Jag Sidhu on Syscoin's protocol upgrade and Bitcoin security

0:23happened how would you best describe Cisco nain in the industry to kick it off I mean in the industry we feel that law chains are gonna provide unique valley every chain has their own value associated with them and we were researching a couple years to find the right recipe for what we want to bring to the industry we feel that you know

0:52last year scalability was was a big concern so we've been researching mostly last year on scalability we solved that through something called Z dag which which we'll get into which is a micro payments infrastructure on top of something like the coin which we introduced on Cisco point and an interoperability is kind of the upcoming the upcoming big big thing along with

1:16stable coins and new private key infrastructure multi-party computation all that stuff a lot of the stuff can build on top of the existing law chains but some of the stuff needs to be done at the consensus there so the consensus layer stuff is what we've been kind of researching to try to do and bring to the market so it's gone for and so we thought that our value to the industry

1:42will be something that's fast lightweight and transfer in a cost-efficient way to help businesses and then you know for the rest of the stuff for flexibility across turing-complete designs and doing stuff autonomously we feel we created a bridge which we feel will solve that for our customers and users the people that want to leverage you know demurrage or

2:08interest or anything custom and specific around autonomous business rules leverage the ethereum blockchain pay a little bit more but they can do the functions come back to the safe sound merge my blockchain of Cisco line which is again backed by the Bitcoin proof work so know that those are the two core things every blockchain has their use a lot of them may be on the market cap

2:37rankings right now are trying to take over something what bitcoin is offering and the valley transfers space for the money use case but I think that you know it's gonna be hard to dethrone something like that especially if it works well as soon as they have lightning networks and stuff it's it's gonna be really hard to see someone else D thrown that use case the money side of

3:02things I think Bitcoin is a store value it's not going to change every other Sheen has to bring some type of use that is useful to the customers and businesses and we feel that the bridge interoperability between chains and the speed and cost savings of Zedek enable a value add that isn't seen across the industry right now very interesting and yes this coin has

3:28been around for more than a few years now it's quite an old project in terms of crypto space-time and congratulations so far on this just for protocol upgrade it sounds like there's a lot of improvements and one of those being scalability which is a major discussion in the blockchain industry right now can you speak about the scalability upgrades of Cisco point 4 and what has changed

3:49from before yeah so I mean I'll step back a little bit and talk about why the wise and the house before the what's so the Z tag protocol we call we keep calling it as really stemmed from the whole blockchain blocksize debate right so when people view blockchain it should be viewed as a settlement system it's not really a point-of-sale

4:16application system where you have a shared memory of a database and it needs to be settled performing Li but it doesn't need to be solving your point-of-sale outlook just because you know if you're trying to throw on the Visa MasterCard type of scale on the blockchain and have a settle at the same time you're gonna be cost it's gonna be cost you an arm and a

4:38leg because it's commensurate of how many people are trying to come into that settlement system at the same time or it's just not going to be secure so the trilemma is an unsolved problem decentralization security and cost and you can't you take one and the other one kind of gives so what people have to do is think about how to build on top and

5:03what we felt was you know there are some interesting projects out there lightning networks and payment channels that are pretty cool and they do seem to work I think there's a little bit of time before something like that becomes acceptable because there are some particularly interesting game theoretical attacks that you can do to kind of get around can the lack of

5:26consensus on those type of systems so we felt that you know if the people that wanted the big block size they were solely focused on point of sale but as I understood it the blockchain was a settlement system so I wanted to leverage the fact that it's a settlement system but still offer these people that want it the bigger the bigger blocks and the faster transactions a way out to be

5:50able to give them what they want but not necessarily take away decentralization and security at least in a probabilistic way you know you don't want to have it so like you're now you're able to do three second blocks but you're 25% less secure right that just doesn't doesn't work doesn't make sense I'd rather just use a bank but if you're talking about

6:12maybe one thousandth of a percent difference and if you wait a couple extra seconds and you get maybe ten thousandth of a percent less probable of a settlement is something that's compelling to me and I think I would take that in a heartbeat when I'm talking about a ten dollar transaction and so that's kind of where Z dag was born and it was an idea where you're

6:36still backed by the blockchain proof of work system so the fact that this coin is merged mine please please wall in this design because we are mind alongside a Bitcoin so when you mind Bitcoin you actually are mining Cisco as well as a child chain and many of the block explorers are tending towards full the full gamut of all of the block explores the supporting emerge

7:00mining because it's almost like free money to them so they secure networks such as coin a name coin and in an in return we get that security of Bitcoin so now you have a blockchain which is really just a clone of Bitcoin and it's mined alongside of big alongside a Bitcoin and anything value added on top also if done right you can think of it as an extension of Bitcoin and just to

7:26secure so we developed an asset protocol that plays on top of this coin it's essentially like I guess it's like you can think about the omni layer but the omni layer is a logical layer on top of Bitcoin it's a little bit slower because it's subject to Bitcoin block x and all that and it doesn't have the ability to do a layer 2 design the way we did it because we built it into the

7:49consensus of this coin so now that you have an asset layer and now business and come on top we want it to be able to make the trade-off between micro and macro transactions to give the consumers and the merchants and options should they should they take a little bit of a probabilistic heuristic approach where you think that you doing at under $10 actions you're ok

8:14waiting 5 to 10 seconds and if you're ok waiting that amount of time the chance of your double spend not settling is X percentage we can make that trade-off for the consumers and so we did and you know doing through our analysis and our testing we found it to be adequate for what we need it to do for point-of-sale and compared to Visa MasterCard you know still a lot more

8:39secure so the goal was to you know take some of the trilemma and shifted towards performance and convenience it's kind of the in thing of blockchain right now to make make it go for the average Joe and by doing so we were able to still compete we were able to competing Visa Mastercard but still able to remain decentralized and secure and these

9:01the security component of it will be scaling up over time as networks become more efficient so as more and more nodes grow on the system more master nodes come on as this coin which are incentivized full nodes to help throughput of these seed egg transactions which is just just standard transactions being sent around the network as the web of connection

9:24connections grows and the flooding mesh network is able to process faster and faster you'll see it higher and higher throughput and more and more security for the same amount of time that someone would wait for an average point-of-sale transaction so you know for example today it takes about 10 seconds for a seed egg transaction to go through and for you to be relatively you know

9:48relatively secure in terms of not being double spent because these transactions are in memory pool you still have to wait for their settlement but if you're talking with a $10 transaction 0.0001 percent chance that you'll be double spent is probably okay and you can build that into an insurance model on top so we felt like if we made those trade-offs

10:11we can achieve Visa MasterCard level speed at the same time remaining secure so that's kind of where we were at and we're building the application layers on top and then we decided to patent seeding to because we felt on blotching foundry it's a pretty valuable IP to kind of own but still open-source it so other people can leverage the tech that's amazing jack and now sis for

10:34upgrade is allowing for micro transactions which is something that has been a limitation especially with Bitcoin and aetherium right now can you speak on how you achieve this is it through Z egg that the micro transactions are enabled as well and is that mainly used for business it's not really a point-of-sale thing is it and how is that used mainly yeah I mean we

10:57wanted to enable the people the businesses that want to build on top of this coin so sis this is actually just gas like Keith areum we don't envision that someone's gonna be doing point-of-sale on top as this coin writes his coin is the gas that used to paint to drive this thing when you when you're a business you want to have your own token you want

11:15to have your own asset that you hold that you give as loyalty points or as point of sale type of integrations as eBay works on top of the asset layer so when you transfer an asset to another asset it's very efficient and the and doing all of those stuff we've been focusing on is but not at the asset layer so yet so basically businesses can take advantage of zjm point of sale by

11:41creating an asset and having the ability to transfer that at a fraction of a thousandth of a penny at the same time settle within probabilistically settle in ten seconds but at the same time if you're doing a larger transaction you know for a few thousand bucks or whatever your subjective limitation is on feeling towards it's becoming a macro transaction then at

12:06that time you can always fall back to waiting for the proof of work so that those are the trade-offs you made and yeah definitely the businesses can take advantage by using that for point of sale so your your traditional crypto debit card systems that are out there today they're essentially working on an IOU basis or central clearing but these actual programs can be converted

12:28into real time crypto transfers now so you remove the you remove the middleman between the conversion fees of going from crypto to fiat and fiat sent over the merchant now you can actually do a transfer direct from the merchant from the consumer to the merchant and back if needed so it and it cuts out all the transaction fees and conversion fees in between now if you if you think about

12:55that and maybe do like a stable coin now you have the ability to actually transfer something like a US team IOU on the blockchain in real time to somebody and the merchant actually gets us a us denote back and not have to go through a conversion process with fees and stuff so your traditional fees of three to five percent becomes something like you know a thousandth of a percent and you

13:19can do a lot more transactions when a more secure way faster and better overall that's amazing and can you talk about some of the business use cases and assets that have been created on sis coin already that are adding value today yeah there's there's a few projects that are being built we feel there's gonna be a lot of demand coming up just because we've seen

13:43the market shift towards something you know like you're saying like people are seeing aetherium and a little bit of higher gas fees recently but the people the businesses they want something cheap and fast they don't really they're not really concerned too much more security because the block chains haven't shown much issues in terms the attackers aren't around yet they haven't learned

14:06the protocols but they will be you know I almost guarantee it that it's gonna be kids and universities that are gonna try to break these things and so you do want to stick to the more standard secure protocols but there are a few businesses that kind of see that and we're working to we do bring a value for and you know load and hgx platform that we're

14:28working with this is very interesting because it kind of does leverage the seed egg tech that the AG X is a silver back token that we feel can that the stable coin that could be transferred in real time like I was saying so if you have a debit card system or you know your mobile phone you could transfer this thing in real time it's actually backed by the silver value

14:51behind it and so those are the types of projects we're looking to kind of get involved with to try to make our technology shine the other thing is the other the platform that we're working with is a ivv which is an AI platforms a trading platform and there's one more that we recently been working with this tribe theum real estate so it's an asset class it's kind of like a group to

15:15token representing real estate indexes and traveling so though there's a few projects that were working with right now but there's been a flood of interest and I think there's gonna be a lot more especially as we prove that you know this bridge that's never been done before if this thing this innovation ends up you know showing you know you could travel across

15:39blockchains without having to trust middleman or counterparties like atomic swaps today are possible but you do have to find someone to the accounter party to that trade but if you're talking about crossing a bridge without training then that's never really been done before and that's something we think there's also a value for because you don't have to find a partner you can

16:01transfer any amount at any time just simply wait the amount of time it takes for confirmations and you've moved across block chains so we've actually provided a kind of a scaling plan for aetherium in that way because you can go from theorem to sis going to leverage this coin features it's going back to what I was saying every blockchain has to have a use and so if your users want

16:22to transfer their assets and a cheap cheap way they can leverage our technology to do that so yeah because of that we feel there's probably a lot of influx and interest and the other the other couple we've been working with projects were partnered up with block net is a great project that's that's doing decentralized exchanges index technology and the other one is Komodo they are

16:48also doing they're a super net partner that we've been kind of partnered up with since the beginning around 2000 14 or 15 and they're also doing a dex along with some other tech that they got but the Dex's are where we're interested in kind of building gateways for our assets as well because we made them atomic swap compatible so in tomorrow's world we have the native bridges we'll

17:11also have the bridges where you're swapping – with atomic swaps which is more flexible so we're kind of going both directions and we're making it compatible and those are the projects as well that we want to build partners with to show off our tech and so once you know someone like Komodo and block net they show the Dex stuff working now you have a truly

17:36decentralized marketplace where you can use your tokens but also exchange them across to other tokens if you want as well that's amazing check it sounds like you guys have some great partners so far and I'm sure with this for upgrade there'll be a flock of aetherium users that are more interested in finding a cheap and efficient solution so if there are other projects

17:59or investors developers team members that are interested in learning more about this coin and the SIS for upgrade what's the best way to learn more information and get involved yeah I think the best way is probably our discord you know if you're a developer and you're looking to help try to change the world or just to make things better if you if you're interested in crypto

18:22just anyone who's smart who's who can code you can jump in our discord and we do have a we have a master note system with a decentralized governance so that governance has been expanded for siskel in for and we are looking for developers to offer funding to develop on the protocols so there are there's a few theorem developers that were kind of talking to right now but again like

18:47anyone's welcome and you join the community and we're here with open arms and you know we think we win as a team and so if you come in and help us we'll make sure that you're incentivized and the development funds are there for that purpose so the community votes for what they feel is gonna bring value to the project and that's kind of out of anyone's hands the developers or anyone

19:10else so if you come in and you bring value to the community you'll get you can create a proposal to get paid for it so discord is a great place for that obviously if you're an investor you can always come in there as well we're always chatting with the community pretty much 24/7 we're always around if you want to reach us by email probably the best is marketing at Cisco and

19:34community you know where you can go to our website at blockchain foundry Co or Cisco and org amazing Jag's to do core developer of cisco it's been a pleasure speaking to you thank you so much for your time I'll leave the links to your links in the description box below and I appreciate you taking the time and all the best of luck with sysfore and growing the community yeah thanks

19:58for the interview thank you