Core Radio Interview Transcript with Sasha Ivanov | Saturday, November 26, 2016

Lootz: “So we’re going to talk about full nodes. Congratulations on the release. A lot of people were waiting for that. Me, personally, I set one up last night. So what is the purpose of full nodes now that they’re out?”

Sasha: “They have to support the network. You can eventually make some money (by running a node). Now, it’s not so much. But hey, we have to start with something. Eventually, I think you will be able to make a substantial amount of money by helping us support the network. So you have a part of all the transaction fees. We have to work on the amount of the transaction fees. We’re going to have lots of transactions, so we are going to have lots of transaction fees. So, if you want to help us support the network, to secure it against attacks, install a full node. You can forge, you can mine, and you can earn some Waves. So, it is great that you’ve installed a full node. Are you mining right now – are you forging?”

Lootz: “Yea sure. How do I know? I have a black screen that looks like the matrix.”

Sasha: “(Laughs) Yea the easiest way is to check it in our explorer. If you can see that your node mined a block, you’re probably in. Did you install it properly? Did you send some Waves over to that account? … You have to install it and send some funds there, to use the stake to mine…”

Lootz: “So, I followed the instructions Kanoptx made, and I also imported my wallet.”

Sasha: “Ok so it should mine. You use your stake to mine. You can check it. I think you’ve mined a couple blocks by now.”

Lootz: “How do I know if I’m mining a new block if I’m on the Waves explorer right now?”

Sasha: “You can search for your account. This is probably the easiest option. You can just type your address in the search box and all your transactions are going to come up there. So, you can check if you have mined something and you will see all your transactions there.”

Lootz: “Ok I did. I don’t see anything new at the moment. I had it up last night and it took me a few hours to figure it out…”

“My main concern with putting up the full node is security… I noticed. I asked a lot of people th same question. Let’s put up a full node I have a lot of Waves and I don’t want to risk my Waves.”

Sasha: “Yea absolutely. That’s the reason why we’re creating the leasing transaction. You won’t be risking your funds if you can lease to another node. So, the next step is to have this transaction where you can lease your funds to a professional miner so that they can mine and share their profits with you. For now, probably, it wouldn’t be too wise to risk too many Waves. So, you can probably have 10,000 or 20,000 Waves to your node and keep the rest in a cold wallet. We will have this leasing transaction soon. So, you will be able to lease your funds to a professional miner and he will be able to mine and share the profits with you. It will be within a reasonable timeframe. We are working on this, and it’s going to be soon.”

Lootz: “Sounds promising. I also noticed, when I installed it (the full node), it was asking me for 10,000 Waves.”

Sasha: Yea, this is the minimum that you should have in order to mine at this stage. So, in the future, we’ll make it less. I don’t know how much exactly, but it’s going to be less than that. For now, for security reasons, this is the best option. There can be some attacks if you allow mining with very small amounts. At this stage probably, it’s ok to mine with 10,000.  The most important thing is that the network is stable, not broken. If not everybody can participate; it’s not so dreadful. So, in the near future, we will have a system where everybody can mine, even with a small amount.”

Lootz: “So in the future, is there going to be a cap with the full nodes?”

Sasha: “No probably not. You can mine with all you have… So if you have 5 million you can mine with 5 million… if you’re feeling adventurous.”

Lootz: “I’ve noticed those other technologies that have done this before; they put a cap on it. But when they put a cap on it, people just use multiple computers. That makes no sense. Why have a 10,000 cap if someone can just set up multiple computers?”

Sasha: “Yea there are some attacks in proof of stake where you can just split your account among many addresses. We have to always take this into account. You can’t just say, ‘we have this cap’ because the person can just separate their balance between many addresses and can still attack the network. That is always an option. Caps don’t make any sense.”

Lootz: “So, the whole point of releasing the full nodes was to decentralize the network. So now Waves is decentralized.”

Sasha: “Absolutely. You can install your node, you can mine, and you can forge. You can do whatever you want. It is decentralized now and everyone can participate. It is not a permissioned blockchain the way it was a couple of weeks ago. It is completely open. Everybody can participate and anybody can help us. We are a proper blockchain and a proper cryptocurrency now.”

Lootz: “So now that it’s decentralized, that means that there’s no one entity can take down the network anymore?”

Sasha: “No no, someone can still do that. We can have attacks, but we haven’t had any attacks yet. There will probably be something, but we are ready to find them. We can’t take the network down, and we are ready to face all the issues that some attackers can bring us. So, at this stage, the network is working very stable. The release was very smooth actually. I was surprised it was absolutely smooth. We haven’t had any problems yet – I’m knocking on wood right now – but we’re doing fine.”

Lootz: “So what’s the best way for people to help out right now? Set up a full node?”

Sasha: “Yea guys do that it is very simple. The instructions are pretty clear and you can help us, and get into the swing of things. Eventually you will be making a substantial amount of money. We want to have a system where we can have a network that supports millions of dollars of transactions per day. All of the fees are going to miners. It’s going to be a substantial amount like, I don’t know, 10k or 20k a day in fees that will be shared between all the miners. This is the plan we have. If you help us at this stage, probably you will understand our system better, and will be one of the miners who will be profiting from our network. So, if you can help us now, the network will help you later to make some money with your node.”

Lootz: “Hey guys listen, all that aside, look at the price right now. I see a lot of people complaining, but I see an opportunity… You know, people complain – it goes up and they go ‘I missed it’ and then they complain when it goes down. You can’t make everybody happy. But if you’re smart, you’re going to get in right now. There’s an opportunity to get in now.”

Sasha: “We just released the most basic version of our network. So nothing has happened yet, yea? It’s all just starting. So if you’re interested in Waves, this is a very good moment to start participating.”

Lootz: “So what’s next on the schedule -on the roadmap for us?”

Sasha: “So we released the lite client with token issuance and transfers onto the test-net today. We will test it for a couple of days, or like 4 days. So probably on Tuesday or Wednesday we will have it on the main net. It’s pretty important. You will be able to issue custom tokens and your assets onto the main net. You can start a crowd funding campaign, or use it for something else. We will be able to provide the basic functionality that we promised to our investors a while ago. You ill be able to issue your tokens and use them in your projects. It could be a crowd funding campaign, a fiat gateway or something else. It’s on the test net now and you can check it out. There can be some bugs, but that’s why it’s on the test-net first. When we weed all the bugs out, we can release it on the main net. It shouldn’t take long as it’s already on the test-net. If you help us test it, we’ll be able to have it on the main-net sooner. So please help us guys…”

“There’s actually a lite client. You don’t even have to install the plug-in. You can just play around with our lite client. The link is testnet.waveswallet.io. You just go there, you make an account. You get some test-net Waves from the wallet, and then you’re good to go. You can help us. You can issue your asset, your USD or some kind of other asset and transfer it to another user. And you can see how it works. This is the basic functionality. It will be pretty useful. It won’t be much, but okay, it’s pretty useful. You can issue tokens and use them, so it is quite a lot. As of now, there is no system where you can issue custom tokens easily. There’s Counterparty, BitShares, and Ethereum, but it’s not so obvious how one can issue a token easily. So, it’s quite complicated. Ethereum is the most popular system, but it’s pretty complicated because you have to write some code there. You can’t just install a client, press a button, and have your token ready. There’s NXT, a pretty good system, but it’s somehow undervalued and not many people know about it. There are some issues. The interface is not so clear and we want to make this thing as simple as possible. It’s very useful I think to have a blockchain system where anybody can install the client and, in two clicks, and issue their custom tokens, in another two clicks. So, we’re going to have it next week guys. I think it’s pretty good and pretty important for Waves because this is the basic functionality that was promised. We’re going to build on top of that many interesting things.”

Lootz: “Simplicity is the key guys. That’s the key to mainstream. That’s utility right there. I have a basic equation for value and it’s utility plus warranty. You have to be able to use it, and it has to be easy to use. And warranty is how strong it is and how long it will it be around. There has to be a support structure. Those two together adds value…”

“…(Someone in the slack says) ‘The new GUI asset creation looks so well done. I didn’t really expect it to work that well or be that easy.’ … People like it and people are trying it.“

Sasha: “Yea it’s very easy guys. Nothing like that existed before guys. It’s really simple. People tend to make overcomplicated things. We are focused on simplicity. It has to be simple in order to become mainstream. You can’t have general mainstream adoption without simplicity and ease of use. You can’t have smart contracts for asset creation; it’s overly complicated. You have to have a simpler approach, which we are actually pursuing.  I think that we have a very high chance of being successful very soon. This is the thing that is needed for mass adoption of the technology, simplicity and clarity. People want to have more or less the same interfaces they have with online banking and brokerage accounts. So, that is what we are trying to do – to make people feel that they’re using the normal systems they are accustomed to. I think it is very important and it should work. So it’s going to work guys.”

Lootz: “What’s going on with gateways? When do you see us having gateways?”

Sasha: “Fiat gateways are on the way. We are implementing already an API from a payment system that has all the proper licenses for being a payment gateway. Once we have assets, we can start implementing gateways. We will have several gateways; the first will probably be a Euro gateway. Then we will have a USD gateway. Yuan gateways are on the way too. We have to probably find some partner there. We have some companies that we are talking to, but nothing is settled yet. For USD and for Euro, we have partners and we are working already on the implementation. We will have a couple services that will be our gateways. Once we have the assets, we can start on the gateways. Guys, I want to tell you one thing. The full node launch was really hard. It took us longer than we expected, but once we have the full nodes, we’re going to move much faster. The network is stable. It looks like we don’t have any major problems here… (Sasha loses connection)…

Lootz: “…Looks like we lost Sasha for a second fellas…”

“… So yea, it’s looking good guys. So I installed this full node last night. I ran into a few speed bumps I want to tell you about just in case you decide to do it yourself. Apparently if your using Windows, don’t forget to make forward slashes. When you set up the config file, which is very fragile… When you set it up, make one change, save it, and then try it. If it works, you’re golden. Then when I changed the directories, you know, to the C directory for the wallet location and the other one. There are two places where you have to change it. Don’t forget to change the backslashes…”

(Sasha reconnects)

“… So when you set up the full node on Windows, don’t forget to make it a forward slash. Windows like to backslash. So when you do C: ‘\’Make sure those slashes are forward. So when it’s users, make it users ‘/’ … that’s what fixed it for me. And then don’t forget to set the RPC control to true. I believe that provides extra security. Also, I had a person suggest that you put the config file on a USB stick. Once it’s running and loaded, you can pull it out. So, no one can access it anymore just in case you’re compromised. Then if you ever need to run the full node again, you just plug it back in and ‘boom’. You use it again, and when you’re done, you pull it out. If your system is compromised you don’t have to worry about it.”

“… So what other security (practices) can people use to make it more safe?”

Sasha: “Actually, a dedicated server. Probably, you’d better have a dedicated server for it, but you can also run it on VPS. The most important thing for now is, I wouldn’t recommend, you know just for safety, not to have too much money there. So, 100,000 Waves if going to be fine I think. Don’t try to mine with all you’ve got. It’s cool, but probably at this stage, you’d better not do that. If you have 100,000 – mine with 10,000. There are not so many nodes now. If more people could mine with something like, 10,000 Waves, it will be very good. The network will be better decentralized, and we can test our algorithm better – the proof of stake algorithm. The more nodes we have, the better actually. If one node is mining with 1 million Waves, it will have the majority of the blocks. But, it will not be good for the network. So, the more nodes that are mining, the better. So just use 10,000 Waves from your stash and help us maintain the network.“

Lootz: “If somebody was, you know, silly enough to put more than that, would there be any benefit? Is there any benefit to doing more at the moment?”

Sasha: “You’ll have more blocks probably but at this stage there aren’t many transactions. The monetary profit won’t be very different. You can just go ahead and try to mine with 10k Waves and get into the swing of things. Soon we will have more transactions when we have the decentralized exchange, and many other things like leasing. Also, the dividend plugin where you can send dividends to your ICO participants, or you can distribute tokens to all the participants of your ICO at the same time. So, we will have more transactions. You will have a running node,and you will be able to profit more from the transactions we’re going to have. So at this stage, I don’t recommend mining with more than 10 or 20 thousand Waves. It’s enough. The more mining nodes we have, the better. So guys don’t be lazy. Please participate. You will be rewarded for this later.”

Lootz: “You mentioned the DEX (The Decentralized Exchange). So, implementing multi-gateway on Waves to trade crypto within the decentralized exchange; how’s that going to work?”

Sasha: “So we have the code already. It’s not tested yet. We’ll be testing it starting next week. We’ve been working on the code for a couple of months. The structure of the exchange is pretty clear. There’s centralized matching, so you have a matching server that just matches the orders but the settlement is done on the blockchain. So, you can match the orders, but the actual transfer of funds takes place only on the blockchain. So, the matcher, the centralized server, has no control over of the funds. It just matches orders. Matches buyers and sellers. Matches bids and asks. The actual transfer is being carried out on the blockchain. So, it’s a safe approach. It has to be tested. There can be some attacks. But I think it is very valid and eventually can be embraced also by normal exchanges. Also, big stock exchanges are working on blockchain technology an they’re trying to digitize, to make assets out of normal shares/ stocks. Eventually, they could use the same technology for settlement of trades at the end of the day. I think it can be useful even beyond crypto. I’ve been talking to several groups of people who have been working with exchanges like, big exchanges like, normal exchanges. They are pretty impressed and they say it’s a very interesting approach, and they are quite interested. So, if we have it, we can realize more or less a secure exchange where you can trade anything. Also, you can trade against Bitcoin. There has to be some kind of Bitcoin asset like it was in NXT if you remember. It’s like a gateway asset where you can just deposit Bitcoin and you have a corresponding asset. It can be traded against other cryptos on the blockchain. We’ll be able to have this decentralized exchange, but the order matching will be fast so you’ll have like a normal exchange with fast trades, but it’s going to be secure. I think it’s a very interesting thing. If we realize it, it can help Waves a lot, and draw a lot of attention to our network because nobody has this yet. We’re going to be the first to implement this… ”

Lootz: “Oh man, we’re going to say goodbye to centralized exchanges fellas.”

Sasha: “Hopefully yea because they probably have to evolve in a way. There are always issues and, they’re a little bit obsolete. You have crypto which is essentially decentralized, and at the same time you have these absolutely centralized exchanges and only at those exchanges can you trade these ‘magical internet money’. There’s a kind of contradiction here. So, exchange infrastructure has to evolve, and has to move towards decentralization. It is only a matter of time; there can be no other direction of development here. Exchanges have to be decentralized. We are working hard on that and I think we will be making the first important step in that direction. So, there’s of course bit square for example, but you have to always remember that people want to speculate, and you need a sort of high frequency trading. So, you can’t just have a secure exchange when you have to wait a couple of minutes before your order settles. It has to be fast, yea, in order to have volume. If you want to have volume to occur at your exchange, it has to be fast, it has to support bots, and it has to support high frequency trading. Otherwise it won’t be popular. So, we want to do exactly this. We want to have more or less high frequency trading – not millisecond fast but still pretty fast – so it’s like at a centralized exchange like Poloniex or Bittrex. More or less the same speed but the exchange has no control over you funds. I think this will be very important.”

Lootz: “…I just read a book about Satoshi Nakamoto and his dream was that everything is peer to peer. This falls in line with what he expected it to grow like this – peer to peer everything; nothing centralized.”

Sasha: “I don’t think everything has to be decentralized. Centralization works better for some things, for example, order matching. The blockchain has innate latencies. So, they can’t be fast at this stage. But you can somehow combine the benefits of centralization with the benefits of decentralization.  That’s the direction we are heading into. If we can combine fast order matching with slow but secure order processing, it’ll be a great step forward.”

Lootz: “… earlier today I had Darcrus on. He said that he’d be using Waves as one of the solutions for his quicker blockchains. Waves could take on a higher load and it’s a lot faster. I was very happy to hear that Darcrus is recognizing Waves also.”

Sasha: “Yea we are talking to many start-ups. There is huge interest from all walks of life so to say. We have some movie companies that want to crowdfund on Waves to make movies, and brick and mortar businesses that want to issue a type of vouchers. I’m considering this approach, like a GroupOn approach. The GroupOn service is not so popular now, where you can issue a coupon for your product. You can issue the coupon on the blockchain. You just give a very big discount to your users and you issue this token that can be redeemed for a service. It can be traded on the open market, and it’s a very interesting thing. We’ve been talking about KickStarter on the blockchain, but we can also talk about GroupOn on the blockchain. Companies, brick and mortar businesses, can issue coupons on the blockchain. The coupons can be traded on the blockchain. It’s very nice thing. It’s an interesting development. I don’t know yet if it’s feasible, but I think that there is some interest. You have some product, you can give a discount, and you attract users. You can issue the voucher and sell it to people. They can exchange and swap the voucher for the product later. At the same time, you can finance your development, your production, with this money. Users can trade these tokens on the blockchain. For example, if there’s a 90% discount, and later they can swap the token for the product, there is some spread between the buy and sell price. They could for example possibly sell it for a 100% profit. There is some window of opportunity here that can be used. So, I think that another direction of those tokens, custom blockchain tokens, is some kind of coupons for normal businesses… We have several companies whom want to issue those tokens. Like, medical equipment, some fashion companies… it’s interesting. Let’s see what happens. If it works out, it can change a lot of things.”

Lootz: “I can see that working. Already if you have an online coupon, it’s a string of numbers. Why not let it be a string of numbers related to the blockchain? It should work just the same.”

Sasha: “Yes, absolutely. It’s like GroupOn. GroupOn was very successful a while ago. It’s not so successful now, but with this approach, this thing can turn things around in this industry. So let’s see what happens. We are focused on tech, and they are focused on business. We want to see if some new developments in businesses can work. For example, when you can issue the tokens and use them as coupons. Or, when you issue some kind of what we call CAT, custom application tokens, something that can be used within your product. So you have for example, a social network, and you issue an internal currency on the blockchain for it, and you sell it to your investors. At the same time you accept it as payment for advertisement within the network. So if the network grows, you have more eyes, more eyeballs, and the advertisement costs more. There would be a connection between the price of the advertisement and the price of the token. So, if your social network grows, the token price grows too. This creates some investment interest. People will be interested in buying the token and making a profit eventually. So, there can be some new directions, also in business, where you can issue some sort of blockchain securities. These are legal, they don’t break any laws actually, because they are not equity in the company. They do not guarantee any profits. They are just used within your system as a part of the functionality. There is some connection between the success of your system and the price of the tokens. If your system is successful, the price of the token… also rises. I think that it’s a very valid and interesting direction. Lots of companies are interested in this and are willing to issue their tokens, and to somehow integrate them in their business. Let’s see what’s going to happen. I think that it can be pretty important, even more important than smart contracts. Smart contracts are a great thing, but you know, probably, the time for them hasn’t come yet. But for these custom tokens, I think there are so many valid use cases. The whole market hasn’t been yet tapped into.”

Lootz: “Is this what you mean by CATS?”

Sasha: “Yea, custom application tokens. It’s something that can be used as part of the functionality of your product. You can use these blockchain tokens somehow in your product and if your product is successful, it somehow reflects in the price of your token. So, there’s some investment interest. It isn’t like a security in the normal sense of the word. So, it’s not equity in the company. It’s just something that is traded on the blockchain, that is issued on the blockchain, and that can be used in part of your product. So if your product is successful, the price rises, and there is some investment interest. This is a whole new world actually. This approach is absolutely new; it’s what people call App Coins. There was a nice TechCrunch article about App Coins recently. We call it something else, but it’s essentially the same. It’s custom application tokens; something that can be issued on the blockchain and that can be used as a part of your product. There’s some monetary interest if your product is growing and the user base is growing, the price of your token grows too. I think that it’s a very great thing. If it works out, it can be a whole new world for many businesses. It can be a multi-billion dollar business. I don’t guarantee that, but it could happen.“

Lootz: “… (There are people listening from all over the world).”

Sasha: It’s very important not only for the U.S. because in the US you have Silicon Valley. This is probably the only place in the world where you can, more or less, easily, raise funds for your start up. The rest of the world, it is not like that. It is pretty hard to raise money in Europe, let alone Russia. People have to invent new ways to raise money. I think that it can be a breakthrough for many start-ups that couldn’t have raised any money. They can now go to their community, to their users, and ask them for to raise money. People understand that the product is valid, has value, and are ready support it. At the same time, they can support it, and make some money along the way because there is some investment interest here. It isn’t like you support it like charity, like at KickStarter. You just send $50 or $60 bucks to KickStarter and wait for your gadget to arrive. Here, you have like, investment interest; you can actually make money. You support the product and you hope to make money. So, it changes things a lot. When there is some monetary value in the thing, there is more interest. I think it can be a deal breaker and game changer for many start-ups. It’s a whole new thing. It can change everything.”

Lootz: “He’s talking about tokenizing your business, tokenizing your products and tokenizing your services. It’s a whole new invention.”

Sasha: “It’s better than smart contracts. Probably, smart contracts have to come a little later, but they came earlier. People haven’t realized all of the possibilities that simple blockchain tokens can bring. People were focused on smart contracts, but they can’t really be used in the real world. These kinds of things can. So, it’s time to focus on those tokens, and then move on to smart contracts in a couple of years.”

Lootz: “Smart contracts provide an if-and-then statement. If you want to take out your will, or give money to your children in 10 years, then it will happen at that point in time. It’s more for Lawyer type stuff, but you can build applications with it to. Like you said, there are a lot of problems with it now. In Ethereum there are forks every week. A lot of people have to keep changing their code because they keep forking. It’s more of a pain right now to try to use than anything else…”

“So what happened with GDAX? Any information on GDAX?”

Sasha: “We were talking to them. I talked to one of their founders. We’re going to be working with them; we’re going to be talking with them. All they have now is Bitcoin, Litecoin, and Ethereum. They don’t have anything else. As far as I understand, there are some legal issues they are dealing with now. So, they are not ready to implement new coins. But, further along the way, I think the chance that they’re going to implement Waves is pretty good. At the moment, no, but later, they can. We are talking to other exchanges and to other services. There are going to be a couple announcements soon about interaction with other exchanges.

Lootz: “Do you think that once gateways are implemented, they will provide some liquidity to Waves?”

Sasha: “Yea, absolutely because there is no working fiat on the blockchain yet. There is like, some BitShares thing, but it’s not really working, and (a working fiat token on the blockchain) just doesn’t exist. We want to have it done right, and with all the proper licenses. There is of course Ripple, but Ripple is more for banks now. It is not an open system at this stage. We want to have fiat tokens on an open blockchain. The interest is pretty high. You can implement it for example in a mobile application. So, you can send fiat transfers from one wallet to another wallet, or from one mobile phone in the U.S. to a mobile phone in Nigeria, or whatever. It can be a pretty big thing. It (fiat tokens) has to reflect positively on the Waves Platform as a whole, including the price, the liquidity, and the volume at exchanges. We have several other approaches that can help us increase the number of transactions in our network to help our miners make more money, and support the price of the native token. It’s all just starting guys because we‘ve just launched the very basic functionality that was promised to you. It’s just the very initial stages. All the fun is still ahead.”

Lootz: “Do you see some type of big marketing push coming any time soon?”

Sasha: “Yes. We will have it yes. Now, once we have full nodes, and once we have the lite client with asset creation and asset transfer functionality, it’s time for a marketing push. As soon as we have the decentralized network, we are going to increase the push. We are going to make it even stronger because the system we have is going to be really unique. We will have a system where you can issue tokens and you can trade them very fast. You can also install your own matcher. You can also make money from matching the orders. No one has it, and no one is planning to have this, because people are focused on other things like smart contracts. People are working on permissioned blockchains with banks. They’re working on assets on like, some kind of correspondence between real world assets to digital assets – digitizing assets… We are working on exactly the same, but on open blockchains. So, we are more business oriented I think. So, if it works out, it’s going to be pretty cool.”

Lootz: ”… Will there be 2FA (2 factor authentication) implemented into the lite client?”

Sasha: “Yea, sure, because we have it done theoretically. There was a hackathon and our team has solved the problem with 2FA. So, we have to find some time to implement it, hopefully before the new year. It’s quite easy because we have the code and it can be implemented pretty fast. Also, it will be something that no one else has.”

Lootz: “What was the reasoning behind shifting mining/staking from the idea of Masternodes to 10k Waves per node?”

Sasha: “If you allow mining with a very small amount of Waves, it is pretty dangerous. There are some attacks that we’d like to nip in the bud. In order to do that, we had to have this limit for the minimum amount of Waves. But it will be relaxed soon, because we are considering some other approaches. Me personally, I promised LPOS; now I’m thinking about some things that will help make us an even more scalable system. I’ll be announcing that later. I want to have a very open network so everyone can mine, and everyone even with a small amount can participate. So it’ll be like NXT but with very high throughput and it’ll be highly scalable. Now, there are some approaches to achieve that. I’ll be announcing something soon I think… It’ll be some kind of cross between our scientific paper about authenticated data structures and some kind of scalability approaches that have been proposed for Bitcoin. I won’t reveal the exact details now because we are still working on that. But we are going to combine several approaches and we hope to achieve a very high throughput and a very scalable, stable system.”

[Lootz runs promo for both Incent and vDice.]

Sasha: “…I can see a lot of interest in gambling and blockchains now because people want to have this structure where they can see that the casino doesn’t cheat you. It has to be provably fair. I can see a lot of projects on Ethereum now using smart contracts. I’m not sure if it’s going to work, but it can. Ethereum has problems… The interest is very good, because people realize that, to make gambling fair, you have to use decentralized systems. Only through this can you make gambling great again (laughs). Otherwise, you know… it is being controlled by governments. It’s either scammers like some crazy casino that can cheat you, because you can’t check what their edge is. They could have 90% profits because there are some binary options where people have 90% of the money sent to them. They have approaches where they could make 90% of the deposits their own. It’s like cheating. Or you have governments that control the casinos and profit off of them. So the only way to make gambling fair is to have it decentralized and on the blockchain. Many projects are working on this, it is a great thing, and I support it wholeheartedly.“

Lootz:“Any updates on the Mycelium project?”

Sasha: “The Mycelium project I think doesn’t move very fast. So, probably, they can integrate us now… Please wait for someone else (to make a statement), but I think they have some internal problems at this stage as far as I understand. So, they don’t / haven’t updated their system. As soon as they have an update… ok, we have had preliminary talks with them, and I’m talking to their CEO.  So, they have our fiat tokens. But, we don’t depend on Mycelium or any other project that much. We have lots of projects that we are talking to. We’re going to be implementing fiat tokens with some other companies soon with all licenses. So, we are good guys. We don’t depend on any entity, or any exchange. We are trying to create a new ecosystem in which everybody can participate. It doesn’t depend on some like centralized service or some specific project. We are trying to create a new ecosystem that doesn’t depend on one entity.”

Lootz: “What is to be expected after the new lite client release?”

Sasha: “Yea, Let me give you some like, some roadmap for the next several months. So, we are launching the lite client with assets. Then, we are launching, at probably the same time, leasing transactions, and the dEx. And we are working on scalability. So, we are implementing these things that we’ve been working on. Authenticated data structures thing that can make the blockchain smaller and more compact. We are working on a new (POS) Proof of Stake algorithm with increased throughput that is more secure. The POS algorithm has some issues, some theoretical issues. It is not secure. Well, it has never been broken actually for example NXT. Some people say that it hasn’t been broken because there wasn’t an incentive big enough. There wasn’t much money there so people just didn’t care. Theoretically it can be in a way broken. We want to have a secure POS from a theoretical point of view, and at the same time it has to be scalable and provide really high throughput. We have a roadmap for this, and this is a very important thing on which we will be working after we have the dEx and leasing transactions. Also, I think that it can be realized in Spring of next year. We will have whitepaper sooner for peer review so maybe you can suggest something, or find some errors in our approach. So, we’re going to have it soon as possible. I want to have it in the New Year. So, we will have, before the New Year, we will have the lite client with all the functionality, leasing transactions, and hopefully we will have the dEx, yes? Well, at least on the test-net. We will have it on the test-net definitely; on the main-net I can’t be so sure. After that, we will have 2FA, so in January probably.  Fiat gateways… so you will have USD, Euro, and probably Yuan right in the lite client wallet. That’s going to be a pretty nice system guys. There are a couple of other things.  So, a plug-in for dividends so you can easily issue your crowdfunding tokens. You can send dividends, or you can distribute your tokens to your investors. So we have a couple of things like that. So, within after the New Year, we will have a system that can be used in production mode by your start-up for fundraising, for fiat transfers and mobile wallets we will have also very soon. We have it in the test mode now so the mobile wallet is ready. We just have to test it, and add also assets there. So, as soon as we have token creation and transfer, we’ll be releasing the mobile wallet application. So, this is what we are going to be doing within the next couple of months.”

Lootz: “Are there any fees for asset creation?”

Sasha: “Yea the fees are pretty small now, but we will be thinking about implementing two types of assets. It’s pretty early to be announcing something definite yet, but probably we will be having two types of assets – cheap and expensive assets. It’s going to be like that probably. The blockchain won’t guarantee the security of cheap assets because there will be some kind of pooling where you can just drop transactions from blockchain and store only the state of the system. But, you can’t verify the state then. We will have expensive assets where you explicitly always store all the transaction history, it’s all-secure, but it will be more expensive. This is our plan for the assets. At this stage it is pretty cheap because we don’t want to somehow discourage people from issuing assets but eventually further down the road we will have more expensive assets that should be more secure.”

Lootz: “All right. Two classes of assets; that sounds great…”

“…Well, this (episode) is all about full nodes guys. I want everybody listening to install a full node. Even without the 10,000 Waves it’ll still work, right?”

Sasha: “Yea sure and we’ll be reducing this limit. So, install it now and see how it works. It’s a nice piece of software. It’s very easy to install actually, so, please help us.”

Lootz: “The only reason for the 10,000 is to stake right, to earn fees? If you set it up now without the 10,000, it still helps (secure the network).”

Sasha: “Yea sure it helps support the network. It relays the transactions and participates in the network. It’s great guys. We will be really grateful for you and eventually it will materialize in some monetary value too.”

Lootz: “Have any new projects reached out to you?”

Sasha: “I am talking to very many projects… Very many projects want to crowd-fund, want to do some crowd-sales. It’s projects from all branches of business. It’s from, like, brick and mortar medical equipment, the movie industry… I’m not like, bullshitting… a movie company wants to crowdfund for a new film, and stuff like that. There are so many different directions where you can use those CATs, those custom tokens. It just blows my mind because it can be a whole new world of opportunity. It hasn’t been available before because there was no blockchain, and there was no Internet. Only after the Internet and the blockchain appeared were you able to create those kinds of tokens that can be used in so many ways, and people are just starting to realize this. When they fully grasp what they can do with them, it can change the whole picture I think. So probably, we are experiencing some kind of revolution.”

Lootz: “That’s called vision (laughs).”

(Lootz praises Sasha’s leadership.)

Lootz: “Sasha is there anything else you’d like to tell people?”

Sasha: “Some general stuff guys… We are working hard. If you care about the price, I don’t recommend you do that. It’s all about the product. Don’t take a look at those small fluctuations – eventually care about the long run. We are working on something that can change the way business works. It takes some time. If we do it, we all are going to be very successful. So guys, have some patience with us, bare with us. Ride the Waves!”

“… I’m always here, I’m always open, and I’m always focused on the bigger picture. So, stay tuned, and Ride on The Waves! Thanks guys.”