iOS Native Bitcoin Breadwallet Comprehensive Review & Testing

Tai Zen: This is Tai Zen from PrisonOrFreedom.com and I got my buddy here Leon Fu from LeonFu.com and we are here chilling out at the Cafe Ruckus on the corner of 2nd Street and Guadalupe.

So in this video guys, Leon is going to share with me a new Bitcoin app that he discovered and he has tested it out and it has worked really well and we’re going to review this app in several different ways. So let’s go ahead and get started here, what is the name of this app and how you figured it out and everything?

Leon Fu: So this app is called Breadwallet and I think we’ll just include a link. I sent you the link so you can include it in your video so that everyone can try it out. It’s free. And so I’ve tried a many… Apple lifted the Bitcoin… They had a ban on Bitcoin wallets, you probably remember that. And they lifted it several months ago, it’s been a few months since…

Tai Zen: We had trouble when you were using a Coinbase app… 2 Bitcoins for a bottle of water. Stop touching the table.

Leon Fu: It was supposed to be two-hundredths of a Bitcoin but I entered 2 Bitcoins. So I’ve been using a lot of Bitcoin wallets since Apple lifted it. There are probably over a dozen different wallets on the app store right now but eventually, I think I settled on this one.

Tai Zen: Now why did you settle for this Breadwallet versus like the Coinbase Wallet or the Blockchain Wallet, which are more popular.

Leon Fu: Well the Bitcoin wallet itself doesn’t run on the iPhone or iOS devices, the Bitcoin Core, that runs on Windows, Mac, and Linux.

Tai Zen: So there are not that many Bitcoin apps for the iPhone.

Leon Fu: There’s actually a lot of Bitcoin apps. Now you can’t use the one from Gavin Andresen, the Bitcoin core developers, that’s for desktops computers. So, but in any case, there are several Bitcoin wallets on the market like you mentioned, Blockchain, Coinbase, there are several others like Green Wallet

If you just type in Bitcoin wallet, you’ll get a dozen different options but Breadwallet is unique because what makes this different than all the other Bitcoin wallet is that so far, it’s the only native iOS Bitcoin client that I found.

Tai Zen: So for a nontechnical person, what does native iOS app mean? What does native iOS mean?

Leon Fu: So native iOS means that it was written in Objective-C, which is the native language of iOS devices. And it doesn’t depend on any third party servers. Like for example, if you use the Blockchain Wallet, the blockchain.info has to be up and running. If you use a Coinbase wallet, then Coinbase has to be up and running. If Coinbase goes down or Blockchain goes down, then you’re not going to be able to use the app.

Tai Zen: So basically this is the first app to use… Pretty much your smartphone is the computer. It doesn’t have to rely on any servers from Coinbase or from Blockchain.

Leon Fu: Those are the most common. I think android has a few more options, but as far as iOS goes for iPhone or Ipad, this is the only one that I’ve found so far, which means there’s an implementation of the Bitcoin protocol completely stand alone in this app.

Tai Zen: Pretty powerful.

Leon Fu: So for example, how is this beneficial to us? Number one, I think we mentioned in a video before, a lot of these web servers get attacked. Like with the DDoS or maybe their server goes down for whatever reason, then you can’t use their wallet anymore. Because if they don’t have a server to communicate to, then it doesn’t work. That can’t happen with this app because everything it needs is contained in the app itself.

Tai Zen: Now is the entire Bitcoin public ledger and blockchain or stored on your computer?

Leon Fu: No, the whole ledger is 20 gigabytes, so obviously that won’t fit on your phone. It uses something called a “simplified payment verification” (SPV) so that it can verify transactions without downloading the entire blockchain.

Tai Zen: The blockchain would be the public ledger that stores all the Bitcoin transactions that’s ever been made.

Leon Fu: So it can’t like a Bitcoin node. But it can sign transactions, it can update your balance. But it’s not a full node which would be like running the Bitcoin Core app on your PC.

Tai Zen: So whenever I connect to the Bitcoin network with my desktop computer or laptop computer, what you were saying when you say that your phone is not a Bitcoin node, that means that I cannot connect to your phone and download a copy of the public ledger.

Leon Fu: Correct. The blockchain ledger is not on your phone and you remember when you run the Bitcoin full node, not only are you downloading the blockchain, but you also act as a peer so that other people can download the blockchain from you so other nodes in the Bitcoin ledger can also get you… You’re downloading blocks that you don’t have and you’re also sending blocks. You’re relaying to other nodes.

Tai Zen: Once this Breadwallet is on your phone, it acts as a one-way communication only. Is that correct? To the public ledger.

Leon Fu: It can’t verify transactions in the way a full node can, but it can verify that the transactions were actually part of the ledger. It can do that, but for practical purposes, remember this is a mobile app, the purpose of a mobile Bitcoin app is so that, like if we’re at a coffee shop for example, and we want to pay with Bitcoin, you don’t want to bring your whole computer with you, you want to be able to pay from your phone. So that’s the purpose of those wallets. You shouldn’t keep all your Bitcoins on this wallet or anything.

Tai Zen: Maybe 1 Bitcoin.

Leon Fu: Yeah, whatever you use to spend, the purpose of a mobile wallet is so that you want to use Bitcoin wallets on you to buy a…

Tai Zen: It’s like when you carry cash with you, you would not carry $10,000 of cash in your pocket. So you would carry enough cash for your daily or weekly spending.

Leon Fu: So that’s the purpose of mobile wallets in general. But that’s the feature of Breadwallet.

Tai Zen: How new is this wallet?

Leon Fu: It’s been around for several months now and it’s open source so you can go to Github and it’s written in Objective-C and you can download the source code and…

Tai Zen: So just for the people that are not computer programmers like you, you keep saying Objective-C, is that like the language that all the Apple iPhones and Macs and everything is written in, is that like I come from Vietnam, so I speak Vietnamese, you come from China, you speak Chinese, someone comes from Mexico, they speak Spanish, so these iPhones and these Macs, they speak in a language called Objective-C.

Leon Fu: Objective-C is kinda like that. But Objective-C is the language that Apple uses and only Apple uses this language. It’s a language to… actually, it came out in the early 80s if I remember correctly, about the same time that C++ came out. It got traction in the mid-80s when Steve Jobs when he was fired from Apple and he started NeXT Computer.

He was looking for an object-oriented language in the mid-80s and he chose Objective-C as the language of Mac and it became part of Apple when Apple bought out NeXT Computer and in the… I forgot what year it was, but that’s how Steve Jobs got back to Apple after he was fired. So eventually NeXT Computer became… NeXT eventually failed but the Mac today is from NeXT back then. So that’s why Apple uses Objective-C today.

Tai Zen: So now I got a bunch of comment questions from a non-technical person that I want to check out. So you’re one of the world’s top iOS programmers and developers. So from your perspective, in your experience, let’s talk about several different features of this app and see if it would quote-unquote meet your specifications as a professional iOS developer. First of all, how is the installation process, for example, is that fairly easy to do?

Leon Fu: It’s just like any other app in the app store. It’s a… you just download it from the app store and actually, the security on iOS is a much better than android. That might be my biased opinion, but…

Tai Zen: Well, I don’t want to hear that because I don’t like iPhone.

Leon Fu: 
Apple insists on keeping complete control over their ecosystem. They control everything from the hardware to the software and every app is signed by a key that Apple controls. So using this key, they can control what runs or what does not run on devices.

Tai Zen: So basically what you’re saying is that it has better quality control so that if an app is on the app store versus the Google play store, it has higher security and higher quality.

Leon Fu: Yes, because Apple maintains complete control. If somebody puts a virus or Trojan or something destructive, Apple can shut that down right away. And because they also keep control of the software, any bugs or any kind of security holes, they’re able to distribute fixes much, much faster than Android.

Like if you look at when iOS 8 came out, within a month or so, 50% of all devices are on the latest software. So Apple has an advantage over Android is that they can push out fixes much faster than Google can.

Tai Zen: So that sounds really good on the installation side. Now as far as the user-friendly side. What is your opinion because you’ve used it?

Leon Fu: Let me go back to the advantages of this one, one of which was that of course I just mentioned that because it doesn’t depend on third-party servers, therefore, you can’t get the DDoS like the wallet from Blockchain or Green Address or Coinbase or one of these other services. If Coinbase or Blockchain goes down, you can’t use your wallet.

Tai Zen: Because basically when you do use Coinbase or Blockchain wallet, you pretty much have an umbilical cord tied to their servers. So their servers go down, then you go down.

Leon Fu: Exactly. Because all the actual Bitcoin transactions, it’s not done by the app, it’s done on the servers.

Tai Zen: Whereas the Bitcoin Breadwallet, it’s done on your smartphone.

Leon Fu: It’s done on your smartphone. Therefore, it can’t be attacked because there’s no server that it’s communicating with. So as of today, it’s the only iOS client… it implements the Bitcoin protocol in Objective-C on iOS. And as far as I know, that’s the only wallet that does that.

Tai Zen: Can you talk about the UI?

Leon Fu: But the 2nd advantage is it’s much faster because it doesn’t have to communicate to a server. Everything is happening on your phone. And that’s important on the mobile wallet like I’ve tried to use Bitcoin to pay for like a taco on Rainey street, there’s a taco food truck that takes Bitcoin and you want something fast because you’re trying to pay for your thing and get out of there.

Tai Zen: So because of the transaction…

Leon Fu: Because it creates the transaction, it signs, it doesn’t have to communicate to a server in order to do that. So that’s the two big advantages, it’s a second or two faster but when you’re trying to pay for a coffee or something and get out of there, it makes a difference.

Tai Zen: So you think that that will increase the user-friendliness and get better adoption because some of the previous Bitcoin app, because they’re a little bit slow, people get annoyed by that, turned off by it.

Leon Fu: They get turned off because it has to communicate with server and download all your balances and…you want to pay and then you have to send another request to the server and none of that happens here. A service’s created and then transactions just send it on the network.

Tai Zen: We got a gentleman behind us just starting up his Harley Davidson and it’s extremely noisy. I don’t like Harley Davidsons. They’re noisy. I prefer rice rockets. Put a muffler on that. We also got a Nissan GT-R behind u. We gotta finish before that Nissan starts up too. So you were saying again about the speed of the app.

Leon Fu: The app is really fast like I have to pay to bring it up. It’s much faster to… I mean the first time you use it, it has to scan the blockchain, so that does take a little bit of time. But that’s one feature of the app. And the other feature of this app and this is not the only app that does this, but it also what’s called an HD wallet –  a Hierarchical Deterministic wallet.

Tai Zen: Now can you speak in English so that everybody understands what that…can you step out of your programming mode and be nontechnical? I try to break it down for the nontechnical people to understand even when you say that… I’ve heard other people say it online, what the hell does that deterministic wallet mean?

Leon Fu: So Deterministic Wallet is different than the Bitcoin Core. Like, let’s take the Bitcoin Core wallet for example. So to create a Bitcoin address, what you do is you generate a 160-bit number, random number and then you derive a public…

Tai Zen: So for the nontechnical people that don’t know what a 160-bit number is.

Leon Fu: Two to the 160th power.

Tai Zen: So does that mean like…

Leon Fu: It’s a huge number.

Tai Zen: It’s like 100 decimal places or a thousand numbers long or…

Leon Fu: So Bitcoin security is based on large numbers, like astronomically large numbers. Remember there is no key in Bitcoin. It’s like keeping your money in an open drawer. Anybody that guesses the right number can go in there and take the money. So how do you make sure the money is secured? The random number is so large…

Tai Zen: That it would take you several hundred years to figure it out.

Leon Fu: Even computers, if you just randomly try to pick numbers you will never get a number that had any money in it. It does not matter even if you use computers to randomly pick numbers. I mean, this is such a large number that even computers with astronomical… you can take supercomputers and it would be impossible in your lifetime to actually find like a number that had any money in it.

Tai Zen: So that we don’t get off track too far off track on the Breadwallet, what I would suggest is that you guys are watching this and you want to understand how big and large numbers that the Bitcoin network uses, I would recommend that you guys watch James DeAngelo from the World Bitcoin Network

He has a great video that talks about the large-scale numbers that Bitcoin uses and I think it’s like “The beauty of large numbers” or something. So just check one of his videos from back in around October of 2014 and he came out with a video that talks about the large numbers of Bitcoin and you guys can understand that some more.

Leon Fu: So let’s go back to non HD wallets such as Bitcoin Core, what they do is they generate a random number as a Bitcoin, like every time you create a new big winter dress.  It just generates a random number using the random number generator.

So there’s a problem with that though because for security, for privacy, they suggest you never reuse addresses. When somebody pays you, you can give them a new address. And then you don’t use that address again because remembers everything’s on a public ledger. People can look up all the transactions that happened on that address.

So you should generate new addresses every transaction you have, but then that creates a problem – How do you back up your wallet? Because every time you use a new number, you have to back up that number. Otherwise, if you lose your wallet, you’ll lose your money.

So that’s a problem then as you start using a wallet if you did that, your backups, would get larger and larger and you would always have to regularly backup your wallet every time you did new transactions, you have to make another backup.

Tai Zen: It’s too cumbersome and it’s not user-friendly.

Leon Fu: Yes, exactly. So the HD wallet solves that problem is that you only have to make one backup. So the way HD wallet works are that you have a single number like we call it to seed and then from that seed, you can generate an infinite number of Bitcoin addresses from that seed. So you only need the backup one number and I was showing this to you earlier, that number is 12 words that you write down.

Tai Zen: That’s the passphrase that you have me say when I created my Breadwallet.

Leon Fu: When you created your Breadwallet, just by remembering those 12 words in that order, you can regenerate your wallet. You have an infinite number of Bitcoin addresses and because it means that using that random number, it’s deterministic.

Deterministic means that it’s always going to be like it. Whatever the output is going to be, and it’s going to happen every single time. So that’s what an HD wallet is. It means that you don’t have to make your backup, your wallet file every time you use transactions because all your Bitcoin addresses can be derived from that single 12 words.

Tai Zen: Now, is there a reason why it’s only 12 words? Why not six words or three words?

Leon Fu: Well, it could be. You know, I think 12 words is secured. Too few words and it’s too easy to get hacked. Too long, you’re going to forget. But anyway 12 is…

Tai Zen: It’s ideal for security reasons.

Leon Fu: I think Electrum also has this feature and they let you pick how many words you want, 12 to 16 or how many other words, but…

Tai Zen: Whoever created the Breadwallet, they’ve determined that at 12 words that’s fairly safe and secure.

Leon Fu: They implement something called the BIP. I don’t remember what it was 38 or 30. Anyway, actually this HD wallet is one of the Bitcoin improvement protocols proposals. The BIP. There’s a bunch of them and Breadwallet implements that standard.

Tai Zen: Now for the people listening to this and they’re not familiar with the BIP is each time somebody has a new idea to make the Bitcoin wallet better, they can submit a BIP which stands for a Bitcoin Improvement Proposal. And so they listed as the numbers. So obviously what he’s saying is that the BIP number so and so is the one that deals with the HD wallet, which is the hierarchal deterministic wallet. So that’s what it is. And you guys can google that yourself.

Leon Fu: So Breadwallet implements HD, it’s an HD wallet. You remember that 12 phrase word, and you can always recover all your Bitcoins with those 12 words.

Tai Zen: So there’s no need for me to back up all the different addresses I use for my transaction.

Leon Fu: That’s right and that’s another cool feature. Many wallets do this, but Breadwallet implements this as well, which is very handy on a mobile device because when you get a new phone, you just type in those 12 words and you get your wallet back.

Tai Zen: Let me ask you this. That’s the third feature that you really like about this Breadwallet, what else do you like about it?

Leon Fu: It’s very easy to use.

Tai Zen: So from a user-friendliness perspective, as an app developer, you think it’s very easy to use?

Leon Fu: It’s very easy to use. There are only three screens.

Tai Zen: Are you able to turn around and show the camera or are you…?

Leon Fu: I can show you, so this is one of the screens.

Tai Zen: Kind of pull it back some.

Leon Fu: So you can’t really see.

Tai Zen: So you the first screen, we’ll do screenshots of it. Just put at the bottom of the video.

Leon Fu: This is the second screen. When you started on you while you probably have no Bitcoins, you need to get some Bitcoins into this wallet. One of the screens is a QR code that someone else can scan o send you Bitcoins.

Tai Zen: I see at the top it says receive money and then it’s got the QR code and then it’s got your Bitcoin address at the bottom of the QR code.

Leon Fu: So this is a receive address for somebody to send you a Bitcoins. There are several ways that someone could send you Bitcoin.

Number one, they could scan it with another smartphone that supports this and they would get the address that way.

The second way is you can tap on the addresses listed here and you tap on it and then you can either copy it to the clipboard. You can send it to someone else as an email or as a text message.

Tai Zen: That’s pretty cool.

Leon Fu: Remember the part about the HD once somebody sends you money to this address, the Breadwallet generates a new Bitcoin address.

Tai Zen: So it automatically does it. So you don’t say. That’s awesome. I like that already.

Leon Fu: So somebody… I’m going to send you some Bitcoins here, you’ll see that it’s one address and remember the one address, why don’t you bring it up and… so take a look at that. That’s the address and it starts with 1,3, E, something, something, something. So I’m going to send you some Bitcoins by scanning the QR code.

Tai Zen: So basically, I got my QR code up here and my account is empty because I just created it. So he’s going to stand it in.

Leon Fu: We’ll do this one first. So I’m just gonna scan the QR code here.

Tai Zen: Now before you go any further away, I noticed that you held the phone about a foot away from my phone to scan it and that’s probably the most accurate scan that I’ve ever seen.

Leon Fu: The scanner works pretty great on this too. So you can see I just recognized it and picked it up.

Tai Zen: He was about maybe a…

Leon Fu: Six inches maybe.

Tai Zen: Just so you guys know. It’s about the distance of two soda cans to coke cans and immediately as soon as soon as he pointed it at my phone and my QR code, it picked it up immediately. So that’s probably got to be the fastest recognition that I have seen because the one for Coinbase is not that fast.

Leon Fu: Not that reliable either.

Tai Zen: When I use the Coinbase one, it asks that I download a QR scanner, which I really hate because now I gotta download two apps, one is a QR code scanner and then the other one is the Coinbase app itself, which to me is very annoying.

Leon Fu: Remember Bitcoin is still early, so they still got to work on… There’s a lot of work.

Tai Zen: You folks at Coinbase, you guys got to step up your game on the Coinbase app here because of this, I can already see that this Breadwallet app is significantly better already. So now you’re gonna go ahead and send me…

Leon Fu:
You can see that once I scanned it, it instantly picked up.  I’ll go through the process too while I’m at it. So one of the ways to pay is to scan a QR code. Here I can send, I type in how many Bitcoins that I want to send you.

And really Breadwallet uses bits as its units, 1 million bits is one Bitcoin. So the unit that I guess the developer chose to use is not Bitcoin but bits. And it’s a million to one.

Tai Zen:
So that would be the Satoshi right?

Leon Fu: 
No. Satoshi is a hundred million to one. So two decimal places. So he moved it over 2 decimals, just like dollars and cents.

Tai Zen: 
That’s like a millibit then.

Leon Fu: 
No I think millibit is a thousand to one.

Tai Zen: 
So how many decimal places?

Leon Fu: 
Just six decimal places. One million bits is one Bitcoin. So here’s the other thing is as I type, I’m going to send…

Tai Zen: Send me 10 cents.

Leon Fu: Yeah I will send you a thousand bits, which is about thirty-five cents because it’s about $3,50.

Tai Zen: Just send me like a few Bitcoins man. You got a bunch of them.

Leon Fu: I’ll send you 10,000 bits, That’s about $3. So 10,000 bits, it also shows you the dollar amount. I’m not quite sure where it gets the exchange rate but it’s roughly right. It looks like it’s from Bitstamp or Coinbase.

I’m not really sure where they got the rates, but for my European friends that use this, it looks at the currency, and it would display Euros, it looks at the iPhones currency unit and it uses that.

Tai Zen: So it’s able to be regional and identify the currency that you’re using,

Leon Fu: The local currency, whichever one you’re using. Then there’s an option here…

Tai Zen: A message, a pop up window.

Leon Fu: This is configurable. I don’t want to pay the 100-bit fee. Remember this fee goes to the miners and…

Tai Zen: We ain’t paying no miners for this.

Leon Fu: Exactly. We’re not going to pay any miners for this, but the downside to that is it takes longer to confirm, to get into blockchain.

Tai Zen: So hopefully by the time we upload this video and everything.

Leon Fu: But in this case, I’m not going to pay the fee. If I wanted to confirm, I would pay the fee, which is like 100 bits. It’s like 3 cents.

Tai Zen: Now, can you take a screenshot of that?

Leon Fu: I can take a screenshot of this.

Tai Zen: Could you take a screenshot on this one before you send it?

Leon Fu: I think it’s the power buttons over here now. it gives you a warning after a screenshot because they don’t want you to take a screenshot of your private key. They want you to write it down. So I’m not going to pay the fee. And so it gives you the option and then it gives you a confirmation screen that I’m about to send you.

Tai Zen: Can you take a screenshot of that one too?

Leon Fu: And really I’ve used this to pay for like when I like Tacos here and BitPay sometimes they show you that QR code which also includes an amount and then I don’t even have to type in the amount. But in this case, there’s no amount. So that’s why I had to punch it in.

Tai Zen: So most vendors will have the price in their QR code.

Leon Fu: Yes, this will also pick up that price and you don’t even have to type in the price, you just look at it and make sure it’s the amount and you would just send this to pay. I’m just going to send that to pay. So I just sent you a transaction and look at what just happened.

Tai Zen: Wow, it just popped up on my account immediately. I’m going to take a screenshot of that so that it’s timestamped.

Leon Fu: To the take a screenshot on the iPhone, just press the power and this.

Tai Zen: So pretty much as soon as he sent it, I received it immediately on my phone, I saw it immediately. So it’s probably faster than a text message.

Leon Fu: It was really fast. And that the goes to show you the speed because it’s a native Bitcoin client. That’s why it’s so fast, because it doesn’t have to get a message from the server saying I got a Bitcoin transaction, it communicates directly with the Bitcoin network itself.

Tai Zen: I’m sure that when VISA and MasterCard and Amex watch this video, they’re shaking in their boots. What do you think? I mean, there was no way in the world that any of the credit card transaction network can process a transaction that quick. That’s impossible for them to do. If you guys watch my other video, “Five reasons why Bitcoin is guaranteed to succeed”, this is the sixth reason here, using this Breadwallet.

Leon Fu: Yes, definitely. And notice what happened. I don’t know if you noticed. Remember we said it will generate a new address. So watch this. If I just simply, 1, 3, E. If I just simply swipe back and then go back, look at that. You can see the HD part of this wallet where it just generated a new one…

Tai Zen: Can you take a  screenshot of that one too, just that we can show because the first one had…

When you guys look at the screenshot of these under this video, guys, look at the first, three or four characters of the Bitcoin account number. And you’ll see that it changed when he tried to send me a second transaction.

Obviously, there’s no need for a Leon to send me a second transaction. You can look at the screenshots I have below this video and you can see it for yourself.

Leon Fu: So I’m going to show you another screen which is the third. Remember I told you there were three. There are only three screens in this thing.

Tai Zen: Now that now that it has created a different Bitcoin address to receive a new Bitcoin transaction. What else did you want to show me?

Leon Fu: So this time notice that that’s useful because now when you go get Bitcoins from someone else, they got a new address to send to. They can’t see the last payment you got because it’s a new number.

Tai Zen: And this is much more secure and safer.

Leon Fu: It’s more private. Because they don’t know what other Bitcoins other people have paid you.

Tai Zen: So basically once you send me this one, if somebody that’s watching this video, they cannot go and track that account and see how…

Leon Fu: That’s an empty account. If they do look that address up, there’s nothing in there.

Tai Zen: But if they looked at the account number, the one that you just sent me the $3 and forty-six cents to, they can go look at it again and they all they will ever see is $3,46?

Leon Fu: In other words, I could go. I sent you the 10,000 bits so I could go look at it and see it. But I already know I sent you. So it’s not giving me any information.

Tai Zen: So now if you send me a second payment, no one will…

Leon Fu: If I send you a second payment, no one will ever know. Or if you got another payment from someone else, I would never know.

Tai Zen: So let me ask you this. So let’s say if somebody wants to go back and backtrack my account, could they go back and backtrack that it came from you and then determined that the you had sent it to me again or does your Breadwallet also create a new sending address also?

Leon Fu: So I’ve studied how it does that. You have a set of private keys. Because that’s what an HD wallet does. It generates a set of private keys and then you receive Bitcoins in each of those private keys. So when you want to send out like a, let’s say I just gave you 10,000 bits or $3 and somebody else, next guy gives you some more and the next guy gives you some more and then you send another transaction.

What it’s gonna do is it’s going to take a bunch of those private keys and create like a new transaction, it creates one transaction with all of those private keys. But any kind of leftover that it has, it forwards it to another address.

So let’s say I just sent you three bucks. And you go ahead and send someone else to dollars. And then, so you get $1 in change back. It’s going to send $2 to that person’s address and then it’s gonna send that leftover $1 to your own address.

Tai Zen: Each time whether you go when you send a transaction in or out, there’s always going to be a new address.

Leon Fu: There’s always going to be… So out of those $3, $2 would go to the whoever you sent it to and $1 would go to another one of your HD addresses.

Tai Zen: I see it now. I see it now. So basically when you send me some Bitcoins, it will always create a new address if I break that amount that you sent me, if I break it up into separate amounts, each of those separate amounts gets a new address too, even the remaining balance in my account gets a new address.

Leon Fu: So how do this? You can go on blockchain and go ahead and see this for yourself. If let’s say now you have those 10,000 bits and you go send 5,000 of them to someone else or send them to yourself, you can actually see this happening on blockchain.info.

Tai Zen: Awesome man. That’s very secure and that makes it even more private also.

Leon Fu: So there you go. I wanted to show you the second screen. So why don’t you turn on your phone again and go… it’s protected by a pin code. So I want to show you, one of the other screens. If you press this button, the one up on the top left. You get …

Tai Zen: The menu button.

Leon Fu: Menu button. So this is really cool because it allows you to see the transactions that you’ve gotten. In this case, those are the 10,000 bits I sent you the zero compromise. It shows you the date and time, how many bits, what is the dollar amount, and then how many confirmations. I didn’t include a fee so it might take awhile. But it’s there. It’s already there and eventually, it’ll get picked up by a miner and then become part of the blockchain.

Tai Zen: 
Can you take a screenshot of that one also? Just for…

Leon Fu: 
So it allows you to do things like set the local currency. You can change your pin code, you can import other private keys, like for example, if you have a paper wallet. You can import that, with that, you can rescan the blockchain. Sometimes you might see a transaction missing or something, you can click rescan blockchain.

It’ll take your memory, those 12-digit words and what it does is it starts generating addresses, recalculating and then seeing the balance in each of those and then basically it keeps on going until it finds there are no more Bitcoins in that address when it knows it stops. And then you come this…

Tai Zen: 
And then in addition to importing the private keys from another Bitcoin wallet, you can also rescan the blockchain.

Leon Fu: 
And that’s useful if you say, “Hey, I’m missing, there’s something here, there are some missing pieces.” It’s not like a refresh button. And it’s refreshing.

Tai Zen: 
There’s also a feature here that allows you to select your local currency. In my case, it’s the US dollar, but if we look at the menu, there’s a bunch of them. Every world currency is on here. So now…

Leon Fu: 
And then there’s an option if you want to remove the miners’ fee, it let you do that too. Let’s say like in this case, I don’t care how long it takes to confirm because we’re just playing with it. But if you want a faster confirmation, you put in a little fee and that gives the incentive for the miners to pick it up and put it into the blockchain.

Tai Zen: 
Take a screenshot of that one also, the bottom half.

Leon Fu: 
And then very important, the backup phrase, you don’t want to let anyone have that. And if you pick it, it warns you not to show it because that you have to keep staying secret.

Tai Zen: 
When I click on the backup secret phrase, there’s a warning that comes up and it reads, do not let anyone see your backup phrase or they can spend your Bitcoins, do not take a screenshot, screenshots are visible to other apps and devices.

Leon Fu: 
So you use iCloud, your screenshots get sent up to Apple iClouds’servers. So you don’t want to… I mean we’ve been taking screenshots but, that’s what you have…

Tai Zen: 
Screenshots, those things that not harmful. So take a screenshot of that warning.

Leon Fu: 
Well, you can do that. Let me show you how to do a screenshot, you can do this.

Tai Zen: 
I’m just holding the camera in one hand.

Leon Fu: 
So here, it warns you, we’re not going to show that. That was the main reason you go into the screen, is to see the transactions. So why don’t you send those Bitcoins back to me?

Tai Zen: 
So can I send them, even though they’re not confirmed yet.

Leon Fu: 
Actually, you can’t do that. I don’t know, I’ve never tried. But to send Bitcoins, you would just basically swipe over to this screen. And then I’ll scan the QR code and then you can scan the QR code. So you can try that. Let’s hold it back. See how far you didn’t pick it up. You see, you got to put the QR code.

Tai Zen: 
There. So it’s about maybe about the distance of three soda cans and he was able to pick it up. So I’m going to try to send you a portion of it back. So you sent me $3 and forty-six cents – 10,000 bits. Let me see if I can try to send you back 5,000 bits.

Leon Fu: 
And you may not because it hasn’t been confirmed.

Tai Zen: 
So I typed in 5,000 bits there, which is equivalent to a dollar seventy-three cents.

Leon Fu: 
And on the upper, there’s the play button over there and the same thing you want to confirm, just press…

Tai Zen: 
It asks us for a confirmation.

Leon Fu: 
And you just type the 5,000 bits, 5,100 because of the fee.

Tai Zen: 
Let’s just throw it in there just so it’s quicker.

Leon Fu: 
It’s quicker and it’s sent.

Tai Zen: 
And I sent and it automatically removed it from my account immediately.

Leon Fu: 
And let’s go back to the hamburger, the little menu button. And there it is. Over here, I see it there.

Tai Zen: 
So he received it instantly even though the first 10,000… was it micro bits or millibits? The first 10,000 bits has not been confirmed yet. But the second transaction where I sent them 5,100 bits back to Leon was removed from my account and it showed up in his account, but neither one of us, neither one of the confirmations that we’ve done in this video had been confirmed yet. But at least it’s done.

Leon Fu: 
It’s not. So confirmations just can’t be taken back. The only thing is it prevents double spending. In other words, theoretically, someone could send another transaction to someone else, like those 10,000 bits I sent to you.

Tai Zen: 
You can.

Leon Fu: 
I can send those same 10,000 bits to someone else before they confirm that but only one of them would get picked up, but we don’t know which one. Whichever miner decides to pick it up then that’s how you…so the risk of unconfirmed transactions is that it could be reversed.

Because some other miner could pick up the other transaction and then it would get rejected. So that’s why you need to wait for confirmation, is to prevent double spending. But in this case, I mean for three bucks, nobody’s gonna…

Tai Zen: 
Nobody’s going to hack into it to try to steal two or three bucks.

Leon Fu: 
Nobody’s going to try to. It would cost more than that amount to double spend. So those are basically the… Let me go through the other… besides scanning QR code. The other thing you can do is pay an address from the clipboard. So if you copied something, a Bitcoin address in the clipboard, you can just say pay from address. So let’s say you have like an email or text message…

Tai Zen: 
So that’s just the copy and paste function. So basically if you, if I text you my Bitcoin address, then you would copy it and paste it into your Breadwallet and send it.

Leon Fu: 
And then I could pay it from the clipboard. What’s really cool about the app is there’s only… they don’t have the use case of anyone typing in a Bitcoin address likes a lot of the other wallets. They had the thing where they expect you to type and no one is going to do that correctly. I mean the developers of this app had really thought through what are the use cases.

Because there’s no point to actually let you type in a Bitcoin address. You either can have a QR code and somebody scans it or you can copy it to the clipboard or send it as a text message or send it as an email or pay somebody. The only thing you can do is scan a QR code or copy it from the clipboard. That’s the only ways that…

Tai Zen: So it minimizes confusion and it also minimizes the risk of doing it wrong.

Leon Fu: 
So that’s really why I give this wallet a thumbs up and you can see that I’ve used this, the…

Tai Zen: 
You’ve made a bunch of transactions.

Leon Fu: 
So I’ve used quite a bit and it’s now become the wallet that I use to carry… I have a couple of Bitcoins here that I can use it. Any merchant takes him…

Tai Zen: 
So is there anything else? I mean that’s a very comprehensive review of this app here. Anything else that you’ve experienced with it that you’d like to mention?

Leon Fu: 
No. That’s great. So far I haven’t had any issues with it. It’s open source on Github so you can go in, get it if you’re a programmer that is, you can go play around with it. Maybe you want to customize it and you can see also see what kind of features they have coming up. Like they’re going to support the fingerprint touch ID instead of entering the pin code to…

Tai Zen: 
So for like two-factor authentication and stuff.

Leon Fu: 
No, just the pin code that you have the type of pin code in. So the next release I expect to see a fingerprint sensor that you can unlock the wallet with your fingerprints.

Tai Zen: 
Now is this Breadwallet, is that work on… Because you have the iPhone 5.

Leon Fu: 
This is the 5S, that’s correct.

Tai Zen: 
And it works on my iPhone, the new iPhone 6 that I have and then does it work on all the old models of the iPhone?

Leon Fu: 
I don’t remember. I’d have to check. I mean you can find out on the app store. I think they show you what devices they support.

Tai Zen: 
And in case you guys are watching this and you guys happen to use the Breadwallet on a different model iPhone. Besides the iPhone 5 and the iPhone 6 as Leon and I have, will you please leave a comment in the comment section below and let us know if it works on your specific phone model so that the rest of the world will also know.

So just to recap everything about this Breadwallet that you’ve been testing and testing out in the real world. You said that you really like it because the number one reason is that it does not rely on any third party server. It computes all the transactions and processes it on your phone locally and you don’t so there’s no time.

Which leads to the second feature that you really like, is that the time span that it takes to process a Bitcoin transaction and send it to the blockchain and everything is a lot faster because all the computing power is being done locally on your phone. You don’t have to send it to the Coin-based server or to the Bitcoin or the…

Leon Fu:
Blockchain server or something to come back.

Tai Zen: 
And then the third one you said was that the hierarchal deterministic wallet feature where it creates a new Bitcoin address automatically. Whereas in the past you had to create it manually. It creates it automatically for your account, for every transaction.

Anytime a Bitcoin comes into your wallet, it gets a new address. Every time that Bitcoin leaves your wallet, it gets a new address. And the balance that’s remaining also gets a new address.

Leon Fu: 
And you just need to remember 12 words to get your wallet back. With it, you don’t have to keep backing up your wallet as you do with other non-HD wallets.

Tai Zen: 
The fourth thing that you mentioned, I think was the user interface as simple.

Leon Fu: 
It’s very simple and very fast and there are only three screens and they’ve really thought through the use cases of a mobile Bitcoin app wallet.

Tai Zen: 
Well guys I know we took a lot of time to really review this app with LeonFu.com here. But we hope that you guys check out this wallet, use it, and is there a place that the users can like donate to the developers? Is there like one developer for it or is there a team or what? How does that work?

Leon Fu: 
I know that there is one developer and I think you should check out their website. There’s a website and as far as I know, I think this is only on iOS this particular wallet. So it’s not on Android? I don’t believe so. I don’t believe so. But there are others. There is another good wallet on Android too.

Tai Zen:
So what I’m going to do, guys, is I would get the link to the inventor of the Breadwallet here and put it at the bottom of this video also for your reference, and then we’ll also try to find his Bitcoin address and leave it down to the bottom of this video to anybody that creates anything this good for the Bitcoin community and the network and the users. They definitely need to be rewarded for that.

So what I’ll do is I’ll take the balance of the big ones that you sent me and I’ll donate it to the inventor of the Breadwallet and then in case I’m sure that the owner of the Breadwallet will probably listen to see this video also.

If they want to get your sincere opinion of the top iOS developers out there, if they want to get your input on it or let’s just say you or anybody wants to make suggestions to make the Breadwallet better so that we can improve the Bitcoin network and the community and the user interface makes it easier for people to adopt and stuff.

Have you found out who, where’s the best way to make the recommend?

Leon Fu: 
I actually want… I have been very busy at work, but I actually want to… since I am an iOS developer myself. When work slows down a little bit, I do want to go ahead and download the source code for this Breadwallet and really because like I said, so far, this is the only native iOS Objective-C implementation of the Bitcoin protocol that I’ve seen.

Tai Zen: 
That you really liked that I like.

Leon Fu: 
And I’d also like to understand how it works and that’s one of my projects. But, I haven’t had the time to get around to it yet.

Tai Zen: Maybe look at the source code and maybe duplicate and create one for NXT wallet or something.

Leon Fu: Well probably, you could create like the Litecoin version or something like this.

Tai Zen:  Maybe you can go in there and rewrite the code somehow or add to it so that you can add like NXT and other coins.

Leon Fu: It’s possible. I mean, as I said, it is open source so any developer can fork it just like they forked the Bitcoin source code.

Tai Zen: But what I mean like the guy did a good job and build on top of it. Go out there and…I mean if it’s good, let’s make it better.

Leon Fu: It definitely is good. And it’s something I recommend to my friends.

Tai Zen: Hey guys, we got one of the world’s top iOS developers sitting here reviewing one of the tops Bitcoin apps called Breadwallet for the iOS operating system, for their smartphones and iPhones and we recommend you check it out, use it, test it, and give feedback on it.

And then, thanks for watching this video, guys, if you want to support our freedom blog where we blog about the tools, the technologies and things that help people find more freedom in their health, and the relationships, please support us at our blog and we’ll look forward to seeing you in the next video.

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