Quest Answers for NFT LEDGER - APECOIN QUEST: KEEP SECURITY

  1.  Understanding Approvals & Signatures is key in Web3. Joe, who owns four MAYC, aims to list them simultaneously on 3 popular marketplaces. Using approvals, what is the fewest amount of transactions Joe needs to make?**

• Three.A Set Approval For all transaction with the three marketplace contracts as inputs.

  2.Why is it not advisable to use a software wallet for securing your NFTs or Apecoin?

• Hackers can potentially acces your private keys using your internet connection as an attack vector.

  3.Gigi is contacted by a Discord admin of an NFT project to participate in an NFT giveaway. All she has to do is sign a message that starts with a long hex string so that the representative can verify her wallet. What should Gigi do?

  • Not sign the transaction as the scammer could use this signature to steal her crypto assets.

    4.What unique feature of the Ledger ecosystem ensures that you can verify your BAYC NFTs or Apecoin transactions before confirming with your digital signature?

  • Ledger Live’s integrations display transaction details on your device’s trusted display and require you to physically confirm every transaction.

    5.You’ve probably heard of Approvals, but which of the following best describes Approvals and what they are used for?

  • Approvals are required in order for smart contracts to have acces to any token in your wallet. Exemple: A marketplace like Opensea will need acces to your BAYC NFT in order to sell it.

    6.Blind signing refers to the act of signing a smart contract without the ability to verify its data in a human-readable form. Why can this be problematic for your NFTs and valuable digital assets?

  • It may lead you to approve a malicious transaction for which you cannot see the full details.

    7.If your Ledger device gets lost or stolen, how can you be sure that nobody else can use it to access your NFTs or Apecoin?

  • -All listed answers**.**

    8.If used properly, a hardware wallet, such as a Ledger, is one of the most secure options for managing your NFTs or Apecoin. But why?-

  • It generates and secures your private keys on a device that does not expose them to internet related attack vectors(malware and viruses).

    9.In Web3, you have absolute control of your assets because you can own them without relying on a bank or middleman. So where are assets, like your ApeCoin and NFTs, stored?

    -On the Blockchain

     10.Hardware wallets can protect against many things, but what are they *best* at protecting against?

    -Getting your private keys/seed phrase compromised by malware.

    11.If you accidentally make an approval transaction, is there anything that can be done to stop any potential damage from it? Recommend a course of action for a friend that made this mistake:

    • Maybe, if you are able to Revoke the approval transaction quickly enough,you may be able to prevent any losses that would result from scammers.

      12.Scam NFTs airdropped into your wallet are a popular theme. What is their primary purpose?

    • Airdropped NFTs may entice you to visit a (scam)website by putting in fake wETH offers or sending tokens to AND FROM your wallet address,aiming to catch your attention.

      13.What is Boring Security's recommended approach for segregating wallet addresses for NFT security?

      A Mint/Sell/Vault setup where your mint wallet is only used to mint NFTs , sell wallet contains NFTs you sell on trusted marketplaces only,and your vault wallet is used only for transfers and safe signatures.

      14.What is the risk of signing a message that requests a signature for login purposes and contains a nonce, like the one in the following example: "[Hello, welcome to The Sewers - sign this message to login. Nonce: 1ax42069b]”?

    • No risk of losing your asssets through this type of signature.

      15.You might have heard that the Set Approval For All (SAFA) transaction on your NFT collections is dangerous. What are those dangers? -

    • All listed answers.

      16.When it comes to your “vault wallet address” on your hardware wallet, what’s something you want to avoid at all costs? - Approvals of any kind.

      17.Is it safe to create and use a mint wallet address (also called a “Burner” wallet) on your Ledger?

      • Yes,minting from a separate addres on a Ledger is completely fine.

        18.Which answer below best describes why approvals are dangerous?

      • It could allow the address you approved to treat the approved asset as if it was in their wallet.

        19.Why does recovering a software wallet on your new Ledger device leave your crypto at risk?

      • If your private keys have been exposed to the internet,securing them on a Ledger device won’t protect your data from anyone who has already accessed it.

        20.What is a recovery phrase?

      • A phrase generated by your wallet as a backup of all the private keys stored on it.

        21.Which of the following most accurately describes "private keys”?

      • Private keys are used to authorize transactions and prove ownership of assets via a signature.

        22.Blockchains are the underlying infrastructure for Web 3.0. What defines the shift from Web 2.0 to Web 3.0?

      • Full Ownership of your digital assets without the need for intermediaries.

        **23. Why is it essential to store your recovery phrase properly?**All answers listed.