Tai Zen: In 2017, Decred finally shows up on the map. It’s well known now. In 2018, what do you forecast or what do you see down the road map for Decred?
Marco: I’m always a little reluctant to talk features because you know software is hard and you don’t get to predict how things work.
Tai Zen: What would you like to see happen?
Marco: I think that we have a pretty good shot of having the DAO working. This year, we’re gonna have all the big pieces done soonish. Then, it becomes a lot of website working, but also a lot of figuring things out, which means how are we actually going to implement this right process.
There’s going to be a lot of non-technical work that needs to happen. There’s a lot of that happening, but I think we have a real shot of becoming a full-on DAO and being able to actually donate that giant pile of the coin to the community for them to start governing themselves.
I think that has a real chance.
Tai Zen: Is there a USD value on that pile of coins right now? 20 million?
Marco: Yes. Probably more than that actually.
Leon Fu: Could Decred become a virtual nation? Like I’m a citizen of Decred.
I don’t mean next year or the year after. Maybe 10 years from now or 20 years from now, could you see the DAO being an organization where people are kind of members that have certain responsibilities and benefits?
Marco: My short answer is actually yes. Honestly, we’re trying to be a sovereign digital entity that you can do certain things with your stakeholder or a citizen. You would be awarded votes based on criteria.
Once we move into this more comfort area, which we are pursuing, it means that you can actually write a constitution and codify it into the blockchain, then have blockchain govern that and the voting portion is what manages that.
Leon Fu: I believe this is going is almost surpassing nation-states.
For example, we’re citizens of the United States. We have certain obligations. We have to pay our taxes. We have to follow the laws, but we also get certain benefits. We get the protection of the state and all the legal and political infrastructure we benefit from right.
Do you see that as these DAOs being able to provide those services that traditionally say we use governments to rely on today?
Marco: I must say yes to that. Let me use another example.
One of the things that we were talking about we did politeia is proof of degree. Politeia is actually an original name. It’s a Greek word for a system of government. We picked it obviously and deliberately because of that.
Politeia is a platform, which is the website actually we go to invert. However, one of the ideas that we came up with and we actually showed for people is that you do the proof of degree, the proof of credentials in the way that would work.
It means you have people that have to write access to the blockchain, or via a mechanism to write to the blockchain.
For example, the professor can say you got this grade for that paper, then the next semester comes around, you got this great for that paper. At the end of the line, you, as a third party, could actually go in there and look: ‘Hey what did Jimmy do throughout his university career’. You could pull out all those things. If your community has enough credit hours, you have a degree.
From an organizational perspective, that is fantastic because a third party can individually verify that you have a degree.
For example, you are a large corporation, then Jimmy shows up with his resume and wants to take a job. You don’t have to go to spend all kinds of money on third parties to go investigate this. As a result, you can disintermediate and remove a whole bunch of middlemen from the equation.
This is actually a Decred in the whole world. We’re trying to disintermediate all these things, remove all these middlemen from scraping money from society. The reason is there are a lot of folks that have jobs that actually don’t that value to the economy.
Tai Zen: They have no reason to be there.
Marco: Yes, but they are because of inertia and how the system was built. Plus, it was no technology existing at the time so, that’s the reason for them to exist in the past. However, they’re not going to be in the future.
Tai Zen: For the people in the audience that don’t know what the DAO was, that stands for the decentralized autonomous organization. It’s an organization that makes its own decisions. It can execute decisions that its participants come up with.
We have the DAO last year based on Ethereum. That was built by the slock.it. It failed and they lost a bunch of money because the code got hacked and everything.
Why is this decentralized autonomous organization so important that you guys are dedicating all this time and effort to build this into Decred?
The reason why I asked this because you are a talented blockchain engineering team. You could have easily focus on privacy alone, which would take the credit of billions of USD by just building on 1 feature alone.
What made you go with all the features instead of just 1?
Marco: That is a thinkable bit cultural. We felt that blockchain has a really an unending amount of potential, which was not being realized due to infighting and governance issues.
What we are trying to do is solve all the governance issues so that we can have blockchain live by itself.
If this is where the future is going to come from, we are going to use Decred as a bottom to do different things. Decred is not the end goal for us. That’s just a foundation for products and services that we want to start providing.
However, we need to have a properly working blockchain. We are not going to be beholden by a group of miners or a hostile development team that has no interest in making the product better.
That’s a long-term strategy, but that’s where we’re coming from. We need blockchain to function properly first.
Tai Zen: I respect the fact that you are putting your money where your mouth is that because you are actually building the software for several years before people even knew what it was.
Marco: We are planning to be here 10, 20 years from now. That’s why it’s important to have all these features.
Tai Zen: We always believe in having an edge in everything that we do, with traders and investors. We feel like there are certain things that we do that gives us an edge.
What do you think that you and your blockchain and engineering team have as an edge?
Marco: We’re bright working code. If you look at the top 20 or the top 10, there are some flat-out, bad projects out there, which are going to miserably fail, and people are gonna get hurt. They’re gonna lose a lot of money. We’re not gonna get into specifics on that but that’s a real issue.
Our edge is that we can actually build working software and then deliver it. That’s what we have actually been doing. We don’t hype it either.
Since we are small, we have to kind of develop these features and a little bit of isolation so that we do get the edge. We have done on-chain voting over a year ago at this point. We would have announced it and many more people would have come up with the same idea at that.
Nonetheless, we didn’t talk about it though. We wrote it and we boom here it is.
Tai Zen: You were the first ones to create the atomic swaps. When I first heard about it, it was from Charlie Lee and I thought it was them who did that.
Marco: We wrote the tools that did that. The primitives had been stitched together, so we were the ones who wrote the tools that actually made it happen. That was a huge deal by the way. Nobody was talking about it.
Tai Zen: I think that’s even more important than the decentralized exchanges because you don’t even need those exchanges if you have it.
Marco: No. I and some other guys just need to talk to each other and come up with a price and that’s it.
Again, disintermediating the exchanges because they don’t always provide value. By removing some of these hurdles, some interesting things are going to happen. However, atomic spots are going to be huge. I predict a rough a couple of years for exchanges.
Tai Zen: Will it replace all the exchanges?
Marco: I don’t think it will because you always need an on and off-ramp for Fiat.
Leon Fu: I think exchanges still provide an order book. They serve as price discovery because how are we gonna agree on a price if we don’t know?
Marco: But you don’t have to care about the price. You and I just have to agree on it.
Leon Fu: I’m saying exchanges still provide a mechanism for price discovery. It’s a central point for all buyers and sellers to show up.
Marco: What if there were a chat room in which there are 10,000 people…
Leon Fu: Sure. That’s how markets used to work.
Marco: I think that will be the first innovation that’s going to come out of atomics swap. You start seeing that and it is going to become a more sophisticated order book.
However, If that is going to be monetizing, it’s going to be hard. That’s the actual problem because there’s no money to be made by an exchange. They need longer skim or arbitrage.
Tai Zen: Thanks for watching this video guys. If you guys like our boots-on-the-ground type of investing approach where we go and talk to the actual development teams, and make sure they’re real people get real information, make sure you guys follow us at www.cryptocurrency.market/newsletters.
We’ll look forward to seeing you guys in the next video. Thank you. Bye.