Tai: What’s up guys! This is Tai Zen again with PrisonOrFreedom.com, it’s a blog where we talk about the tools, the techniques, the strategies and technologies that are available to help people find freedom in their lives. With us here today is James D’Angelo from World Bitcoin Network, we also have Vitalik with the Ethereum project and these are some of the guys that are in the forefront of helping people find freedom when it comes to the currency world.
Tai: How old are you Vitalik?
Vitalik: I just turned 20 a month ago.
Tai: Ok, good job. Is it Vai-tah-lik or is it Vee-tah-leek
Vitalik: It’s Vai-tah-lik
Tai: And the last name is Buterin.
Tai: So from a non-technical perspective, like myself who’s not a coder or not a programmer or anything like that, I don’t understand all your white paper, I can understand the words but not the entire sentences and paragraphs. So for the audience that is non-technical people and they want to invest into Ethereum, first of all how does that work, I mean you guys were going to launch in February now it’s been put forth.
Vitalik: We are going to start the Ether pre-sale in a couple of weeks so the Ether pre-sale will be an opportunity for anyone to purchase Ether for Ether is the internal currency inside of the Ethereum system sort of like the XRP in Ripple.
Tai: Is there a big window of opportunity for people to get in or is there just like a one-day opportunity?
Vitalik: It might be 45 days it might be 30 might be 60 days.
James: Does it have sort of incremental things for the earlier you in?
Vitalik: The earlier you get in the better price you get.
Leon: I know you had mentioned a thousand to one like a thousand Ethers for one Bitcoin. Is there any cap on that? How many Bitcoins? What’s the value? Like if you sell hundreds of millions worth of Ethers will you take that or is there a limit?
Vitalik: We decided we’re going to take it, basically the issue that we had was that if we set a cap like we say we’re not going to take more than 50 million, then what if someone like Roger Ver who has a lot of Bitcoins he’s an Ethereum enthusiast, comes along and says I’m going to seize that entire pile and then you got a currency that’s basically mined by one person.
Tai: Let’s say you’re one of the founders of Ethereum and your colleague Charles, what’s to prevent one of you guys to load up and get half the Ethers for yourself or do you have to buy into those Ethers also?
Vitalik: Okay how much Ether we’re going to get, that’s still undecided but it will be very very public and it will be a rather small portion of the of the entire.
Tai: I mean when you say small portion are you talking about like ten per cent of the total five per cent?
Vitalik: so like in terms of the amounts that the organization is giving to itself so there are only two slices right there’s the slice which is sort of like an initial reward slice, at this point it seems like that’s going to be smaller and then there’s also going to be a long-term slice which will be which will provide long-term capital for development, cryptocurrency research.
What we’re hoping is that sort of similar to what happened with Mastercoin if that slice is something like twenty per cent and then the value of Ether goes up by five, there will basically have the entire initial BTC that we got all over again, so the compensation for the for the founders will be smaller and actually also this point thinking and doing some kind of like a progressive rate system where say it’s 20 percent up to some small threshold than 10% per cent up the vests and then
Tai: So that there’s an opportunity or everybody to get in yeah it’s an opportunity for everyone to get in and also like the more people get in then the larger a share people will get.
James: Likewise, they’re putting Bitcoin in, it all has to be provable so on that date that it begins all Bitcoins that arrived after that certain time are stockholders, it is approvable that no one’s pre-mined, because of that system, they’ve eliminated that possibility.
Tai: I like that transparent aspect.
Vitalik: First of all, just on the on the pre-mining point so there will be some Ethers that get created without Bitcoins actually getting put in so the long-term slice is one example of that but you are correct and that it is completely transparent. We’ll be showing exactly what these slices are and it’s impossible for us to secretly introduce any more.
Tai: You said that you guys are looking to incorporate and do this in Switzerland and you’re purposely not doing it in Canada and you’re purposely not doing it in the US.
Vitalik: A large part of that is regulatory reasons, so Switzerland they have a very long and established tradition of first of all very friendly banking laws also a tradition of stability so it’s not like some tiny tax haven that’s that’s going to run against us the moment the US government wants them to and the second thing is that they also have a tradition of its direct democracy or a very accessible government and we’ve actually been talking with directly with some government officials.
Leon: Is any of your team has to be physically in Switzerland or are you going to have to be in Switzerland
Vitalik: A large part of our team is currently in Switzerland, we are establishing a substantial base of operations there.
Tai: Okay but you’ll still be based out of Canada?
Vitalik: Yes, so part of us will be in Switzerland, part of us Canada, we already go over the distributed effort.
Tai: What else do people need to know about the launch or the release of Ethereum? Do you think that people have any misconceptions about that we haven’t covered?
Vitalik: Well in terms of biggest conceptions I would say we talked about Goldman Sachs okay also from a technical standpoint, some people have this idea that Ethereum is distributed sort of what cloud computing system where you can just offload the computations that you can’t just do by yourself.
That’s completely false you cannot do anything on the Ethereum theory blockchain that you can still do on a smartphone in 1999. The point of the Ethereum blockchain is its consensus essentially it’s providing a way to do computations in such a way that they’re trustworthy because they’ve been repeated and then backed up by thousands of miners so that’s one technical point.
Tai: When you look at the theorem versus the other altcoin that’s on the market let’s take NXT for example, now full disclosure I helped on the marketing with NXT so what makes Ethereum different. Because from a non-technical perspective, the things that you talk about, they talk about the exact same thing in NXT. What’s the difference?
Vitalik: I would say the difference is that from what I’ve seen of NXT, NXT implements a lot of those features explicitly they have transaction types for all these different things whereas with Ethereum we have this programming language and you can just write all those features in the programming language so it seems like there’s no difference between the two paradigms now because I was sure we also we all support all these decentralized exchange financial derivatives.
If somebody comes up with some with something completely new that no one’s ever thought of, then you can stop if you have a blockchain design that’s just based on having specific transaction types then it’s not going to fit in whereas here you just write it in the programming language.
Leon: I know software development; I’m a software engineer myself. When is this going to be ready? When are you going to…?
Vitalik: 1.0 is probably in about six months or so.
James: Tests are running right now.
Vitalik: Test that it’s fine so you can actually write contracts.
Tai: Thanks for spending time with James D’Angelo from World Bitcoin Network and myself. We wish you great luck!
James: Thanks Tai for bringing it together.
Tai: Alright, thanks for joining us, what I’ll do is I’ll get Vitalik’s Bitcoin address and leave it at the bottom of the video and James D’Angelo’s also, if you guys appreciate their work, I invite you guys to support them, send donation their way and Leone as well, our cameraman. Send them the coffee donation or soda donation, I’m pretty sure you drink a lot of soda when you’re programming.
Vitalik: Uhm no, green tea, please.
Tai: Ok, there you go, send some green tea. I’ll see you guys in the next video.