Tai: This is Tai Zen and I am broadcasting from the World Bitcoin Network headquarters here in Boston, Massachusetts. And this is a follow-up to the first video about Slock. It and the ‘S’ in ‘Slock’ stand for a smart, safe, secure lock. Then I have some follow-up questions here, we ran out of time in the last video, so I got more questions from my fellow investors here. So let’s go ahead and get started. First question guys.
Interviewer: So why should I invest in Slock? What are some of the advantages here?
Tai: Some of the advantages are that it saves businesses a lot of money. For example, the way that I see it and then… oh, I got to make my disclaimer, I’m not a licensed financial advisor guy.
In American, you’re not allowed to dispense financial advice unless you’re a licensed advisor and so I am just sharing with you guys the research that I discovered about Slock.it. So what you do with that information is up to you.
Also, I do not work for Slock.it. I am not a representative. I’m not their shield. I am not anything with them other than a trader and an investor who has done research on them to figure out if they are worth my money to invest in them or not. So I’ve never met any of their team members in person, and if I was representing them or I was working with them in any capacity, I would let you guys know just like when I was helping out promoting the NXT.
I’ll let you guys know exactly what’s my role was there and here I absolutely have no interactions with anybody that I know of from the Slock.it team so I just wanted you guys to be aware that I completely have no bias towards them or against them.
The only person that is closely related to them that I would even have any idea about is that I spoke with Vitalik Buterin. I interviewed him live and you guys can watch that video on this channel so you guys can see what I talked to him about. So you just want to get that out of the way. So you were asking again what’s the benefits of the Slock.it.
So the way that I look at this is that in all the major cities that I visit and I go to, I rent cars all the time and they always have to give me a key. I got to go there and check with them and then I come out, look for the car and do all that. Now if I rent with, like for example, like I think I forget which one it is, but I think its enterprise or something like that. It’s one of the cars comes out with some…
Interviewer: Is it National where you pick the car?
Tai: Yeah, it’s National, when you go out there, National Car, you can go there, grab your car and then when you leave the parking lot, they will check it out for you. The reason why I believe this smart lock system from Slock.it is a very revolutionary technology is that it includes the software and the hardware.
Now in my first video, I mentioned that the hardware is a lock like a physical padlock and I think I read somewhere where they’re going to partner up with some reputable lock company to put their computer chips inside the lock.
Now, as you can see the prototypes of their locks on their website and at the conferences that they’ve been to, they demonstrated the lock. So that’s a huge step for me because I know how hard it is because I have a machinist and a welding and manufacturing background.
And I understand how hard it is to take something that’s an idea in your head and take it out into the physical world, into a physical metal product or just a solid product. And on top of that, put circuit chips inside so they connect with the Ethereum blockchain.
I can understand how most people talk about things, but they never actually got to do it. So these guys actually talked about it, they planned it out and they actually went and built the hardware and they’re doing the software.
So not just for rental cars, but imagine if you go down to the city of Austin, there’re certain cities like the city of Austin which is the capital of Texas and it’s the biggest state in America and that’s where I live. I’m just here visiting the World Bitcoin Network headquarters.
But when I visit my friends Leonfu.com and Eric in the city of Austin, what happens is when you go to the downtown area, there’s a bunch of what’s called smart cars and there’s a bunch of bicycles that they are locked up into the bicycle racks and they’re locked, and you have to go over there and put your credit card in there and pay for it and then the locks will unlock and then you can go do it.
The problem with that is that if you’re involved in cryptocurrencies or Bitcoin or anything like that, credit cards are not safe. People can steal your identity. They can do that because when you pay for it, it not only takes your credit card number, it takes basically your private and public keys. They don’t work on public and private keys, but they pretty much take all the private data on your credit card to use it to process the transactions.
So with this new Slock, I hate the word Slock, by the way, guys, and I know that the Slock team is going to be listening to this, I think that it’s the absolute worst. It just sounds weird…
Interviewer: I kind of like it. So I have a question for you Tai. So they’re taking all these assets that aren’t used, and they’re making a peer-to-peer…
Tai: I just got coffee from James D’Angelo from the World Bitcoin Network coffee maker.
Interviewer: Ok so if you take all the assets out there that aren’t being used the people want to rent out or big money on, are they planning on using a lock for each one of them?
Yes, that’s one of the challenges that they’re going to face is how to create this hardware. Right now, they’re demoing it. They’re doing the prototype and they’re demonstrating it on doors and simple things so that people can understand but later on, they’re going to move into hardware that’s going to be for laptops, for computers, for cars.
If you have a bicycle or a car or a trailer that you are not using and you want to rent it out, let’s say that, imagine doing the supplementary… my bad. So I was trying to upload some videos guys and hold on here…
Alright guys sorry about that, James wanted me to throttle my video uploads here because I’m shooting this video and uploading some other videos up to the channel because everybody’s been bugging me about where to buy and sell Ethereum and stuff. So back to your question.
Interviewer: Yes, right about the locks. Every asset that’s involved in Slock. It, you can have a look?
Tai: Yeah so there’s going to be two portions, one is hardware and one is software ok.
Interviewer: So it’s like an Internet of Things bridge.
Exactly that’s what they actually call it. They call it the Internet of Things, and this is amazing because like when you go to the hotels you know how the hotels have to pay for all the TVs and microwave ovens and the iron and everything, imagine when you can set up a hotel all by yourself and not have to furnish it with any type of electronic or hardware, equipment, microwaves, refrigerator or nothing.
Imagine you go to those companies and you tell them “Hey I’m going to build this hotel and you guys supply my entire hotel with the appliances, and you guys can make money off of it because every time someone rents my hotel, I’m going to signal it to the appliances use the Slock system that’s installed in there”.
That’s one way where the hotel owners, business owners can build a hotel and save on the cost of the appliances because they don’t have to furnish the appliances. Because if you think about it, the people that build hotels, they’re in the rental and leasing business, they’re not in the business of owning microwave, ovens, appliances, refrigerators because that doesn’t make the money.
Interviewer: So it allows the customers to pay for per unit cost?
Tai: Exactly. So if I come into the hotel, I don’t use the microwave and I don’t use the refrigerator, why should I have to pay for it?
Tai: And I’m paying for it right now, right. So the average hotel rate is about 120$ 130$ across the US. I can’t remember in the last two years when I ever turn the TV on, why should I have to pay for that, right? Why should I have to pay for that?
Interviewer: So it allows business to target specifically what’s necessary.
Exactly. If you are a business of your hotel owner and you want to expand your hotel chain or you want to open up more hotels in the city, imagine doing it without having to pay for all the appliances in the hotel.
Imagine letting Samsung or letting Kenmore or letting any of those appliance manufacturers pay for it themselves and put their appliances in your hotel and they do the maintenance, they do the upkeep and do everything and you don’t have to mess with it.
Interviewer: So it’s like not having to buy those channels on Comcast that they bundle in.
Tai: Exactly. So you know how they force-feed you to buy a hundred channels and … I can see a world where they could put the Slock into those Comcast, those stupid cable boxes and then you just pay for what you want to see.
Interviewer: I have one step better for you too, that this is going to save companies seriously a huge amount of money. You can get rid of tons of people.
Yeah that’s the key and imagine this, I’m using the Samsung s5 right now to record this video and you’re using an Acer laptop with your questions on there and I’m using a Dell laptop over here. When I got this Samsung s5 in America when it first came out, it was like $650, but I’m only going to use it for about a year maybe at max a year and a half before I exchange it and get a different one just because I’m a technology freak.
I don’t need to buy another one but if it has a better camera or something like that, I shoot a lot of videos so they come out with a better camera, I’m just going to go in and get rid of this one to get the s6 or s7 just because it has a better camera not because the cellular service is any better, but just because I shoot a lot of videos and it’s worth it. So why should I have to pay the $650 for this cell phone when I’m only going to use it for 12 months?
The phone still works. I take care of it and everything, especially if you get their active version or the sports version, you can drop those things a thousand times and they still work. So why don’t I just use they implement, the Slock.it inside of it, the hardware and the software. Now I can just pay to use the phone for 12 months and then when I’m done with it, I just give it back to the manufacturer.
So this eliminates the need to even have cellular service, you don’t need you to know, all these little T-Mobile stores, all the Sprint stores, what you call that, all the AT&T stores. In America and outside the US, I don’t know what you guys use, within America, we use T-Mobile, AT&T, and Sprint. Those are the three major cellular networks and imagine not having to pay for the 600$ iPhones or the 600$ Samsung phones or LG phones and you just rent it or lease it using the Slock.it system.
Interviewer: I think this idea is game-changing. The only thing that I see is a potential problem with the hardware. I think people can be disrespectful, vandalize it, cut it, break it.
Tai: They can even exchange out the parts inside, I can get this Samsung 5 phone and switch out the new battery with a dead battery and give it back to them. All those things are possible but here’s the thing that’s where I believe having the DAO, the decentralized autonomous organization, its software and hardware, so they can check it and if the software things are missing or you know, they can grade the batteries if it’s less than a certain percentage when you return it, then you lose this much or you get charged this amount.
If it checks the ID of the serial number of all the hardware when they give it to you, every piece of hardware there has a serial number on it, so if they run a scan of the hardware and these serial numbers are missing, then they can charge you more for it or you have to pay for that component.
I don’t see that being a hard… maybe I’m just fantasizing and dreaming, but I can see a world where all the electronic devices that we borrow and wear. Imagine this watch, this TW Steel watch that I’m wearing right here, imagine that instead of me buying it, most of the watches I wear I like it, but then after a while you know, I see a different watch that I like better. I don’t want to have to keep this watch anymore.
What if I can return it the metal part, the components and everything that’s not going to change much, the case and everything, it’s made out of steel so what am I going to do unless I’m just banging it against concrete every day. The watch is not going to get ruined and worst-case scenario, they just replaced the bands, the leather bands or the nylon bands or whatever it is but the entire watch itself is not, I don’t see that being a problem you know, and I can just return it and get a different watch.
Interviewer: I’m even thinking this is a good concept for landlords you know, people coming into town like you need a place to stay for a week, you pay a higher rate per day than the average tenant. You have your Slock. It to get in and boom it your place for a week.
Tai: Yeah, so there’s a lot of people in the Boston area that’s utilizing the Airbnb so that they can rent out empty room that they don’t have. So basically Slock.it allows you to rent out or lease out the physical things that you have, that you are not using.