Tai Zen: We got confirmation that people can hear us, see us and everything.
I just want to introduce everyone here. This is Tai Zen. With me today, I have the honorable grandmaster legendary LeonFu.com, the great oracle of cryptocurrencies.
Leon Fu: Hi
Tai Zen: We also have a very special guest, Sasha Ivanov, the founder, and CEO of the Waves Platform. He’s broadcasting Moscow, Russia. Say hello to everyone, Sasha.
Sasha: It’s nice to be here. As Tai said, it’s been a year since we first talked on his channel, so I’m really happy to be here again.
Tai Zen: Yeah
Sasha: LeonFu, it was really nice to meet you in Munich.
Leon Fu: Yeah, it was great to finally meet you in person.
Tai Zen: Sasha, what was the first impression when you met LeonFu.com?
Sasha: I started to admire him immediately.
Leon Fu: I was a bit jet lag in Munich. I was actually falling asleep for half the conference. It’s a pity that I want to go to the after-party. However, after the conference was over, I went back to my hotel and just crashed
Tai Zen: you’re a party pooper, man.
Leon Fu: because I had just flown in the night before.
Sasha: I really enjoyed the conference. I’ve seen many people I’ve seen before. I was really glad to see you.
Leon Fu: Same here. Same here.
Tai Zen: You get to meet Sasha Ivanov, the CEO, the founder, the czar of cryptocurrency out of Russia.
This is going to be our anniversary update for the Waves Platform. We’ve been getting a ton of requests from viewers and people holding Waves Tokens.
Since our video with you a year ago when you had your ICO initial coin offering, there have been a ton of requests.
Just to be fair, Sasha has not been avoiding us or anything. It was just a scheduling issue. We try to do an update last year during the fall, but a hurricane hit where I was living, so I was busy trying to avoid the hurricane and did not have time.
Then, we try to schedule several more updates with Sasha and each time it was on our side that we couldn’t get the updates out.
I say that because a lot of people thought you did not want to come on the show again to update everyone.
We’re going to get started here. We got less than an hour.
Leon is going to cover some of the fundamental updates with you on the Waves and then I’ll go into the trading and the price and stuff like that.
Leon Fu: I’m going to summarize what I know, then maybe you can comment on it or add to what I know.
After we interviewed you, I would say you have the largest crowd sale ever after Ethereum. Let’s not count the DAO since that blew up.
You got a lot of money from the community and I see that you’ve been working really hard. You’ve got a lot of stuff out. I know that you’ve gotten the Fiat gateways running, a prototype of your decentralized exchange running on the Testnet. Is that correct?
Sasha: No. It’s working.
Leon Fu: It’s working now. Okay.
Sasha: We can trade there.
Maybe you can also explain to me what the Waves community token because I really don’t see the point of that. That’s on the top of my head. That’s what I think I know at the moment that you’ve accomplished, which is good. Would you like to add anything about that?
Besides, you got Bitcoin gateway working too, so we can actually deposit Bitcoins on the Waves Platform, then trade, move and withdraw them out.
Why don’t you add to anything I’ve missed or elaborate on the Waves community token?
Sasha: It’s a great general overview.
We’ll have a working decentralized exchange where they don’t have to leave your wallet in order to trade all the assets.
I think that is a revolution. You don’t really need that centralized exchange any longer because you can do all the trades on the wallet. It’s quite fast. You can run them both there, so you can create anything.
You can trade Bitcoin against Waves. You can trade Bitcoin against Ethereum in the near future when we have Ethereum.
Leon Fu: I can tell you what I see the problem with that.
Traders want liquidity. I haven’t looked at the volume or the order books on Waves yet, but I suspect that it’s definitely not Poloniex that you can’t trade at.
Sasha: It was 2 weeks ago.
Leon Fu: Exactly. How are you going to get traders to trade because they need liquidity?
Sasha: Market making. We’re getting down into it.
We were waiting for the proper interfaces because when you have a backend, but you don’t have a nice frontend, nobody’s going to use it. You need to have a nice product.
We’re finishing with the frontend. It’s working now. We should add some features like charting and a more usable trading interface like Poloniex has. Therefore, it should look like a centralized exchange.
Then, people are going to come because you have many benefits there and you don’t need to trust anybody with their money. It’s a big thing I think.
You just need to install the wallet. You keep your funds there and you can trade directly from the wallet. You don’t have to change your token to any centralized product.
Leon Fu: Is it free or is it cheaper than poloniex trading cost?
Sasha: You just have to pay a very small fee. For example, you can do 1,300 trades for one week. You pay 50 cents for 300 trades or $1 for 1000 trades.
Leon Fu: That is cheap.
Sasha: You don’t run any counterparty risk because you don’t trust your funds with the last part.
Leon Fu: Don’t you trust the gateway?
Sasha: When you deal with Bitcoin or Fiat, you have to trust it. You don’t trust anybody when, for example, you trade Waves against some tokens.
Leon Fu: but you still trust the counterparty like the Bitcoin gateway to actually give you the Bitcoins.
Tai Zen: Before you get too far into the gateway, Leon or Sasha, can you explain how the gateway works? I mean how I am able to send a Bitcoin into the Waves Platform and then exchange, let’s say for Ethereum.
Sasha: You have to trust the gateway.
For Bitcoin, you can’t have any kind of trusted solution at this stage. Maybe we’ll draft this solution in the future, but for now, we have the approach that Ripple introduced where they have trusted gateways that keep your funds.
What is better? For example, on Poloniex or any other change, you can track what coins they actually have. You can ask the gateway to show all the balances.
For example, Bitcoin gateway has to hold your Bitcoin. You can ask the gateway to publish all the accounts, all the addresses, so we can track if the gateway actually has Bitcoin.
As a result, you can do without the trusted partner her. However, once you trust the gateway, all the rest is trusted. All the trading is trusted because you don’t have to send your Bitcoin tokens to anybody else.
You have to have this classical Ripple infrastructure of a gateway, otherwise, it’s completed to trust.
Tai Zen: Let’s say that Leon and I are making a trade on the Waves decentralized exchange. Let’s say that I send 1 Bitcoin in and I want to get the Ethereum and that Leon is offering on the Waves Platform. When I send my Bitcoin in, where is it sitting at? Then, when he sends his Ethereum and where is it sitting at?
Sasha: It’s sitting at a decentralized gateway. Some cold wallets for example. You have a hot wallet and cold wallet, then you distribute the fund between them. However, you still have to trust the gateways.
On the other hand, there is a way to do some kind of trusted trading when you trade Waves against some Waves-bades tokens.
For example, you have an ICO and a token on Waves. That token can be traded in a completely decentralized and trusted way when it is exchanged into Waves and there is no gateway involved with this.
Therefore, you have to trust some centralized party still if you want to trade Fiat, Bitcoin or Ethereum for now, but maybe in future, there can be some solutions where you can have some trusted gateways with sidechains.
I’ve been talking to one of our researchers today. There are some very interesting directions here when we can do some kind of sidechain solution.
We probably going to pursue it in the upcoming time, but for now, we should take smaller steps. I think this ability to trade your tokens assets in the trusted this way is a great thing that nobody has it.
In addition, we can offer a faster interface and faster trading. You can run the bots. You have Fiat written into the wallet. You don’t need to go outside.
You can stay inside the system and we have everything. We have Fiat, Bitcoin, other cryptocurrencies and the decentralized exchange. I can do all you need inside the Waves ecosystem. I think is great because no system has offered anything similar before.
Leon Fu: I got a question about the Fiat gateways.
Let’s say if I have USD sitting at my bank, can I get USD tokens onto Waves? What’s the banking relationship that you have?
Sasha: It’s going to be announced next week. We have a company that is providing the service to us. They’re working with Czech bank in the Czech Republic. They have to process the initial transaction, so they have a financial license which enables them to do it legally.
Leon Fu: Okay. Will I do KYC with this Czech bank or I would just tell my bank to do a wire transfer to this Czech bank?
Sasha: The problem here is you always have to go through the KYC/AML procedure.
We are working with a couple of providers on KYC solutions where you have to show your passport and verify in order to able to work with the gateways. Therefore, you can send the transfer, but if you don’t go through the KYC, your transfer will be sent back to you.
Our goal is to be completely compliant. If we want to go mainstream, we have to be compliant. We have to obey the laws and that’s what we are going to do.
It’s the same for everywhere in the world including Russia. There are some attempts to have the cryptocurrency law here and we are working with the 15:02 to shape that law to make it useful for the community.
Tai Zen: When I’m trading my Bitcoins for some Ethereum on the Waves Platform, do you have access to send the Bitcoins in or just the gateway has access to it?
Sasha: Gateway. For now, we support that. There was Coinomat that I started. It was actually a for some time.
Tai Zen: Just for the viewers, when you started the Coinomat, that was the first “Shapeshift”.
Sasha: it’s verifiable. You can just check it on Google. We were with the first service in cryptocurrency exchange, then Shapeshifter came and they were more successful. However, there are now some other services.
Leon Fu: Another question I have is originally for a long time, only you were running the Waves nodes. Can anyone now run a Waves full node?
Leon Fu: Okay. Is it fully decentralized now?
Sasha: since November.
Leon Fu: Alright. Cool. Anybody can now start a Waves full node and process transactions in a decentralized way.
Sasha: Yeah because people are interested in this.
I think we offer some incentivization when we on top of the production fees with some reward tokens to the miners.
For now, it doesn’t have a usage, but it will have a usage. Miners will be able to vote with it for some decisions that are made on the Waves Platform. This is a goal.
How can they use it? Wave is a system where you can pay the fees in your own tokens. You can issue a token and offer the miners to accept the fees in this token.
No other system has this, so miner reward token is a way to reach out to miners. For example, you issue your token and then send some token to the holders of miner reward token. In this way, you draw attention to the token and miners start accepting your token as some kind of fees for the process.
Leon Fu: You’re going to start issuing another Token to reward people running full nodes.
Sasha: It’s already there.
Leon Fu: Okay.
Sasha: We’ve launched it a couple of weeks ago based on the actual mine blocks.
Therefore, if you’re a full node miner, you receive each day some asset which is called a miner reward token (MRT). This token is going to be used for incentivization.
If you want to have your token be accepted as fees, you should send the holders of miner reward token some tokens. Through this, you draw attention to yourself and miners may say:” It’s interesting, so I’m going to accept this fees. By doing that, you don’t even need Waves to work on Waves.
All you need is your customed token, then you can make every transaction by using your customed token. Therefore, I think it’s pretty critical.
Tai Zen: I want to make this clear. I saw you tweet out a bunch of stuff in the last few months and you were encouraging people to run a full node to secure the Waves network, so what are the computer requirements?
Sasha: It’s around 1000 Dash, which is $55,000, to run a full node at the moment. In our case, you need 1000 Waves token to be able to run a full note. It’s about $5,000.
However, you can also do it without running a node. You can profit from mining without running a node because we have leasing protection. It’s working already.
You can lease your funds to miners. You can just send your funds without losing the control over the funds to miners. Then, he or she uses your funds to mine and share the profits with you.
It’s a very neat system. It was implemented in NXT first. Now, we have some other implementations, but I think it’s pretty cool because you don’t need to run your own node to profit from the mining.
You just have some balance. You lease it to a miner who advertises the services and receives some profits.
Tai Zen: I have a question about that. Because you came from NXT community, you saw that you could loan your tokens to someone else. Then, they can use the tokens to mine and you share the rewards for it. Correct?
Let’s just say that instead of holding my tokens, I would rather spend it to Leon, whom I don’t know. Is there a chance he can still those Waves tokens out of my account?
Sasha: No. For example, he might fail to pay you the profits, but you don’t lose control of your funds.
You just lease the funds, but they are in your wallet. Therefore, you can send them to some other miners or just cancel your transaction at any time. Basically, you remain full control over funds at all times. This is the idea here
Tai Zen: Okay. I have another question because I used Bitshares before.
If I’m sending it in and they have this token system, what makes the Waves exchange different or better than Bitshares?
Sasha: We have integrated Fiat tokens. I suppose that our exchange is much faster than Bitshares and you don’t pay to move your order.
For example, in Bitshares, if you want to Ethereum, you have to pay for each order. When you just move your order, you have to cancel the order, pay for it and move it, then pay for it again.
In our system, you pay only when the order is actually executed.
Tai Zen: Let me just clarify that for the audience in case they’re not active traders like I and Leon so that they understand what the advantage of that is.
On decentralized exchanges such as Bitshares and Bisquare, let’s say I want to sell Bitcoins at $1250. I wait for 2, 3 hours go by and nobody takes my order.
I want to reduce the price down to $1249. Every time, I remove that order, change the price of it and resubmit the order, the system charges me a fee.
If I’m constantly changing orders, I have to constantly pay a fee just to update the order to a different price.
What you’re saying is that on the Waves exchange platform, there are no fees for that. You can update your orders at any time.
If you’re only making 1, 2 or 3 trades, it’s not a big deal. You won’t even notice the cost of those fees. However, if you are an algorithmic trader and you are constantly updating your prices hundreds of times a minute, that will cost tons of money.
Therefore, it’s more beneficial to do your trading on the Waves platform than to do it on the Bitshares or Bitsquare.
Is that what you’re saying?
Sasha: Yeah, exactly. You don’t have to pay when you do the market making.
For example, in the Ethereum, they have a reverse incentive scheme when you take the liquidity out from the market, you pay less than if you do the market maker.
The reason is market maker fee is always smaller than the taker fee. However, in such systems of Ethereum, it’s the other way around. Market making cost you more market taking.
You also need to be able to trade efficiently in a cheap way. That’s what we are providing actually. You pay only when your order gets executed. You don’t pay when you just put the order to the exchange.
Tai Zen: Yeah, I actually liked.
I have friends who are algorithmic traders. They make a bunch of trades and they change the orders constantly.
If you go to Coinbase and look at their GDAX platform, the trades are constantly being updated like this. If you have to pay a fee every time your price gets updated, that’s going to cost too much and you will not be able to trade on there. I’m glad to see if there. There’s no cost there.
Leon Fu: Okay. Go ahead, Tai
I think the whole main goal of Waves besides the trading is also a token issuance. Remember last year we said that was one of the major goals.
I see that you now have a lot of ICO being issued on Waves now, just like Ethereum. We know Ethereum is for smart contracts, but I think 90% of the use cases right now is just issuing more tokens for raising money.
Let me ask you this. If I’m doing an ICO, why should I issue my token on Waves instead of Ethereum?
Sasha: If you want to use a token as a token, you don’t need to use the Ethereum because it’s pretty complicated there.
Most people don’t use the smart contract functionality in Ethereum. They just issue some tokens based ERC-20 protocol, but they don’t use the full functionality with Ethereum. It’s pretty hard to use it at first.
When everybody starts using the full capacity of Ethereum, there are going to be some serious scalability issues.
If you just need to issue token, I won’t think of Ethereum. The reason is you can issue a token in a mobile application. In Waves, it just takes you 2 seconds, so it will be easier.
In addition, it’s cheaper at this stage because you have a pretty high Ethereum price at the moment. In Waves, you have integrated Bitcoin and integrated Fiat tokens.
Therefore, in principle, you can do all your ICO without using Waves client. You can just issue a token and sell it for Bitcoin, Fiat or Waves. It all can be done within 1 ecosystem. You don’t need to use your Waves client.
Basically, we want to provide a solution where you have everything in one place.
Leon Fu: Let’s say we’re in the United States and I can actually issue my own token on Waves and get USD, let’s say. Then, once I get those USD Tokens, I can go to the gateway and get USD for the tokens that I’ve issued.
Sasha: Yeah with proper KYC.
Leon Fu:Ofcourse. If I started a company, I would have KYC then. Okay.
Tai Zen: Let me make sure I understand this clearly and the audience understands it clearly.
Let’s just say that we want to do an ICO and we see that Vitalik and the Ethereum Foundation already had their blockchain established and everything.
The question is what the advantage is for us to do the ICO on Waves. Why don’t we just go do it on the Ethereum Blockchain? Because everybody feels comfortable with it and everybody knows it.
I mean the newly issued tokens will be traded on Ethereum and Poloniex. There’s a lot of liquidity. All the environment is ideal for us to do our ICO on the Ethereum blockchain.
Sasha: Many small advantages, which add up to a sizeable benefit you have when you use our platform.
For example, you don’t need to talk to any exchange. If you just want to sell tokens, you don’t get to talk to anybody. You can print them directly in the wallet. It’s much cheaper than the Ethereum from many points of view.
You have integrated Fiat. It’s easy to understand for many people because most people don’t get smart contracts. You should realize that most people don’t really understand how it works.
You have many benefits here. The most important here is you don’t need to talk to centralized exchanges above this new tokens.
You have this right in your clients and you don’t need to asking anybody to list your tokens. You don’t need to go through some trade procedures.
For example, as you know, it’s pretty complicated with the exchanges. They don’t offer some clear guidelines where they want to list your coin.
In here, you don’t need to ask for anything. You can have your ICO right inside the wallet. You don’t need to leave your wallet and don’t need to talk to any exchanges. It can all be done in one ecosystem.
Tai Zen: Okay. Basically, one of the biggest problems that we’d had from a trader perspective and investor perspective is if the Waves tokens are listed on a high liquidity exchange such as Poloniex, there will be more people trading in and the price will be a lot higher by now. However, for some reasons, they don’t list it
Sasha: It’s 85% liquidity on Poloniex now. It’s not a problem.
If you want to have your coin pumped, you need to go to Poloniex. Our price is rising more slowly but steadily, so we don’t have this market manipulation. It’s not a bad thing in my opinion.
If our price increases three times in half a year, it’s not going to be a bad thing. We don’t have any volatile Waves tokens. If you look at our process, it’s very stable.
Tai Zen: What you are saying is for a new team starting a new project or ICO, it’s easier to do it in the Waves Platform when they issue their Tokens.
The reason is they don’t have to try to get listed on the exchanges such Poloniex, Bittrex or any of that. It’s already listed there. As soon as they finish doing on the ICO, they can issue the tokens to all the participants and they can start trading immediately on the Waves Platform.
Sasha: You have everything you need in your hands. You issue the token. You sell it to people and have it traded. You don’t need to go through anything because you have everything at your disposal.
Tai Zen: That’s one advantage of using the Waves Platform to issue your ICO.
If we want to do an ICO, we can issue the tokens and people can start trading immediately.
Leon said that it gives you an advantage because it has a Fiat gateway where after we raise the Tokens, we can actually exchange it as long as we comply with the Russian anti-money laundering and know your customer law.
Sasha: Yeah. It’s not only Russian law, but it’s also international law. Even though most of the programmers and coders are based here, we work everywhere.
For example, now probably I’m going to have a Swiss foundation. I’m going to go to Switzerland.
In addition, we’re launching a centralized platform for private equity and for customer application tokens in Singapore. We’re working with the authorities to do this. The new platform’s name is Tokenomica.
As you can see, we work with regulators worldwide in order to make our system compliant, widespread and ready to achieve mainstream adoption.
Tai Zen: Okay. Is there any other advantages of people running an ICO on Waves?.
Sasha: We can help with marketing for some ICOs if they are potential. We have a pretty big ecosystem now and we probably are going to invest in you.
If you issue your token on Waves, you can still have your tokens on Ethereum. There is a work in the gateway between the Ethereum and Waves, so you can have your Waves tokens transferred to Ethereum Tokens
Leon Fu: Can you talk a little bit about that? Because MobileGo is happening in a few days to be both on Waves and Ethereum. Can you talk about something they call a dual Blockchain technology?
What they’re talking about is they have 100 million MobileGo tokens that are going to be issued and transferred between the Waves blockchain and the Ethereum blockchain.
Can you explain how that’s going to work?
Sasha: Yeah, there is a gateway. It’s blockswap.incent.a home where it can just make a swap between the 2 blockchains. You can have Waves token transfer to Ethereum Blockchain and vice versa.
Leon Fu: If a token already exists on Ethereum and theirs is another swappable token, how do we make sure there’s only $100 million and not $200 million? Like 100 million on Waves and 100 million on Ethereum.
Sasha: We can track it because you can see how many tokens the gateway hold and do the math. All the tokens can be tracked on the Blockchain transparently.
It’s not the perfect solution. In order to do that properly, we need some kinds of side-chain solution and inter ledger protocol, but it will take some time. For now, you can transfer it to and from Ethereum or Waves.
Leon Fu: What is your opinion on MobileGo? It’s the next ICO that’s happening on Waves. Personally, I think it’s going to be probably the largest ICO that’s going to happen on Waves
Sasha: Probably, but we have a couple of other ICOs that are kind of interesting
Leon Fu: What I’m asking is whether you have any opinion on the MobileGo because GameCredits has done very well and it’s by the same team.
Sasha: They’re working with the Intel guys who are in Australia and their product is actually ready to go.
It’s also lots of directly related to crypto. As you know, they have GameCredits, so they are not new people to crypto, but their product is a mobile marketplace app store for android. It’s not a prototype. It’s actually working. It’s a functioning business.
I think it’s cool because you usually have some kind of prototypes that are trying to do an ICO. However, we have a working system here, so it’s great.
I think they can raise lots of money and they are very experienced software developers, mobile and gaming developers. Therefore, I think it can be a big thing really.
I like their approach. They want to be blockchain agnostic. They want to work with Ethereum, Waves and so on.
I don’t object the fact that they want to work with Ethereum. Even though we have some different directions, Ethereum is pretty cool. They have great ideas.
Therefore, if someone is trying to do some kind of dual blockchain, it’s very cool. I’m all for it guys. You’re more than welcome to do that.
Tai Zen: Now the Waves platform and the Ethereum platform are the 2 major ones that we see people are going to do ICOs there.
Obviously, you just started doing ICO on your Platform from the middle of this year and Ethereum were doing it since last year.
Do you guys see you are going to get to the point where people have to decide whether they want to do it on the Waves platform or the Ethereum platform? Is your goal to become the next Ethereum ICO launching platform?
Sasha: We’re launching a centralized solution in Singapore to make it compliant, so we can attract business. Then, they’re able to issue equity blockchain…
Leon Fu: I think we lost Sasha here. Can you hear me, Tai?
Tai Zen: Yeah, yeah, I hear you. I think we lost Sasha here.
Leon Fu: Hey, I have to go now. I have an appointment, so I’ll catch you later.
Tai Zen: Why don’t you connect from the phone and just do audio only?
Leon Fu: Alright, I’ll see. Yeah, I’ll see if I can do that. Alright. Alright. Talk to you.
Tai Zen: Let me shoot this out to Sasha. I don’t think he may not know that he got disconnected.
Just give us a second and we’ll reconnect with him. Let me see. Can you hear us again Sasha?
We lost you in the last couple of minutes and Leon had to run to an appointment, so he’s going to try to join us in audio if he can.
Tai Zen: The question I was asking you is I noticed that a lot of new ICOs are now on the Waves platform. Are you guys aiming to be what Ethereum is for the ICO world?
Sasha: Yeah, sure. We’re not focused entirely on ICO. However, due to the importance of money transfer in the cryptocurrency world, we need to work with that.
We want to offer some alternative ways for Ethereum. Of course, it’s cool, but there are some other ideas in cryptocurrency research that people want to pursue.
For example, non-Turing-complete contracts. I agree that you have to go with turning-complete in Ethereum, but you can do lots of things without turning-completeness.
We can have some kind of non-turing-complete language that can be used on Blockchain and can be done like 90% as what can be done in Ethereum.
That’s what we are trying to pursue. We are trying to work on scalability. They’re going to implement Bitcoin-NG approach on proof of state system because Bitcoin-NG hasn’t been implemented.
It’s an approach that allows you to use your resources better, so you can have like 1000 transactions, for example, per second.
We’re going to research about blockchain storage, blockchain stage, so you don’t have to store all the data in order to be able to verify transactions.
We are focused on research and business. Besides, there are some approaches that can move us in some different direction from Ethereum. Then, in the future, probably we can compete with Ethereum.
ICO is not our end goal. We just want to provide a way to do everything you need in one blockchain.
Tai Zen: When I was supposed to do an interview with the first ICO that you had – Incent, which was a coupon or rebate project, we got hit with the hurricane here at the time that they were doing the ICO.
Then, we scheduled back and forth and we couldn’t get the scheduling fixed to be able to do an interview with the guys.
However, one day I noticed that when people are doing the ICO on the Wave platform, the Waves team is actually promoting and advertising it out to the world.
Whereas, when someone does an ICO on the Ethereum Blockchain, the foundation and Vitalic are not publicly pushing it or marketing it.
Do you feel that there is a need to do that? Because when you do that, doesn’t it seem like you are supporting that project?
As you know, people accuse us every time. We’ve got all these trolls every time when we talk about a different project, a different cryptocurrency project. They accused us of pumping it.
I mean we’re so used to it by now. It’s like we can’t talk about anything other than Bitcoin. You and I both agree that we don’t know if Bitcoin will succeed, so we give every project a chance.
It a bit similar to your case. You put your name and the Waves’ reputation on top of the Incent, MobileGo or any project that you are endorsing and encouraging people to invest in it. What happens if it turns out to be a poor team or scheme?
Sasha: No. If I trust any ICO, I will say that I trust them. I don’t conceal it anyway. Of course, I won’t pump any project if I don’t know the people.
Therefore, you can come to the Waves ecosystem and launch your ICO. I wouldn’t have any issues with that, but I won’t promote it. However, if I know the people, I will share my opinion about that project with everyone.
In the case of MobileGo, I’ve seen MobileGo founder, so I trust them fully. Therefore, I publish for them.
The reason I’m doing this is the founder of MobileGo is more like a research type of guy. I’m not a researcher. Although I’m a physicist by education, I’m trying to combine all the things. I’m more like a businessman now. It’s not a problem. That’s what I have.
Tai Zen: So you are not planning on promoting every ICO that’s on your Waves Platform. You’re only going to talk about the ones that you personally know of.
Sasha: Yeah, absolutely. If I believe them, I will say they seem to be legit and I probably can vouch for them in the way. I don’t want to promote anything we’re not a promotional company. We’re a technology company. We’re creating the technical solution.
Tai Zen: Speaking of promotion, you did an ICO last year at the same time that the Lisk project did their ICO. You raised way more money than they did.
They raise a lot of money too, don’t get me wrong, but there have not been a lot of results with the Lisk project as we’ve seen with you.
I mean you are everywhere on the Internet. There are always constant updates from your community.
Speaking of promotion, you said you are a tech company and not a promotional company, but you have Waves platform channel on youtube, right?
You had Lola broadcast the for the cryptocurrency. Then, later on, you had somebody else, another young lady, do the broadcast for you. What was the purpose of doing all that?
From an investor’s perspective, I was wondering what the purpose of doing a cryptocurrency channel for.
I mean you were using the money that you raise from the public to broadcast about the updates of Waves. I can understand that.
However, why are you using that money to broadcast about other cryptocurrencies in the news? Why don’t you leave that up to guys like us, Omar or Adam Meister? Why don’t you leave it to the journalists to do that? Why did you start a cryptocurrency channel to explain to about cryptocurrencies?
Sasha: Actually, we don’t have it any longer. The reason is we want to update about Waves and some cryptocurrency research. Basically, we just want to be in the loop to keep track of things. I think it’s normal.
Why we have this channel? We wanted to provide some updates. Since we have a pretty slow development, we want to make sure that people know that we are moving the system forward.
Now, we don’t have that channel anymore. We will find new ways to update people about Waves, maybe through videos.
We are focusing on the new marketing strategy now. We’re trying to create a new marketing policy for us now.
As you know, we have the Fiat gateways and we are starting having marketing like social media, publications, any offline events, and everything. That’s what we’re trying to do. In this plan, we will also have some kind of new video channels too.
Of course, we want to cooperate with all the journalists and other resources that provide the actual content for us.
Let me move to another room because my laptop is running out of power.
Tai Zen: Here is the other question that we get from our viewers.
It’s been a year since you guys did the ICO, so why isn’t it listed on Poloniex? Have you made attempts to get it listed on Poloniex?
Sasha: Nobody asks me about that before. You’re the first guy who’s asking me this.
Tai Zen: I want to hear your thoughts. Then, I want to share my thoughts on why Leon and I think that you guys are not listed on Poloniex.
Sasha: I don’t have any issues with them. Waves could have costed much more of the stage like 5 or 10 times as much, but we don’t care about that because we have our own exchange and the growth is organic.
You probably understand that all the currency markets are heavily manipulated now. It’s a fact. I might sound a little blunt now, but it’s true.
Therefore, I don’t feel that it’s a big problem with the fact that we are not on Poloniex at this stage because our growth is more organic. There’s no manipulation.
We have our own decentralized exchange where you can trade Waves. I think that we will provide more stable growth relative to what could have been if we have been listed on Poloniex.
Tai Zen: Yeah. The reason Leon and I think that they won’t list your Waves tokens on there to be traded is we feel that it’s a direct conflict of interest.
It’s a direct competition because they’re not going to list someone else’s exchange on service.
Sasha: It might happen. It might be the case. I don’t know if our volume growth, they may list us.
I don’t have a complete understanding of how they work, what their ideas are, what they want from coins.
I’ve known them for years as people know. I’ve talked to them for 2 years. I have many NXT assets listed there.
They even had a Fiat market which is Tether market now. It was based on my token on Coino USD. We are in a pretty close context, so I don’t quite get their direction and many people are not happy with Paulo.
However, I don’t really have any grudge against them. It’s their platform, so they can do whatever they want. I wish them all the best and probably at some stage, we’ll still…..
Tai Zen: From a trading perspective, it seems like the price of Waves Token has gone up. During the ICO, it was worth 35,000 Satoshi.
In terms of Bitcoins, it’s almost about the same level. It hasn’t gone up much. It hasn’t gone down much.
What causes the price can not go up any higher? Because people have not really lost that much money on the Waves investment, but the price of the Waves Token is going up is only because of the value of Bitcoins that you raised went up.
When you’re holding onto the 16,000 or whatever Bitcoin that you raised, that has gone up. Therefore, it looks like Waves is going up in value, but really it’s just the bitcoins that you are holding went up in value.
You’re putting out updates and doing all these things much more so than a lot of the other ICOs that happened at the same time last year, but why do you suppose that the price hasn’t gone up very much since then?
Sasha: It’s a combination of factors that slow down the development. We wanted to make sure that we don’t have any issues. I think it was correct because otherwise, we could have bigger problems.
The price is not a problem. The actual problem is when the system gets broken. This is a real problem. Plus, we haven’t been listed on Poloniex.
Therefore, it’s a combination of things, but now we are launching the full thing. This centralized platform for private equity is going to be big. The decentralized exchanges going on the big. Fiat tokens are going to be big.
We also have mining features. For example, mining on Waves platform is pretty profitable as this stage. You can make …% on Waves token monthly.
It’s similar to what Dash offers. We have many things and it’s all just starting. The system is not finished anyway but some parts of it are finished.
This is a moment when we can launch the actual growth for the system and it will have its impact on the price definitely. There’s no doubt about that.
Tai Zen: Okay. Just a few questions here from the audience about the master nodes or the full node. Is that something that you can run from the light client or you have to download the full client to do that?
Right now, I use the chrome extension that you made. Will it serve as a note?
Tai Zen: I just leave it on them.
Sasha: Sure. You can do through the API for now. Next week, we will have an interface in the frontend, so you can just simply lease your funds to the miners’ nodes. Then, they just use your funds to mine and shares the profit with you.
Tai Zen: On the NXT Platform, there’s a little green button light at the top that tells you when your wallet is forging or mining. Will you have something like that on the client so that people can see that?
Sasha: The light client can’t mine. You can just lease your funds to miners. Then, the miner mine and sends your share of the profits back. That’s how it works. Our light client is really light. It can’t mine. It just connects to a node that helps you to interact with the network.
Basically, it’s a very simple setup and you don’t need to run a node. If you want to run a node, you need 10,000 Waves for now. It’s like $5,000. It is much lower than what you need in Dash, which is $50,000.
However, you don’t need to buy those 10,000 Waves. You can just send your fund to miners and share the profits with them.
Tai Zen: How many Waves nodes do you have right now? Is there a place that lists it?
Sasha: About 90 full nodes because you need to 10,000 Waves to mine. Overall, we have close to 100 nodes
Tai Zen: Okay.
Sasha: Yeah, I can share it on Slack
Tai Zen: I’m going to take a few questions here from the audience, then you can just summarize what the Waves Platform is about and what the future you have for the Platform before we’ll wrap it up.
Let me just take a few questions here. The core media is doing a great job of answering a lot of the questions in the chatbox as we are broadcasting, so I appreciate them.
If you want to send in your questions, just state what city or what country you’re coming from and what the question is. I’ll ask Sasha for you guys.
FeruzM says: “What is the funding structure? What happens after the crowdfunding has run out? Who continues to develop the platform?”
You have raised 30,000 Bitcoins. Do you see that running out anytime soon? I and Leon see that you have enough funding for probably over a decade.
Sasha: Sure. It’s less than $100,000 per month. Sometimes, you have to pay for some legal fees, but on average, it’s less than $100,000 per month. Therefore, it can last for more year.
Tai Zen: How big is the Waves Platform staff that’s on your payroll?
Sasha: We have 15 people. In here, we have a marketing team. Some people are in Poland, the UK, China. As you can see, we have a distributed team.
Besides, we’re having a dedicated team now working in another office. There are 4 or 5 people who are working with our marketing. The engineering team is close to 15 people.
Tai Zen: Just some information for the investors. Leon Fu is a senior software engineer and the cost to have a senior-level engineer like that on your team in the US can range anywhere between $140,000 to $200,000 a year.
How much does it cost to have a senior software engineer in Russia?
Sasha: close to $50,000 per year.
Tai Zen: It’s about a third of the cost in the US.
Sasha: It’s not a sizeable amount.
Tai Zen: The next question is what percentage you get on your Waves mining. You said it was 7% right?
Sasha: Yeah. I calculated yesterday. At the moment, you get like 1% monthly. It’s really cool because you don’t need to buy any hardware, don’t need to invest lots of money. It’s pretty cool.
Tai Zen: The next question is when the marketing campaign is scheduled to begin?
Sasha: Yeah, it’s beginning guys. We have lots of Facebook advertisements now. We will have probably signature campaign on Bitcoin talk again because I think it’s a nice thing.
Just check what we have. We have our frontend updated today, not the blogging but the web interface. We will add some features and charting, so it looks like Bittrex, Bitfinex or any other exchanges.
When we have a very nice frontend, we really have a marketing campaign. Therefore, it’s coming and it’s on the way already.
Tai Zen: The next question is out of those 30,000 Bitcoins that you raised on the ICO, how much of it is left.
The core media responses that you use 1,000 Bitcoins for the buy walls that you had mentioned that you were going to buy up anything that falls below 30,000 Satoshi. Then, 4,000 to 5,000 Bitcoins was exchanged to Fiat after the ICO to pay for expenses.
According to core media, they said that you have about 23,500 Bitcoins left. Can you confirm that?
Sasha: Yeah, we have exchanged 5,000 Bitcoin into Fiat. All the rest is on installing the wallets
We can’t use that money to pump the price. At this stage, it is all about technology.
If we have a billion USD, we don’t do much more than we could do with a billion USD. The money will be used for marketing and some technical developments at later stages.
Tai Zen: The next question is whether you going to add the 2-factor authentication to the client.
Sasha: Yeah, we need to do that. It’s on the way.
On the backend level, it was done, but then we found an attack. We found the bug in the architecture. Therefore, it’s pretty complicated to do it properly on the blockchain.
Another solution is you can use Google authenticator, but we still hope to have that decentralized solution. If we don’t have it, probably we just add Google authenticator. Even though it’s not decentralized, it’s still working.
Tai Zen: The next question is whether the Waves platform is quantum-proof. I guess he means against quantum computers. I’m not sure.
Sasha: Quantum cryptography is just starting to develop. You can really have working things now with quantum cryptography, but quantum computers are not going to arrive in like a year. They’re going to get there at least in 10 years.
If you watch quantum computers closely, you will understand that there are little working things at the moment.
I have my doubts because I’m a physicist and I always have doubts about other approaches. Basically, it will work, but it will take years to be properly done.
Tai Zen: The next question is whether there is any step-by-step tutorial on how to set up the full node.
Sasha: Absolutely. You can find it. I invite everybody to our Slack. There are 3,500 people there now. You can ask for help and someone is going to help you.
Tai Zen: The next question is what language that the Waves smart contracts will be written in is.
Sasha: It’s going to be a customed language because we need to develop a new approach. It’s not turning-complete. There’s going to be some kind of sigma protocol, so there’s going to be a new language actually.
We’ll start implementing …. features. We also have multi-signature for example. Then, we have crowdfunding escrow.
We will release certain features from time to time. The first one is probably going to be multi-signature crowdfunding. Then, we will develop a more complete language in future.
Tai Zen: This question keeps coming up. Can you talk about the matcher? What is that?
Sasha: What was that?
Tai Zen: The matcher feature that’s on the Waves.
Sasha: Can you spell it?
Tai Zen: Maybe it’s something else. Let’s skip that then.
We’ve gone past an hour already. I know that you explained what the Wave Platform was a year ago when we first interviewed you.
For new people are coming to cryptocurrency, can you just summarize what the Waves platform is, what it’s for, who it’s for to use and talk about the things that are coming up later this year and in the future.
Sasha: We are trying to promote Waves for mass adoption. We’re focusing on some platforms that can offer to normal people and normal businesses the opportunities that have not been offered to them before.
You can issue your token instantly and do your ICO easily without some fancy contracts. This is what we’re trying to do.
Tai Zen: He got cut off.
Let me just read out some of these questions and answers that core media is providing, because once we cut this off, the questions will not be available.
Someone asked: “Is there a superblock reward for proposals with the master nodes and how much?” Core media responded:” No, we aren’t. After the master nodes, leasing is temporary. Before the proof of stake NGH stage, there’ll be no delegates there.”
Tai Zen: Let’s start all over and just summarize what the Waves platform is and future development?
Sasha: We want to have a business and production-ready, as well as provide solutions which use blockchain-based on open blockchains.
You should be able to do an ICO to issue a token in an easy way. It should be understandable for everybody. Not for geeks and freaks, but for normal people.
At the same time, we want it to be really scalable, really robust against attacks. Therefore, we are working on a system for everybody in open blockchain solutions for your business.
In this year, we’re going to have our DEX ready, so it’s going to look fine. It’s going to have an interface like other trading interfaces. We’re going to have a legal scheme for crowdfunding. That’s what we’re working on now.
We’re going to have probably Switzerland Foundation for Waves and start to attract more people, more advisors, more researchers. In Russia, I’m starting some type of cryptocurrency research institute that is going to work with academics who can help us with our research.
We’ll have a major conference in May, so everybody’s welcome to visit us here in May. We’ll have a special Waves event and have general cryptocurrency event.
What will come in this year are DEX, properly registered and legally compliant Platform for private technical blockchain, smart contracts by the end of the year in some way or another. We’ll also have Bitcoin-NG implemented in Waves.
As you can see, we’ll have a very high throughput until the end of the year. We’ll have some solutions for scalability, which has already been researched. It’s like an authenticated dictionaries. We have an article about that. We have completed the research. We just need to implement that.
By the end of the year, we’ll have a complete system with smart contracts, Fiat tokens, decentralized exchange. On top of that, we’ll offer some legal solution for crowdfunding.
I think it’s going to be a closed system which doesn’t require any other apart to be viable to offer value. We’re trying to create a whole system where you can have everything you need by the end of this year.
Tai Zen: I don’t see any other questions needed to answer because core media answered most of them already.
I just want to say thanks for coming on and updating everyone on this one year anniversary update. I’ll look forward to hearing back from you again.
Tai Zen: Sorry about all the is scheduling.
I just want to make an announcement to everyone that it was our fault. We missed the scheduling like maybe half a dozen times since the last year. It’s not the Waves team fault.
I’m glad we finally got to have you back, so you can update the community because we’ve been getting a lot of questions from everyone
This will conclude the broadcast. Thank you