hi everybody this is Charles Hoskinson broadcasting live from warm sunny Colorado I wanted to make a video to clear up some confusion and talk a bit about the migration from Byron to Shelley in particular ITN rewards and how wallet migration is gonna work so I just got done spending some time with Darko the product manager on the Dedalus side and we walked through a few things to make sure that we fully understood everything and I think we have a pretty good handle all right so there are kind of three sets of assets in terms of addresses and and other things that need to be carefully managed so we have in the history of Cardinal SL and that was the old stuff I'll use red here instead of a multicolor we used the other color to highlight so we have card on o SL we have the byron reboot and we have Shelley okay now in the old SL era and this was 2017 on uh this was constructed by a firm named Sarah Kell and basically these addresses were unique they were constructed by them and they can are basically random indexed HD wallets so if you don't know what those words mean don't worry too much about it but basically these are big they're like over I think a hundred digits long I and they got a lot of information inside of them so somewhere during the SL period we also introduced a new address type which is used by your ROI and that address diet is about half the size and these are sequential indexed HD wallets so if you look at a your ROI address and you compare it to a Dedalus addressed they actually look different so these are small and big and Dedalus at this point understands both of them we have software for managing both of them and they have some cosmetic and structural difference okay with the byron reboot which is kind of the bridge the shelley it understands both the old legacy addresses from sarah Kel and it understands the legacy addresses from joy and basically it can operate on these two things right now we've only turned on the legacy support for Sara Cal because we didn't want to confuse users and have Dedalus operate on your addresses but we actually have all the software to do that in anticipation of preparation for Shelley so when the Shelley upgrade comes out we have a new wallet format called BEC 32 now we didn't create BEC 32 this was very good work done by the Bitcoin core developers and block stream and other open source contributors and we liked it so much we said that this is a really good future proof way of doing things so all Shelley addresses are going to correspond to this format so when you create your Shelley wallet when you're migrating to Shelley here's what's going to happen Shelley wallet you're gonna have an option to migrate Shelly migrate Byron wallet and that's going to be built right into the GUI so this is right into the user interface of the wallet itself there's going to be a button you click and then there's going to be a step-by-step guide and what you are going to do is two things one you're going to enter your spending password and then two you're going to create a new wallet and all bec 32 wallets are gonna have their own wallet recovery phrase just like the old Byron addresses and it's 15 words unlike the old binary versus old Byron addresses were twelve and the ROI were 15 respectively but it's gonna be 15 words to improve the security a little bit and you're gonna have 15 new words so you're going to create a completely new wallet you're gonna enter your spinning password for the old wallet and what's gonna happen is it's going to migrate over the funds from the old wallet to the new address now we're deprecating the euro and the CEREC Hill addresses so all legacy address is Sarah Cal and legacy addresses your oi under the new Shelly ledger rules they can only spend two a BEC thirty-two address what this effectively means is that over time we'll be able to get rid of all these addresses and migrate off of them so people won't be there unless their funds are dead like they law they're private keys or something and then they can't migrate reason being is that only effect 30 to address can vote and can stake so we want everybody to be migrated off the old addresses and onto the new addresses so in the Shelly era we're here Shelly you are going to migrate by entering your spending password and then you're going to create a new wallet and there's going to be a step-by-step guide walking you screen by screen in the GUI on how to do this and you're gonna basically create a new wallet recovery phrase it'll generate 15 words for you and you're gonna write those down in a secure place and what I'm probably going to do is have my Director of cybersecurity Charles Morgan give some helpful hints and recommendations on secure storage of those 15 words so you make sure that you don't put it your wallet recovery phrase in a bad place okay and then it's gonna migrate your funds to a deck 30 wallet now a couple of questions what if you forgot your spending password then what you can do is there's gonna be an option to restore your old by renew you're out wallet and migrate the funds over okay so as long as you have your old wallet recovery phrase from your old wallet then you can always recover from that and there may be more options above and beyond that but those are the two paths either you already have an active wallet and you've just upgraded which case you're gonna enter your spending password and it'll do the migration for you and create a new wallet or you'll have to restore your wallet if you're doing something from a clean installation all right now let's talk about the VIP the ITN the incentivize testing alright so in the incentivize test that people have been staking and if you stake and you do work you get paid for that that's compensation so you have staking rewards for your work that you've done now there was a question over Twitter and I thought this question was very important about basically how are we going to get those staking rewards to the main net so the idea is a real cryptocurrency it's a full blockchain and Shelly is its own cryptocurrency now what's gonna happen is that we are going to sorry about the vacuum cleaner in the background yeah people are cleaning and I guess they don't know I'm recording a video that's okay no mistakes only happy accidents so what's going to happen is all those staking rewards are aggregating into the ut'fo of the ITN and we have an algorithm happy little algorithm that is going to scan the UTX oh and then create a snapshot of all rewards then when Shelly is launched that snapshot will be appended to the Cardinal launching okay so you're gonna see some new accounts basically being migrated over now in Daedalus there's going to be a button and that's redeem ITN rewards and what you're gonna do is you're gonna enter in your ITN Wallet recovery phrase and it's then going to do exactly the same thing that was done up here it's going to rotate your funds to a wallet on Shelly now we could technically reuse the recovery phrase and we probably will do that or we could create a new wallet and this is something we'll discuss from a user experience perspective and we'll have that exact thing format but then from the Dedalus user experience you're gonna have up to two wallets then this is your migrated Biron wallet which is now a shellye wallet and then you're going to have the redeemed ITN rewards so what do you as a user have to do you have to know your ITN wallet recovery phrase so the wallet you were using to stake from and claim rewards to you must have your wallet recovery phrase those key words for that if you do not have those key words then you're not going to be able to easily redeem those rewards because what's happening on a global sense is that we're taking a subset of the you tip so of the ITN and we're merging that with the old byron records and that's what's creating the Shelly blockchain so we don't have the corresponding private keys to these entries here nor do we have any of the private keys on the bright side so there's no one from i/o HK or any other actor for that matter who has the power or the ability to help you if you've lost your wallet recovery phrase for the ITN so you have to that so do make sure that you have that and if you don't file a helpdesk ticket and I'm sure they can find a way to recover that if you can if it's possible but when this occurs when you redeem your ITN wallet here what you're doing is you're creating the private keys associated with whatever was taken from this that belongs to you we don't know that we actually can't link these two together there are many scenarios for example when the balance NAP shop was done in November the day after people could have sold all their Aida and they still could have staked with the ITN rewards for the ITN Aida for example so in that case they'd have no Byron wallet but they would actually have some rewards to redeem some amount so that's an example of a scenario we just don't know we can't link these two things together all we can do is take the history that lives on this block chain and merge what's relevant with the history that lives on Byron and it's up to you the user when you're doing your migration to migrate and the only way you can do that is if you know your wallet recovery phrase so make sure you have that okay and those key words are there I think it's 15 key words for 15 words for your ROI style things on the ITN but that's basically how that is gonna work so to recap we have a bunch of different address types in Cardinal there's the Sarah Kel random indexes there's the your ROI sequential indexes and then and suddenly we're creating this new format to kind of be a catch-all we're deprecating those old things so what's gonna happen is that you're not going to be able to spend Sarah Kel or your ROI addresses to the old legacy addresses you have to spend them to back 30 to address and then Bek 32 can transact about thirty-two and migration is to be very straightforward you're gonna have a wallet when you download it there's an option to do the migration that will be turned on after the hard fork option available after card for okay and it'll be no longer grayed out and then it's gonna be a step-by-step guide so you're gonna go step-by-step through it you're an enter your spending password for your old wallet if you've forgotten that there'll be another option to import from a clean restore but it'll take longer because it has to restore that wallet you're adding another ten or twenty minutes to your recovery process and then it's gonna create a new wallet you want to write down those new 15 keywords and it's gonna move funds over and then it's going to shape either this type of transaction or that type of transaction a CEREC LT you want and that's that's pretty much how that works and then if you participated in the ITN we're gonna have a consolidated history where those rewards get copied over from an algorithm and you'll be able at during the balance check test net to verify that that when you go through the redeem ITN rewards process that little button there you'll be able to see that the redemption worked and you'll be able to compare the balances of the two of what you expected from what you see to verify that the algorithm that copied everything over was doing its job correctly but you cannot do this if you do not have your ITN Wallet recovery phrase since the very beginning we have repeatedly said when you create a wallet always write down your key words your wallet recovery phrase you didn't do that then that's on you and again we don't have it we've never had it we do not have any of the corresponding private keys the best we can do is copy over the public record so make sure you have that and once you have it I'd highly recommend listening to Morgan's video which will create between now and Shelley four ways to write those down and protect them safely okay and the balance check test net once we go through that process then we launch me net Shelley now when we launched the main nets Shelley client this copying hasn't been done yet because we are as I mentioned my prior video the upgrade window so this history exists and your client will be aware of it but it will still be operating under the old byron history and not know anything about the ITN so all the Shelley specific stuff will be grayed out during the upgrade window giving exchanges and end users time to get the new software then we do a hard fork and then suddenly after we've done the hard fork we no longer care about this or that we're now operating under the Shelley history okay so this leads to this and then at that point you'll be able to redeem your ITN rewards and at that point you'll be able to stay delegate and at that point you'll be able to rotate your wallet from the legacy wallet to the maintenance well at the main that Shelley wallet okay now we've gotten some additional questions about hardware and we've gotten some questions about and hardware such as ledger and we've gotten some questions about paper wallets okay now we're completely redoing the paper wallet experience for Daedalus be part of the flight program if you want to get an early access to that four ledger there's going to be a firmware update so the firmware update is scheduled for the launch of shelling so when we launch Shelley the ledger device should also be updated so once that's updated what's going to happen is Daedalus is going to have a user interface for Leger okay and that user interface will have a step-by-step guide on making sure that your ledger device is working properly and this is a management window so what that means is that you'll be able to initiate commands but you have to confirm them on the ledger device itself and your private keys will never leave the ledger device and be put over into maintenance and to Dedalus okay for paper wallets what's probably gonna have to happen is an import so you're gonna have an import function and you can import it into a data list wallet shellie wallet and if you still want to stay on paper wallets because we're gonna have a completely new user experience for paper wallets you can generate another paper wallet and then transfer the funds to that paper wallet so the reason being that this has to be done is that there's no way we can because it's just a paper wallet rotate the funds on the wall itself whereas the hardware wallet once we go to the firmware update without ever moving the private keys we can do a rotation from one address to the other address type so that that rotation is easier to do on a ledger for paper wallet the best we're gonna be able to do is rotate it to something else now why would you want to do this rotation because you would eventually want to create a new paper wallet that can cold stake stay Keable paper wallet and to do that and manage your paper wallet like you would manage your ledger device and cold stake with that it's not going to work on the old address so you have to do a rotation so there's going to be an import to Dedalus Dedalus - paper wallet step nude paper wallet and we'll do a dedicated video on both ledger and a dedicated video on paper wallets but I just wanted to give you guys a sneak peek on that there's gonna be specific things within Dedalus that will allow these migrations to occur and download dental is flight and be part of that flight program if you are interested in getting early access to these things Daedalus flight will always get access to these prior to the normal Daedalus okay so that's that's pretty much it I hope this video was helpful and you guys understand all these things but overall the user experience is not too bad we have a lot of junk in the past and we're kind of getting rid of that and Biron reboot is a nice beautiful bridge to get us there it's it's out that's like candidate five is coming out today at the end by the end of this week main net for all the flight candidates stuff for the regular of Daedalus we have this new great address format we're building on the shoulders of giants and special thanks to the Bitcoin core developers for really good work there and I think it's a great format and yours migration is going to be pretty step by step you just click a button you enter your password the one you've always used to spend from and it's gonna create a new wallet and that new wallets gonna have 15 words Morgan Charles Morgan will do a video to explain best practices of where to store those words so you don't you don't have any problems with it you know give you some creative solutions there and we're deprecating these old addresses so the only valid transaction will be going from the old address to the new address and once you're on the new dress you can stake and you will be eventually able to vote okay for staking rewards of the ITN we have an algorithm that's gonna scan the entire YouTube so via ITN and basically take all the rewards from that and then we're gonna merge those two together into the Shelley history and if you want to redeem your rewards there's gonna be a button for that in Shelley which will be turned on after the hard fork you're gonna enter your wallet recovery phrase from the ITN I think it's 15 or it's all have to double check and then it'll do some magic and then create a wallet and you'll be able to see your main net wallet for Shelley and you'll be able to see your IT and rewards wallet both of those will be there and then at that point there live balances you can do whatever you want with them we'll even have a new feature a merge feature and that merge feature will allow you to merge all of your funds from one wallet to another wallet so you can merge those two together and have one unified wallet if you want or you can just keep them separate okay that's pretty much that's pretty much it I hope this video was really helpful for you guys we tried very hard to make this transition as understandable as possible and straightforward as possible and you the user what you have to know if you participate in the itn is the wallet recovery phrase and if you've participated in card I know you have some ADA from Byron just F know you're spending password and if you've forgotten that your wallet recovery phrase for the old wallet I can be used to restore the wall but it'll make your transition a little longer because it'll add another 20 30 minutes or however long your recovery takes to restore the old wallet before you can then do the migration to the new wallet alright thank you guys for listening I hope this was helpful and have a wonderful day
