Eric Benz’s Crypto Talk with Yuan Dawei, CEO at ColdLar
For sure, one of the most challenging goals in the crypto sphere is developing a modern, easy-to-use yet secure hardware device for storing crypto. Times when investing in crypto was considered as something tricky or overcomplicated has passed long ago. Today, with Bitcoin being the most valuable asset of the modern world, and crypto investors being wealthy and smart, people need hardware devices of the new generation to remain confident that their crypto savings are stored at the highest security level. ColdLar blockchain technology company accepts the challenge with ease and elegance. With the ColdLar Pro 3 hardware wallet, private keys never need to connect to the Internet, eliminating the risk of hackers stealing them. Hence, there is no chance the assets can fall into the wrong hands.
Changelly’s CEO Eric Benz met Yuan Dawei, CEO at ColdLar, to decrypt the companies core principles regarding its cutting-edge security level combined with ColdLar’s usability.
Eric Benz: At ColdLar, you separate the term of a crypto wallet into multiple forms such as a hardware wallet, a cloud-end wallet, or a cellphone app wallet. Why do you think it is so important to distinguish all these types of wallets for storing crypto?
Yuan Dawei: ColdLar was founded in Beijing in November 2016 with the mission of becoming a “Guardian for Crypto Assets” and we are committed to providing crypto asset security storage solutions.
In the past three years, based on the actual needs of users, we have continuously carried out R&D and innovation, and created a complete product matrix including personal and enterprise resolutions. Our core focus is the management of private keys. The wallets are naturally divided into several categories based on different storage locations of the private key. Our hardware wallet stores the private key inside the device, the application’s wallet stores the private key in the mobile phone, and the cloud wallet stores the private key in the cloud. The ideal wallet should be “secure”, “usable” and “scalable”. Different wallets also have different characteristics to meet the diverse application scenarios of different user groups, so the shape of the wallet should not be unique.
We believe it’s significantly important for users to clearly under where their private key is stored.
Eric Benz: What are the main tips you would give a crypto newcomer to avoid typical mistakes when buying, exchanging, and storing crypto?
Yuan Dawei: In the field of cryptocurrencies, the private key is the only identity certificate, which is practically the ownership certificate, but it does pose difficulty to some when managing their private key. For most users, it is not essential to hold the private key directly, especially for novice users. That is why the wallet appears as a management tool for the private key. Therefore, it is important that I emphasize that the most crucial choice a good wallet in the first place, so that you have absolute control of your cryptocurrency. The most important thing about using a wallet is to back up the memory behind this key. The only correct way to back up this information is to copy it on a piece of paper and keep it in a safe place. Don’t divulge it. Don’t enter it on any web page. Don’t transfer it through any network, and also don’t use your phone to take screenshots or take photos, or store it in any form of soft copy. In addition, users are reminded to choose exchanges with a very good reputation.
Eric Benz: How many products should a crypto-hodler own to keep calm about his/her crypto savings?
Yuan Dawei: Users should rationally choose their wallet according to their actual, and specific needs. For example, if users adopt a long-term value investment strategy, they need to choose products that are more security-oriented, such as the ColdLar P-series. If users are more inclined to trade in small amounts, the ColdLar App Wallet and T-Series are the better choices. For institutional platform users, such as exchanges, custody platforms, payment platforms, financial derivative business platforms, etc; a comprehensive crypto asset management system may be needed to ensure security, such as the ColdLar E-series.
Eric Benz: What is your attitude to a total KYC implementation enforced by some governments towards the crypto industry?
Yuan Dawei: Anonymity and free flow are distinguishing features of crypto assets and are loved by users across the globe. However, I believe that absolute anonymity and freedom are also potentially harmful. In some business scenarios, it is necessary to implement KYC to ensure the security of user assets. But for the whole industry, it is not easy to reach a consensus. Perhaps, stimulated by Libra’s proposal, KYC was strongly promoted and implemented to meet the requirements of AML (anti-money laundering) and CFT (anti-terrorism financing). Nevertheless, many claim that anonymity is one of the core elements of the entire blockchain, and that anonymity increases substitutability and promotes financial freedom, which is critical to a healthy economy. I personally feel that KYC supervision can protect healthy development of the entire industry in the long run and avoid its hotbed of evil. Users can choose a completely decentralized wallet or application based on their needs.
Eric Benz: What positive impact close cooperation of crypto entrepreneurs and centralized financial institutions can bring?
Yuan Dawei: Obviously, the application of crypto assets will inject more vitality into traditional financial institutions. First of all, cryptocurrency has outstanding advantages in the field of payment and settlement, especially in the field of cross-border payment, which can effectively save costs such as transit fees and foreign fees. Secondly, cryptocurrency reduces manual error rates, and distributed ledgers improve information security, as well as provide real-time auditing and compliance checks.
In addition, the cryptocurrency issued by Libra and the People’s Bank of China is also an example of a good combination of cryptocurrency and centralized financial institutions. This means that the blockchain system has the potential to run on a large scale, and effectively there are more breakthroughs in the application of payment scenarios.
Eric Benz: To date, disruptive technologies are widely implemented in various life spheres. However, there are industries that use blockchain technologies the most, namely: gambling, i-gaming, and even charity. Which industries you think can benefit the most from the implementation of blockchain-based solutions?
Yuan Dawei: Blockchain brings a lot of new features and applications including Bitcoin, crypto assets, financing tools, smart contracts, etc, and there will be even more new applications in the future. But the application scenarios just mentioned will have a big impact on traditional solutions, such as Bitcoin applications. Current payment systems, especially multinational payment systems require blockchain technology. In terms of asset securitization, blockchain has a natural advantage, and future securities companies will adopt blockchain technology. Blockchain allows entrepreneurs to quickly raise funds all around the world. I have always believed that blockchain is the underlying technology for the development of the Internet of Things. With the arrival of 5G, we may soon see the outbreak of IoT applications. In the future, companies from all walks of life will benefit from the blockchain. In the past few years, we have been promoting the concept of ” Internet+” and I believe that soon, the concept of ” Blockchain+” will be promoted.
Eric Benz: The hacks of various crypto exchanges is still a painful issue that affects the crypto industry the most. As to you, what steps should be taken in the first place to prevent the leak of significant amounts of crypto into the wrong hands?
Yuan Dawei: Simply put, asset security within exchanges is a combination of private key management technology and risk control management. Excellent asset management and transceiving technology are badly needed, and more importantly; strict risk control. It is often that the person in charge of the trading platform attaches great importance to strengthening the wallet’s technology, but the person ultimately does not pay enough attention to the establishment of risk control.
In terms of private key management, many platforms are still implementing a combination of a “hot with cold” orientation, putting the number of user withdrawals in the hot wallet, and putting large amounts of assets in the cold wallet. I think that all assets should be placed in the cold wallet, so both sending and receiving can be completely cold. In addition, many companies have recently launched asset management systems. For emerging and small trading platforms, it is a good choice to hand over the wallet business platform to professional companies. However, it is very dangerous to hand over assets to others for management. I think that in any case, you have to put the assets’ management in your own hands. The enterprise management system launched by our company this year is designed to solve the problem I mentioned just now. The system can help users to quickly manage their private key, and realize offline signatures. More importantly, all private keys are controlled by the users themselves.
Eric Benz: What do you think about the “living-on-crypto” lifestyle? Is it already possible for someone? If not, when will it finally happen?
Yuan Dawei: Lifestyle should depend on the whole environment, including national policies, infrastructure, and the habits of people around them. It is a process that requires constant interaction and assimilation. In my opinion, I can say that I can only live on crypto under certain conditions, and I really feel the convenience brought by it. However, in order to achieve “living-on-crypto”, it also needs global blockchain popularization, the maturity of blockchain technology and the improvement of the blockchain ecology. The most important thing is sound control of cryptocurrency finance – maybe 5 to 10 years.
Eric Benz: What will be the BTC price in a year’s time?
If you think hard, you will find that Bitcoin, and only the value of Bitcoin, has no evaluation criteria. Other assets such as gold, oil and many commodities have a valuation model, but Bitcoin does not, which means there is no upper or lower limit on its price – emphasizing that there is absolutely no upper limit. In addition, the higher the price of Bitcoin, the greater the value of the system and the greater the functionality that can be performed.
The instability of global finance, the cyclicality of Bitcoin’s own halving, and the continual improvement of regulations can trigger the re-emergence of the market.
If you care about the price after one year, be sure to hold the Bitcoin in your hand. It is recommended to buy a ColdLar hardware wallet, and remember to back up the mnemonic.