Bitpie Wenhao live streams about crypto wallets, multisig, lightning networks and OTC
By: Bitpie Wallet
Tags: Lightning Network, Multisig, Bitpie, Lbtc, Bitcoin

This Tuesday, WhaleEx first live stream got lucky to interview Wenhao, the founder of Bithernet, dev of BitpieWallet.

He shared perspectives on crypto wallets, multisig, lightning networks and OTC with HKD and USD.

Q: Bitpie propose that we should make the March 22 as our “Crypto Multisig Day”, so can Multisig solve all crypto wallet safety problem for good?

WenHao: Multisig is just an asset management solution. Many people have misunderstanding that Multisig can solve all asset safety for good, but it doesn’t. For digital asset safety, you should take the usage of the “cold(offline)” solution on the first place regardless of storing personal, enterprise or large amount of asset. In other words, a cold wallet or safe enough hardware wallet is good for managing digital asset.

The right way is to get cold wallet ready first, and then customize specific multisig solution.

Q: There are several multisig mechanism in BTC, ETH, EOS and USDT, can you explain what’s the similarities and differences?

WenHao: Essentially, they are all the same as they try to get multiple people to control asset. However, due to different cryptos feature different technology characteristics, the way to achieve multisig is different, and the safety and functionality vary a lot. EOSIO writes multisig in the system contract from the very beginning, assuring more safety in the infrastructure. As we heard, WhaleEx has launched Multisig with cipher security team Slowmist and 8 other Top EOS BPs, that would be a great encouragement for users’ asset safety.

We BitPie are frequently asked about how to do a USDT multisig, and how to use cold wallet to manage a large amount of asset, we will add multsig function to BitHD, and if everything goes well, BitHD will be the world’s first hardware wallet supporting multisig.

live stream screenshot

Q: Should wallet be open-sourced? Why we always heard that cold wallet should be open source? Why does the fake open source hurt?

Wenhao: It doesn’t matter whether BTC or blockchain wallet software should open source or not. It depends much on the corporate’s strategy if the wallet team think they should be open-sourced, just do it.

If considering other reasons, like safety or commerce, wallet team don’t like to open source, then not, it is not compulsive.

However, if wallet team is asked whether they cheat on codes, is that possible they can steal users’ private key or control users’ asset, wallet team can’t prove they don’t cheat, they have to open source.

We have two wallets, Bithernet and Bitpie. Bithernet is the only Chinese wallet recommended by Bitcoin.org officially. We take different open-source plan for these two wallets based on safety framework. To be note, Bithernet is the only fully open-sourced domestic wallet, others who claim to be open-sourced are fake open-sourced. While, Bitpie Wallet decentralizes the management of private keys but transactions searching.

One more thing, contributors, core devs all agree that cold wallet or hardware wallet should open source. You should get far away from cold wallet or hardware wallet without open source.

Q: Can you tell us about the safety issues on lightning networks? Why BCH supporters claim that lightning networks are not good, centralized, sometimes users will lose their money?

Wenhao: the lightning network is hot, Bitpie has supported that one week ago, and IOS version will be released soon. Actually, lightning network is safe, the prominent difference is the money users put in the lightning network channel is hot, same as the hot wallet. Everyone has the duty to keep the wallet safe. While the only thing varies is that you have to take care of much more things when you are using that, like historical transaction proofs.

There is an important concept called node in the lightning network, users put money in the node, but if one node obtains tons of money, certainly large node has risks. But due to lightning network is more decentralized, if some nodes do something unethical, users can easily cut the channel, and take their money back.

Q: Usually, lightning network is free of charge, but without incentives, who would be nodes? If majority of people transfer money in the lightning network, the process of miners will decrease significantly, who will continue to keep the bitcoin network safe?

Wenhao: Actually, it can be charged, but a few. I don’t think lightning network will hurt miners’ proceed because actions like channel building and cutting have to operate on the chain, meaning users will pay fees for that.

When people use lighting network, a tiny amount of BTC payment can actually increase the activity level of on-chain actions, increasing incentives, and then increasing safety. Take coffee purchasing as an example, people will not use BTC to pay for that if transaction fee is too high, but some people will definitely choose lightning network as it is free of trx fee. Thus, more usage on lighting network, more channel building and cutting needed, and more incentives created for miners, finally BTC network will be safer.

Q: What should they pay attention to when newbies use RMB to buy mainstream crypto?

Wenhao: let me talk about a word: OTC. After 4th Sep incident, mainstream exchange platforms goes abroad. Actually, most domestic users’ trading needs are achieved through OTC in the past one and a half years. This is different from past, users deposit and withdraw at exchanges, now they just trade p2p.

OTC’s transactions are quite popular and get large amount of volume. Bitpie is always the first choice for OTC traders as we have several useful functions, like multiple chain supporting, RMB KYC, etc.

They all like to transfer with Bitpie. One thing newbies have to remember is that get away from some OTC platform without strict KYC, so you can know the crypto you purchase is clean, or who sell to you.

Interview by WhaleEX:

https://medium.com/@whaleexchange/bitpie-wenhao-live-streams-about-crypto-wallets-multisig-lightning-networks-and-otc-870bf745c3f0?sk=147edbdc40c4eb3bf67d891ddedc1324

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