Blockcast.cc: Hello guys, today we have our old friend Dr.Z, Co-founder of CZZ, come joining us in this AMA session!
Welcome back Dr! Good to have you here!
Jenny: The AMA will start 10 minutes later, after which we will have Q&A session, Dr. Z will choose 5 questions to answer, and the one who questions + got picked win 350 czz!
Today Dr. Z will share with us the Latest Defi trend and how CZZ's gonna plan a big role in it! First of all, Dr can u share with us why Uniswap is so heated recently?
Dr. Z: DeFi has definitely been really hot lately, So in this talk, I'm going to primarily focus on the DeFi and DEx aspects of the Class ZZ project, and its recent launch on UniSwap. So in this talk, I'm going to primarily focus on the DeFi and DEx aspects of the Class ZZ project, and its recent launch on UniSwap.
For those that don’t know me, I am Dr Z. I have a PhD degree in mathematics; my dissertation topic was on differential geometry. I also lectured at the Australian Mathematics Olympiad selection school from 2004 – 2007.
Aside from mathematics, I’m also interested in history and philosophy. Particularly, I view the development of human history as a progression toward decentralization.
So to answer why is UniSwap is so heated, we need to understand why decentralization is so important. When we talk about the blockchain technology, there are really two facets to the innovation. It can be regarded as a distributed ledger system, which is basically an additional, albeit very important, database structure.
Anndy: Do you think the word decentralised is overused?
Dr. Z: No, I don't think it's understood well enough. However, I would argue that the distributed ledger is incremental innovation.
Anndy: What is your definition of decentralised? Is there a need to redecentralise?
Dr Z: its significance is probably similar to things like Hadoop or Spark. but not revolutionary. The second facet is that it can be considered as a trust machine, this innovation is truly revolutionary. Prior to blockchain, the way people build trust when conducting business is through credibility and trust. For example, a sovereign state is deemed to be the most credible, followed by big corporations, followed by individuals with a good credit history. To borrow money would be asking the counterparty to put faith in your ability to pay it back. Therefore, when two individuals conduct a transaction, they will typically rely on multiple “trusted” third parties. This is centralization. Centralization is necessary (but not desirable) as individuals do not necessarily trust one another. What is significant about bitcoin is that it basically created the third dimension of trust, In cryptography we trust.
Anndy: Linking this back to Uniswap, DeFi (in general), the reason why it is so "hot" is that it is unregulated. We are so far away from understanding the future not to say decentralise + trust. Isn't that the case? You really need to educate the Asia community on this Z.
Dr. Z: I'll get to it. What the blockchain has really created is the ability for Alice to send some assets to Bob, without really having to trust any agency. This is decentralization. Now, the only problem with bitcoin. is that Satoshi didn't have in place a pricing mechanism. To find out how much a bitcoin is worth, there must be a market where it’s actively traded. and exchanges today are predominately centralized. The downsides of a centralized exchange are obvious
- CEX hold far too much power. Make or break of a project often depends on whether they can be listed on a major CEX’
- Counterparty risk. Starting from Mt Gox, there are many instances where CEX’s have shut down with very little warning.
- Printing coins. There's a long-term rumour that CEX would over selling coins they don’t have by printing them in their own database.
So I often hear people make predictions like bitcoin will hit $1 million USD, sometime this decade. I think it's possible, but with a pre-condition, the vast majority of the transaction volume must happen on DEX as opposed to CEX.
DEX = decentralized exchange
CEX = centralized exchange
Because we can never be sure if CEX’s are printing extra BTC particularly when it’s price become very high, For the exact same reason, I’m more bullish on BTC than gold as a defence against inflation. most gold consumer investors buy today is merely electronic gold printed by some financial institution, it does not represent the finiteness of physical gold. So this is basically the ecosystem in the crypto market of 2019. Now let's see how Uniswap would change the landscape.
Let's say gold is now $2000, and some authority doesn't like it, they can print a ton on their database and dump it on the exchange, and now gold is only $1800 say, and they slowly buy it back, their physical gold collateral is not hurt at all, but the fact they have this tool. means the gold price is never representative of the real value of gold
Jenny: this is also what exchanges are doing to our coins, I have one question, is my bitcoin in futures real bitcoin?
Dr: No but I think futures are fine because you know its fake when you buy them. If DEx becomes mainstream, I think there's a real possibility that Bitcoin may hit historic highs.
Anndy: Honestly the same happened in Uniswap (which is decentralised) on the same situation where prices were pumped and dumped. They do not play the volume game
Dr Z: you can still pump and dump on Uniswap, but you at least you're doing it with real Ether, So Uniswap is really the first DEX that looks like a serious competitor to CEX’s
So back to Uniswap, I think Uniswap is a significant development and it’s absolutely fantastic. I think Uniswap really stand out on transparency, All transactions are on-chain, Transparent relationship between price and liquidity pool, No listing fees/permission to list.
Like I said before, the ability to list on a major exchange used to be the make or break of many crypto projects. No longer the case on Uniswap! Moreover, I think Uniswap is creating an excellent token economic of the Ether.
Anndy: Uniswap sounds better than the dexes in the past. How about talking on CZZ. How did CZZ benefit from this round of Defi craze?
Dr Z: So I have a motto for Uniswap: Make Ethereum great again, now let's talk what CZZ has to do with Uniswap. So just a disclaimer, I’m actually not directly involved in the CZZ listing on Uniswap, but I think it’s an absolutely ingenious idea that guys in the mining community have done it. So as you know, you can only trade ERC 20 tokens on UniSwap, as it runs on the Ethereum network. Therefore, it’s a real pity that all the main-net tokens cannot be listed.
In fact, one of the core functions of the CZZ network is to allow main-net tokens to be traded in a decentralized manner. through an interoperable protocol that our tech community has invented. But, what can we do in the meantime? About two weeks ago, a group of CZZ miners formed a coalition, where they published an address and collateralized about 10 million CZZ tokens mined by proof of work. The idea is that each ERC 20 token on Uniswap would be able to redeem for 1 main-net token at any time. there is a one-to-one correspondence. I think this is a fantastic idea because it allows CZZ to be listed on Uniswap. Because all the transactions happen on-chain on Uniswap, we can actually incentivize liquidity providers by airdropping extra CZZ ERC-20 tokens.
For example, please check out this announcement: http://czz.club/topic/69/czz-uniswap-community-liquidity-provider-airdrop-event-v-5-7-22-2020
Dr. Z: That's something CZZ main-net will improve on. For example, you would be eligible for air-drop, if you keep liquidity in the pool for at least 24 hours. Address A swapped with 1ETH to 200CZZ, then put 1 ETH and 200 CZZ into the liquidity pool, and keep the liquidity for 24 hours, then address A is eligible for the airdrop.
There's also a formula for airdrop quantity:
(Swap rate of the previous day – Swap rate of Today) / Swap rate of Today *100%
Min = 0%
Max = 100%
For example, If the average swap rate of the previous day is 1:500, The average swap rate of today is 1:200, then (500-200)/200*100%=150%, address A receives 200 CZZ the next day.
And this type of incentive package would not be possible on a centralized exchange, as transaction data would not be available. Here’s another incentive package to liquidity providers, where they will receive CZG tokens. CZZ transactions will generate CZG, CZG has no pre-mining, no pre-sale, no investors, only DeFi, and all tokens will be allocated to CZZ traders and liquidity providers. The total amount of CZG is 100,000. I'll provide the czz.club link below: http://czz.club/topic/72/czz-and-czg-transaction-model-principle-proposal
So yeah, I think having a DEx is very interesting. You can design all sorts of incentive packages that would not be otherwise possible on a CEx.
Jenny: Yea feels like back to 2017, the ICO era. OK, I think We've said enough on Uniswap, let's talk about CZZ mainnet Defi, how does it work?
Dr. Z: So, we looked at UniSwap, and I think it's fantastic but there are still some potential issues. Number 1 concern is that you cannot trade main-net tokens on Uniswap. This is a pity. not only you can’t trade Bitcoins on it, but it may also provide a disincentive for projects to launch their main-net.
If you're doing very well on UniSwap, launching main-net = getting delisted, Second major concern is really to do with the security of smart contracts, the beauty about the Etherem virtual machine is that the smart contracts are Turing complete. What this means is that it can execute all the commands you would reasonably expect from a PC, And this would include a virus and all kinds of other malicious software. When CEX’s were the dominant player, they hired a professional team of experts to look through these smart contracts, With DEX’s however, we cannot expect the common investor to have the same level of technical expertise. Therefore, I actually think it would be safer to dedicate a blockchain, such as CZZ, to provide only the infrastructure services of a decentralized exchange.
when we don't actually need a Turing complete virtual machine. So the way decentralized exchange works on CZZ, you can think of it as a community of commercial banks (or beacon nodes) governed by a decentralized central bank (proof of work miners). It’s a bit like Libra, except the Libra association is now decentralized.
So here's what happens: first of all, someone needs to register as a beacon node, and we already have 20+ beacon nodes registered, there are no pre-qualifications as to who is eligible so its fair and decentralized. To register, you will need to send at least 1 million CZZ to a staking address. these are addresses whose public keys are 0000...00010 to 0000...00099
Jenny: How much USD is that? 1 Million CZZ?
Dr. Z: Should be on ballpark of $20k-ish. Addresses with public keys, public keys are 0000...00010 to 0000...00099. Nobody can move funds from them, as nobody knows the private key. This is usually called the NUMS assumption, nothing up my sleeves. So the way this works, Let's say someone sent 1 million CZZ from his public key EDCC6224…9FC to 0000...00015, This record will be kept on chain: EDCC6224…9FC / 000000…015 will form what we call a "stake pairing" or just pairing. The pairing identifies the owner with the beacon address. Having set up the pairing, He's now eligible to receive inward payments from supported blockchains: BTC，ETH，BCH，BSV，LTC，DOGE.
So here's what happens when someone sends EDCC6224…9FC some BTC: Let's say Alice sends 1 BTC on the bitcoin network, from C121AD90E…3DB (her address) to EDCC6224…9FC (paired address). She can broadcast this transaction on the Class ZZ network when PoW miners hear about this transaction, they will send a pre-determined amount of CZZ from the address with public key 0000....0001 to C121AD90E…3DB.
Now the magic happens: Alice's public/private pair on the BTC network is exactly the same as the CZZ network. So any CZZ sitting on C121AD90E…3DB is accessible to Alice. And Alice has effectively just changed BTC to CZZ without going through any third party.
An extra detail you may be wondering, where did the CZZ come from in 0000...0001? Proof of work miners send 19% of their mining reward to that address from genesis block So the 0000...0001 address contains the liquidity needed for CZZ. There's a separate protocol that would allow Alice to burn CZZ in exchange for another cryptocurrency, such as ETH.
Jenny: so there will be less and less CZZ?
Dr.Z：So each time you make a transaction，Let's say you're buying BTC from USDT，You can buy it from the CZZ network without a trusted third party, however, you will be burning CZZ along the way.
So this goes back to the question of the token economy. There's a recent announced from the Ethereum community: EIP 1559. It's a very important announcement, everyone should check it out. Basically, it's a proposal to start burning gas, as opposed to reward gas to the miner, This is a very similar design to the CZZ system.
Essentially the more the network is used, the more deflation it would inflict, and the remaining tokens would increase in value. So there are two types of people, Those who hold CZZ, and those who don't. Those who don't can use the CZZ network to buy other stuff, like BTC, ETH etc and those who hold can make a profit. That's a basic introduction of how CZZ main-net works.
Please check on the whitepaper for more information: https://t.me/Blockcastcommunity/87479
Now I'm ready to take questions.
Jenny: Thanks Dr, Now here it comes our most welcomed Q&A/Prize time!
Mahathi: Uniswap will be the ability for anyone to create any token pair they want. so there is a security lag there. there is a chance for scamming, why czz chose Uniswap?
Dr. Z: Yes, there's definitely a possibility. I've mentioned in my talk about the possible security issue with Uniswap. I'm not sure if there's an easy fix on EVM. But CZZ will be a main-net that's dedicated for DEx, and it will be much more secure than Uniswap.
As to why CZZ choose to be listed, I should stress that CZZ is a decentralized project, a group of miners formed collateral and made a 1-1 correspondence with the ERC 20 tokens. But Uniswap is the first DEx that has the comparable volume to leading CEx's. So I think it's a good thing
Shuja Hashmi: COVID 19 has slowed many economies around the world but as a Crypto business has it affected you negatively or positively? Secondly, are you still on track to achieve your targets as the road map says?
Dr. Z: In a way, I think COVID 19 have actually helped the crypto world. First of all, ever since the March market crash (both crypto and wall st), trillions of stimulus dollars have been printed by the Fed. This is supposed to stimulate the economy, yet the US still registered a GDP contraction of more than 30% in Q2. So, unfortunately, I think we're in the age of what Bitcoin was initially designed for.
We have been generally on track for the rate of development. We are a decentralized community, everyone works remotely anyway.
♥ #Ms khate: With the emergence of new cryptocurrencies, utility tokens and IOUs, what can #czz token offer to the investors and coin holders in terms of the sustainability and stability of this platform?
Dr Z: So as I was explaining before, the CZZ network have a token economy similar to that of Ethereum post-EIP 1559. Namely, each time you make a transaction on CZZ, a certain amount of CZZ token will be burned, reducing the total supply. Therefore, CZZ hodlers would benefit in the long term deflationary of the CZZ token.
Venkatz K: To Stake needs 1 million CZZ a plan to reduce the minimum holdings for staking
also czz stated that first come first serve basis. is no. of users will be able to stake is limited? or anyone who is holding 1 million czz can eligible to stake at any time?
The first time the elliptical transaction check concept i am hearing. most of the project uses tree structures and linked structures how elliptical curve works. That is also why czz limited to 90 Lighthouse consensus address.
Dr.Z: Yes, as far as I'm aware, CZZ is the first project that achieves interoperability via the elliptic curve route. In particular, blockchains such as BTC, ETH, LTC, BCH, BSV and DOGE all use the same elliptic curve Secp256k1. These are pairs of points (x,y) satisfying y^2 = x^3 + 7 on some finite field. Because public and private key pairs remain the same as long as you're on the same elliptic curve, one could use this to interoperate between blockchains that use the same curve. When dealing with blockchains of a different curve, you need a technique called "address extension". We will be working on that maybe around 2021/22, where we can support cross-chain transactions of non-Secp256k1 blockchains as well.
❤❤❤Momma Apple;
Q 1. What are the benefits of using #CZZ in everyday usage in comparison to other projects? How effective will they be if there is a market crash and why?🍏
Q 2.How can #CZZ token be best utilised in the event of a fiat market collapse and how be promoted the features and benefits best advertised to take advantage of the economic cause in the market?❤️
Q 3.How do you suggest will be the best plan of attack in doing so in order to consolidate the mission statement of the company ?#CZZ
Dr Z: So the game plan is that if enough people are using CZZ network as a DEx, eventually the amount of CZZ burned and the amount of CZZ produced from PoW would reach a long term equilibrium. You can also take arbitrage trade between CZZ and CEx's. Once CZZ has reached the long term equilibrium, you can definitely use it for day-to-day transactions. CZZ is designed with a view that we would upgrade to 5G network in the near future. It would take the full advantage of 5G and have extremely high throughput.
Jenny: Thank you, Doctor, for all the sharing today!
Dr Z: Thank you very much, everybody!
Anndy: Thank you very much, everybody! You have been very kind to us by sharing knowledge
Dr Z: My pleasure~
Audience: Thank You again love and yes sure we will see you again soon.
Jenny: Thank you again Dr.Z, for your sharing the good information and the prize!
Thanks to all our Blockcast Asia Community members who join in the AMA with us!
All the members who got the prize pls private message me to get your 350 CZZ! The prize will be wired to your wallet during the weekend! You can use Bitkeep wallet or ur Bithumb Global exchange wallet to receive ur prize!
AMA was conducted at Asia Blockchain Community:
Time: 15:00pm KTS, 8th August 8, 2020
Guest: Dr.Z, Co-founder of CZZ
Moderator: Jenny Zheng, Co-founder of Blockcast.cc