WEBVTT 00:00.840 --> 00:08.130 So as we learned before, the entire ledger used in bitcoins, the whole blockchain is public. 00:08.130 --> 00:14.310 So the ledger contains all transactions done using bitcoins for each transaction. 00:14.310 --> 00:19.500 Anybody can see the sender address, the receiver address and the amount. 00:20.190 --> 00:26.430 Now, if the sender and the receiver are using proper opsec and obtain their bitcoins anonymously, 00:26.430 --> 00:29.840 then these addresses will not be tied to their identities. 00:29.850 --> 00:35.730 But like I said, there are a number of ways that these addresses can tie to a person's identity. 00:35.790 --> 00:43.560 The easiest is if the person bought bitcoins using a coin exchange that requires identity verification, 00:43.830 --> 00:51.930 or if the person or the entity you're sending coins to has made their address public and is linked to 00:51.930 --> 00:53.310 an actual identity. 00:53.310 --> 00:57.660 For example, if you're sending money to unknown store or to unknown market. 00:57.810 --> 01:02.550 Therefore, based on this information, anyone can analyze the blockchain. 01:02.550 --> 01:08.610 They can know exactly the balance of each address by tracing the amount of money sent to this address 01:08.610 --> 01:11.430 so they can know how much money is in your wallet. 01:11.430 --> 01:17.160 They can track your spending habits, and based on that, they can profile you and serve you more things, 01:17.160 --> 01:18.780 more ads and so on. 01:19.080 --> 01:24.690 Not only that, but if you have a considerable amount of coins, then you'll become a target because 01:24.690 --> 01:32.220 people know that you have a lot of coins in your wallet, again, by tracing the amount of coins sent 01:32.220 --> 01:33.150 to your address. 01:33.690 --> 01:40.050 Not to mention the fact that if you're sending money to an entity that is linked to an actual identity 01:40.050 --> 01:46.350 or if your actual identity gets linked to your address, then this will reveal even more information 01:46.350 --> 01:48.630 that you might not want to be public. 01:49.260 --> 01:54.600 All of this was the incentive to making a more private cryptocurrency. 01:54.870 --> 01:57.600 There is a number of private cryptocurrencies. 01:57.600 --> 02:01.620 The most popular at the moment is Monero or XMR. 02:02.250 --> 02:08.880 Now it's similar to Bitcoin, it's decentralized, so there is no single entity that control it. 02:09.060 --> 02:11.870 But unlike Bitcoin, it is private. 02:11.880 --> 02:18.420 So if you analyze the whole blockchain, you won't be able to get useful information on who is sending 02:18.420 --> 02:21.240 money to whom and the amount sent. 02:21.240 --> 02:26.540 So you can see addresses, but the addresses used are temporary and secured. 02:26.550 --> 02:32.280 Therefore you can't see the actual sender, you can't see the actual receiver, and you can see the 02:32.280 --> 02:34.170 real amount being transferred. 02:35.220 --> 02:38.250 Therefore, what you analyze is not very useful. 02:38.280 --> 02:43.500 The transactions are untraceable and the sender and receiver are not likable. 02:44.100 --> 02:51.210 All of this is achieved using ring signatures, ring confidential transactions and stealth addresses. 02:51.630 --> 02:58.110 The exact way how all of this works is a little bit complex and it dives too much on how blockchain 02:58.110 --> 02:59.820 and cryptocurrencies work. 02:59.850 --> 03:05.670 Therefore, I'm not going to cover it in this course, but I will include useful resources in the resources 03:05.670 --> 03:09.600 section of this lecture, which you can read for further information. 03:10.530 --> 03:14.450 Now, unfortunately, Thales does not come with a Monero wallet. 03:14.460 --> 03:18.930 We have to manually install it, but installing it is very, very easy. 03:19.260 --> 03:22.530 So let's go to Thales and see how to do that. 03:23.070 --> 03:28.110 First of all, you need to go to the download page of the official Monero website. 03:28.530 --> 03:34.890 I'll include its link in the resources of this lecture and you want to scroll down to the Linux download 03:34.890 --> 03:35.550 link. 03:35.880 --> 03:39.560 Now I have the 64 bit version of Thales installed. 03:39.570 --> 03:45.750 Therefore I'm going to click in here to download the 64 bit version of the Monero wallet. 03:46.440 --> 03:52.320 Now, just like any other download, you want to click on Save File and select the location where you 03:52.320 --> 03:53.250 want to download it. 03:53.250 --> 03:56.400 So by default it goes into amnesia tor browser. 03:56.400 --> 04:00.930 And as you can see, I've already downloaded it in here, so I'm not going to click on Save. 04:00.930 --> 04:06.090 But in your case, you want to click on Save and wait for it to fully download the wallet for you. 04:06.240 --> 04:11.580 I'm going to click on Cancel because I've already downloaded it before this lecture to save time. 04:11.580 --> 04:15.510 And as you can see, I already have it here in my Tor browser directory. 04:16.440 --> 04:22.170 And before interacting with this file, just like any file we download from the Internet, we need to 04:22.170 --> 04:28.890 make sure that this file did not get modified as it was being downloaded because as explained before, 04:28.890 --> 04:36.000 anything that you download from the Internet can be edited and modified at a number of locations as 04:36.000 --> 04:37.260 it's being downloaded. 04:37.620 --> 04:42.750 So previously we show how to verify downloads using their PGP signature. 04:42.780 --> 04:47.970 The verification process really depends on the information the developer is giving us. 04:47.970 --> 04:54.150 So as you can see in this case and here, the developer is not giving us a pjp signature. 04:54.270 --> 04:57.870 Instead it's giving us a SHA two, five, six hash. 04:58.500 --> 05:07.950 So to verify a downloaded file with its SHA 256 hash, we need to go to applications accessories and 05:07.950 --> 05:11.310 we're going to use an application called GTK Hash. 05:11.790 --> 05:18.270 I'm going to open this application and in the file field in here, I'm going to select the file that 05:18.270 --> 05:19.800 I want to verify. 05:19.800 --> 05:20.590 It's hash. 05:20.610 --> 05:22.710 This is the file that I just downloaded. 05:22.710 --> 05:27.330 So I'm going to click in here and I'm going to go to Tor browser. 05:28.080 --> 05:30.950 And this is the file that we just downloaded. 05:30.960 --> 05:36.510 I'm going to click on Open and I'm going to click on hash to calculate its hash. 05:37.170 --> 05:40.260 Now we have the SHA two, five, six hash in here. 05:40.260 --> 05:46.350 And what I'm going to do is I'm going to copy all of this and compare it to the hash that the developer 05:46.350 --> 05:48.900 is giving us here on the download page. 05:49.890 --> 05:52.790 Now, as you can see, the hashes match. 05:52.800 --> 06:00.390 This means that the file did not get modified as it's been downloaded because if a single bit is changed 06:00.390 --> 06:07.260 in that file, the hash that I just calculated manually on my local computer will not correspond to 06:07.260 --> 06:09.840 the hash that we have on the Web page in here. 06:09.960 --> 06:16.380 So because the hashes are matching, this means that the file did not get modified since this hash right 06:16.380 --> 06:17.760 here got calculated. 06:18.600 --> 06:25.410 So we can interact with this file now safely as long as we trust the developer that gave us the file. 06:25.860 --> 06:31.410 So I'm going to right click this file because it's a package and I'm going to click on extract here 06:31.410 --> 06:32.580 to extract it. 06:33.450 --> 06:34.350 Okay, perfect. 06:34.350 --> 06:35.100 That's done. 06:35.190 --> 06:37.200 So you can leave it here. 06:37.200 --> 06:41.220 But if you leave it here, as you know, tales is amnesic. 06:41.220 --> 06:45.120 So when we restart the computer, these files will not exist. 06:45.150 --> 06:50.880 Therefore, I'm going to copy it and I'm going to paste it in my persistent directory. 06:51.420 --> 06:53.520 So right click and paste. 06:54.700 --> 07:00.330 And if we navigate inside it will actually see another directory for the application itself. 07:00.340 --> 07:06.310 So I'm actually just going to cut this and paste it outside just to make it easier to access. 07:06.310 --> 07:14.620 And I'm going to delete the empty one and I'm going to rename this one to just more narrow guy again, 07:14.620 --> 07:16.900 just to make it easier to access. 07:17.020 --> 07:23.080 And if we navigate inside this directory, you'll see we have a number of files that's needed by the 07:23.080 --> 07:24.400 wallet application. 07:24.550 --> 07:28.630 And the main file that starts the wallet is this file right here. 07:28.630 --> 07:31.210 The start GI Dot is huge. 07:31.780 --> 07:39.070 Now this is a batch file, which means that it can only be executed from the terminal, from the Linux 07:39.070 --> 07:39.760 terminal. 07:40.300 --> 07:44.830 Now, if you've done any of my other courses, this will be very, very easy for you. 07:44.830 --> 07:47.440 If you haven't, then don't worry about it. 07:47.440 --> 07:53.380 And the next lecture, I'll show you how to run it and create our first Monero wallet.