“If sending money globally as easily as an email doesn't impress you, how about the ability to store your life savings in your head, then walking your family across a war-torn border to safety?” – Aaron Lasher, CMO at BRD
I want to answer a complicated question, as directly as I can. How does BRD secure unlimited amounts of wealth without even knowing who owns it? That's correct -- BRD can protect unlimited amounts of wealth, without knowing who owns the assets. Here’s how.
First, understand that BRD is a non-custodial digital wallet. Non-custodial means BRD doesn't hold your digital assets. In fact, BRD doesn't even keep records of its users.
I know what your thinking, how is this secure if BRD doesn't know me or how much I own? First, you need to understand a little about the technology BRD is leveraging to make this type of wealth storage and anonymity possible.
If you happen to be Satoshi Nakamoto go ahead and skip the next few paragraphs about the technology, you do not need it. For the rest of us, I will try to explain it in as simple terms as possible. Cryptocurrencies and several other things are leveraging technologies like blockchain, public-private keys, and distributed ledger to change the world as we know it. Banking is just one aspect, of many, that is changing because of these technologies.
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins are not printed, like dollars or euros – they’re produced by computers all around the world, using software that solves complex mathematical problems. It is the first example of a growing category of wealth called cryptocurrency, coins or tokens. One of the essential characteristics of cryptocurrencies and the thing that makes them different from fiat is that it's decentralized. No single institution controls its creation. Decentralization puts some people at ease because it means that a large bank or government cannot control your wealth. However, it leaves most of us scratching our heads wondering how such a thing is possible.
What's Blockchain?
A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer, a timestamp, and transaction data. By design, blockchains are designed to be resistant to modification of their data. A blockchain is typically managed by a peer-to-peer network collectively following a protocol for validating new blocks, meaning multiple computers, all over the world, continually update the ever-evolving secure data.
BRD helps you with your digital wealth by keeping it safe and secure. Where you were previously unable to secure unlimited amounts of wealth, with BRD you can now secure it. BRD is helpful because it stores your asset information in a cleverly simple to use app. The BRD app processes data to and from the distributed leader on the blockchain.
What's a Distributed Ledger?
The distributed ledger is a dynamic form of media that has properties and capabilities that go far beyond static paper-based ledgers. The invention of distributed ledgers represents a revolution in how information is gathered and communicated. It applies to both static data (a registry), and dynamic data (transactions).
Basically, in its purest form, the distributed ledger is a digital checkbook registry.
Funds deposited to your public address are recorded in the ledger. Each time you send or receive any amount of currency, another record gets written to the ledger. The BRD app syncs its data with the ledger, then updates your balances within the app.
What are Private/Public Keys?
Digital wallets are entirely different as compared to your physical wallet. Instead of storing money, digital wallets store private and public keys. Private keys are like your PIN number to access your bank account, while public keys are similar to your bank account number. When you “send” crypto, the app is sending an entry to be placed on the ledger. The entry consists of an amount and address. For the recipient to spend the newly received coin, his private keys must match the public address. Ownership of private keys gives you total control over the funds associated with the corresponding public keys.
When you install BRD for the first time, you receive a 12 word phrase also known as a paper key. The twelve words are called a "paper key” because you should physically write down the words on paper. BRD stresses that these 12 words should be kept safe and secure at all times. Securing your key is important because anyone with your key has complete access to your wealth twenty-four hours a day. The key can be a positive or negative component when it comes to securing your wealth. The plus is if you are the only one that has the private key your wealth is safe from all others and accessible to you twenty-four hours a day from anywhere in the world. The negative is if this key gets lost, so is the digital asset. No one, not even BRD, can recover a private key. So the 12 words are as important as the wealth itself. If you trust someone with your key, you are handing them your assets.
If your device is broken, lost or stolen, you simply enter your key into a new copy of BRD. Once BRD updates the blockchain your funds will appear. Your money is not stored on the phone, but on the blockchain, the most secure digital place ever invented.
Eddie Pounds, BRD Baker
