Stabilizing coins and the Layer 1 era
“In terms of products, we are in an iterative state,” he said earlier this year at the Consensus 2019 conference in New York, where he was the chief architect of the cryptocurrency Metronome (MET), released in 2018. "Stabilizing coins will stay here, and people are now developing on this basis."
Stabilized currency is a cryptographic asset designed to eliminate price fluctuations common to most digital assets by fixing the value to fiat currencies, exchange-traded commodities (such as precious metals), and cryptocurrencies.
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“The next big event is that all Decent Financial (DeFi) products – loans and credits – are built on top of Layer 2 stable coins , while Layer 2 stables are built on things like Metronome or Bitcoin. The Layer 1 cryptocurrency is above ," Garzik said. He is also the CEO of Bloq, a Chicago-based bitcoin company that creates blockchain technology for businesses.
“You don’t use Bitcoin for a 30-year mortgage. This is a financial suicide for mortgagors or mortgagees. However, you can use stable currency to do this. Once you have stable encryption Money, you can start to create loan products, credit products, 30-year mortgages and investment products for paying dividends. It opens up a big world."
Stabilizing coins are built on cryptocurrencies like Bitcoin, and this layering feature makes stable coins safer and more stable. “You have an unstable asset like MET or BTC as collateral, and say that you have $150 in unstable collateral locked into a smart contract, and then issue a $100 stable token that is pegged to the US dollar. In order to open a whole new world, because before this, bitcoin, Ethereum, etc. have price fluctuations."
Garzik said that although the stable currency has relative "success and survivability", in general, the blockchain industry is still in the early stage, the "Layer 1" era.
“Ten years have passed, we are still in the era of 'I am building a blockchain.' DeFi is the first use case of “I am building on the blockchain.” It is built on lower levels that ordinary users don’t have to think about or understand. On the layer infrastructure pipeline, it should be there and should work fine."
He said that the industry has two layers of processes that make blockchain products safe for ordinary users.
“The pattern is large, but it is still in its early stages.”
In the early days, Bitcoin still played a vital role.
At the same time, Garzik, a board member of the Linux Foundation, said Bitcoin is still important today because it is simpler and easier to protect than other blockchains. He seems to believe that this may lead to personal epiphany.
“Bitcoin is like taking red pills in Matrix. It will be an explosion of your knowledge and an introduction to the entire cryptocurrency industry. Once you start using Bitcoin, you can understand the entire blockchain, DeFi and Lightning protocols. The entire field."
“Then, economically, Bitcoin is the most powerful chain. Bitcoin is the foundation of the blockchain Internet. So if I pragmatically and rationally build projects, I hope to build on the strongest chain. Bitcoin makes It's safer, easier to analyze, and easier to build secure software."
According to Garzik, Bitcoin is the first cryptocurrency available for payment and mobile assets. However, he acknowledges that Bitcoin's flexibility is not sufficient to achieve certain goals, especially in the enterprise sector.
“If I want to build a fully decentralized ETF to manage 20 assets like the Standard & Poor's 500 Index, then Bitcoin can't do that.”
Garzik said that the enterprise bitcoin experiment has not gone very far. "Most people look for Tendermint or Hyperledger when choosing a private blockchain to get more use cases for smart contracts, supply chains and provenance types."
To illustrate the advantages of Bitcoin, Garzik cited a global financial services company, BNY Mellon, for a bitcoin experiment.
The bank's chief information officer, Suresh Kumar, told The Wall Street Journal that the bank is studying ways to improve transaction efficiency. Arun Battu, senior developer at BNY Mellon, built an application using open source code from Bitcoin.org to run on BNY Mellon's internal network.
According to reports, the bank also tested the so-called "BK coins" as a reward for the company's corporate recognition program, in recognition of the creation of selected software services.
“In a controlled environment like the internal employee recognition program, we can find a way to make it tangible, then we have a great opportunity to help our company better understand its potential value,” Kumar said in the district. The blockchain said to the Wall Street Journal. BK coins can be redeemed for gift cards, vouchers and other privileges.
Kumar also told The Wall Street Journal that when it comes to new technologies such as Bitcoin, people's mindsets have changed a lot. Senior developer Battu pointed out that his biggest challenge is to transition from a traditional client-server architecture to a peer-to-peer model. Garzik agrees that for many people, the transition to blockchain-based technology is not easy.
“Having your own key is an inversion of the banking era. Like every technology, this is a double-edged sword. It’s a responsibility to have your own key. If I put a bunch of one hundred dollars Stuffed under the mattress, perhaps to ensure safety, or to make it more vulnerable to theft. Therefore, this is a new way of thinking, "How to protect my assets? ”
Bitcoin creates freedom
At the same time, Bitcoin puts the user in control and creates freedom. "That is freedom of choice, freedom of movement, freedom of association."
If the code is considered sound, which is a sometimes controversial topic in the open source community, then free speech laws may protect the sending and receiving of bitcoin. I asked, is the transaction a human right?
“The short answer is yes,” Garzik said. “The longer-lasting answer is that over the past decade, especially in the cryptocurrency industry, we have seen banks de-risking, which can be seen in the US, Australia and elsewhere.”
He observed that this is not a regulator and legislator of companies that are banned from blockchain. "What they are saying is, 'We don't like lawless elements,'" and then the bank explains what a criminal is. If they explain this, they will assume this responsibility. Because if they provide banking for Osama bin Laden, but they are not caught, then [they] take responsibility. Therefore, all banks see this as a responsibility. If there are any gray areas, [they don't care at all).
Garzik said the bank then only allowed certain people to open bank accounts. "Everyone else, you are not lucky. And, from then on, this has decoupled people from the currency ecosystem. If I can't buy bread, if I can't buy shoes, I will be forced to beg and be forced in many ways. Make yourself out of touch with society."
On the TokenSummit 2019, Jeff Garzik presented Vesper, an autonomous resource provisioning and management engine that "powers the token-based world."
He recalled how payment processors (such as VISA, MasterCard and PayPal) stopped processing Wikileaks payments in 2013. Garzik said: "They leaked a variety of things and angered various governments. These governments depend on banks, rely on payment processors, and then turn off the switch. Anyone who believes in this reason and wants to support [Wikileaks], the government has one A very real way to say: 'I chose not to allow you to support this reason.' Therefore, the government is becoming the gatekeeper of… What is causing your support and not support, it is completely anti-free."
He said that the potential of Bitcoin to enhance individual freedom has been clarified. “As we become more and more non-cash, it is easier for those in power to turn off the switch, not only to shut down individual organizations, but also to shut down the entire vulnerable. Some ethnic groups in urban areas are unable to obtain bank accounts in the US. This is not the first Three world countries. They had to drive to the next city because the bank decided to reduce the risk across the region (not serving them)."
Garzik believes that restricting financial services not only makes the poor lose their lives, but can also be a way of controlling speech like Wikileaks. “This is a way to control why you can support and not support it. As a result, as cashless campaigns progress, government control increases by default. The less cash you use, the easier it is to cut off. ""
However, he said that the blockchain is shrinking – even though it may take some time.
Garzik's motivation to get up every day
“(Blockchain) is the financial autonomy layer and one of the two reasons why I wake up in the morning. I do believe that after all news PR and hype, the blockchain can empower people (the other 7 billion people). It will return a key that you don't know to your bank account. It's very, very powerful."
Another driving force for Garzik is his vision of the future of science fiction. He previously said that bitcoin is the currency of artificial intelligence.
“We are building our own self-driving cars here and bidding for lane space on the road and similar things.” “The future of robots and humans we watched in the I, Robot movie and all other movies. [Blockchain Enable] This machine, I can rent something here to do things for me, maybe I can mow the lawn, and I don't have to care if it is a human or a robotic lawn mower or drone service that starts the mower. It makes the machine network Being in an equal position with ordinary people."
Garzik helped achieve this with the help of a two-part distribution company, Bloq, based in Chicago. He said that Bloq has about 35 employees and is using DeFi to access a wider range of technology projects and experiences. BloqEnterprise provides blockchain technology for the company and currently focuses on BloqCloud, a platform that provides a range of blockchain hosting services.
Another division is BloqLabs, a technology contributor, financial sponsor and supporter of projects under the framework. BloqLabs includes Metronome, TITAN, Vesper, Veriblock, Civic and others. Projects must be part of BloqLabs in one of two ways: internal incubation (eg Metronome, Titan), or BloqLabs operating as a consultant (eg VeriBlock).
Since Bloq chose not to raise funds, the company, which was founded in 2015, has emerged from the shackles of venture capital financing. Because of this decision, Garzik noticed a significant difference in how he works.
“We started from the first day, starting with zero funds, looking for a team. This gives us the freedom to find the best talent. Usually, in every other startup in Silicon Valley, there is an idea that they might make a Products, then seek some funding. When you are free to find the best talent, the best team, you will think of a completely different startup, a completely different flight route."
User experience makes blockchain safe
In the end, Garzik wanted to make the blockchain easier for everyone to use, because the complex user experience reduced the security of the platform. He insists that this is still not the use of blockchains.
"Securitize it. This provides a secure user experience. This is an experience where users don't have to see this incomprehensible hash and understand its meaning. This shouldn't be that hard. You should only need to swipe your credit card. Paying Bitcoin and getting services. Simple user experience and simple results will drive more people into the space, thus creating more freedom. So, in the end, this is to make this rough, more primitive, Focusing on technicians, nerd-focused, difficult-to-use technologies are available to ordinary people."