 All right, first question comes from Nicholas. Hi, Andreas, I use multi-sig, but for most people getting into crypto, I recommend a ledger or trezor hardware wallet because the graphical user interface is so simple. How can they trust trezor or ledger generating their seeds? This is a really good question and it comes up all the time. The bottom line is that no matter what kind of device you're using, you have to put some degree of trust. The only way to have zero trust in no manufacturer, a software or hardware device is to do everything by paper and pencil and trying to do elliptic curve multiplication or hashing by pencil and paper is probably too difficult for most people. So let's look at if we have to trust, then how can we minimize the amount of trust that we put in third parties? Now, this question is tricky because depending on how you answer it, people may try a cure that is worse than the disease, no pun intended. And what will happen in that case is that people may say, oh, I can't trust trezor or ledger or another hardware wallet's manufacturer to generate my seeds. So instead, I'm going to build my own. I'm going to download Tails and follow the Glacier protocol and install it on a ThinkPad that I got from college six years ago. I'm then going to print it to a printer with no memory. What you've just done is shifted the trust from a special purpose hardware device and special purpose software system designed for this purpose and shifted it to general purpose software, general purpose operating system and general purpose hardware where it's much more difficult to check the origin of these devices and systems. Also, you've increased the difficulty and increased the chances of making a mistake by several orders of magnitude. So don't take any of the comments I make about the security of hardware wallets generating your seeds to mean you should not use hardware wallets or use paper wallets or download some software that you found or whatever else. Hardware wallets are still the most secure mechanism for cold storage and if you can't afford to buy a hardware wallet and you only want to use a small amount, then a mobile application on your smartphone will be the best operating system you have. All right, so how do we trust the seeds that are generated on these devices? The pneumatic freezes that are displayed on the screens of these devices. The reason we trust them is because both the hardware and the software in these devices is scrutinized very heavily by a lot of security experts. Now, that doesn't mean that trust has to be 100 percent. It just means that you are not trusting just the vendor, you're also trusting a bunch of security experts who are looking at these devices very regularly and examining them for all kinds of vulnerabilities and flaws. Whether you need to worry about the vendor themselves putting a backdoor into their system, which would likely get revealed pretty quickly and would cause that vendor to go out of business immediately or you have to worry about somebody hijacking the delivery of that device at some point and inserting some kind of hardware inside that you can't see or tell and use that to compromise your seed. These are definitely valid fears, but they don't overcome the broader fear, which is if you just use a software wallet that's connected to the internet, your chance of getting robbed is much, much higher. If you use a very complex system with security that requires advanced technical understanding, then your chance of losing money because of a mistake is much higher. So with hardware wallets, what we're trying to do is balance these concerns about security, resilience, reliability of use and get them to a sweet spot where the average user doesn't have to put too much trust. Now, if you were to put hundreds of thousands of dollars or millions of dollars on one of these devices, then you probably need to take some precautions. There's a number of things you can do. One of the things you can do is you can generate your own mnemonic phrase offline using a method as simple as playing cards or dice. There's a number of tutorials online that you can find that will allow you to do things like download the dictionary of 2048 words that are used within the mnemonic phrase system and then select the words in such a way as to produce some mnemonic phrase. There are also some online tools that will help you to do that, but then you run into a much greater risk because that online tool is a lot easier to hijack and you should never type your mnemonic phrase into that tool. There are some hardware wallets that go to extreme lengths to remove any element of trust from the manufacturer. Probably my favorite in that category is the cold card wallet. What they do there is not only do they use a transparent case, so you can see if the hardware has been tampered with, they use a security chip that's covered in epoxy so you can see that that hasn't been tampered with, but furthermore they actually have a mechanism for you to enter entropy directly into the device by selecting numbers one through six on the keypad and rolling dice repeatedly until the device generates a mnemonic phrase from your dice rolls, so that's for the ultimately paranoid the cold card is a great device. However, the cold card is much more difficult to use for your average newbie, more complex, more advanced, and therefore you've got to consider that balance when you're recommending these types of devices to newbies. If you enjoyed this video, please subscribe, like, and share. All my work is shared for free, so if you want to support it, join me on Patreon.