AMA with LetsExchange and Edge

Curious about how Edge Wallet is reshaping the future of self-custody and privacy in the crypto space?

In a recent AMA session on Twitter spaces, Paul Puey, CEO and co-founder of Edge Wallet, delved into the critical importance of privacy in the crypto space. He highlighted Edge’s unique approach to data protection and security, including its innovative IP validation feature. He also discussed the platform's support for developers with testnet integration and shared insights on staking and liquidity provision using ThorChain.

Here are the key takeaways from the AMA:

John from LetsExchange: Edge is known for its focus on privacy and security. How do you ensure that users' data remains protected while offering seamless access to a wide range of cryptocurrencies?

Paul: Absolutely. First, it's important to clarify what we mean by user data. When you send a transaction on a blockchain like Bitcoin or Ethereum, the transaction details – such as the transaction ID, source address, and destination address – are fully public. Edge can’t hide those since they’re part of the nature of public blockchains. However, what we can do is ensure that those transactions aren’t easily linked to your personal identity.

Edge doesn’t collect personal information. When you create an account, you're essentially creating encrypted private keys. We don’t see those keys or the public addresses inside your wallet. Unlike many self-custody wallets, we don’t require an email or phone number for account creation, which is often used by other wallets to track user transactions. Some even send your wallet addresses to their servers. We avoid all that.

Instead, when querying transactions, we send those requests to the network (e.g., Ethereum nodes or Bitcoin nodes), not our servers. This disassociates your wallet activity from you as a person. Even though a node might know your IP address, it can't link it back to Edge or your other transactions, providing a strong layer of privacy.

We also implement encrypted backups for your private keys and metadata. If you lose your device, your data is recoverable but always remains private and secure – only you can access it.

John from LetsExchange: Edge recently added support for multiple testnets, including newly added networks. How does this enhance your platform's experience for developers and smart contract creators?

Paul: Great question! We added support for testnets primarily for our own internal development needs, especially when integrating fiat exchange partners. These partners require extensive testing before deployment, and we use testnets to simulate real transactions without incurring fees.

However, ironically, we at Edge don't use testnets much ourselves – we prefer testing on mainnets because they offer real-world conditions and fee structures. That said, for developers and smart contract creators, adding testnet support in Edge allows them to build and test their projects in a cost-free environment. Developers can enable testnet wallets within the app and interact with a variety of networks, including Bitcoin and several EVM-compatible testnets.

This means they can send, receive, and experiment with testnet coins without risking any real assets. We see this as a valuable tool for developers working on smart contracts or dApps who need a sandbox environment to test functionality and fix bugs before going live on the mainnet.

Sam (community question): Can you explain how the staking process works on Edge Wallet and how the ‘Earn’ functionality using ThorChain savers operates?

Paul: Sure! In Edge Wallet, we offer two main ways for users to earn: actual staking and liquidity provision. Staking involves locking up an asset to help secure the network, like with FIO (Foundation for Inter-Wallet Operability), where users delegate tokens to nodes to earn rewards.

However, most of what you see in Edge’s 'Earn' section is liquidity provision, especially through ThorChain. With ThorChain, users provide liquidity by depositing a single asset, like ETH or BTC, which is then used for swaps on the network. As people trade, fees are collected, and those fees are distributed as rewards to liquidity providers. The returns can vary depending on network activity – sometimes as high as 11-12%, and other times as low as 1%, depending on trading volumes.

A key point to remember is that when providing liquidity, there are fees for both entering and exiting the liquidity pool. If you withdraw your funds too quickly, you could end up with less than you deposited due to those fees, especially for larger assets like Bitcoin and Ethereum. That’s why we recommend keeping your funds in the pool for a more extended period, ideally six months to a year, to maximize returns.

Blueberry (community question): Could you describe how Edge Wallet handles cross-chain transactions and what challenges users might face during the process?

Paul: Absolutely! Cross-chain transactions in Edge Wallet allow users to swap assets between different blockchains, like going from Bitcoin to Ethereum. To ensure smooth transactions, we partner with multiple providers, including LetsExchange and decentralized exchanges (DEXs) like ThorChain.

However, one of the key challenges is the complexity of the process. For example, cross-chain swaps often involve a multi-step process where assets are first bridged from one chain to another and then swapped via a DEX. This can occasionally lead to situations where a transaction might partially fail – for instance, the bridge completes, but the swap doesn’t go through due to network congestion or fee spikes. In that case, users might end up with a different asset than they initially intended, like getting ETH instead of USDC.

We always recommend users monitor potential fees and choose providers wisely. Edge Wallet helps by offering various swap options, so if one fails or isn't ideal, users can pick another. We strive to make it as seamless as possible, but cross-chain transactions do come with some inherent complexity.

Tolga (community question): I recently downloaded the Edge app and noticed the IP validation feature. Can you explain how it works, especially if I travel or use different networks? Sometimes strong security features can be disruptive – how does Edge manage that balance?

Paul: Great question! IP validation is a security feature we implemented as a light form of two-factor authentication. Every time you log in from a new IP address, Edge checks if the IP has been previously used with your account. If not, it triggers a seven-day waiting period before granting access, unless you approve the login.

This prevents unauthorized access, even if someone has your password. However, using a familiar device and IP address, you'll log in without issues. We don’t see your actual username or account details – just encrypted data and IP logs to ensure your security. Even if you change locations, like traveling abroad, if your new IP matches one from the past few months, you’ll have no problems logging in.

Otherwise, there’s that seven-day wait as a security buffer. For added protection, we offer full two-factor authentication, where IP doesn’t matter, but the device does. You can also pair multiple devices to make the login process smoother.These are just the main highlights of the AMA session. To learn more about Edge, listen to the full AMA.