Tai: Okay, first question guys, first question!
Audience: So this is for Rhett I just wanted to see if he could go a little bit into the background in the history of, you were talking the other day about the inflation and once we fork will be a unique situation. Could you elaborate a little bit on that?
Rhett: Yeah sure. So when Satoshi created Bitcoin, he intentionally set a 21 million limit, the hard limit of the coin supply. The reason for that it was part of the reason was that we had this financial crisis in 2008.
It was largely due to this system we have of the Fiat dollar in the United States where the Federal Reserve can print as much money as they want. Then there was this $800 billion bailout to the banks.
There’s quantitative easing and we now that the Federal Reserve’s books have grown from 4 trillion to 8 trillion in the past few years which you know like there’s that whole side of the reason why a lot of people got into Bitcoin was that there needed to be this promise of a limited supply commodity that no government or no central authority could just print more of.
I believe that’s really important to the Bitcoin community. Now that is not important, for example, to the Ethereum community.
In Ethereum, there are 5 Ethereum that gets introduced to the supply every block. And that can go on for infinity.
So there’s this problem where we have not seen what happens to Bitcoin when the block subsidies sort of goes away and now we are all of the mining is incentivized through fees alone. Right now we actually have pretty regular stable blocks and you know that maybe because there’s this block subsidy right now if the Bitcoin of 2 and ½ or 12 and ½ coins that usually vastly outweigh the fees.
What we’ve seen in the past with Bitcoin is actually every time there’s a halving so when it goes from 50 coins to 25 to 12.5, the inflation rate drops of new coins and then generally the price of Bitcoin has gone up now that may or may not be because of halving. It’s unknown what’s gonna happen once we start reaching lower and lower inflation levels.
There are some people as far as, you know I hate to speculate on price, but the question is there’s less supply being introduced by miners. There’s less for them to dump onto the market but there is a question of will the network be able to operate in the stable censorship-resistant way if you’re giving less reward to the miners.
So with the way that we are forking Zclassic and Bitcoin Private will actually be closer to over 19 million, maybe 20 million coins. So there will only be 1 million or less left to mine throughout the whole history of Bitcoin Private. Assuming that one of the promises of Bitcoin and Bitcoin Forks is keeping this limited supply under 21 million coins.
So we don’t know how that will play out. We don’t know what that will mean. And I see it as you know potentially a very good thing being one of the lowest inflation Bitcoin forks. But also it would be really interesting to see how that affects mining and network stability. So does that kind of answer?
Kirk: You guys gonna make me go all the way across the room every time.
Audience: So this one’s for Rhett again on the subject of on-chain atomic transactions. I think I saw somewhere about Litecoin figuring out how to do that with Monero. Is there any way that we could figure out how to do that with Bitcoin Private and Zclassic as far as security took tokens go in atomic transactions on-chain?
Rhett: So that’s a really good question. You know I guess like my own personal feeling is that atomic swaps are really cool from a technical point of view, but they almost never happened.
Maybe has it happened like once between Bitcoin and Litecoin, I don’t know. It’s probably happened a handful of times between some of these chains.
People really like to nerd out about it and it’s really cool because it’s a way that you can swap Cryptocurrencies without relying on a central exchange. We all know that we hate putting our Cryptocurrencies leaving them in the central exchange where they can get hacked.
So you want this way of doing that in a trustless way between chains. But the reality is that if you try to set up an atomic swap, it would be very expensive to try to run some sort of decentralized order book for that. In fact, it may cost you a Bitcoin fee or Litecoin or you know a fee every time you even try to place an order in this decentralized order book.
Then you’ll have to wait minutes for this trade to go through. What people actually like is you know the high volume, higher speed, lower fee trading which is why there will always be more liquidity on these centralized exchanges where people can do thousands of trades per second and see ordered books like moving really quickly.
I mean with the vision of Bitcoin Private is I think we really want to focus on actual economic market adoption. You know Bitcoin Private right now is an underlying platform with one of the lowest fees and the fastest block times and you know a Bitcoin for with extra privacy.
So we want people to build applications on top of that actual sort of use a lot of real-world economic value. I think until we get to the point where we actually see use cases where a lot of demand for atomic swaps happening in a high-volume way that would be the point where we’d really want to start focusing resources.
They tried to capture some of that value, but right now, it’s really kind of just like an academic exercise mostly, except for maybe a few cases. But I will obviously want to support these kinds of contracts and things in the future.
Tai: And if you’re watching this at home guys, if you want to leave any questions in the live chat, I’ll be monitoring it as long as not a troll comment I’ll be answering those. So go ahead.
Audience: This question is for Jake and Rhett. Given the fork date and the snapshot, have you reached out to any of the exchanges, ie bit tricks or anyone else whether or not, we’re gonna have to move coins off if you have them on there?
Jake: It’s really weird having the first question to me not be when fork, so it’s kinda nice. Of course, the second question is one literally am not allowed to answer it’s just you know the whole thing is we’re not allowed to talk about it. Tai has actually a much better explanation than me.
I’ll let him explain to you why. It is not good business for us to talk about it. I can’t even tell you if I’ve talked to them literally, so Tai will give you a better explanation.
Tai: Okay guys so we get this question all the time on our channel of when a particular token gets listed on the exchange. Every time people hear us talk about a particular coin on our channel, they want to know who’s gonna listen on an exchange, when is it. And there are several things that you guys want to consider, first of all, if it’s a legitimate project.
The team that is building that Cryptocurrency project, more than likely they do not want to violate any US financial laws by reaching out to the exchange if it’s a utility token. There are some financial issues and now keep in mind guys, I am a trader and an investor in Cryptos; I am not an attorney. Far from it.
But my extremely limited understanding from talking to our lawyers and talking to other legal people that are licensed to talk about these things or understand these things is that if the project is a legitimate project, more than likely they will not be able to discuss. They cannot approach the exchanges to request a listing.
It’s not because of the cost of the listing fee. It’s because there’s some kind of financial laws and regulations that if you try to go and get it listed on the exchange, it can be construed as a security token. If it’s a legitimate project when you go ask them and they say we don’t know or we cannot discuss it.
It’s not because they don’t want to tell you. It’s because if they’re trying to comply with US laws, they’re not gonna tell you if they are doing it or usually they are not doing it. It’s usually a third party or somebody else that has an interest in it that is going to try to get it listed.
Now the listing fee guys are usually between a few hundred thousand dollars that I’ve heard of to a few million dollars to get a coin listed on an exchange. Part of that requirement of that listing process is that you have to the project or whoever it is that’s working on getting it listed has to sign some confidentiality agreements that they won’t disclose how it’s being listed.
There’s a huge process that they go through. Because if it’s a legitimate project, they are going to comply with those confidentiality agreements and not disclose anything.
So if you hear one of the things that we look out for when we look at a Cryptocurrency project is if they tell the public when they’re gonna get listed on the exchange, more than likely we probably don’t want to focus on that project simply because they are either violating US laws. And even if they’re not violating US laws, they’re violating business confidentiality agreements.
If you sign a business agreement with someone and you agree that you’re not going to disclose publicly until the exchange discloses it that the coin is being listed. The fact that that project is willing to disclose publicly when it’s going to be listed, more than likely they are probably not the highest integrity. Do you guys follow me?
So asking a legitimate project and pressing them when their token is going to be listed. If they are a legitimate project, they’re not going to answer you. And even if they did know it, they would violate laws if they did disclose that.
If the project’s want to work with the exchange for future updates and wallet updates and stuff, they’re not gonna break that confidentiality agreement. Because they need that exchange to update wallets and future business activities. So the more that project does not know when they’re listed, it gives me a little bit more confidence. Hopefully, that helps you guys out so that you guys don’t press Jake or Rhett or others.
Jake: I just wanted to add really quickly that you can get the microphone again if you want it. Kirk is technically next. I just want to add we have an awesome Electrum wallet because of our awesome developers so you should just use that.
Kirk: I just want to ask real quick for the audience one thing I hear Tai and Leon say a lot is community adoption and developer adoption, and support is a big long-term factor on the success of a coin. So just pointing out for the audience how simple it is for both community involvement also for developers to contribute.
Jake: Who are you asking?
Audience: For Rhett. How developers get involved and contribute?
Rhett: I have these people coming. They’re tweeting at me all day long saying they want to contribute and there’s a wide range in skills and levels but I try to direct everyone to the discord and we have a community discord channel. What’s the easiest way to get invited to the community discord?
Jake: Just come talk to me or depending on what you want to do. If you come to our public discord, we have all the leads of the specific areas whether that’s marketing or development, wallet development, blockchain development, designing, motion design.
Everything we have led to all of those areas. They’re all in the public discord. You can go in there.
You can tag them and say, “Hey, these are my qualifications.” I would like to help you out and then they’ll talk to you and basically just try to gather what you want to do and how you can help out.
Now there has to be some at least minor process to letting people in. Because if we just let literally every single person in, then we’re not going to get the highest quality people. We just get filled with too many people just talking about whatever and not actually doing work or just leaking information that shouldn’t be leaked.
So we do like to talk with people for a little bit earn their trust a little bit, then bring them in and really start to get them going. But I mean just like everything in Crypto, it’s a really fast process.
So I just wanted to say, by the way, we created for people online. A Reddit post was created where you can go and list questions on there. And the top ones that got upvoted on Reddit will be the first ones asked when the people in the audience here are done.
Tai: I just want to make a comment on contributing to the Bitcoin Private project. This is not just a contributing code. The best way to contribute to the project if you believe in privacy, you believe in Bitcoin, is to see what the project needs and just go do it.
When our team saw that, we needed to organize an event for Bitcoin Private. We did a test event like an informal one in the Crypto in Frisco in North Dallas. Yesterday with Jake, I told him.
He said, “Hey, you should come down here and we should just do a test conference and talk about Bitcoin Private”. It works out and we’re able to work together. Let’s do one real quick in Austin.
That’s how this came together. We put it together and we just cranked it out. In less than a week, we did 2 conferences, one informally in Dallas and then one formally in Austin right now.
This became the first official conference. You don’t need to ask for permission guys when it comes to Bitcoin. Because it’s a permissionless system.
Whenever you feel the need that can be contributed, you just go do it. Like the guys from New York here, when they saw that we were doing here.
We told them that we were gonna have more people registered than we thought, they just started coming in and helping us clear out the room. Because when we tell them that we needed a bigger room. That’s how you contribute to the project.
Don’t ask for permission. You just go do it. The other thing, too, is this. Raise your hand real quick, Kirk.
And he didn’t ask permission. I just mentioned that it would be really nice if we had alleged support.
I’m not an engineer but he went and coated up some stuff so that ledger can support Zclassic and future Bitcoin Private. And boom he submitted it to Rhett. And Rhett posted it out there for and ask people to review it.
If you’re a coder out there, you understand a written code or read it, review it. Go review it. There’s a bunch of people that put those codes up there.
If you can just review it, double-check it and let Rhett know. That’s a huge contribution. If you’re good on Twitter, help us tweet it out.
If you’re good at making videos about Bitcoin Private, do it. If you’re like Reegan, you’re a big privacy advocate and you can spread the word about the importance of privacy, go do it.
You don’t need to ask permission and then you do it. If it doesn’t work out or get the response that you want, just adapt, redo it or ask Rhett or Jake or somebody in the community how it can be done better. Then just go do it.
Jake: Yeah absolutely and I just want to add you can also help if you’re a miner by going to our fund.zclassic.org. I had to do that.
Audience: Hi, this is for Rhett. I was just wondering your take on proof of stake. And if it turns out successful in Ethereum, is that something that’s in the future for Bitcoin private? Or are you gonna stick with whatever Bitcoin, Bitcoin core?
Rhett: I think that we have some questions right there to consider. I mean there are some people that I respect a lot. Bram Cohen, for example, is very pessimistic about proof of stake.
So he’s actually working on an alternative, sort of consensus algorithm, proof of space and time. I think of all the proof of stake algorithms are out there.
Many of them may appear to work because they’re actually centralized. It’s really hard to know whether or not they’re centralized. If that’s the case, then we don’t have a decentralized censorship-resistant system, to begin with.
So I think that probably one of the more honest proofs of stake projects out there is Casper. We’ll have to see. I know Ethereum is throwing a lot of resources at that and we’ll see.
Once you actually get into a proof of stake system, it becomes also really hard to have very many participants. I think maybe Casper even is thinking. Maybe like a hundred stakeholders is basically where it will limit out.
That’s very different from you know the proof of work where you can have thousands and thousands of people with GPU miners all around the world. So we will definitely look at the industry and how new technologies actually affect these other coins. That’s sort of what we did initially to create Bitcoin Private.
We weren’t the first Bitcoin fork, but we’re able to see these other Bitcoin Forks like Bitcoin Cash and Bitcoin Gold. And learn from their success, what worked and what didn’t. So we’re going to continue to do that and look at other coins.
But there are no plans right now to switch to any proof of stake system. Oh, Bram Cohen? Of Chia.Network coin or something.
Audience: This question is for either Jake or Rhett. I’m not sure I’ll let you guys pick. I’m a newbie. I’m literally 30 days into Crypto so I don’t know a lot of this stuff already.
I’m kind of learning how it goes. I would love to understand the mechanics of the fork. One of the things Rhett said a few minutes ago is when the fork occurs, you want both currencies to be active.
So does that mean in one wallet you’ll fork to be a Bitcoin Private and another wallet you keep CCL? Can you explain some of that? As I said, I’m the newbie.
Rhett: Yeah sure so the basic idea you have a private key right? Right now you might have a private key that controls a Bitcoin. And you might have a private key that controls a Zclassic.
If you have this private key that controls a Zclassic when the network forks, you’ll still have that private key that controls that Zclassic. But that same private key you will now be able to use that to control a Bitcoin Private.
If you have 1 Zclassic, you will keep your 1 Zclassic and you will also get a Bitcoin Private. If you have 1 Bitcoin, you’ll keep your Bitcoin and you’ll also get 1 Bitcoin private. That’s just, I guess, sort of like the higher level.
What will happen is if you have like an Electrum wallet or something, you’re holding your Zclassic in an Electrum wallet, then what you’ll be able to do is download the Bitcoin Private Electrum Wallet. You’ll just import the same private key from your Zclassic into your Bitcoin Private Electrum Wallet.
Now you’ll be able to control your Bitcoin Private coin. That’s sort of from the user’s perspective, the mechanics of how it works. Were you asking about sort of the fork in general like how that’s going to happen under the hood?
So basically no one’s ever done this or thought of this before. But honestly, I don’t know like I mean if you go and look at the code…
Zcash is a fork of the original Satoshi’s Bitcoin C++ source code. Zclassic is a fork of the Zcash fork of the Bitcoin source code. So Satoshi Nakamoto contributed to Zclassic. It’s all the same C++ code. It actually what Zcash did.
There’s a lot of their edits in this main dot CPP file. I mean it kind of makes it pretty easy to read. You can sort of seeing what’s going on it’s like all in main dot CPP.
Then what happens is there are a few pieces to blockchain technology like the miners need to check a block is valid. The miners need to check the transaction is valid. That’s like a big part of what they’re doing. So the miners are the ones that they have to agree on this consensus.
When Zclassic was launched, there’s a set of rules and everybody who’s running a full node on Zclassic, they are running the software that agrees to like a certain set of rules.
What we’re going to do with Bitcoin Private is just gonna change those rules. And we’re going to say, okay if you’re running this note, it’s gonna be using the same Zclassic blockchain. But at a certain height, we’re gonna change the rules.
Then anyone can decide if they want to use those set of rules or the old rules or they can mine one or the other. But what the new set of rules is gonna do is it’s gonna set a window where between certain blocks.
We’re going to take the Bitcoin account balances. We’re going to add them as special coin base input transactions just directly into normal Zclassic blocks. So Zclassic blocks are about 2 megabytes and I think we can fit about 10,000 transactions into each block.
So there are 65 million Bitcoin addresses with a positive balance. So that would be about 6,500 blocks would be required if you were putting 10,000 transactions into each block. So there’s going to be a window for 6,500 blocks where the miners that are mining on the fork will actually mine these special fork blocks
Another part of the rules is that those blocks are gonna have just lower difficulty for that window. So they’re gonna get minded in a second or every few seconds or something. There will be this 6,500 block window where the block that mined really fast. The rules changed and now if you’re on that network for your own Bitcoin Private.
Audience: Hey guys, I’m not sure which one of you wants to answer this. But I’m a miner and I represent a lot of miners. So my question is how is this going to work.
We’ve got a 21 million supply cap. You’re gonna have over 19 million coins. You’re gonna have what one-and-a-half or however many million left.
Equihash is 2.5-minute blocks. Currently, the block size is 12.5. Is the block size going to change?
Jake: I believe so.
Rhett: Yes, we’re gonna have drastically reduced the block subsidy. Because we have to stay under 21 million.
Audience: Yeah because I mean I’m doing the math in my head. And I’m like, well the block subsidy lasts a few months. So can you speak to that?
Rhett: Sure! Currently, I mean you have to remember Zclassic is a new coin relatively. So the classic follows the same coin emission schedule as the original Bitcoin.
In the original Bitcoin, it started out as 50 coins per block for 4 years. Then it halved after that to 25 for 4 years. So what’s Zclassic does is there are 12 and 1/2 coins per block.
But there’s a block every two and a half minutes. So it’s the same 50 coins per 10 minutes. It’s exactly the same emission schedule as Bitcoin.
Now what that means is that we’re actually only into like a year and a few months. It would be like if you were a Bitcoin a year and a few months into it.
At the current annualized inflation rate of Zclassic, it’s about an 85% inflation rate right now. That’s a really high inflation rate. So I don’t know what to say if you’re a miner and you’re trying to mind a coin.
It’s generally like if you’re looking at the long-term success of the coin, definitely there’s a lot of benefit to the miners to be mining when there’s a higher inflation rate. But when that inflation rate drops, now there’s less benefit to the miners. But there’s more benefit to the people that are holding this asset that doesn’t inflate away as fast as you know the currency that we all hold.
And that was sort of part of Satoshi’s vision. Right now the inflation rate and the classic are way worse than the dollar 85%. After a Bitcoin Private is formed, there definitely will be much lower inflation.
That’s part of the balance is figuring out how much inflation is needed to reward miners to keep a stable and secure network. And then balancing that against Satoshi’s vision of a limited supply that can’t be inflated away. We don’t have an exact number set yet.
Jake: As we get closer and we can pick the block height exactly, it’s going to be a little bit different depending on the hash rate and everything that’s going on with the net with the Bitcoin network specifically. And of course, Zclassic as well about how much it’s going to be in the specific block height that we’re yet to choose.
We just know the snapshot date is going to be February 28th. So you can pretty much make an assumption between a very small range of you know somewhere around 20 million or so I believe. So somewhere around 1 million will be left.
Audience: I have a question kind of back with his question. So part of like the whole like proof of work as it’s scaling down, inflation decreases then you have less incentive, incentivize for miners.
But isn’t that the solution of proof of stake that you have a smaller group of miners that are actually mining it which then they’re actually getting transaction fees as the inflation rate decreases. So they’re still operating in the network. So the network doesn’t slow down over time.
Rhett: I mean yeah like these are things that are theorized. And there’s some you know at some level we can look at blockchains that are using all kinds of different implementations.
I guess that is sort of the overall outward goal of proof of stake. But there are also all these things that people don’t like to publicize about their various proof of stake mechanisms that may not be fair.
In evaluating anything that would be different from Nakamoto’s consensus proof of work, we need to take any other proposal very seriously in evaluating fairness.
Audience: For Rhett. So we’ve seen the private sector really take off in the past few months. The other sector we’re kind of seeing is coins that offer master nodes. One what’s your take on that and two are there any plans for one master node.
Rhett: It’s funny. I know very little about master nodes. That’s like a thing I’ve heard a lot of support from the community for master nodes. Okay, who’s your favorite master node say I?
Wow okay, so this is something I know very little about, to be honest. You know we have this big community here.
I think what I’ve asked people to do actually is to put together proposals. Because if you have kind of like what I did was I just sort of made something tangible. Then people can make a choice if they want to use it.
So if you like master nodes and you actually write a pull request for master nodes, that’s something we can test and use. So any way we can get some proposals for that and it’s something I know a little about but we obviously should learn more.
David: I just wanna add a quick thing there. On our investing channel, we talk about different Cryptocurrencies that we’re interested in. And one of the big problems that we see in general and everybody’s been seeing is with Bitcoin and the whole issue of governance.
This is not government okay. It’s not about involving the government but it’s about how do you make a final decision on what direction you should take.
We’ve seen all these Bitcoin Cash, Bitcoin Gold. Because people can’t come to a final decision and they just end up saying you know what I’m just gonna go do my own thing which is actually a pretty good thing.
When we talk about master nodes, the first time I learned about master nodes was in London we were talking to the Dash team. And they’ve got this master node model where effectively if you are an owner of a master node, you get to vote on proposals. I’m not saying that this is exactly the model that should be followed here in Bitcoin private.
But if there is a governance model that you know whether it’d be voting through master nodes or through proposals, if there’s a formal mechanism to do so, it really helps the project move forward. Because you have a final decision-making process. And so just in particular with master nodes… I lost my train of thought on that one.
Tai: I’ll finish your train of thought for you. So this is something that when we spoke last time, Rhett, you were concerned about implementing a governance process or Treasury.
That’s the reason why you guys are asking about the master nodes is to make sure the project has funding. Why are you guys asking about the master node?
Audience: So I wasn’t a miner like back in the day. I’m early adopted Bitcoin. I’ve actually switched to only proof of stake coins and stayed away from proof of work coins. For this exact reason one that a lot of the development process is centralized to the group to the core dev team. So a master node one enables everybody who’s actually mining it has a stake in the coin.
And then two, it also requires a lot less like specific hardware for actually operating the network. Instead of running all of these GPU miners, you’re running on a very small lightweight VPS that can be run in the cloud. It’s a lot more inefficient.
Tai: But you realize that the purpose like one of the primary reasons for having a master node is to vote for updates to the network. You can stake coins without using a master node. You can stake and secure the network without even using a master node.
Audience: Sure yeah absolutely.
Tai: So the master nodes are designed so that the problem that David was talking about is a lot of people when they hear is talk about a governance process, they mistakenly think that we’re talking about adding the government or involving the government to our project.
A governance process means a final decision making and resolution, making a process to where if half the community wants to update Bitcoin Private with update A, and the other half wants to update with update B. There’s a mechanism to vote on that.
The master node process is a way to where if you are a stakeholder in the network that you get to submit your vote that, “Hey I want to update A or I want update B”. Then when that vote is counted and it’s done, it gets implemented into the network. So there doesn’t take 3 years to implement and update such a segue.
Jake: Alright, one more question and then we’re gonna take some questions from Reddit.
Tai: Can you raise your hand?
Jake: Hold on for the microphone.
Audience: Well, the master node network gets less resource-intensive. You can’t discount the fact that mining is just a huge waste of electricity. So the big point about master node is a way to secure the network without using all those intensive resources. You know it’s another way for voting or whatever but that doesn’t have to be like the only stipulation you could have like multiple variables.
Jake: I want to say I think we all understand what they are. We’re just kind of belaboring the point right now.
I want to say, first of all, I love our mining community. And the last thing I want to do is push them out, especially right now while we’re asking them to help us.
No, absolutely not. So I want to make that clear right off the bat right now. And I want to switch to these.
I want to switch away from this conversation, because it’s been going on for a while, and move to the Reddit questions. I don’t want to cut you off but we know what master nodes are.
We know what proof of stake is. We’re considering it. We’re thinking about it.
Rhett: It’s not gonna be implemented at the fork. It’s not on the road map at least.
Jake: There’s just not enough time right now. But that doesn’t mean it’s not something that we’re thinking about. We promise that we’re constantly thinking about how we’re going to update everything after the fork, before the fork. I promise. Now let’s go to the Reddit questions. Who’s got a Reddit pulled up, Tai?
Tai: Hey, while Jake is pulling up the questions from Reddit, guys you know one of the things that when we look at a project that we really pay attention to is what is the mindset behind the developer or the creator of the project.
I think that we’ve been fortunate to talk to Rhett. We spent time with him at lunch before, and we’ve taught him offline.
When I first met him, he had a lot of insight into why he’s doing this. I think that it’s unfair online that a lot of people are accusing him of going after a money grab or going after just building random blockchain projects. I just want you guys to realize something.
I could be totally wrong about this. But when I first met Rhett and our team met him, and we had lunch with him, we didn’t record the conversation which we most of the stuff that we talked to him about. We should have recorded it for you guys.
But one of the things that I found out was that he’s a computer scientist. And what do scientists do? They love to experiment. Do you guys agree?
They experiment and they want to solve a problem. And they experiment on things. He just happens to be a computer scientist. He’s not like a biologist. He’s not like a chemist or an astronomer or something. His specialty is computer science.
He sees a problem that is arising in the Bitcoin community. There are lots of problems that he sees that we may not see because we’re not computer scientists like he is. And he’s trying to tackle the problems, the biggest problems first and privacy is one of them that he’s tackling.
But I’d like you to share in your own words like some of the inspiration you have like when you shared with us offline, talk about how you were experimenting on Zclassic, on these different projects and now what are you hoping to accomplish with Bitcoin Private so that they hear directly from you and not random trolls online. Rhett, share with people why you’re building this project?
Rhett: Yeah I mean I don’t know exactly. I’ve been involved in Cryptocurrency for a few years now. We actually saw a few years ago, there was sort of just Bitcoin. And then there was Litecoin, and Dogecoin came around.
In 2014, we sort of saw the introduction of these Altcoins. Now we’re seeing kind of this introduction of Bitcoin Forks. And a lot of people who are getting into Cryptocurrency, they’re familiar with Bitcoin.
Everybody knows that there’s this huge need for privacy coins right now. Actually, we all know that it’s almost like not even worth going over because we went over it. But if you look at the history of global finance, it was the whole history of the world global finance.
Everything was so much more private until just 20 years ago. Everything became electronic and now all of a sudden, we just lost all this privacy in the past 20 years. A lot of people act like that’s normal and it’s really not.
If we look at these privacy-oriented Cryptocurrencies, some of the best ones were Monero and Zcash. But you have this problem, I mean Monero is really proud of the fact that they’re not using Satoshi’s codebase. So they’re proud that they didn’t fork and they innovated.
But what that means is that integration is different from Monero then for a Bitcoin fork. If you’re in exchange and you’ve learned how to integrate Bitcoin or Bitcoin Forks. You now have to have spent a whole lot more resources integrating Monero.
Then Monero has like these really long sync times. It’s like a day just to synchronize your full node to Monero. And there’s all these other… I don’t know if people have used Monero but it’s a learning process, especially even if you’re used to Bitcoin.
So I recognize the need for Zclassic is based already on the Bitcoin Satoshi source code. We can actually provide that promise of like what’s the Zcash or Monero. Well, who knows what those are really supposed to be?
But for people that want to use Bitcoin and they want privacy. I think that is the responsibility of this project is to deliver that. It was obvious that there was a lot of demand for that.
But then we just needed to sort of tweak a few different things and learn some of the lessons that we’ve learned from the existing Bitcoin Forks. And then kind of look at okay like how is a block-structured. Well, a block has coin base input transactions and some other transactions. There are a few different things and we came up with this process to do a fork from Zclassic into a Bitcoin fork. So I don’t know that’s kind of my overall thinking of what we can do.
Jake: Alright so we’re gonna take the first question from Reddit. As we all know, they ask the most important. The number one question is if Vietnamese thugs with baseball bats come for my taco tokens, how do we prevent them from stealing my Model T parked on the moon? That’s the number one upvoted with. I would put it on Mars maybe… I don’t know. Anyone here has a good answer for that? I wasn’t joking.
Tai: Okay Vietnamese thugs with baseball bats come for my taco tokens, how do we prevent them from stealing my Model T parked on the moon? So the first thing we gotta do is (laugh)
Jake: There’s no good answer to this question.
Tai: Okay the best thing to do is to protect your tokens, not just Bitcoin Private or Zclassic or anything against people with baseball bats. What you do is you make sure you use a hardware wallet. I’m glad that he brought that up because we had several questions in the live chat that asked about the ledger support.
So can you explain a little bit about what does it take when Kirk sends in those lines of code to get ledger support so that people can store their Zclassic on a hardware ledger? What is the next stage after it gets submitted to ledger?
Rhett: I’m not gonna be able to give a technical answer for that right now. But basically I mean they’re simple requests that are sitting in Ledger’s repository right now and they need to review them. Typically, I actually mean Nicolas, the CTO of Ledger, he’s usually really responsive. I think they’re a little overwhelmed.
I’ve built some custom ledger hardware applications and they require loading them on manually with the Python utilities. So that’s not really an option for the normal user. But that would be interesting.
It’s not that hard but it’s like the first step was to play with that. It’s actually pretty fun if any developers want to try it, you can look at sort of some of the ledger applications and try importing new apps on your nano. That would be the first step but just getting them to review the pull requests.
So ledger actually has like an app store and they already support a bunch of coins in their app store and it’s just a matter of they’re gonna need to just review our pull request and make sure that it’s not trying to steal anyone’s coins. Then they’ll review and it’ll go into their app store.
Jake: So the next most upvoted one is to Leon who I don’t think is here. Since Leon Fu joined just now, could he evaluate a bit about the potential valuation of Bitcoin Private? I don’t think you can answer that question.
Tai: A lawyer says we cannot discuss price or valuation or market cap, guys.
Jake: But also Leon’s not here. The next good question is actually the one that I can answer which is will Z address be enabled by default. So this is something that just as far as I understand it from our developers can be done within the wallet.
And we are absolutely going to put something like that out. It would be in combination with something that has a transparent wallet as default as well.
So you can choose, I mean we’re all about choice. There’s no reason why you shouldn’t be able to choose a wallet that can do either or if that’s what you prefer.
That’s definitely something that we’re thinking about. It’s probably won’t come out until after the fork but it is something that we’ve definitely put on our post-fork roadmap that is yet to be released.
I have to refresh and see if anything else has come up. Rhett, this might be a good question for you I think which is why not just burn Zclassic after the snapshot to prevent manipulation leading up to and after the fork. I think he’s saying just to basically completely remove Zclassic so when the snapshot happens just completely destroy the project.
Rhett: Yeah so we thought about that. I mean I talked about what we thought about sort of trying to coerce and force the Zclassic project to die. And kind of turn into Bitcoin Private and the history of Zclassic actually I mean, it’s hard to talk about it without mentioning the price.
But basically, I created Zclassic and there were a bunch of people that joined that community early on. Because they were interested in privacy.
Then a few months later, they all said, “Hey, you know we want to do is we want to introduce a 10% developer fund to Zclassic. And I said, “No, you can’t like the innovation of Zclassic was just a Zcash with no founders reward”.
You can’t just put one in again like that. We can’t do that right? And they were like “Well, we really need to do it to make more progress.
I was like “Well look, you can do that and you can fork but like Zclassic has to be just Zcash with no founders reward”. That’s all it is right? It’s really dumb and simple like that’s all it is.
So they formed the Zen community they forked off of Zclassic and most of those people sold their Zclassic. If you looked at the price, this is just the past price. It was like Zclassic started around $3 or $4.
Then there’s a fourth coming up and they’ve gone up to $8. And then it’s actually split. So the total combined were worth more than Zclassic in the beginning.
Like a few months ago, a Zen coin was like $40 a coin or something and a Zclassic was like $2 a coin. So they had all kind of just sold out. And they left and there he stopped participating in Zclassic.
What we’re seeing now there’s a second fork that’s coming out of Zclassic. And all of those people that sold their Zclassic probably like wish that they didn’t at that point rate.
I don’t know what the future is going to be for Zclassic but it may be the case that it’s a good platform to launch future Forks off of. Because everybody knows that it’s a fairly launch proof-of-work mind zk-SNARK coin with no founders reward or anything.
Jake: Alright that was a good question and a good answer. We’re gonna do one more question, then we’re gonna call it a day, and probably just you know mingle we’ll have another 40 minutes in the room.
And then we can go over to the step-and-repeat banner take some pictures, things like that. So the last question is a great one. It’s for Rhett and it says what was it like being in the 1989 True Blood film?
Rhett: That’s interesting because I thought they were gonna mention Crocodile Dundee II. Because I just found out Crocodile Dundee II. I had a larger part in Crocodile Dundee II.
So True Blood, I played Chad Lowe as a younger age which was Rob Lowe‘s brother. Chad Lowe didn’t quite make it. And my older brother in the film was the guy who played the lawnmower man. I don’t remember his name. And then I had this really heartbreaking scene where I had to walk around a train station.
Jake: That was the great last question.
Tai: Ok so we don’t have confusion here, guys. At the back when we go back there and take some pictures with Rhett and everyone. So David here is going to be handling the camera back there. You can go ahead and set it up.
Jake: Just give us a few moments we’re gonna get everyone on the team back there quickly. We want to take some pictures by the step-and-repeat banner for everyone that’s been a part of this. And then people who want to take pictures and talk with us and everything, you can start joining in it.
Oh someone just wants to know.. This is a good one actually that we should really address which is can we make donations to the multisig account to join in on the miner program or do direct donations have to go to the existing donation addresses listed in the sidebar.
I have to just say is that the answer is no. You can directly donate but you will not be a part of the program. If you had 1 Zclassic and you sent it to our multi-signature wallet we cannot send you back Bitcoin Private for that, so it has to come from hash power.
How many miners are in here by the way? Awesome, nice, we love you guys. How many of you are gonna join this program? Not bad.
Tai: Okay so when you guys say, maybe what’s the holdup or what’s the sticking point?
Jake: So the whole reason for it is that we need funding and so we just can’t do that. Otherwise, that would defeat the entire purpose of it, unfortunately.
Yeah I mean look, what we would be really happy with as if people who absolutely cannot afford. You know it’s like for the people who are planning on mining and keeping Zclassic through the fork.
This should help them because Bitcoin Private going to be the big coin after the fork. We all know that’s what’s going to happen. So this should work out really well if you are planning as a miner to hold it through the fork.
But if you aren’t and you’re just using that to pay bills and do things like that, essentially what we would ask of you is to you know to move your hash power somewhere else. And in that case, you can still get your funds. You reduce the network difficulty for us and allow us to get a higher percentage of it.
Now let’s just put this into perspective. If we can get right now or at like 20%, if we can get to 50% hash power, we’ll be done in 14 days. So if we can just get to that number, if we get to a hundred percent, we’d be done in seven days.
So if we can just get up to those higher numbers, we’ll be done with the program really quickly and then everyone can come back and return to it. So it’s really all about just everyone coming together, working together as a community, helping us build Bitcoin Private which it will. We’ll be able to spend a lot more funds on development.
We’ll be able to actually pay some of our developers instead of them just doing volunteer work. We’ll be able to do marketing which will help us get our name out there. Even more, should improve everything around the project which should help everybody who is a part of the community.
Rhett: Just to be clear if your a miner and you don’t want to participate in the fund you can help by not mining Zclassic right now. You can help mine Ethereum, mine Monero, mine anything else. And that actually helps right now.
Tai: Do you want to take a moment just explain it?
Jake: I kind of did during my talk. But essentially it’s that if you join it, one, every Zclassic that it’s donated through hashing power will turn into 1.25 Bitcoin Private after the fork.
So what’s happening right now is you put your Zclassic wallet address in, we can take that Zclassic wallet address and we can register how much Zclassic has been earning during that time while all of it goes to our contribution, to our governance fund. And then after the fork what happens is we will generate, let’s say we raise that actual 50,000, we will generate 62.5000 Bitcoin Private.
All of that will go directly to the miners who helped in that contribution program. So that’s why we don’t call it a premine. Because in a pre-mine, all of the funds go right back to the core development team. That’s not what’s happening.
Basically, you’re being allowed to mine Bitcoin Private right now before it’s even out essentially. And you’re getting an added incentive in order to make you do that. Because otherwise, why not just keep mining Zclassic you’d get the same amount.
But in this case, you get a 25% bonus on what Bitcoin Private you would get otherwise. So that’s sort of what’s happening. Does that make sense?
Yeah, we got a question. We can’t. It’s 25 but we literally can’t and it’s illegal.
Tai: Let’s repeat the question.
Jake: So the question is why can’t people who’ve already mined it just donate the Zclassic since they’ve already mined it? It doesn’t matter at this point they’ve mined it. It’s now theirs.
So in essence essentially what the program is doing is you’re working. You’re essentially working for us kind of by donating hashing power.
Whereas in the other case, if you’re giving us funds and we’re returning back other kinds of funds, we’re doing an ICO. And ICO takes months to set up. You’ve set up a non-profit.
That’s a lot of money, a lot of time and a lot of effort. Well, not a lot of effort necessarily but it’s something that just with a one-month to the fork date. That’s just not really a viable way to raise funds when it would take us 4 months to set up that kind of process and make it legal.
Tai: So basically what you’re doing is you’re just loaning the network your GPUs for a couple of weeks. If you want Bitcoin Private to succeed and not goof around, like these guys said, if you guys can point those GPUs towards the contribution pool or point it somewhere else, either way, it will help so that the faster that gets done.
The faster that these guys can bring on the development team and get it moving forward. Because the longer it takes guys all this is gonna do is this stall.
Jake: So let’s call it quits. Go back to the corner, we’re gonna take some pictures guys.