the utx so that's rotated and we know the total amount of ADA that's actually in circulation so these statistics are public anyone can watch the Genesis block anyone can write these scripts and it's it's a very valuable piece of data because you know for example if only one percent rotates and we say 99 percent of the people are not participating in the network there's a problem there we need to look into that whereas if it's 90% we say wow everybody's woken up it is really exciting so these are things that we would like to track and understand and it gives us the ability to modify accordingly the plans for the rollout of Shelly in a very responsible way and I'm a very public interactive way it's ultimately you guys are the product owners and you have to tell us and show us what the requirements are and we learn as we watch so that's another thing to consider finally you know our velocity continues to increase if you guys notice we've gone from our c1 to our c7 for 4.7 Jormungandr in less than two weeks and you know we've solved over a thousand issues I think since the instead of ice since the network test that came out so we're reading a lot of code some cases we're making multiple commits every hour on every one of our repos it's pretty crazy to see that velocity so things are speeding up they're not slowing down and a lot of things are going to happen and we're making every attempt as a company to try to be as proactive as possible in communicating you guys do have to understand though that we not only have to communicate English we also have to communicate in Korean Japanese and other languages and we are making best effort to try to do that as much and as frequently as we can so if you have doubts if you have questions if you have concerns please don't succumb to FUD and remember that non official news sources are just that they're going to give you things that either are not true or are structured in a way to try to impact the price of the token up or down and frankly it serves none of us any benefit when we see these things we do things at AI which k in a very structured way and we like communication we release videos often so please subscribe to our YouTube page for example please follow us on Twitter please join the official telegram channels and get to know who the moderators are we have built out a lot of information flows in multiple languages now in the go to our blog you know these things this for a reason and their purpose is to keep you guys as informed as possible and we try as quickly and as often as we can to make releases for example before the end of this week there's going to be a bunch of stuff that we put in video and other formats specifically about how to do a balance check this is the official way of doing it comes from us if you see some other videos somewhere that says go to my website and put your keywords in again they're trying to steal from you so don't do that and if you have any questions at all you know Zendesk is available and other platforms are available and people will get around answering it and of course I do these AMAs and if you're lucky enough to catch one ask me and I do read the reddit's and I do get reports of of things from time to time so I appreciate your patience and I also appreciate how quickly you guys have moved as a community to help us get this thing along decentralizing a cryptocurrency is a tremendously difficult task and some have argued it has not been achieved even with crypto currencies like Bitcoin for example so we're learning as you're learning and we're doing our best to try to keep things as structured and systematic as possible but to reiterate you do the balance check locally not on a server we don't see your keywords you're in charge of that you have a copy of that blockchain you should be able to verify it yourself if anybody asks you otherwise then they're trying to steal from you second when the other snap shop happens and we're actually doing staking if you're concerned about you know exposing those keywords or creating duplicate credentials on the incentivize or otherwise you can always rotate credentials on the main net before you use your keywords on the test that and we'll do a video showing people how to do exactly that if they're super concerned about and then at that point even if there are some security flaw or problem with the test that your credentials are okay you're not going to be in a problem third remember to control your keywords write them down put them in a very safe location if you're a large crypto investor I do recommend getting a safety deposit box or buying a very nice safe you yeah it's very secure and having it actually bolted to the ground or something like that and over time it'll become easier to secure these things for example in scope of Shelley is multi-sig and my hope is we also have Hardware multi six support so I'd love to be able to do like two of three and three of five ledger key pairings because that's just so secure if we can get there and we're really pushing hard for these types of things and finally there are official information sources subscribe to our YouTube channel Joanne Hart official telegram channels and get to know your moderators and watch my Twitter feed watch the IO khk Twitter feed and these things are official we will never ask you for money we will never ask you for your passwords or keywords and we're never gonna ask you to send crypto to us or something like that anytime you see that it's a scam it's an impersonation please don't pay attention to it so a lot of stuff is coming this week please do let us know if you're having challenges the balance check is really amazing thing by the way if you're very astute it's the first time we've ever shipped the the new wallet backend so you're gonna have some fun with that you get the player out with the new dental this interface and then towards the end of this month you get to see the whole thing pulled together and we're really proud of this product it's pretty amazing product and we're gonna have a internal summit in early December where we're going to kind of define out the entire roadmap for 2020 and all the stuff that's left to do and my hope is that we're going to ship a ton of stuff next year Cardinals really gonna come together over 50 research papers probably over a million lines of code at this point we're still passionate and still fired up so thank you guys so much for your time and until next time Cheers
