Because I have YouNow and then you guys have the PROPS platform and then you guys have the RIZE app. So can you clarify that for the audience?
Peter: Sure. So you know as our existing product, and that’s a live streaming app that we’ve been running for a few years. What’s really interesting about that app is it is a virtual economy.
So you have people can buy a virtual currency, they can spend it in rooms, giving gifts to broadcasters and those broadcasters can earn. We’ve been running this and we do revenue and about $2,000,000 USD a month, I think these days.
Tai Zen: That’s a lot.
Peter: Yeah, we’re a real company. It’s been working well. But I think we realized a few things. One is a limited set of users that could earn. So it’s like these partners that we have to sign and do all onboarding with them.
Tai Zen: Can you give an example so that our audience can understand, let’s say that we just take an example of a broadcaster that is doing well and then with the process they have to go through to become a partner and then to earn revenues from you.
Peter: Yeah. So they would have to prove that they could do a certain amount of consecutive viewers every time they went on. And then they would have to apply and fill out forms and there would be back and forth.
And then we’d have to figure out their bank account and a lot of friction and it meant limited thing, that was only for a few people. And the other thing is that there’s always this battle because in this model we are like a rent collector.
We needed to take our cut of the revenue, so there’s always this back and forth, even though we want to support these creators, we are taking some of the money there. So we started to explore what could really open that up, how could we allow anyone to earn and how could we really evolve our business model so that we’re aligned with these creators.
And we’re both winning at the same time, that’s when we started to explore tokens and really started to build out the PROPS project.
The goal of PROPS is to create essentially this decentralized ecosystem of video apps and really rethink how digital media works, and change our business model from collecting rent on these payouts to creatives, and being more stewards of this currency, and allowing the creators to get paid in this currency that they can either go and cash out and there’s nothing different to how it works today or they can hold that currency.
When they hold that currency, it unlocks various benefits within the platform, giving them status, giving them influence over who’s trending, helping their content gets seen, but also as the network grows, as they put all that effort into growing this system, they have a stake in this platform rather than the old system where they just get a check. But if the system grows, they can’t.
Leon: So it’s almost a form of equity. You’re saying?
Peter: Well, it’s very different. But in the sense that as this thing grows, they can stand to benefit. But it’s very much, this token that they actually want to use within the system. There’s less incentive for them to cash it out. But there is an incentive for them to hold onto that.
Tai Zen: We’ve looked at other projects in the past of the cryptocurrency projects and there’s like dozens of them coming out every day now and it’s just a lot of noise. One of the things that we noticed, that got our attention, with you guys is that in addition to the $2,000,000 USD in revenues each month, that’s like a huge green flag for us.
Like, “Hey, this is a real company, this is a real business, real people”. Like all the people that’s working back there right now behind us. But the thing that really caught our attention was that you guys actually have a token right now that you guys are using in the current system right now, in the current YouNow system.
So it’s not like you guys just out of thin air just made up like, “Hey, we need tokens, cryptocurrency tokens”. You guys actually have a token right now. It’s just not a cryptocurrency token.
And you guys are basically building a new platform with a new token. And that new token is based on the cryptocurrency and blockchain technology.
Peter: Exactly. So we right now have a virtual currency, but that virtual currency is locked within our application.
Tai Zen: What do you guys call them? Like gold bars?
Peter: Yeah. When in YouNow they’re called bars. And you can spend these bars. And what was really good about virtual currencies is you can use the in-app, the Apple in-app purchases to really easily purchase them and then use them, but they’re locked.
Tai Zen: In that network and that ecosystem?
Peter: Well, it’s locked within a single app and it’s really hard to have multiple apps using the same virtual currency. That’s what’s really interesting about a cryptocurrency is that it’s maintained in this decentralized way on this network. You can actually have multiple apps that tie into it.
What we do is actually really interesting is within the RIZE up, which is essentially almost like the YouNow 2.0 that we’ve taken all the learnings from YouNow and designing this new app with the cryptocurrency baked in, it essentially uses a two currency model.
So you still have a virtual currency and non-crypto currency that these mainstream users that have no idea what crypto is, they can come along and buy this virtual currency and play the game, they can buy gifts for the broadcaster and they don’t need to set up a wallet or any of these crazy complicated things.
But that the revenue that’s generated from this virtual card seat, we then use to purchase PROPS from the market and payout to the creators. These people that don’t really understand crypto yet, and there’s not that roadblock of the complexity, they are actually helping to drive demand for the PROPS currency and helping the creators to earn in this currency.
So you have a really easy way to get in without this wall of complexity. But as you start to understand the system, as you start to participate, then you earn a prop and you’re like,” what is this?”
And we gradually hold your hand and we say,” okay, this is a cryptocurrency”. Like you actually holding it on your device and we congratulate, walk them through. We don’t have to shove it in their faces as soon as they open the app.
And I think that’s a really important way to bring mainstream users into crypto is you have this gradual introduction to it rather than it’s really in their face.
Kirk: So your solving is what dash always talks about for people that are not in crypto. You’re seeing 60,000 transactions a day.
Kirk: Of people that know nothing about crypto that is going to be able to use crypto. You’re making it simple for them.
Peter: Exactly. I mean that’s another point which is like at that volume of transactions, no blockchain at this point, I mean there are some really interesting things coming up around plasma and state channels that I think will allow this volume of transactions to have happened on-chain.
But this is a way for us to have the virtual currency and people playing, but it actually drives these daily payouts of the cryptocurrency that we’re doing of PROPS.
Leon: If I’m a content creator, I have PROPS now in my account. So I need to claim them in order and these PROPS will be sent to a wallet of address that on. Is that the next step?
Peter: I mean, we’re toying around with what the user experience is, but more or less every day you’ll get them and we’re working towards is they’ll just automatically be deposited in your wallet.
Tai Zen: Because of the payout right now with the current system that you guys have right now, that YouNow.com system, where people get the bars and the gifts and everything. There’s like a week or two weeks turn around time? What’s the payout time?
Peter: I think it’s like a monthly payout or this. It’s every day.
Tai Zen: Okay. So that’s going to be huge.
Peter: I mean for a lot of these creators, it’s their living. We’re really thinking how do you make that experience easy for them? I think it’s still early days, but we’re exploring things like some of these cards that are allowing you to spend crypto.
But I think that longterm you can imagine, a creator who’s using this app owning in this cryptocurrency and then holding a collar that they can go to the store and buy something.
Leon: Like a bit pay a Visa card or something.
Peter: Exactly. I think the support for ERC20 token is not quite there, but there’s a few of them and I think space is evolving very quickly and that will be an interesting way.
Tai Zen: One of the biggest challenges in crypto right now is getting people to actually use the technology and the way that you guys are approaching it, the user actually never experiences the cryptocurrency component.
So that’s a huge hurdle that you guys have just eliminated. This might be everybody’s asking for the Netscape moment or the moment that people start adopting cryptocurrencies and using it.
This is one of the better scenarios that I can think of because you guys have a community of users that are already using a token. Now they’re just using the token, except it has cryptocurrency technology behind it.
Peter: Yeah. I forget who said this, a lot of the experts when you ask them “when’s blockchain going to go mainstream?” And the answer is when people don’t even realize that a blockchain is being used behind the scenes, it’s just the best user experience.
I think that’s what we’re striving for, especially for an app to get those network effects and have people using it. We’re still in the very early days. I’d say most people have heard of Bitcoin, Ethereum sounds really scary to most. It’s like your money is going into the East.
Tai Zen: Okay. So you talk about the user interface and stuff. I have a question for Olivia here. When I was testing the RIZE app, I’m able to pull people from the audience onto the stage or onto the room like very quickly and pull it back.
I mean it’s everything’s in real-time and how are you guys doing that? Because when I use Google Hangouts or any of that, it’s not in real-time and it’s buggy and stuck. What are you guys doing behind the scenes? Is that a secret sauce that you guys cannot share?
Olivier: I can’t answer to the infrastructure things like a tech team as built, but I could just share something in the way we started the project.
A few months ago we started, I’m sorry for saying that, we studied it as a hackathon is that we knew that we want to have like multiple videos on the screen and be able to have some cool interactions with them, like a drug, creating like groups on the screen between.
We’re not exactly sure of what we could do so we made a 3-day-intense hackathon with the tech team and design team together, just to test many things that we could do. And at the end of the 3 days, we didn’t have the technology really that we knew that we could build it.
Tai Zen: So that was like an in-house hackathon that you guys put together.
Peter: We’re basically just really exploring what’s the edge of what’s possible with the devices. And I can give you like some hints and some of the secret sources like we’re almost like pre-warming. We know this video is going to get ready.
So we’re getting it ready in the background and we’re utilizing a lot of live streaming has happened over older technologies like RTMP, which still requires Flash. And then you have these other formats, just drop more acronyms. HLS is one that people have used, but we’re using a WebRTC, which is one of the newer technologies.
Traditionally it’s been for group video, but we basically figured out a way to take the group video experience and scale it where you can have that video going to multiple people and you can like to the infrastructure abstracts the complexity where on your phone you just pick which people you want to be watching in any combination.
And it’s streaming those videos really fast. So it’s like taking some existing technology and molding it to get the most out of it.
Kirk: So when you open up the developer platform, you’ll have Verizon there, but someone could build like a go-to the meeting on this platform, right?
Peter: Yeah. So I think just to clarify with the PROPS and with the RIZE. PROPS is essentially the platform around the currency. And RIZE is the first app that we’re introducing that uses the PROPS currency and uses this many to many video technology.
Tai Zen: Any one of us, if we know how to do it, we can build separate apps on top of the PROPS platform.
Peter: Exactly. So if you know how to build your own full apps and you want complete control of the experience, you can create your own application utilizing PROPS and the many videos.
Alternatively, if you are like amateur, additionally within the RIZE app will allow developers to customize some of the things within RIZE. So that’s like a little bit more amateur, like in the same way. Then you have broadcast is all yourselves.
You can just go to YouTube and just start and it’s really easy. That’s what you’ll be able to do when it RIZE like more minor customization but you don’t have to worry about some of the infrastructure stuff behind the scenes.
You’re just tweaking it and maybe designing a little game like the way we like to think about it. Because we have this technology where everyone can be on video. We really want it to essentially like mimic a real-world conversation.
Like what we’re doing now. You can either be in a group all chatting together or maybe we decide to like play a card game or a party game or whatever it may be.
Or a game show, like any of these configurations with some basic rules on top of like, which video is live and maybe some interface, whether it’s like a voting system or anything like that. We wanted to be flexible that people can recreate these things.
Tai Zen: You mentioned about the voting system, right?
And you had shared a story with me offline about how I think it was America’s Got Talent or which one of those shows they wanted you guys to build a yes and no voting button.
Peter: Yeah. We’ve actually on YouNow in working with America’s Got Talent, they do auditions on YouNow where anyone can audition and they select some of those people to go into the next rounds.
And they wanted some way for the audience to participate and say if they liked yes or no, but that was kinda hard for us because YouNow was designed to have a single-use case, which was just people.
Leon: It sounds like it’s built as a monolithic application.
Peter: Right, exactly.
Leon: Modules and extensions and API is that other software could plug into. It was just one big codebase. Is that more or less what it was?
Peter: Yes, it was much less prone to be at a customized. And so with RIZE, someone could very easily come along and build this additional functionality and have a special room that allowed people to audition and the crowd to vote and then have a different room that had completely different functions.
Tai Zen: What you’re saying is that with the benefit of the PROPS platform is that when a company like America’s Got Talent, they don’t have to come and hire you guys or request it from you guys.
They can have in house engineers just build it themselves or they can hire an outside firm such as Kirk’s firm here to build it for them. They don’t have to wait for you to do it.
Peter: Absolutely. We don’t want to be the bottleneck and we want to open it up so people can innovate and do things that we hadn’t thought of and they’re not waiting on us.
Tai Zen: And who is that? Is the platform available to anybody to build apps on top of it or they have to come to get permission from you to build the app on top of it?
Peter: Where we want to get to is where anyone can build on top of it. I think it’s going to be gradually rolled out. I am going to start with some select partners to evolve it and learn exactly what the use cases are.
And there’s also a reward system, which we haven’t talked about yet, which is a significant chunk of the currency supply is held and used to incentivize people who are country contributing content. So in a sense like our creators are a minus, they are the ones creating value and then earning the currency.
We’re still exploring exactly how that works across different apps. But the ultimate goal is that anyone can create an app on top of it.
Tai Zen: So basically if someone right now that’s listening to us right now, and they don’t have the resources to, let’s say, buy their own, invest into the PROPS token, but they have engine software engineering skills or content creation skills.
They can just wait until you guys release the tokens and then actually go and build an app or create content on it and still earn the PROPS.
Peter: Exactly. We want it to make it easy. So the first two ones that we’re starting with is people who create content and old people who develop.
And we’re also exploring other ways where if you’re contributing, whether you may be brought some friends, you can earn for that, or maybe if you’re doing moderation, then you are earning and PROPS. And so anyone who’s contributing to the network, you can earn. Absolutely.v
Tai Zen: Okay. I talk a little bit about the RIZE wallet security, how you guys on the plan on setting up because you have millions of registered users on the current YouNow platform that are going to be migrating over to the RIZE plat app, right?
So talk about how the broadcasters are going to be migrated over and how the viewers or the users going to be migrated over.
Peter: I think it’s something that we’re really excited about is like this will be for these millions of users, their first exposure to crypto, which we also take very seriously. So I think what’s really important to the design is that it’s this gradual introduction.
We’re not upfront hitting you with write down these 12 words, so many users just like they’ve never encountered this before. And if you did that, that probably you’re going to take a screenshot of it or write it down on a piece of paper or a text file and not keep it very secure.
So the first piece is that when you download and install the app, you don’t need to know anything about crypto. You’re just starting to play. Like I was saying another time you can just interact with the system without even knowing that this crypto there.
We’re not scaring anyone off with the odd, I don’t know if I want to use this app. But as you earn your first dollar in crypto, we start to introduce you and say, “Hey, you just earned this coin.”
We explained to a little bit about you and we actually create an automatic wallet on a device that allows you to instantly start holding that cryptocurrency.
And then as someone starts to earn more, it’s essentially a hot wallet on your device, but as someone starts to earn more, then we start to hold their hand and teach them more about security and potentially run them through how they can utilize a hardware wallet like Ledger or something else.
And they can still any of the PROPS that they’re holding in an off-device wallet in a more secure environment, they can still link it to their account and unlock the status from holding this PROPS. So it’s like this gradual holding of their hand, getting them to know it. So it’s really easy.
Tai Zen: If someone, basically, has a large PROPS account, broadcaster. I know that you guys have a team right now, the support team that supports all the big broadcasters.
So basically if they get to a point where they have big amounts of PROPS, your support team is going to make sure that they have proper security behind it.
Peter: I think the plan is even to send them a free Ledger. I think if they are creating a lot of value and walk them through how it works. I think you really want to strike that balance between usability and security.
Leon: So I think your philosophy, and correct me if I’m wrong, it sounds like when there’s very little money involved, usability takes precedence over security. And as the number of crypto increases, it’s the importance of security RIZEs relative to usability.
Leon: And that’s a balance you’re trying to find is. I only got five bucks worth of PROPS. It’s more important that it’s usable than it is secure, cause it’s not really a big deal if I lose it.
But if I’m having thousands of dollars worth of PROPS now, perhaps I should start getting a Ledger or a hardware wallet to secure that.
Peter: It’s 100% right. We don’t want to hit them with this wall and scare them off with all these requirements and we want them to be able to use it. That experience makes your first crypto transaction and you see it gets confirmed and you’re like, “wow, this thing like actually works”.
We want that to be a quick and easy process, no setup. And a lot of our users are mobile-only; they don’t really use computers so it’s really about a gradual. I mean it’s still secure, we’re doing a lot to make sure that this on-device while it is using all of the best practices.
But at the same time, a lot of these users have used the more traditional services where they forget their password and they’re like, “Oh, please reset my password.” When you’re encrypting these wallets with passwords, you can’t.
So we’re toying around with the various things, we were talking about how you can utilize, where you have these trusted people on the network that can verify that “yes, it’s you” and you’ve lost the key and you can access an emergency one, all these techniques where you’re actually using like a Proxy Wallet on top of the actual keys.
So when those two people verified is there are ways to get at it. We’re exploring how we can abstract the complexity and from a user’s perspective, it just feels like web services that they’ve used in the past. But they are actually holding crypto and catching that bug, taking the red pill as they were saying.
Kirk: It’s kinda good for crypto cause you’re getting people that aren’t into crypto. Once they get once for an influencer that acquires enough that you start educating them, they’ll start educating their audience.
Leon: Yes. And they will need to because if they start earning a significant amount of PROPS, they will want the cash some of that out to buy stuff. We all have bills to pay.
So at that point, they need to learn. They need to be educated in order to claim the value. They want to spend the value that they’ve earned. That’s going to be, I think, a challenge to get that experience. Right?
Peter: Yeah. I think we’re also exploring things like shapeshift to help them swap it in order to get it out and use something like, whether it’s Coinbase that’ll allow you to actually turn.
Leon: You might even consider like one of this Bitcoin besides giving them a free Ledger, maybe giving them a Bitcoin ATM card that you can do all the trade, turn the PROPS into Bitcoin or ether and then turn those into like a visa or MasterCard that they can go buy something with.
Peter: Definitely all the cards.
Tai Zen: So the people, let’s say that I’m a broadcaster that’s currently broadcasting on your current system, on your current YouNow platform. One of the first things that come to my mind is that I have a certain amount of status.
I have a certain amount of crowns that dictate, how high I am on the social ranking. How does that migrate over to the RIZE app? What am I going to lose all that as a broadcaster on the YouNow? What’s the game plan for that?
Peter: Yeah, we have various things in place that will allow you to bring over some of your statuses and also bring over your fans. When you start broadcasting on RIZE, it’s notifying people on YouNow that this is what’s going on. So you’re not losing access to all those fans.
And then we’re also giving you some status in the new app, but at the same time, we have these millions of users on YouNow that we want to bring across, but we also want to reach new users. It’s not just about YouNow users; we think we can meet a wider set of users and use cases.
So we want to make sure there are mix and people that come early as content creators on RIZE that never had a YouNow account can compete and can be up there, at the top creating the best content. Because I think a many-to-many video is in some ways almost a different format.
Where you’re gonna have multiple people riffing together and maybe you have a group of four people that started running around the table and then that’s really interesting content and pulling in audience members to contribute.
All this stuff wasn’t possible on YouNow. So we’re really excited about the new types of creatives
Tai Zen: Because there are times when we broadcast and we have some viewers make some good comments and sometimes we like to be able to just pull that person into the conversation quickly like on Google Hangouts.
When we use that, we have to bring, we have to send them the link and hope they click on it right. Here you can just basically just grab the person you want as part of the conversation and just pull it up into the staging area or into the room. And then everybody can just converse
Peter: You don’t get any exposure to that person and all of a sudden they can start, so we’re really interested in the collaboration stuff. You see this in a lot of YouTubers’ collaborative videos.
But this is much light, a touch where they see someone who’s leaving comments that are insightful and all of a sudden they’re up on the screen. I think one of the biggest metrics for a good content creator platform is how well does it create new stars?
How low are that barrier to you breaking out and people discovering you and it’s many many video people can get pulled up, allows people to break through rather than having to start your own room and hope people come to it.
Leon: Yeah. That’s a good one.
Tai Zen: That’s a huge game-changer. It’s interesting you bring that up because in the Asian philosophy, in the Chinese martial arts, they have this philosophy that if you want to determine if that martial arts instructor is very good or not, don’t look at what he’s doing, look at his students or how they perform.
So if he has a high number, a large number of students that are very good martial artists, that lets you know how good the instructor is.
Peter: Very cool.
Tai Zen: So basically you’re saying the same thing, one of the ways that determine how I guess the quality of that broadcaster is by how many other successful broadcasters that he’s able to bring produce.
Peter: Yeah. That’s also possible.
Kirk: That’s what you did with your YouTube, with all these other crypto channels.
Tai Zen: Yeah. We made that. See, every year we make a video about who we believe to be the up-and-coming YouTubers are. The last one we made last year, we included Omar, the Crypt0’s News channel and back when he only had 1000 – 2000 subscribers; BitcoinMeister, and a bunch of other ones.
This year they’re all huge, huge channels. So normally we spot good cryptos to invest in, but we also spy good talent. So hopefully this is one of those moments here when we’re aspiring good talent.
Talk about this, let’s wrap up this video by talking, each of you guys sharing your thoughts on what your vision and what cause you guys are working on it. You guys see things that we don’t and we want to be able to, the audience sees what you guys see through your eyes.
When we started with you, Olivia, what do you see coming out in the future on the plan of the PROPS platform? What do you see with RIZE?
Olivier: I think with this economy and video capacity, I think basically we can build a lot of things on craps.
I see potentially many types of video games using video and massive multiplayer games on video building on PROPS, for example, karaoke or even new type of TV shows, like new talent, help on mobile. I think we have all the pieces to assemble sometimes this type of experience.
And this is what I see coming pretty soon actually on the PROPS platform. And the second thing that is also very important to me is I think there is a new learning experience that we can have like masterclasses, for example, it could be music lessons, but also professional masterclasses.
Peter: Crypto boot camp.
Tai Zen: We can do our cryptocurrency investing boot camp on the PROPS platform.
Olivier: Actually you have an expert on any domain pass.
Tai Zen: That’s actually a good idea.
Olivier: You give you masterclass about a blockchain and all the time you spend on a camera, people access your room and this time is converted into PROPS and they spend PROPS to attend.
They can see you on your show, they can ask questions that will appear on the chat and maybe to rank their questions depending on how much PROPS they own.
Tai Zen: If the audiences stop paying us in PROPS as we’re broadcasting, we just end the broadcast.
Peter: We are going to hit this milestone they did it for us. The charity RIZE.
Tai Zen: But basically it’s not just us teaching the audience about cryptocurrency investing, let’s say that since you guys are coders and they have a technical background, you guys can actually talk about doing coding or blockchain technologies and share what you guys have learned in developing the blockchain technology.
And then if your technical viewers like it, they can give you credit for it and there’s a way for you to earn from your knowledge.
Peter: Yeah. I think for me, what is really exciting about what’s coming is really the long tail and making that more sustainable. You’ve already started to see with YouTube, with all these niche content that people have been able to create.
But I think a continuation of that, different people playing games or talking about different subjects and not only having that variety and long tail, but it being more sustainable.
Tai Zen: When you mentioned long tail, can you explain to our audience the ones that are not from an English speaking country, maybe they don’t know English, their second language.
It may not be familiar with the term long tail means, in my understanding, long tail means that the small players or the small users or the ones that don’t have a voice yet. What are you referring to when you say a longtail?
Peter: I mean if you think about TV, there were a few shows that there could be. And because there was only like 10 shows they had to be on the most popular topics and there was a limited amount of people that we’re creating those.
And then I think you have YouTube. And when I say the long tail, it’s all the smaller things that are now viable. It’s like you have a graph with as the biggest ones and then you have the long tail.
Leon: So in mathematics, it’s like the power-law curve, right? Where most things in nature they’re dominated by a few big players.
But then there’s a majority of people are in this really long tail. That’s why it’s called a long tail because on a graph it just keeps ongoing.
Peter: If you actually add up all those little amounts.
Leon: Yeah, it’s actually a large amount, but it’s so spread out over such a large number of people. That it’s really hard for people to monetize on if they’re not in the big part of the tail.
Peter: Yeah. And so I think all that creativity and the other thing I’d say is interactivity. Even YouTube is very much capacity, you just consume it. Whereas I think the next frontier is people participating, whether it’s from the audience getting up on stage, it’s more interactive.
We’re actually seeing people toy around with, essentially like game shows. You just sit at home and you’d watch people playing the game show, but now you can actually play, anticipate participating. And I think that’s the next frontier.
We’re very much at the front of that and to have designed this thing that we don’t even know how people are gonna use it, but we know that this toolset is very well set up for that thing.
Leon: Okay. Cool.
Tai Zen: Okay, so let’s conclude this video by telling the audience if they want to learn more about the PROPS project, where do they need to go? Where do they need to sign up?
Peter: Sure. So propsproject.com is a way you can go for all the information. Join the community, get involved, ask questions. And yeah, we’re getting.
Tai Zen: In the future when you guys have updates and major updates, let us know. We’ll be happy to come back and take a look at it.
Peter: Yeah. I mean, what’s really excited, signing about what we’re doing is this app will be out alongside the token.
Leon: That is exciting.
Tai Zen: It’s very exciting. I mean, we invest into projects four years ago and they still don’t have a working product yet. So this really excites us. Do you know what I’m saying? So if you guys like these types of videos, make sure you guys go to https://cryptocurrency.market/newsletter and sign up there.
And that’s where we send out these new research videos that we do. Thanks for watching this video, and we’ll look forward to seeing you guys in a future video.