PegNet | The Pegged Stablecoin Network for DeFi! | CPU PoW Mining | Oracle Data | Pegged Assets

by birtanpublished on August 18, 2020

hello it's Brad Lori or blockchain Brad and on behalf of Block B right is my honor to speak with David Johnson today he is someone who was well known and well versed when it comes to all things block chaining cryptocurrency he has a

Lot of experience when it comes to protocols themselves so David thank you very much for your time today yeah that's great to be here Brad appreciate you taking the time to do the interview no worries mate now for those who are

Wondering this is entirely free it's all about education and information and today we're speaking specifically about a startup called peg net now Dave as I mentioned before you're very much well-versed when it comes to protocols

When it comes to decentralized endeavors tell us a bit about yourself mate before we start about what you stand for when it comes to the ideals and a vision of watching so I was lucky to hear about Bitcoin back in 2012

And when my friend fish explained it to me I sort of said wait you know you're saying there's a non-governmental currency that can never be manipulated by politicians and it's controlled by math yeah I think I'd like to you know

Turn all my green pieces of paper into that right and it's sort of set me down on this road of going down the rabbit hole of blockchain ended up starting the first angel investment group in the space bid angels in 2013 and so God

Exposure to a lot of the early protocols the early days of aetherium and other projects that were just coming online in 2014 so yeah it's been an amazing time and really the ideals that that drive me our honesty um I see block chains

Encrypted currency more generally as an honest ledger right there sword a so much manipulation we see in the financial system that's done by the Federal Reserve and other sort of pulling levers in the back room that

Change an interest rate here or you know dump in a few hundred billion dollars there I mean it's it's just something that that doesn't sit well with me from a fundamental perspective and so I love

The idea of a transparent ledger where everybody can see what's going on have confidence about how many you know units are in the system that nobody has some advantage right everybody had to put value in in order to participate my

Thrilla I really love that and so since 2012 I've been pretty much all blockchain I now run a family office we only invest in blockchain and crypto and we've made about 40 investments across the ecosystem this last six years so

Yeah it's been really fun to see it all evolve and here we are today well and look at you you know 40 investments later obviously a huge proponent of all the potentials obvious whether that be for business whether that be for you

Know foundations and even for the open source nature of this now it's interesting you mentioned something as well David in with regard to manipulation in mainstream money markets because things as they've played out in

Crypto haven't all been clean either we've certainly seen some very questionable conduct so that's why I really want to talk to you today because going back to what you stand for today being peg knit one thing that impressed

Me was no I know I see oh no cream lines you know the hardcore genuine decentralization as a motive so talk us through that for a moment talk us through how important those things are to you as you really push forward for a

New paradigm and it especially comes to money sure no that's that's a great point and you know for me a lot of people know me from coining the term daps or decentralized applications in 2013 and sort of the the tenants that I

Put forth to define that were it had to be open source it had to be peer-to-peer it had to have a blockchain back in and had it I had to have a token to really drive the economics and reward behavior in a

System right and sort of using those fundamentals it's been amazing to see all the things people have built an and to your point I think it's best when it sort of sticks to those principles right and things in 2017 kind of got away from

That right it wasn't about the blockchain it wasn't about peer-to-peer networks it's about it was about fundraising lots of money and so it's cool to see developers sort of returning to the foundations and

Saying okay what made this so special is anybody could participate right the permissionless nature of these projects and so you know toss out the ICO toss out the token sale let's just do mining and with pic net they were smart to pick

An algorithm that works really well for CPUs so you don't need a six you don't need a GPU you could just have commodity Hardware you know laptop a desktop and you can participate in the network and so when they launched mining August 19th

You know we saw this huge rush of people to participate in the system hundreds of miners like we're expecting a few a few dozen nerds like us but you know hundreds people showed up even in the first few days and now it's grown to the

Equivalent about 75,000 computers on the network so that the hash rate has increased 200 times well in the lap 90 days it's just been incredible to watch but there there's no friction right there's nothing to sign up for you don't

Have to you know get special permission you know from a federated server or something to participate it's just anybody can participate so it's been amazing to sort of go back to those fundamentals and it kind of relived some

Of what it was like back in 2011-2012 in the Bitcoin world whereas this sort of just this permissionless network and anybody can add value and participate so I really like that about the PEG nut and sort of it extends to everything that

The developers have built there it's it's about building decentralized stable coins for example and not relying on a central party that's holding a reserve of value and claiming that they have as many tokens as they have in the reserve

Right exactly all sorts of problems with that right and I'm sorry interrupt but I do really want to focus on you know full full and holistic nature of peg nets so we're gonna dive deep so don't worry I'm not

Going to miss anything but on the night you mentioned you know because you are one of the founding fathers of the d app and as you put it you certainly you know well well actually connected to the talaq at the time you you know you're

Very deeply involved in blockchain and even in the innovation and the literature and so we're talking about I'm speaking with someone you know it essentially is blockchain royalty you know put it

Bluntly by two kinds by okay but beyond that made honestly one of the things I think a lot of people are appreciating right now is what you're saying about redressing some of those issues we've seen that have emerged and bringing it

Back because honestly that was the thing that attracted so many cypherpunks to this face it was what made this beauty of this face potentially beautiful because it was really in the spirit of truly changing the game creating

Decentralized money from the outset and now peg net is doing something even beyond that and challenging the idea of money itself across the globe you know and bringing it to a new literally to a new paradigm with this idea of stable

Coins especially the way you've designed it so let's talk about that now you claim to have a network of stable coins and as I'm not even claim that you're proven you do and it's certainly designed you know the spirit of d-file

Decentralized finance but talk us through exactly what it means to have this network and also your native token and where it fits into it sure so there are 30 pegged assets on the network there is 14 of the largest fiat

Currencies in the world 14 of the big crypto currencies and also gold and silver um so you have sort of different categories of assets but they're all convertible inside of the peg net which is sort of the big advantage of this

System is a lot of people are using stable coins as a means of hedging it right if there's a bear market coming people want to convert let's say they're pegged ether into a pegged gold and then as soon as they feel bullish again they

Want to be able to convert back in right without going back to the legacy financial system without paying a bunch of fees or having to sell something on an exchange and so pick that allows you to do that but not just with the dollar

But with all of these major currencies um that's one of the major limitations of the reserve structure the most stable coin is used today is you can't hire an Indian rupee stable coin because you'd have to have a bank account full

Of rupees and they're not allowing those financial connections so pegged out instead uses the miners as Oracle's and they're reporting the prices on those thirty assets every ten minutes so think about it like you're getting

The average price over that ten minute period for the price of gold or price of Dollars and this also solves sort of all the needs to have a counterparty because pignut you're within your own wallet you're not you're not dealing with

Anybody else you're not sending a transaction out you're not trading with somebody else on an order book it's all your value inside your own wallet and you're saying I want to do that hedging I'm just gonna reference that

Decentralized oracle in order to do it so that's something pretty unique that we haven't seen before to answer your question about the the native token so peg are awarded to the miners and is used in arbitrage in the system so

They're five thousand peg rewarded every block to the miners and five thousand peg available to the arbitrage is for conversions and so there's this predictable supply of 10,000 peg available every block and it's every ten

Minutes so that is sort of the the base functions of what peg does it allows you to sort of get into pegged assets in the system and that's that's its core function right and my apologies for my dog in the background but we'll just

Labor through this now what was interesting I heard you speak about this having this predictable structure has only recently been finalized in terms of that though the block rewards and all of the details there now what's interesting

Also is this negative token has real utility from the research I've done because of the mining so can you talk us through this it's imperative of utility connected with your native token for the whole network to operate productively

And efficiently sure well you know because you're using Oracle's to set the prices of the pegged assets how do you know the Oracle is true well the good old fashioned way to do it is proof of work you know it's sort of amazing to me

That it's still 2019 and we're going back to to proof of work there there have proved to be a lot of edge cases and complexity around a proof of stake there's some potential solutions there but we you know the the pregnant

Developers decided let's just keep it simple and people have to submit hash power with all of the prices that they submit right so nobody can just submit prices without using real hardware and real energy and effort to submit those

To the network um so first all of the prices submitted are graded by that hash power right have you proven to be a good actor that's adding value to secure these prices for the systems and and if you make it through that sort okay here

Are the top 25 miners then they're all graded by how close they are to that median price so you have to both provide good data but also accurate data so the closer you are to that average the more likely you are to be included in those

Top 25 miners so pick up actually rewards the top 25 miners every block so I'm like Bitcoin it's not a single winner for every block that sort of distribute its it pretty widely to a large set of miners that are

Participating in the system well so that's sort of the core function is how do we reward people for submitting honest prices and that equals the security of the system right the more computers we have securing the network

More confidence that I can have that these prices are correct and that somebody trying to mess with the system would have to use an extraordinary extraordinary amount of computation and and electricity and and effort to do so

Right an interesting debut mention electricity because one of the things that I like about your model with the mining is that it's significantly less in terms of computational you know requisites in terms of energy

Consumption I mean so sure I know percent less so in the light in light of all the things we've seen emergent with the controversy of Bitcoin beings even with all of the innovations with renewable energies it's a big difference

To Jeff you know that issue yeah the Alex our hash that's used by pregnant is mostly memory about so do you have at least two gigabytes of memory connected to the computer you're doing the mining with and so it doesn't

Take a lot of energy consumes maybe 10% and what your CPU is doing idly in the background anyway we put some electric meters on a few of the miners and it was like 10 to 30 watts I mean you're talking less

Electricity than it takes around light bulb in the same room in order to run the miner on that computer and so yeah I really like that aspect too because what we want is a reliable proof but if that doesn't have to consume a lot of energy

Then why would we opt for that so opting for a a memory bound or RAM bound type of approach I think it was a really smart decision because you know why consume the electricity if we don't have to and so it sort of shifts to how many

Computers do you have with that Ram and that's something that's not easy to paralyse we're making a parallel process and what's interesting too is that by having these Ram hash approach as you mentioned is that it means that more

People can access this because it is CPU driven and makes it more equitable for people and I think a lot of people wanted that way with the way that Bitcoin moved it became more about pools and more about power

So you're addressing that issue as well and reducing the risks of monopolies especially it comes to mining yeah no I think that's important I mean I got into Bitcoin in 2012 and I was just a little too late to really get into the the

Mining GPU farms were already a thing Asics were coming on the horizon and so for me it was just easier to buy some Bitcoin um but I love the idea of returning to sort of that ideal where anybody can participate with the

Hardware they already have they don't even buy something new they can get access to this just with the hardware they already have I think that's that's the ideal I mean if you look at the old days of Bitcoin back before even the

Software was hosted on github it had been downloaded a few million times and it built this huge organic base of people that sort of had experimented with it gotten to know the technology and sort of as it gained traction it had

This real massive community of people that sort of understood it at a basic level and it was sort of too bad when we lost of that as it become became very industrialized and so you know we'll see

Whether the hash can sort of maintain its non ASIC ties sort of existence but even if you know it remains unbiased for a year a few years I think that's an important phase to sort of build this community where anybody can access it

And one of the developers that I was talking to pointed out if anybody does manage to do a better parallel process between competition and RAM it's actually broadly applicable to at all of computer science so if we end up having

A breakthrough there that would actually be useful for everybody as opposed to you know on the optimization and sha-256 is just sort of doing this one little calculation again and again again faster and faster and that doesn't really

Benefit sort of the broader world of people using computers right and obviously that's the direction you're taking this as well because we're talking about the negative token but if we expand that a bit like Bitcoin has

With their little B Big B analogy you're also building you know the big P or the big peg net as well and let's so let's talk about that in in light of the whole network now that you're you have a vision for and as you mentioned have a

Significant bit of assets already established in this so referencing for example the likes of Bitcoin in aetherium you know you're certainly supportive of those networks as well and there's technologies so you know how

Does it all fit in in it with that respect so the way that pig net is built is its using the factum technology which anchors into both Bitcoin and aetherium every ten minutes so you can think of it like it's using all of the hash power

And security from these large public networks it's using the digital identity and the Oracle immutability characteristics of factum for securing all this data it's published on the factum chain which today secures

Billions of records from around the world chains been around since 2015 so very well established and you can think of pigment as a DAP on top of that tech stack right so that's part of why pignut

Has been able to move so quickly it didn't take years to build this it's been built largely in the last four to six months and it's because the miners aren't doing consensus they're not ordering

Transactions they're not doing all of those steps that's already handled by the factum and Bitcoin aetherium layers below it all they have to do is publish that data the miners are just publishing that data and the existing block chains

Handle all the transactions the consensus and all those steps so from a holistic perspective peg net is sort of benefited from building on these other technology stacks who had already sort of paved the way the last three or four

Years right and I heard you explaining this recently with regard to the layering and you referenced in one breath the idea of PEG net being you know a layer solution in this respect to layer two solution so in that respect

You know etherium in many respects would have been one that would function as a layer one but also the the fact and protocol so just trying to understand a bit more about that in with regard to the different consensus and the

Structures obviously Oh it's critical thority for example if Acton and how important they are for scalability because obviously you need substantial scalability for the future and security as well so building upon the strengths

Of these kinds of protocols is going to be important for this your success so what made you obviously you know focus on these protocols is it because of your background in fact 'im or was it because of something else

Um it's partly because of the familiarity with those those protocols um you know if you wanted a protocol that could handle a lot of scale and that could do it at a very low cost a tenth of a penny to publish entries on

Factum is pretty competitive if you look at the per transaction cost for aetherium five cents 15 cents to present depends on how busy the network is it can get you know 30 40 cents Bitcoin even the fees can tend to be a dollar

More than a dollar depending on how busy the network is and so what you want to leverage Bitcoin and aetherium for is their massive proof of work and their extremely high level of secure so by just placing those merkel roots

Those transactions once every 10 minutes into these large public box chains you're inheriting the security of that state of a network by doing that right so that is really about securing the security of the long-term security of

The network now at the factum layer its handling all those conversions transactions sends between addresses all of that had already been established and if you look at the history of factum people have been securing immutable

Oracle's on it since 2016 I remember standing on stage in Tokyo with Sergey from the smart contracts group and we launched one of the first implementations where you could trigger an etherium smart contract using data

Published in fact them right and I'm a big proponent of this in general is people really have to think about block chains as text acts there's not going to be one protocol that can serve all use cases we we don't see that with

Programming languages we don't see that anywhere else in technology and databases all of these things specialize so I'm a big proponent of using things for what they do best a theorem is wonderful for tokenization for exchange

For smart contracts factum is very strong for immutable data for these Merkel tree structures these very low costs efficient ways of securing information and doing digital identity those are very different use cases so

You know I think the landscape that we're going to see going forward is people leveraging more and more combinations of tools to do these type of things going forward so that's sort of what what drove the interest and the

Developers in the peg net community are largely from even the etherium community or the factum communities so that's where we see a lot of the defy applications and I think it's for a reason absolutely and it does seem that

Factum is a special it's protocol for the use case that you're putting forward in you're literally building and again you've mentioned even the cross-chain potential in the future you know and opening up the prospects of working with

Other chains as well and I imagine that will be coming especially the connections that you have but let's talk a little bit more about the decentralized IDs for example you know how important is that you know to

Build this in and what's the main what's the crux of this for as you you know build your technology for the future so when it comes to decentralized identity I think this is sort of an underestimated part of the blockchain

Ecosystem it's not extremely valuable to be able to run a smart contract if I can't prove who my counterparties are right who's involved in in the process and so in fact I'm spend a lot of time on decentralized identity and you don't

Sort of adopted a lot of the w3 wc3 standards that have been published recently I think they're on the official wc3 website now is sort of check marking all of the things that you'd expect of a modern identity system so I think that's

Where things are moving because we have to couple these decentralized smart contracts with decentralized identity to make them a lot more powerful on in the context of peg net you know the digital identities can be used in a lot of ways

Um the fortunate thing about a user of PEG notice they don't have to interact with with another party but they do want to know the reputation and check the identity of a lot of the systems and software that they're using so you can

Create a digital identity for particular implementation of a software you can sign it and you can prove that that's the version that you expect to be using so I think that's important as this develops is we shouldn't fall back into

Sort of government to issued identities we really need to move into a sort of model or modern digital identities right and we think the likes of for example ontology that we're doing a lot of research in be IDs as well and it's

Interesting also with regard to Oracle's I'm going to touch on that with you and hopefully you can exce look at a bit more about this but basically with regard to Oracle's we've seen our tokenized models emerge we see you know

Startups where they specifically are Oracle's but they have a token attached to them which is in some respects anomalous I don't know if you were with that or not but many would argue in the text fear that sometimes don't need

A token attached to the Oracle itself so in your context you know because you're a broader network and because underpinning that is the the essential aspect of Oracle's what are your thoughts on these things you see

Emerging in this face I think instead of ization is important if you want it to be really decentralized right without a token what you're saying is that somebody else will pay for it somebody is cutting a check somewhere and is

Going to control the process um what organization really is is is the brilliance of Satoshi is that the first time ever the software could pay for the hardware like you gave a checkbook you gave a wallet to the software itself and

Said pay for this mechanism pay for this behavior right and so all of a sudden there wasn't an intermediary sitting in the middle that was paying for that server it was literally the software itself so that's the key insight that I

Think made Satoshi his system with Bitcoin successful is every version of emoney that came before there was some trusted party that had to pay for it and so by giving people a decentralized reward and permissionless reward for

Securing the network the network really took off um and so with payments it's the same thing yes somebody some trusted entity could publish an Oracle price and we could all believe that that's the correct Oracle price but I would propose

To you that that's a much more fragile system than what we've added it up with so instead the miners can pick any data source they want and pull an API from coin market cap or coin cap dot IO or Forex prices or whatever and if any

Oracle has a problem I can say oh that's stale data I'm going to flip to my next preferred data source and go with that and so you have all these different miners making different decisions about where they access that information and

Then you're aggregating that together and grading it toward that average or median price I think that's a much more real system it's also um much much much less vulnerable to hacks there's not a

Central party that if they go down everybody goes down right so obviously Oracle is a really important day but it was more about you know inquiring about the nature of tokens that we see in modes with Oracle's now in the sense

That there's been some questionable price movement price appreciation as some of these Oracle's that we have seen in the marketplace now so that's why I'm asking this because obviously with no pre mine no I I see oh now you're in a

Very different category but it always does concern me when price appreciation doesn't necessarily correlate with the tech hmm well at least in the case of peg net you know it's pretty directly correlated to is it useful right um the

Core value of magnetic these different tokens to these different values um because you're moving away from the reserved model you're moving away from the collateralization model something like maker Dell and you're really

Relying on these Oracle prices to be correct and if they're not the the system isn't going to function and so you know as much as people um see the Oracles in the proof of work used to secure them as a valid way of securing

That information and insure it ensuring that these conversions are correct that's going to directly correlate to how much value people are willing to put into the system right if and I wouldn't I would say you know the system's not

Ready to secure billions of dollars of value because there isn't that level of security yet when it comes to the Oracles and so it needs to be this organic cycle where we see an increase in mining which we have right to over a

Billion hash per second and so now I feel pretty good all right there's there's a lot of people securing this network now people have felt they can secure 11 million dollars of value in that work that's the amount of assets

That have moved in so far right so ok and and hopefully this is starts this virtuous oh well there's been this increase in assets in the network there's been this appreciation in the peg token that

Increasing the incentive for miners to put more hash power onto the network so you know where it looks like we're getting close to 1.5 maybe soon we'll break 2 billion hash per second and that gives you more confidence about the

Security right I mean that's sort of what we saw the early days of Bitcoin is you know people like why would I send a million dollars over a network you know that you know is being secured by just a small number of computers but as the

Hash power got bigger and bigger all of a sudden they had more and more comments okay nobody's gonna mess with this thing it's got thousands of computers it's got you know millions and millions of dollars of hardware secure in it so we

Need to go through that same kind of evolution with peg Matt um but so far so good it seems to be on that trajectory where value increase leads to more security which leads to more value increased right and lucky said I mean

Your underpinning everything is the negative token and the Oracles built into this you so you're not defined by the Oracle itself and what's interesting also you know as you're building this out is this just the beginning for you

Davis well you haven't really been out in the open in the wild as we know it for that long so how long has it been since you've been active you know as a token and accessible to be as an open source technology ah well the coders

Were contributing to the open source in July and in August the mining went live August 19th and sort of went through this bootstrapping phase where I wanted to see enough security move on to the network before they started conversions

In the system conversions went live October 14th so I was at DEFCON and we you know tried to make a little announcement hey you know the system's going live and the first few hundred thousand dollars of assets moved into

The system which is great to see and then just recently on December 9th I believe the arbitrage went live so the price of PEG went free floating arm sort of all the upgrades around stable and predictable supply of peg all of those

Upgrades were finished and you could really start arbitrage in the system to start closing those prices between external exchanges and internal reference prices when pigment so those are really the three big things we

Needed you need the mine into your life conversions and then arbitrage so all of that now has officially been delivered but yeah I mean it's December 16th so the arbitrage been live for seven days so it's really yeah and that's what I

Mentioned it because as a scientist of you there are very few projects that really get me interested this quickly and you know having researched this you know for a few days now but really focused on today this one because of the

Fact you these things have all moved together and already we've seen the evidence empirically of interest from not just dibs but those who want to experiment with the potential of this with the arbitrage now built in it's a

Big deal obviously that's going to exciting way when you're talking about you wrote that because it's a lot built in there but in terms of just going back to protocol for a second I want to talk about some of the anchors that you're

Built in as well that's why I was referencing Bitcoin and Entering before because it you explain this you know very clearly in your your talks that are also available online so how important is going back to Bitcoin and aetherium

In terms of being anchors to support what you're trying to build I think it's very important for the general ecosystem especially people that aren't necessarily as deep into crypto as we are a lot of times what they know is

Bitcoin in aetherium right they're by far the two largest brands in the ecosystem and often I don't get this question as much as I used to but in 2015 2016 you know I'd be talking to an enterprise

Guy and he said yeah but what happens when Bitcoin goes away and one of the ways you can answer that you know sort of without arguing a lot about well bitcoins not gonna go away is to say oh if if that happens we're agnostic it's

Also anchored into aetherium and it can also be anchored into other chains if anything else becomes popular we can anchor into that and sort of they get enough redundancy because that's the same anchors right they're just

Validating in the same thing you've got all these redundant anchors in these different chains at some point it's like well look if like the internet would have to go down for this to stop working and hey

The internet goes down we've got bigger prop right than the validity of this particular blockchain right so you can sort of address people's concerns and being agnostic and supporting multiple chains was a strategy you know working

With the factum team but that sort of always addressed those issues yeah it's very clever because a lot of people don't realize I think that fact and can function in that way or it can interoperate and it can be agnostic yeah

And also facilitate pigment you know on top of that so it's a big deal for the future as we see new scalable layer ones potentially coming out that are even more you know technologically focused and all capable and had the capacity for

Greater scaling you know not and not compromise security in that in that respect as well so clearly you'll be watching some of these they're emerging in the next year's and looking to perhaps you know collaborate with them

As well but what about defy this is an interesting one because we see the likes of etherium doing exceptionally well when it comes to the narrative and also onboarding immense and the developers but it's not just if they're Emmet's

Doing defo it's true there's a lot of cool projects going on I would say they have the majority from what I've seen of dphi projects partly because a lot of the defy relies on smart contracts um but to reduce complexity rather than

Using a smart contract approach pignut really sort of approached d5 from an angle of how do we use these Oracle's and keep it simple where a person doesn't have to interact with another party so it's definitely open up sort of

A new venue of defy a lot of defy has been about give me an interest rate for you know providing some capital it all off something like compound right which is great um but there's also a need for decentralized finance when it comes to

Stable coins and synthetic assets that represent a certain price on a public market and so I think what pagina can bring is sort of an expansion of that defy vision something that works on aetherium but can also be interoperable

With other chains right exactly now just to reiterate once we've talked about before I want to make sure we really crystal clear on this sono pre mine know found the rewards which we hadn't talked about before definitely no

I see oh no I and no air drop so these you really are standing by the ideas and the ideals of decentralization by having that designed but I also wanted to find a bit more about the relationship between fact and because there's a

Burning model built in as well with the FC T token and there's also asset conversion and then obviously minor rewards as the key three key utilities offered for so can you tell us a bit more about that relationship with that

Token sure so given that peg net is a DAP built on the factum blockchain it's aware of actions taken on factor whereas it's not aware of you know burns taking place on some other protocol right where you're not running a factum node

Specifically it gives you the ability to see okay yes I can see that burn took place um this is sort of the core of okay huh how do we prove that values moved into the system and how do we keep it all on chain so it's a hundred

Percent auditable all right well the nice thing as factum has had this function for years you've always been able to take a factoid and just the software license in the system and convert it into entry credits which are

What you used to write data into the chain um and this to token system is pretty unique factum sort of pioneered this idea of the entry credit is non-transferable it's a sign of one address and can never leave that address

Doesn't have any monetary value outside of writing data to the factum chain um and it's always been pegged to a tenth of a penny so it looks at the price of you know factoids in the market says okay that conversion rate is about a

Tenth of a penny so this is sort of a natural extension of the capability that the factum chain had already pioneered but now extending that to dollars in euros and yen and yuan and all these other tokens on by referencing those

Oracle prices not just for entry credit pricing and so this is sort of a natural extension of something that they had already you know really tested well and expanded all of the edge cases and

Explored all the edge cases of what was going on there so by leaning on that work it probably saved the project a year worth of time to sort of inherit all of those capabilities so as you said somebody can take factoids they can

Convert them into pegged factoids and the ping nut and they can convert those peg factories into any other p asset so they can take thousand dollars of factoids end up with thousand dollars of PEG gold right and that's one of the

Entry ways into the system the other one of course is taking peg and doing those conversions in so you have a way for miners and you have a way for people providing capital to get into the system and I think you really need both is a

Way for somebody that already has crypto value they can prove they added it to the system or a person that Minds it you know directly with hash power and add that to the system either way yeah and you know what's interesting also is

You're introducing as you said that P aspect I want to try and understand that more in the context of synthetics because we hear that word brought out quite a lot but there's also the token itself the pegged asset token that's

Specific to their overall network you built and built in three categories for this feared crypto and then precious metals with commodities so how many in that holds sort of in that scope of you know assets you know covering them as

Different classifications haven't you got available now and you also see this really expanding the future sure big nerd is agnostic really anything with two or three data sources that are publicly available the asset has to be

Worth at least 100 million dollars and market cap and requires at least 5 million dollars in daily trading volumes so it's really large public assets that it's best suited for today there are 14 fiat currencies

Enough we can name them off the top my head but dollar euro yen yuan Hong Kong dollar Singapore dollar Brazilian rial Indian rupee Philippine and pastes this down below in the description because I it's a lot I wrote them all

Out yeah but I was really amazed how many you did have already on the books sure so you know kudos to you and your team for establishing that now with crypto you also have a very long list almost similar in terms of science

Yeah Bitcoin Furion Bitcoin cash – rayvin coin card on Oh etcetera etcetera we tried to add a lot of the best available projects and I exfoli expect them more will get added because there's additional cryptos additional fiat that

Meet those criteria maybe we didn't have the data sources available for them all during the launch but I've I've announced a you know so this idea are written about it in an article of PEG net improvement proposals pips and you

Know people have sort of taken that run with it and they're making all sorts of suggestions for how we can improve the protocol right and that's what's exciting as well and that also goes in in line with the idea of leapfrogging

From what we first saw with stable coins emerging you're now bringing it into a network so I wanted to try and understand a bit more as I said about that P aspect you know it means a lot because you know creating this what I've

Known caught up in my notes as a bridge you know copy of many assets or an Oracle lines you know asset as such where you're bringing together mainstream assets we've known love like gold and silver and other currencies

Perhaps not like let's say that's retract that but we know very well and we're familiar with and then you're adding the P to those as well as these crypto so what does that P mean specifically when it comes to the real

Value add that your network brings to make it all work together in one you know seamless process of conversion sure um so P is just short for pegged and so what we refer to as a P asset you know is you know pegged to gold or

Pegged silver and we just shortened it in the abbreviations for the tickers – you know P gold or P silver and what it really means is that all of those assets are interoperable on the peg net for conversion one to one so if you have

$1,500 of PEG gold and you want to convert it one-to-one into pegged aetherium then it's a push of a button in your wallet and you can flip them from one to the other the protocol looks at the price at the time and gives you

Credit exactly for that transition from gold to paid – theorem and so this is amazing in the sense that you don't have to deposit it on an exchange you don't have to find somebody else to trade with you can just do these conversions within

Your own wallets without taking any external risk um you know and that's that's also big savings on fees you know a lot of wallets are charged quarter percent after percent in exchange often charge that a is that or more for

Exchanging assets and here you don't incur any of that to publish that conversion on a fact in chain is that tenth of a penny whether you're converting a buck or a million bucks the protocol doesn't care

Okay so that's that's very freeing for anybody who wants to enter the ecosystem that doesn't have a lot of money you know I mean I think about myself when I started trading stocks when I was a kid it's because a trade came out and all of

A sudden I had access to ten dollar trades instead of paying some broker a hundred or two hundred dollars a trade right I didn't have the money for that right so you know I remember those days of sort of online trading first came out

It opened that whole world to people who had never had access to to stock trading before and so I see this in a similar lens where we're opening out financial tools at a tenth of a penny that people haven't had access to before maybe based

On where they live or the fact that they don't have thousands of dollars you know I wrote up a little article called it ready trader one and I noticed that somebody had been experimenting with small trades on the

Peg net just moving back and forth ten dollars into this acid or that acid to see I might cost them probably maybe but it was interesting um I looked at the numbers throughout the day and they had done a hundred and forty-four trades so

One every block they moved it around and they had spent 14 cents right dad you know just a few pennies to move around that value and the price moved in their favor that day and they made a few bucks right or you know fifty cents or a

Dollar whatever it was and you know that was a cool proof because if they had done that same thing on a centralized exchange their fees would have been ten dollars for the day and they would have lost money but on the peg nuts

They spent a few pennies and they made money and so that person was probably experimenting with the system but it sort of opened my eyes to oh wow the guy that the bar just got lowered from I need this many thousands of

Dollars before the fees are marginal to I need a couple of bucks before the fees are marshal that that kind of reminded me of where I came from and so that was pretty cool it is very cool because obviously people want to save a buck and

Make a buck obviously we've seen that with the likes of store of value narratives of Bitcoin but what is interesting though you know you're harping back to that pegged P is that there is this idea though that they

Become new assets you know asserted as such because you're creating literally that P addition so how important is it to have it separate and distinct even though it does replicate and represent some other asset I think it's important

Because you need to distinguish from the native asset you know these are synthetic assets they're they're not the native asset and so they do have different characteristics right arm so for example I couldn't take a paid

Factoid and converted into entry credits right the the fact from Shane is not aware of the DAPs that are operating on top of it so I couldn't use my peg fact was I can get the economics of the price of factoids but I can't use

It as part of its original utility so there is some differentiation and and it's I think important for consumers to avoid any confusion to have a different ticker and to differentiate what they are and that's true of a lot of the

Assets you know um I can't think of any special advantages for for Fiats maybe you get some small interest rate if if you deposited on the traditional bank account maybe that's a difference but you know staking is something that's

Proposed but not not implemented on on peg net so if you're hoping to get the original staking benefit then you may want to hold the original tokens so it depends on the use case and I think it's important to draw that distinctions so

Just to avoid any confusion I agree and what's interesting just to go back to staking because I think it's important given that there are synthetics it of emerge using staking models sometimes we've seen already that the token

Velocity you know doesn't necessarily correlate in there some questions about the effects of staking you know because perhaps sometimes it's the staking itself whilst it may be securing a network is also by form and function

Acting a bit like you know a saving system or removing things away from circulating supply and the more that happens that we see spikes in price that perhaps aren't sustainable so I like the way you're going back to that proof of

Work because really as you mentioned those three drivers are very much intuitive bound and it's all about trying to make sure that the ecosystem grows so let's let's go there let's discuss the my novel aspect of this a

Little bit more so we can better understand what motivates a minor you know what the reward specifically are and you know how do you sustain mining interest long-term as well given that it is CPU driven sure um so specifically

There are 5,000 Peg rewarded rewarded to miners every 10 minutes with each block because there are 25 winners of each block each of those individual miners are getting 200 peg provided to their address peg you know it's fairly cheap

At the moe it's half a penny I think is what its trading for and so it's a small reward but it's handed out a hundred and forty four times a day on a regular basis and people can compete for that reward and

Use it to cover a cost especially if they're using just hardware that they already have it may not be much of a marginal cost to run it on their existing machine you know the Ronna means in the background they may not

Even notice it's there right so I think for a lot of people they want to experiment with the technology and secure the network and earn some tokens in the process that's that's a cool proposition I think about it sort of

Like I used to run SETI at home or folding at home some of these charity type distributed computation platforms where you want to you know help cure cancer with protein you know folding at home I certainly every something

Everybody wants right right and so that's that's I think a good analogy is what we can we can bring this ecosystem to in fact I I don't think it'll be long before we see people running charity instances of pigment and you could mine

And donate that directly as peg dollars or something to a charity which I think would be really cool especially if you're not using your spare ram or computation on your computer why not you know help the Red Cross or whatever your

Favorite charity is I think it's such a cool idea and even for teaching you know this is the potential before students you know to be supportive around the world with resources it's the mints you know potential there but you know again

Coming back to access how are you going to spread the word how are you getting the word out right now Dave about mostly these of this you know the it's seeing or sometimes the see for you and how do people easily access the the mining

Aspect how they become a miner sure so you know because there's no foundation people are just evangelizing it on an individual basis right I have no official title with peg net you know

I've been mining it I've been trying to explain it to people so there's a lot of people interested in so we're holding a mas and doing interviews and stuff like that sort of reminds me of the early days of Bitcoin right before really

Before there was a foundation was just people excited about it and talking about something they were passionate about um as far as getting involved in the mining um for a lot of people they probably just want to join a pool I

Funded for example the first open-source mining pool will call prosper pool do and people can log in there they don't need a lot of technical skill they don't have to submit the Oracle prices they don't have to understand entry credits

And sort of some of the technical detail they could just can download it on their computer point the hash power towards you know the pool that they want to support and go from there so it really lowers the barrier for people to use a

Pool you know um some people critical of pools because okay it's concentrated it into these dozen groups that are on it that's why sure and you know but I think there's something to be said for specialization that lowers the bar for

More and more people to participate right and so um I think that's that's something that makes it easier for people to get involved I know there's a couple of graphical user interfaces basically graphical web wallets that

People will be able to use I think ones getting tested and may be released today mom so I think that'll lower the bar you don't have to know command-line interfaces to get involved you just be able to directly use it on the web so

Those kind of tools as they come out one by one or making it easier I love it and I love the fact you're also catering for the non techie as well with these pools but like I alluded to only going on the past you know with pools we had seen

Inherent risks in you know monopolies even emerging or if a trends they sort of transition into more tech focused pools as well so how are you going to because there's no foundation and there's no governance really of this

Whole you know unfolding how you know do you see this playing out you know because you obviously want to cater for the non tech sure well I mean that's part of why I wanted the pool that I donated to a few developers to build to

Be open-source and so that's I think what removes a lot of the barriers a lot of times pools are proprietary um a lot of the big mining pools you know they've built a lot of hard we're and they want to get paid for it

And I understand that but you know I wanted something that anybody could use and so within a week or two of releasing the open source we saw people had copied it and we're running pools all over the world that we had no idea about and

Weren't involved in um but that that was the whole idea is we get this organic community where people could do it themselves and you sort of break up some of that monopolistic approach so I wanted to see that really early on and

So I think the majority of the hash right now is all on these open-source pools so so far if they've been competing very well with any proprietary pools that have been on the scene and I don't progressed the proprietary people

Wanting to build cool interfaces then do there's a lot of real work that goes into that but I thought sort of the base access the very base level should just be open for everybody and you know what a lot of

People appreciate that honestly Dave because back in the day when Bitcoin first started and people could sort of start to experiment themselves with the hardware and do the mining but it became more and more expensive and much more

Exclusive and now we see you know one very concerning development potentially and that is nations getting involved you know in becoming you know serious powerhouses when it comes to ownership and rights to mining so you're literally

Breaking all this down with that open source approach flipping these sort of ideas on their heads so it's really an open approach so again you know it really does Hart back to those ideals we first you know fell in love with when it

Came to the cyberpunk movement now the truth of julie's shifting the nature of you know old money to a new paradigm and you're literally part of that mate so kudos to you and your team I can't help but if I know a little bit about this

Because you don't often talk to you know someone who isn't a founder founding member of anything like yourself and in the spirit of decentralization so we're trying to not leave out you know but by – by core design it's leaderless into

Something that is going to extend upon the narrative that bill coin started you know the discussion for so let's talk about the take the numbers for a moment now with PEG net market cap it's roughly ten

10 to 11 mil at the moment as I understand now the token as you mentioned you know it doesn't have a great deal of value when we compare that to say feared at point zero zero five roughly but that this is very early days

Right now volume I wanted to ask you about this because liquidity and volume come up all the time they are very distinct and there's a lot of fake of both of them in this space yeah absolutely so I mean that's starting for

A very small base there are three small exchanges that have added pegged assets so far off my head I believe it's fight X vine X and site X almost similar very similar spines v ite VI n e and c ite X so these are small exchanges all over

The world and they've started adding pegged assets we see you know order book depth like you said there's difference between liquidity and n volume of a few Bitcoin and daily volumes on the order of I think I saw the other day 1517

Bitcoin so it's starting to crack you know a few hundred thousand dollars love trading which is great to see I mean is coming from almost nothing you know October 14th when conversions launched to growing to that level so I think as

More exchanges at it and I'm optimistic that more exchanges will so if you look at something like raven coin they've got 50-plus exchanges and they took a very similar approach to using proof-of-work right and that really

Created for them a strong community and it was part of the inspiration for peg net is to use that kind of model on it really created a strong community and people just go ahead and list it right they don't need any permission I think

It's genetics very fast feed to be honest with you given that yeah it's so much interest already this is such early days but it did surprise me how quickly even with these unusual or unknown exchanges so did you consult with them

What a day contact you what was the process I really wanted to find out more because I'd never heard of these exchanges and as you alluded to that the bigger names will be coming it's only a matter of

I think sure well I think it it's a good mat match with a lot of these Dex's um because you think about the functions of PEG net it's sort of like having an OTC that has very deep liquidity right because peg net doesn't have a liquidity

Challenge you can convert as much as you want as long as you've put that much into your wallet so it's like putting an OTC a decentralized OTC next to all of these exchanges and one of the primary challenges has been liquidity for a lot

Of these Dex's so the idea that they would they largely reached out to us and say hey we want to you know add picked essence great there's the github go for it right and so you know it's it's been and I said I

Think they're also aligned with sort of the ethics of of PEG net in that you know they don't typically take custody of users assets they're they're you know sort of Dex's where you can put it in exactly I was gonna mention that because

A lot of dicks is that really Dick's is right so you know and it's gonna take all kinds but I don't try to criticize the centralized exchanges I realize we we do have to have bridges from that old world into this new world so you know

They're welcome to participate it as well you know we certainly don't discriminate um and I think we'll see more of that as people have started to see the growth of the pegged assets that are flowing into the system they said oh

This is this is getting subtraction this is really real assets are moving in here people are converting them around I think we've crossed more than a million dollars of daily conversions inside the PEG net um and so based on that

Direction I think we're getting more and more people that are reaching out and asking the developers how to how to get involved one aspect that I think will be very helpful is the community I know a couple developers are working on

Integrations with aetherium that will offer an e rc 20 version of the token so then it will effectively work in any theory and wallet and they aetherium exchange and I think that will also lower the barrier for people to

Participate because you got about a forty million plus unique aetherium addresses so there's a there's a really substantial user base in that ecosystem that you want to be able to serve and it won't be just etherium I could

See support for other other chains there's you know a lot of tokenization stuff going on in the Bitcoin cash realm in the stellar realm you know um but you know for peg net we want to be agnostic and sort of offer

People those access regardless you know what pagan it does is decentralized Oracle's right it is not the biggest place for you know tokens or wallets or exchanges you know we have to integrate and work with that existing community

That's already done that mmm and what's what's so exciting also you know is that you don't have you've removed that that problem or that challenge of liquidity because of the fact that you are importing so many assets as well so

Anytime that word that that quality of liquidity is going to increase no question I did want to ask you though to try and better understand this I couldn't find the data now you're circulating supply is just over two

Billion if I'm wrong please correct me but it wasn't sure about your total supply is that published anywhere sure I've put on an article about finger titled it predictable peg supply and you'll find that on my medium and I can

Give you the link for for afterwards and effectively what it is is that 10000 per block that's now the limit between the 5000 for miners and the 5,000 available for arbitrage errs per block and so that works out I want to say 526 million peg

Per year when you add it up and so we'll see that continue forever so it's aetherium style there's not a happiness table and so it'll continue to increase for forever and ever and sort of add another 500 million every year right so

What about inflation you know has that built into the model as well because obviously people misunderstand Bitcoin even it does have an inflation model also so how is it structured for that even it is infinite sure well it's it's

Very similar I think the visual will be helpful in the article for a lot of people because what you have is a declining percentage of inflation every year right because you have a larger base you know i2

Now let's say it's 2.5 billion at 12 months from now okay well 500 was million added over that base you really had a 20% increase right over the original 2 to 2.5 right so well and then the next year you go from 2.5

To 3 well it's a little less than 30% it's a little less than 20% now and so by the tenth fear you're under 10% inflation and then it goes down and down and down and down there as it continues to add so um very similar to Bitcoin in

The sense that a lot of the early Bitcoin inflation was during that first four years mmm back when you got 50 Bitcoin per block and before the having scheduled took it to 25 and then took it to 12.5 and next May will take it the

Six point you know nine twelve point five yeah six point two five right so it's it keeps getting smaller as well but half of all Bitcoin were admitted in that first four years all right of inflation that first four years a lot

Less and now it's getting down to just a couple right and and died that's what I use the term disinflation or even you know in the context of inflation still being existent so that's great to hear that you know you're looking you're

Working on models and building upon things that literally work and we know that that is an incentive of people to support it because of the ever reducing you know amount of inflation over time now use case Dave that's probably one of

The most important parts of any good and sound structure and model you've built in several use cases do you want to just touch on them so we can understand things like payments for example transactions you know in the real world

What you can actually do with this stuff you know to facilitate global comments trade and even just transactions and money no I think that's a good point um payments I think it's gonna be a large use case because people like the

Cheap fees they like the finality of a blockchain but they want to use the unit of account they're used to write their local currency that all their contracts and all their wages and all their you know life is denominated in this

Existing currency and so we've seen stable coins surpass even Bitcoin for daily trading volume I checked today I think tether us DT did twenty billion dollars today in volume Bitcoin did 17 or 18 billion and

So clearly people have a preference for that currency even if there's some downsides around the inflationary model which I very much understand and agree with I wouldn't use it for a store of value but people are using it for means

Of payment exactly and I think those are kind of differentiating and so you know with that in mind you know accessing South America Asia all these economies I think having something where you get rid of all those fees and intermediaries

Involved in payments this is pretty disruptive especially as soon as we see peg not supported in etherium wallet infrastructure and other chains you're making it accessible to tens of millions of people and a lot of these places have

Never had a stable coin because you would have to have a bank account and you can't get a bank account with rupees right because there's no connection allowed between the financial system and the exchanges and same in China right

And so the the model we can take and the reason we can support so many Fiats is because it's using this synthetic model because it's using this approach with Oracle's so I think it's going to open up things much broader much faster than

We could have done I do too I think you know even in the next year we're gonna see massive uptake of this because of potential not just for payments but for what underpins that and that is the commerce itself and as you mentioned you

Know you're opening up a 24/7 synthetic system you know through thee through the Oracles and through these peg assets you know it is really exciting but underneath that with your own ad token I was thinking much like Bitcoin you still

Have a semblance of store value for that asset even though we see for the most part stable coins replicate much of what we've seen with money with its unit of account with its minimum exchange and with its store a value but specifically

Yours it should technically even though you can't comment I will say this it should by design appreciating it's more than just you know the typical stable point design because it is more than that it is a utility good corner

Yeah peg is very much designed to be a true utility that is native to the system and you know you it couldn't effectively function without it right if there was no way to pay the miters or you know allow the arbitrage errs to do

Their work then this system wouldn't function and so no I I certainly am NOT in the price prediction business um and I I think what but what drives things is fundamentals right do people see value in creating pegged assets if they do

Then we'll see more value flowing into the system and one of the natural gateways is to take some of that peg and use it as a way to convert into the system um so yeah it's gonna be exciting to see how it develops that's super

Exciting anything and you know what's exciting also dave is that it doesn't mean in this context this is security it just doesn't because what we're learning now is that new and I'm much more confident this year salience is that

With the new with the emergence of new technologies especially in within the context of utility tokens for a for much of 2017-18 it was a huge experiment and many of them weren't real true utilities they were either in a pre utility phase

Or they just weren't anything but you know a false security but as we see the emergence of actual new asset classes like utility tokens there's absolutely no reason in from from the SEC CFTC standpoint that they can't actually have

Increasing value for their utility and that's going to I think really showcase something new educate people more on in the future because to appreciate in value doesn't now always mean security and really confident in that because the

Function of this token you offer and many others we see emerge just doesn't behave you know with expectations of dividends it just doesn't do that so it's going to be exciting to see more proof of utility in the future I think

And it's been great to see that some regulatory areas have been pretty progressive in sort of better definition I'd give a lot of credit to Switzerland I was just over in Liechtenstein recently they passed their

Blockchain act which goes into effect very soon I'm on January 1st the European Union passed some regulations recently they make it clear that banks can hold and custody tokens on behalf of users so it's really great to see sort

Of those pieces being put in place and so I think some of those more progressive jurisdictions are likely to be where a lot of this technology moves you know it's not necessarily taken for granted that we'll end up in California

If you look at the top block chains in the world most of them are based outside the US that's those that have foundation are primarily based in Switzerland or Singapore Hong Kong exactly yeah and you know what's interesting which we can

Talk about it's now it's perfect segue there does seem to be a bit of a backlash from Libra in the sense that many of the governments from the world are quite fearful of the potential you know of enterprise money let's call it

That or Enterprise you know assets now you're doing something very different because your melding the worlds you know the old world with the new and perhaps don't I'm all Khaled palatable in that sense are not scaring you know the

Powers that be as much but certainly they are talking a lot about stable points now have you noticed some of the the even in Europe for example they're now discussing what to do you know with this big question mark around stable

Quits yeah well I mean I think what we're likely to see is central bank's issuing their own digital currencies China has been working on that for years and looks like that'll become a reality next year I wouldn't be surprised if the

European Central Bank or the UK did something similar um but if one of the things that governments didn't like about Libre was the mixed basket approach it effectively put the Libra association in charge of monetary policy

Right you know how much do we want of each asset in this basket and so at least the the you know sort of rumors that I've heard is you know their move moving more towards picking a currency for each country's users right so you'd

Have a Libra dollar and a Libra euro and and whatever and then you still have effectively nation-states in charge of a monetary policy what gives more than is that or not yeah exactly it just becomes a payment rail exactly right um and so I

Don't think it solves some of the the monetary problems and I think there ought to be a separation between money and state is the long term view here but it'll be interesting to see how it evolves there it's definitely gotten a

Long way you know if you had told me in 2012 that by 2020 you know major nation states and all of these companies and everybody would be highly involved in blocky and I would save us wildly optimistic but you know here we are well

We can thank people like Mark Zuckerberg for for raising the profile perhaps by raising the question even of stable coins themselves because it did do actually a lot in terms of spreading the whorl of this technology now what's

Interesting to with yours is that because you do also open up the potential of working with theater in this peg sense that I would argue would also be something that many of these governments would be much more willing

To work with and I ask you this because many argue that you do need to have some of that top-down support as you you know as an organic decentralized open source technology you know goods itself you don't want it shut down even though it

Can't be we don't want any of those those social narratives or those political narratives trying to stifle what can be a very productive technology and it's worth pointing out that you know synthetic assets have been around

For a very long time and this is nothing new and is something that you know has existed for four decades and um you know are created at the level of billions or trillions of dollars and so you know I think that is helpful it's also helpful

That there's there's no central party right you're not sending these assets to a custodian there's no central party issuing these stable coins you know the user has control of their funds throughout the

Entire process and I think that's pretty critical because most of the regulations really focus on um who is the intermediary who is the person standing in the middle because then a user's money is at risk due to the actions of

Some other actor right and so it becomes a natural place that you're going to have conflict and conflict resolution needs um but in a system where there is no intermediary um you really sort of simplify a lot of those things you're

You're not sending money to somebody else you're not trusting somebody else to hold her hold it um there's these decentralized miners all over the world there's no central operators of the system um and so I think that design is

Important for not only cyber security reasons but also because it's for the cleanest system that honestly regulators should want right is for users to have power over their own funds exactly we're talking about a whole new financial so

Carried on with autonomy built-in and transparency as well as you mentioned because a lot of people initially thought falsely presume perhaps from lack of understanding of blockchain that it was somehow anonymous you know yeah

You know was all about trying to thwart but also convened the powers that people who actually could never really do that because of it you know beautiful transparency you know the fact that there was always that traceability built

Into it but then there was the question of privacy which is very valid you know they lose towards the rights of us without trying to move into realms of secrecy but moving back to you in in the future even though you know

You probably are involved in direct discussions and can't be do you anticipate that you'll see an influx in more exchanges listing you because of your own success and the proof already empirically in the near future obviously

It's a bit of a FOMO question yes but you know it has to be asked uh you know people reach out I watched the discord things very closely and I can see when exchanges are popping there and asking developers questions so

That's kind of good hints that people are looking at it at least evaluating adding pegged assets I'd love to see more of that and hopefully things like this interview and the a mas are sort of spreading knowledge and that the

Exchanges see real utility and giving their users access to pegged assets certainly something that hasn't been possible before and you know hopefully will drive people's interest and usage of their exchanges in order to get

Access to these type of tools but no I absolutely want to spread the word and you know exchanges have their own motivations and they Ted they tend to want good projects right where people really see the use and are excited about

Them you know they're they're crypto enthusiasts too there are miners too right and so you know they're part of this community and I think exchanges that sort of get this vision will be excited to be involved and it's it's not

Just about exchanges about OTCs it's about wallets it's about all of the tools that you need to integrate to make a project successful and so you know with mining launched conversions launched an arbitrage launched I'm

Really focusing in on how do we recruit great developers to work in and join this community um you know I think of fear IAM did a such a great job of that early on was rewarding encouraging developers and so I just released an

Article on crypto tithing the idea of giving on a regular basis to the developers that do all this hard work to build out the ecosystem so that they're not I just hired by companies and you know sort of have alternative

Motives but they can sort of purely work on the open source I think is great so I've been donating peg to developers that I see developing great stuff in the ecosystem and just encouraging everybody else to join in that so there's a Google

Sheets it has the addresses the projects that people are working on and so if people are passionate about this I hope they'll support them and so far so good and I you know you're very modest because I looked into this and this is

Your own money you're also donating to this cause not just you know because there's no foundation there's no actual source of funds that come from anywhere this is from your own

And you really do stand by as a proof you're literally giving money to support or giving you know valuable assets to those that you might be most value and they are the developers to build out more or the potential of this so really

Congratulations for standing you know standing by what you say improving with your your actions that you really believe in the future of this now what about compliance regulation just to touch on that very briefly are you

Concerned at all in any jurisdiction right now you know is there any pressure from the top to you know fix things or address things or is it difficult in some areas of the world to work in um I don't know I mean I haven't heard

Anything from regulators you know I don't know who they would send a letter to the miners are sort of all over the world and um you know the system runs on top of fact a lot of itself is centralized but um you know I think it

You know what you want to do is encourage good actors that's what really counts you know people don't want to see bad actors and so you know I undoing everything I can to do to encourage sort of good actors to join the community um

Discourage any bad actors off to didn't you know not really welcome in the community we want people that are here to build this technology and to decentralize finance right it goes back to that defy ethic and so you know I'm

Sure there will be issues that come up you know and what I think is important is how the community responds to those and does everything it can to you know reward honest actors in the system and that's sort of I think the important

Thing and we see that with cryptocurrency in general you know people want to encourage the best and nobody wants to encourage you know sort of bad use cases for this stuff and so you know I think a lot of its on the

The intermediary does become the exchange right and they're still doing kyc and AML and all these activities and so I think it doesn't really change that dynamic right nobody's you know able to get into this

Ecosystem that hasn't sort of gone through some of that and so you know I think it's it's quite partly a question of community culture I agree and really the guy the the exchange is just the Gateway as well for something more and

That is what you actually offer through your native assets and all of the existing you're building with peg net community has never been more important than this year with all of the drama with all of the tribalism all the things

We see we don't see enough of that positive sort of rationale anymore prosody proof of something is more than just our own speculative bets and what's really great about your model is that you do have the most definitely that

Utility token driving all this but you also have a good cause because there's something there that we can use essentially to develop in a more decentralized fashion literally potentially leader decentralized

Monetary paradigm really you know you really could be doing this and because there is no leader this is why I'm so on you I'm not used to you know having discussions with no CEO even on my youtube I have a section but I can't put

You in which is where I have all the interviews for CEOs so it's a really big deal that this is happening you know such I feel so privileged to be able to talk to someone who is just another member you know despite the serious

Rolling you do have you're just another person in the mix of PEG net and and hopefully your community feel that so how is the sentiment going in discord for example and in the broader community a big net as you build for it

It seems pretty positive I mean people have been encouraged by the fast-moving nature because there wasn't a two or three year slog to sort of rebuild all the infrastructure that you could just build the application itself and get it

Out there on people have had concerns about well how is this gonna work or how that is going to work but they have been resolved very quickly because the ship so fast and so we can sort of take it out of the theoretical and put

It back into well let's give it a try and see what happens right the whole CPU mind algorithm will you know the algorithms stand up you know oh we're turning on conversions is there enough value in the system yet to make

Sure it works you know and and enough reward for the develop the miners to secure it with arbitrage you know has the the floating peg in a worker enough exchange has added it yet and with each of those milestones we've been you know

Just seeing people sort of rallies together and said well let's give it a try and you know whatever happens we're going to adapt and just move quickly so I really like that that ethic I think we just crossed first thousand people in

The discord this growing community on telegram and WeChat and a lot of the other channels so that's a pretty positive sentiment you know we're pretty we're pretty light handed on sort of you know you know discussion is gonna be

What it is nah you know you can't really control a lot of these channels people set up channels I don't even know you know who's in you know running a queue you're so modest though day because the reality is that you are going to grow

Rapidly that's the truth and it's because you know you you you want this to be quite from the outset entirely centralized and that's going to attract a lot of people in your direction I think that you know you haven't focused

On marketing almost nil all right and I think that's why people just don't know your name enough but very quickly I think when they like when the light bulb switches there for a lot of people it's just going to have this domino effect

And it will be fast you know once people really understand the gravity of what you're doing and the value of it but I also wanted to discuss a little bit more about the devs themselves in terms of the repos you know how I had a look I we

Need to keep it up today and all just looking at how active it does seem to be very active they were post I saw because they were within that day is that increasing over time you know this kind of you know this higher activity that we

Expect from a github yeah I mean it's certainly grown a lot in the last three months um you know Paul snow sort of wrote some of the first ideas and gave some of the first speeches last year about the idea for

PEG net and then the community sort of just ran with it um coded it up most of the code is not written by Paul it's veteran by community members all over the world a lot I know I know a lot of them are in Europe so I'm here in North

America some in Asia and so yeah I think what we've seen the real explosion is not just in the core github of peg nut itself peg Noddy but all of the surrounding areas so somebody coded up the first graphical

Wallet and somebody coded up for the first Chrome extension that lets you sort of meta mask type capabilities for for factum and peg net and released that a few days ago and somebody built you know a website for my hairs and a

Website for you know all the tech stuff and you know ever since I sort of you know put out that peg net improvement proposal people started coming up with all these ideas and adding to them to lists of the list went from like three

Or four projects to you know you know more than a dozen projects now that people are are building just on their own initiative so I think that's the real measure of how fast things are growing is sort of what are all the

Supporting infrastructures that are being built to deliver on the promise right and that's where all of your years experience do come in and your team so while you don't have a team and while you're not leading anything your

Expertise has been invaluable here in building out this infrastructure for you know a decentralized you know technology for everyone in that sense I also wanted to add a better understand programming languages you know the number of those

That are now accessible because I wrote in a few and was quite a few I was surprised so are you opening up this as much as you can to all kinds of different devs with different experience perhaps or you

Know different backgrounds and are you also looking at other things like wallets you know to better support people as we start to engage more absolutely you know some of the core factum

Software is written in golang there's implementations around Python um you know a lot of enterprise software is still written in Java and other languages and so I think the more implementations that you have the more

Robust the software is in general um so we're trying to encourage people to implement it any way they want and with as many languages they want to support and like you said there's all these other libraries and wallets that need to

Support the infrastructure to really make it accessible so being able yeah lot coming and being able to use the existing factum software is a nice way of bootstrapping is well you got the my factum wallet you've got the fact of

Enterprise wallet to store these keys securely cold storage if papermill which is the cold storage solution for factum um and none of those send Pig net assets yet but they're a great way of key management because all of the pig net

Tokens are using factum addresses just like any ER c20 would be on an aetherium address um and so having that bootstrap in them people adding this extension and this gooey wallet and others sort of really sort of given it a fast start to

Grow on that side yeah it's certainly been an advantage to open up the tool suite and the tool box of fact and for you know this pig net architecture and what it can do because obviously a lot of that was very successful in its own

Right and it had been well and truly noted out through your your team now the roadmap is something I found really interesting because it's very detailed without of information in a sense that you have all of these moons which I

Thought I had to go on Google to make sure I was right but you have Titan and Callisto and nebula and many others coming but clearly there are projects attached to those that we don't know about you do some of them but I heard

Mentioned things like the prospects of loans and leverage training and there's a lot of things you're considering there's a lot happening for you um and a lot of them I don't even know what people are building right you know

These are all these are all community proposals I think one of the most mature is a lot of the developers have been thinking through how do you do shorts honey do Long's on peg nuts and so there's a whole white paper written up

About how to do that I think that's project darkstar there's there's a couple of different names but yeah I mean people have all these ideas they may be implemented they may not be implemented it's sort of you have to

Figure out the technical challenges first and then you have to have somebody that actually goes and writes the code and then you have to see that the mining community is willing to adopt those updates and they feel like it's it's

Secure and in the best interest of that work so you have these these different steps but no it's really cool the sort of opened up all this new space for people to imagine what could be once you have decentralized stable coins oh now

We can use shorts now we can do all these financial things and there's so many things you know as you mentioned that people are thinking up and I just found it really interesting looking at your roadmap that it already there's a

Significant scope for more and even in the leaner life for example the shorts and Long's we see now that some of those smaller alts you know they the Sun listed them perhaps when they shouldn't because there wasn't enough liquidity

Obviously that's going to be a factor in the future as well what I also you know love is that you know we're not going to see influence of reference with you it's it's not going to happen because there's no one to pay

And no one to organize payments of anything which I really respect because I'm not a huge fan many people know of those ref links you know for a big bucks to those because we know that there's risk involved as well in that respect

Right exactly no I mean sort of miners can take their own initiative and if they want to hire marketing people and do stuff you know it's out of their own pocket so you know that that has a nice way of sort of

Filtering out a lot of the fluff because people don't want to waste their money they want to be very smart about how they use their dollars right and it also sets for you know at once again a more equitable playing field as well because

You don't see you know a significant capital gum to certain parties whether they be the ones you know educating or speaking about things or whether they have the charisma it's much more about the mining it's much about the function

The form and you're getting the business of getting these things you know up and running now one thing I did want to ask about was references of price instability and and also the question of whether or not better stability has to

Happen as more offerings you know are available and also that in improving liquidity so do you think all of these things are going to emerge or improving time whereby more liquidity brings better price stability

Obviously the stable coins and then you know and more access to on and off-ramps as well mmm well I mean certainly the off-ramps is very dependent on those exchanges and other players we talked about as far as

The prices the arbitrage function between the exchanges and the PEG net wallet is an important step and there's some great visuals actually for this in the predictable peg supply article that show you know if a price is too high on

An exchange then arbitrage furs are instead of eyes to you know go ahead and deposit more of those pegged assets and fill up that order book until people are only paying the the correct price yes um or if the price is too low on an

Exchange thank take those cheap assets move them onto the peg net get paid full price to convert into any other pegged asset and they effectively sort of make that spread and so that's the very simple and elegant arbitrage mechanism

That's been designed to sort of keep everything at that equilibrium and so we'll see how it goes that arbitrage function is just really started on December 9th and we'll see I mean so far the the prices have started to narrow

They used to be 20 cents off and now there are a couple cents off and we see that even with huge projects like tether I was checking today and the price is 101 you know where's the bear move is a lot of influx of value demanding

Together and it moves that price up so I don't think that's going to go away but what you want is tight spreads and you wanna the reference price to be very close to the exchange price within a percent or two Ryan

Leckey said David's like December 9th was the start of this so you know heard a long way there's a long trajectory you know but all six days being a bit hard on you so now obviously there's immense you know potential with you and Dave

Obviously it's been a massive privilege to ever speak with you you you know a lot more than you're giving away in terms all your experience all that you know all that all the people that you've work with including the talaq I mean

You're the real deal mate and it's been a privilege to learn more about PEG net I can see this is one that I'm just gonna say it I don't normally do this this is one that is going to really make waves in the space and again not to FOMO

But this is going to be something that looking looking at I pay attention to I hope simply because of the the true spirit of centralization being built into this technology and you're not leading this but you're trying to

Educate about what this can actually do so may is there anything that I've missed that you want to let people know right now that other you know these core features and the core benefits or something like net so we can all really

Understand what's coming you sort of have to reimagine the world and your own portfolio with a tool where there aren't any fees a tenth of a penny but there are no percentage fees there's no limits on

Liquidity there's no slippage right now I'm moving the price when you do a conversion within your own wallet and so that's something that hasn't been around before and people are going to sort have to

Reimagine how they they do our ratash and how they plan their portfolio or think about these tools um I'd say the biggest thing is is jump right in right there's there's never been a better time to get involved in crypto and you know

Some people think that they're late because it started in 2009 now this is still so early in the brought their 8 billion to 8 billion humans on the face of the earth and a few few tens of millions of them have a crypto wallet um

We have got a long long way to go there's another 10 20 years ahead of us to bring this technology to the masses to make it ubiquitous and to really change people's lives with it so I'd encourage people jump into the discord

You know peg net org slash chat give you a direct link to the discord and to jump right in see where you can contribute and this is one of those things where you don't need anybody's permission if you want to

Tweet about it if you want to write about it if you want to mine it go for it you know um and you know I think you'll see an enormous personal benefit by by just getting your feet wet and getting

Involved in one of these Defy projects is I think it's really the trend that's gonna lead us into 2020 right I saw you know peer-to-peer payments you know really be that use case in 2013 I saw that with token sales in 2017 where what

Led to all of the innovation going on and now we have a new wave where it's about empowering individuals to have control of their own finances and so I think it's really cool and and something that we'll see grow a lot in 2020

Exactly my I imagine even my children I'll be looking into you know engaging this at some stage because we have things like Ecuador what Ecuador last access through CPUs we have the layers you know you mentioned it's factoring

With it's very specialized protocol we have the agnostic nature with a theory and big in other you know protocols it certainly the ability to interact with them you know bring out the best of what they do

Through your your own technological value and then we see you know the narrative of stable coins now peg stable coins those synthetic assets that I really changed the game 24/7 available to many people in the world who

Typically would be completely unbanked and couldn't access these things and then we see the retention the future we don't know and that is things like Commerce Enterprise you know how this is going to play out because of them the

Very genuine scope of this with all of the the assets that now exist from Fiat commodities and the crypto currencies this is just the beginning for you mate I wish you all the very best I'm going to certainly be looking more into you

Know all that you stand for and what you continue to do hopefully we can catch up for more concise discussions about different areas of picking it so people can be more educated about the value as you bring forth this is centralized tech

To the world awesome thanks Brad appreciate it thanks everybody you're very welcome take care

Related Videos

Hello the Republicans and welcome to another video of my cryptocurrency news series where I'm looking at the news that happened last week now today's 28...
What's up crypto gang welcome back to another episode if you guys are doing here we do a giveaway at the beginning of every single episode and today's w...
What's going on guys crypto jeremy here back with xrp video hope you guys have a fantastic day thank you guys so much for tuning in to another video and the...
What's up guys kevin cage here just wanted to do a quick market update on this monday so as we can see ada ada is down 11 today we noticed that it is coming...
Hello the Koopalings and welcome to another video in my cryptocurrency event overview series the aim of the series is to find any upcoming cryptocurrency events...
Ladies and gentlemen people of the internet welcome back to yet another episode of crypto over coffee hope you're doing well today and if you're new her...
Hey guys welcome back so first of all I want to start as usual by thanking everybody who's been liking subscribing and sharing my content you're helping...
Hi i'm brad garland house the ceo here at ripple it's an honor and really a privilege for us to be one of the founding members of the international asso...
Hello the cubicles and welcome to another video maker of the currency event over the series the aim of the series is to find any upcoming the currency events an...
I have to apologize to everybody because I've been promoting a company who only has their best interests at heart top salesmen best interests at heart and n...
It is Monday and you know what that means another episode of Krypto segments what's going out everybody it's your boy Krypto Bobby I hope you were havin...
What's going on everybody Alex back was another cryptocurrency video but today we're going to be talking about how to control yourself how to emotionall...
Hey guys welcome back first off I want to thank everyone who's been liking subscribing and sharing my content you guys rule and I appreciate all the constan...
Live from the USA hoping you get paid every day this stuff boasts a Bitcoin the crease though of creeped up is avoid BK and if you don't like me you must no...
Okay come down here boom that would be picture-perfect beautiful guys look at this we actually have this candle come down right on this line right here right ab...
Wow you guys are going to want to check this out guys as you may know Bitcoin has decreased a few hundred dollars as of about midnight last night we have some i...
What's going on guys crypto jeremy here back with xrp video hope you guys had a fantastic day thank you guys so much for tuning in to another video today&#3...
Hello tokens and welcome to another video nice update now today's third of June and I'm looking at news that happened from 28th of May until today I alw...
hello it's Brad Lori or blockchain Brad and today we're speaking exclusively with icon many of you know it you've known it for years and they'r...
People what's going on this an update on Tron all right so the market right now market cap is 431 billion we've got a Bitcoin dominance roughly 34 perce...