Become a Creator today!Start creating today - Share your story with the world!
Start for free
00:00:00
00:00:01
#4 - From Satoshi to Altcoins
23 Plays10 months ago
Satoshi's story, the first cryptos after Bitcoin, newer cryptos and why they are being followed.
Recommended
Transcript
Introduction to Bitcoin and Cryptocurrencies
00:00:08
Speaker
Walking along the streets, I'm empty The only thing I can see is my own silhouette I'm getting stronger, step by step The clock is ticking, but there's no time for regrets
00:00:37
Speaker
Hello everyone and welcome to the first episode of the Build Podcast by Numeramesh, the guide dedicated to Satoshi Nakamoto, the history of Bitcoin,
00:00:48
Speaker
early cryptos after Bitcoin and more recent cryptos and why they are being followed. As you would expect we won't be able to talk about all the cryptos and there are over 9000
00:01:03
Speaker
on the CoinMarketCap website which I can only recommend to you regardless of your level of crypto knowledge. Hello buddies, I'm happy to be here again on yet another podcast. Always good to be here, give a couple insights. As you said,
00:01:20
Speaker
There are more than 9K cryptos on CoinMarketCap. All interesting to look at, obviously. Be careful, do your own research. But what's important is to know where it all started, where it all came from, and that's why we're doing this podcast today.
Managing Digital Identity and Privacy
00:01:38
Speaker
Exactly, so let's start with the history of Satoshi Nakamoto that is a pseudonym of the person or group who created and developed the Bitcoin protocol. It's something that impresses me enormously that someone or a group of people have managed to remain anonymous on the internet. I don't know how he or they did it.
00:01:59
Speaker
Speaking of which, I would like to talk for five minutes about how to manage your digital identity.
00:02:09
Speaker
We are not going to explain how to be anonymous because personally I don't know how to do that. But just explaining that for my part I have several Google accounts, one of which is dedicated solely to the French administration, the taxis, Dr. Leib that is an application for healthcare, and anything else that requires serious care from the administrative point of view.
00:02:34
Speaker
as well as all communications with my family and close friends. So it's an email address that has received very few emails from very few people and sent emails to very few people. Then I have another email address which is dedicated to all Decathlon type accounts or commercial accounts. I'm thinking of not using my first and last names anymore, but using another first and last name for everything that doesn't require me.
00:03:01
Speaker
to pick up a parcel. So anything that's a loyalty card for ocean, for buying food, etc. I don't need to have my first and last name or my phone number. So what I'm going to do is use a pseudonym Sergio Ramos. Sergio Ramos at gmail.com for example.
00:03:23
Speaker
with a phone number dedicated to Sarah Yohamos with which I will never pick up phone calls basically.
Peer-to-Peer Systems in Bitcoin
00:03:30
Speaker
It won't be that name and that email address but you get the idea and Satoshi Nakamoto, so the person or the group of people that created Bitcoin has done this kind of move. Sam, what do you want to say about this and do you use also this kind of technique or not at all?
00:03:50
Speaker
I think it's important that you highlight this because in today's day and age where data's at the center of it all and all your information is needed to create accounts, to purchase things, all your life is linked
00:04:03
Speaker
to various accounts to third parties, which you don't always know what they're doing with your data. They're susceptible to leaks. I think it's important in today's day and age again to protect yourself and do this. So I follow the same, maybe not as sophisticated as yourself, but I do have multiple accounts
00:04:24
Speaker
for various things that I try and keep organized. I mean I've got one for businesses more professional use and one for more personal and then obviously I've got one which is more for like social media and whatnot and I think it's good that you highlight this and it it kind of gives a good first view on
00:04:45
Speaker
kind of introduction to privacy maybe a way to go about it try and keep your identity maybe secret because all these big companies they can always take take all your data and if they manage to get it from all these different accounts they can bundle it up and create online consumer profiles they can target ads to you which in some cases might be good but in others you might not want
00:05:12
Speaker
products being pushed to you or things in this case. So I think you do well to mention that and it's a good introduction to what we're going to talk about today. Exactly, just to continue on that it's more for me a way to protect myself as you say to not be consuming content that I don't want to consume.
00:05:33
Speaker
And I think by not letting people entering your mail, my mailbox in my case, is the best way that I can do so to check only when I need something specifically, but not to receive and not to check regularly. And I have seen in the past that even
00:05:50
Speaker
If I didn't subscribe or sometimes you are forced to subscribe, then you need to unsubscribe, etc. So I prefer to have a kind of trash and in some cases also to limit the makes and the campaigns that I'm subscribing in and it's linked to the Bitcoin because indirectly everything that is done
00:06:13
Speaker
on the internet can be tracked and it's kind of the same on the blockchain. So today we are diving into the origins of Bitcoin, but first let's understand some crucial concepts. One of them is peer to peer or P2P, a cornerstone for Bitcoin existence.
00:06:30
Speaker
In simple terms, P2P refers to a decentralized communication model where computers or peers interact directly without a central server. So this collaborative approach allows each node to act as both a client and a server fostering a distributed data sharing system. Now let's break down the client-server dynamic. Clients like your laptop or smartphone
00:06:57
Speaker
Initiate requests for services from servers. Think of web browsers asking web servers for pages or email clients interacting with email servers. On the flip side, servers provide these services responding to client requests. They handle multiple requests simultaneously, efficiently, meeting the needs of various clients.
00:07:21
Speaker
So web servers host and deliver web pages, image servers, manage messages, and file servers store and provide access to files. Services and services deliver them, forming the core or network
00:07:40
Speaker
of network computing. This client server model enhances scalability, efficiency, and organization in a network environment. So now, with this foundation, let's explore how these principles inter-twin with the creation of Bitcoin.
Bitcoin's Major Events and Adoption
00:07:59
Speaker
Now let's explore the key features that define peer-to-peer P2P systems, and there are five points I would like to mention. The first one is decentralization. So unlike traditional client-server models, P2P networks distribute communication and resource sharing across multiple nodes. Each peer can independently initiate communication and share resources.
00:08:24
Speaker
The second one is equal status. So in a P2P network, all nodes are considered equal. There is no hierarchy. Each peer has the potential to provide and consume resources, fostering a more inclusive environment.
00:08:39
Speaker
The third point is direct communication. Peers in a P2P network can communicate directly without intermediaries and this direct interaction enhances the speed and efficiency of data exchange. The fourth one is resource sharing, so peers can share.
00:08:58
Speaker
various resources like files, processing power, or bandwidth directly. So this contrasts with centralized systems where a central server controls and distributes resources. And the fifth and the last one is scalability. So P2P networks are highly scalable. Adding new nodes doesn't necessarily require significant changes to the overall architecture.
00:09:28
Speaker
and the network then can organically grow as more peers join. Common examples of P2P applications include file sharing systems like BitTorrent, that we have spoken about in the first episode of this podcast, decentralized cryptocurrencies like Bitcoin, and specific communication protocols such as BitMessage.
00:09:52
Speaker
Peer-to-peer technology is praised for its robustness, fault tolerance and the ability to operate without a single point of failure.
00:10:03
Speaker
In the world of Bitcoin, a peer-to-peer system is the backbone overseeing transactions and the creation of new cryptocurrency units. What makes Bitcoin stand out is decentralized nature operating with the oversight of a central authority like a central bank. Participants in the Bitcoin network are called nodes, encompassing both miners and regular users running a specific software.
Influence of Bitcoin and Satoshi's Mystery
00:10:33
Speaker
Each node holds a copy of the shared public ledger known as the blockchain. When the Bitcoin transaction occurs, it's broadcasted across the P2P network. Here network nodes verify its validity ensuring the user has the necessary funds and that transaction adheres to Bitcoin protocol rules.
00:10:57
Speaker
To prevent double spending and uphold network security, a P2P consensus among network nodes is crucial. This consensus is reached through the proof-of-word process employed by miners to add new blocks to the blockchain.
00:11:15
Speaker
Once a transaction is validated and added to a block, this block disseminates across the entire P2P network. Each node updates its blockchain copy to reflect the new transaction and the altered network state.
00:11:31
Speaker
Unlike traditional finance systems, Bitcoin operates without central authority. The rules are defined by the Bitcoin protocol and decisions are made in a distributed manner by network nodes. So in summary, Bitcoins peer to peer.
00:11:49
Speaker
architecture, powers decentralized transactions, transaction validations through consensus, and the secure creation of new cryptocurrency units. So this design contributes to the resilience, the security, and the decentralization of the Bitcoin network. So that's how Bitcoin is based on the P2P system. I felt it was important
00:12:12
Speaker
to clarify and explain this and for this episode to serve as a reference base for people who want to understand the technical basics of Bitcoin.
00:12:25
Speaker
Yeah, I think that's a really good refresher on what P2P systems are and kind of getting a fundamental grasp of what Bitcoin is and how it can help. So obviously it's come a long way and through time, there's been a couple major events that have happened. So I'll let you walk us through that. I believe you've created a little timeline for us.
00:12:51
Speaker
Yeah, exactly. So now let's delve into the captivating history of Bitcoin. So as we said earlier in this episode and another episode,
00:13:06
Speaker
It's the pioneering cryptocurrency, the number one that was created by the mysterious Satoshi Nakamoto. In October 2008, Nakamoto unveiled the groundbreaking white paper titled Bitcoin Appear to Peer.
00:13:24
Speaker
electronic cash system on a cryptography mailing list. This document introduced the concept of a decentralized digital currency and the revolutionary blockchain technology. Fast forward to January 3rd 2009, three days after this episode because we were registering on the
00:13:47
Speaker
Saturday, January 6th of 2024. So on January the 3rd, 2009 Nakamoto minted the inaugural block, the Genesis block signaling the birth of the Bitcoin network. Notably the coin-based transaction in this block reference headline from the Times, the newspaper, anchoring the timestamp
00:14:18
Speaker
Then, in May 2010, there is a mark of a kind of historic moment, with the first recorded commercial Bitcoin transaction, as Laslo Agnèche traded 10,000 Bitcoins, so a lot of money worth today, for two pizzas.
00:14:39
Speaker
not celebrated as Bitcoin pizza day. Bitcoin's journey witnessed rapid adoption and volatility. And in 2013, the bankruptcy of empty box, founded by a guy that is coming from my city by the way Dijon.
00:14:56
Speaker
a merger exchange raised concerns about security and regulations because this exchange was hacked and we don't know if it has been done on purpose by the founder or if it's actually a real hack, let's say. In late 2017, Bitcoin's price skyrocketed to nearly $20,000, so it's I think where we met
00:15:25
Speaker
with some and it captures widespread attention a lot of people are speaking about Bitcoin and that's why we also say it always in this podcast and in other I also say it always in this podcast and in other interventions that it's when people don't speak about Bitcoin that it's good to buy it or crypto in general or even trading in general
00:15:49
Speaker
and then it's when everyone, the hairdresser or the car seller or my grandfather or any other people that is mentioned in Bitcoin that it's a good time to sell. So it has increased a lot in 2017 and then, sorry, in 2018, a significant correction followed. The recent years brought
00:16:17
Speaker
renew interests and institutions and companies like Tesla and Bitcoin contributing to its mainstream acceptance. In September 2021 El Salvador made history by adopting Bitcoin as legal tender alongside its official currency. This is also a big topic
00:16:37
Speaker
Is it a good sign or no for a state to make Bitcoin a legal tender alongside its official currency? I think it would be really interesting to speak with someone from El Salvador. I have met some people from there and I would like
Rise of Other Cryptocurrencies
00:16:54
Speaker
to invite them. So if they listen to us today, you are welcome to come to speak about the situation in El Salvador and engineer the people from South America.
00:17:03
Speaker
to explain the fees, the system, etc., comparing to the crypto one. This, I think, can be an interesting topic. And what I wanted to mention before some letting you introduce the major cryptos is that the identity of Satoshi Nakamoto remains elusive, adding an air of mystery to Bitcoin's narrative. So despite technological innovation,
00:17:29
Speaker
regulatory challenges and market fluctuations Bitcoin persists as a force shaping the world of cryptocurrencies and blockchain technology for how long this is the million dollar question and yeah Sam I let you introduce the major cryptos after Bitcoin creation in particular Ethereum also we will have time to come back to Ethereum in a greater detail
00:17:55
Speaker
in subsequent episodes of this podcast? Sure, sure. I think that was a good summary of some of the key points through time for Bitcoin. I mean, what's interesting is you can see that obviously it's monetary value kind of accrued over time. There were different use cases from the Genesis block to the first purchases, first exchanges. It's all little steps.
00:18:18
Speaker
the first ranked sections, making it more accessible. Then there were a couple security issues mentioned with Mark Gox, and then the kind of mass interest which comes with the bull markets, which was 2017 was almost seven years ago, which is when I met you boys. I've been in crypto ever since. And all this kind of
00:18:42
Speaker
the values of bitcoin kind of all link up to this i mean you've got some of the security things we mentioned at the beginning which is kind of keep stay private be more anonymous uh increase transparency traceability uh disintermediation and overall in a sense that's just more freedom and i think
00:19:02
Speaker
the fact that Satoshi Nakamoto remains elusive kind of adds to the whole story and why Bitcoin has become so popular today because we don't know who's behind it if it's an individual or a group of people and we probably won't know tomorrow either but yeah moving on after Bitcoin was the first the first one and then obviously there were a couple ones that followed that
00:19:31
Speaker
So I've got myself a couple ones which I think are really interesting. The first one being Namecoin created by Vincent Duram in April 2011. So shortly after this coin was created and its main purpose was to do the same things as Bitcoin but also store information other than transactional data.
00:19:57
Speaker
But unfortunately, it didn't gain in popularity, it didn't explode up. But that first step, it shows that there is evolution and people behind technology that are kind of pushing for new things for it to evolve, although it wasn't on Bitcoin. And secondly, one that's probably more familiar to you today is Litecoin.
00:20:21
Speaker
So by Charlie Lee in October 2011, the purpose of the Litecoin was to decrease the transaction time because it did take some time. And it was, I believe, to this day, is still quite a popular coin. And in just about two years, it hit a one billion
00:20:40
Speaker
dollar market cap in 2013 which I think is quite impressive and it shows the kind of adoption through time in just under two years so in a fast evolving industry really.
00:20:57
Speaker
other than that I mean you see there was bytecoin which was more focused on was more of let's say a privacy coin so focused on anonymous and private payments which were instant by the way because before it took about two minutes for verification so that kind of gives
00:21:18
Speaker
evolution on the speed and the scalability of transactions because if you're trying to develop an alternative system it needs to be as good if not better than the current actual one in my opinion and then I mean it goes without without mention we have to talk about it the one and only
00:21:36
Speaker
Dogecoin. Dogecoin was a meme coin so created in I believe it was December 2013. At first it was a troll meme but it gained in popularity. It only had 16 million market, million dollar market cap by 2016. Although it was created as a joke I feel like this one just goes to show the power of the people so
00:22:01
Speaker
If you've got enough people behind something, they will give value to it and will make it rise above. And that's exactly what Dogecoin demonstrates. It had little to no added value, created as a total joke, and it still exists as of today and is one of the major cryptos, I believe it's ranked.
00:22:21
Speaker
10th today in on coin market cap by market capitalization so still quite popular so even the silliest of ideas can become something and of course it's evolved through time associated to Tesla, Elon Musk as well so that probably helped it gain in popularity.
00:22:45
Speaker
What one thing an additional thing I wanted to talk about so that was all the the people kind of adopting it and Another one that kind of for me
00:22:56
Speaker
brought more development to the whole ecosystem was ripple. So in 2013 it was created one of the top cryptocurrencies that tackled scalability issues with lower transaction times and lower costs. I believe it was about like 1500 per second of confirmations and 50,000 transactions per second.
00:23:20
Speaker
just to put that into perspective it's about the same level as Visa the internationally used and renowned payment system so it just goes to show that in a short amount of time a new technology has evolved
00:23:35
Speaker
has developed itself and is on par with today's current systems so there is quite some potential there and then of course today's most most people will know it it's one of the most popular ones second by coin by market cap it's ethereum so ethereum the white paper was released in 2013 by Vitalik Buterin you might have seen him a couple times on social media across various crypto events
00:24:04
Speaker
He is one of the big heads in crypto and has completely changed the space. So although the white paper was published in 2013, Ethereum was only launched in 2015. But that being said, it rapidly grew to be one of the biggest cryptocurrencies and today
00:24:26
Speaker
We talk about Bitcoin, we talk about altcoins. When you look at the coin market caps, if that's the way you like to look at cryptos, you always look at how much Bitcoin represents, how much Ethereum represents, and how much all the other coin represents. So I think Ethereum is a big one. It's also a nearly, you build a lot of projects to build on that. And overall, just like really contributed to the whole ecosystem.
00:24:54
Speaker
So yeah, I mean, I think that's kind of some of the cryptos that I picked out to talk about because they are definitely brought something to the whole
00:25:06
Speaker
history of cryptocurrency, modern-day cryptocurrency. And yeah, I don't know, Boris, would you maybe like to talk about other cryptocurrencies that have developed more recently that are important for you?
Personal Experiences in Crypto Trading
00:25:22
Speaker
Yeah, I think that to mention, I saw something about Ethereum. As you said, what is really interesting is to say, okay, let's look at the total capitalization.
00:25:34
Speaker
and let's check the percentage so if Bitcoin is 50% I don't have the exact number but I can find it and I will put the link in the blog post of this podcast because each podcast there is a link
00:26:00
Speaker
related to the episode that is available on the numerhamesh.com website so yeah market data is important and it gives you a good view of the utility and of the popularity of the different crypto that exist I would like absolutely to speak about other cryptocurrencies
00:26:29
Speaker
that have been more recently developed. So I propose to tackle the subject by firstly talking about cryptos we have bought or traded and then other cryptos or crypto trends we have never necessarily bought or traded but which are very popular.
00:26:53
Speaker
So today I will be sharing my experience with cryptocurrency trading, a part of it, specifically focusing on my use of the Binance platform. So my journey began in 2017, as I mentioned in the first episode, but a peculiar discovery awaited me and a lack of
00:27:12
Speaker
of recorded trades for that year. I don't know why, despite my certainty of using the platform. So I need to check into my other computer where there is the fine straw. So I didn't do that. But when I was preparing this podcast, I have made some investigation.
00:27:33
Speaker
And it led me to focus on trades involving USDC, USDT, Bitcoin and Ethereum in the spot market. So for those who don't know USDC and USDT, basically if I need to give a one sentence explanation of what they are,
00:27:56
Speaker
They are coins crypto that are based on the price of the dollar. So one USDC and one dollar and one USDTS equals one dollar. And there is also a big topic about how these companies are operating. If there is someone for from Sariket or someone for Tetra that wants to come to explain how is it working because it makes a lot of debate.
00:28:19
Speaker
But anyway, we are not here today to ask and to prove anything. So there are coins that can be used and some mentioned it also in the last episode, I guess.
00:28:32
Speaker
that you can trade crypto against a kind of fiat but the fiat that is based on the blockchain and in my case it was USDC and USDT so yeah USDC, USDT, Bitcoin and Ethereum in the spot market so what also is spot
00:28:52
Speaker
So for those unfamiliar, it involves buying cryptocurrency against fiat currency, distinctically different from futures trading. So what is futures trading? It's a financial derivative where one speculates on the future price movement of an asset trading standardized contracts on organized exchanges.
00:29:16
Speaker
Also, my Binance history lacks details on my future trading. I can confirm transactions involving Sol, so the token of Solana, and BNB, the crypto of Binance, and values of other tokens that I don't remember, maybe Polkadot and some other Cosmos, etc. So I will make the research and
00:29:43
Speaker
As soon as I find my history again on Binance or in my older computer, I will include that. So now let's zoom in on Solana a bit because for me it's a...
00:29:58
Speaker
an interesting project and a blockchain platform renowned for its high performance and scalability in supporting the centralized application or so-called dApps DA in capital letter and PPS dApps and crypto projects. So Sonana addresses scalability concerns by utilizing a unique consensus mechanism known
00:30:20
Speaker
as proof of history, along with proof of stake. So we won't enter into the details of what is proof of stake, what is proof of work, what is proof of history, but proof of history basically establishes a secure transaction timeline, and then seeing the efficiency of POS, proof of stake. So Solana, the native cryptocurrency of Solana, so Sol,
00:30:46
Speaker
plays a pivotal role in the ecosystem. Beyond trading, Seoul is utilized for transaction fees, staking, and government participation staking. For those who don't know as well, it's a kind of earning program, a kind of similar that you can find in your bank account. You deposit some money and you earn interest. And sometimes in crypto, it can be crazy interest.
00:31:12
Speaker
So Surana emphasized on scalability and it has attracted attention, making it a hotspot for decentralized finance, also called as DeFi. So DeFi projects, non-fungible tokens, NFTs, we will speak more in detail about NFTs in an episode that will be dedicated to server.
00:31:35
Speaker
I have already spoken about that in the previous episode. I have contacted some Sora Ray OGs to speak about Sora and I have the belief that this episode will be released in the coming weeks.
00:31:52
Speaker
So the Solana platform performance focus has led to collaborations and partnerships building a dynamic and active community. Remember the cryptocurrency space evolves rapidly and developments may have occurred since my last update about Solana in 2022.
00:32:11
Speaker
For the latest information on Sonana, I can only recommend you to check the official Sonana website and the communities for the most recent updates. All the links will be also in the articles of this podcast. So today I want also to dive into the Binance coin because Binance has
00:32:32
Speaker
made a lot of noise in the last weeks, and the native cryptocurrency of Binance, a global giant in the cryptocurrency exchange realm. So there is a lot to say about Binance, how they have built their platform, how they succeed to be the number one, etc. So again, if there is someone from Binance, I know some of you guys, if you are listening,
00:32:56
Speaker
Not hesitate to come to explain what are the differences between Binance and other platforms and congratulations once again. I have checked on the website of Binance today the number of users. It's totally incredible. So I wanted to touch about the BNB coin. There is 100
00:33:25
Speaker
71 million, 437,000. So 171 million for 437,000 users. That's what Binance display before logging in. So congratulations again and you are invited. So
00:33:55
Speaker
Originally, the BNB coin is launched as a near C20 token on the Ethereum blockchain during Binance ICO in 2017, so some of you guys might remember. BNB later migrated to Binance Chain, the platform's native blockchain. So, BNB serves as a versatile utility within the Binance ecosystem. Its functions include payment for transaction fees and Binance exchange.
00:34:21
Speaker
discounts when using BNB for trading fees, etc. Additionally, BNB plays a key role in Binance Launchpad, facilitating participation in token sites and initial exchange offerings.
00:34:35
Speaker
Crucially, BNB extends its utility on the Binance Smart Chain. BSC, we will again dedicate one episode to Binance because there is so much to say. But Binance is blockchain for decentralized application and smart contracts. So here, BNB is an instrumental, it's instrumental in transaction fees, governance participation, interactions with dApps on the blockchain Smart Chain.
00:35:03
Speaker
So Binance conducts periodic token burns also, removing a portion of BNB from circulation to manage supply and potentially increase its scarcity. Originally focused on trading fee discounts, BNB has evolved to become integral to decentralized finance, defy projects, non-fungible tokens, platforms, and various production applications within the Binance ecosystem. So there is a vibrant community in Binance and outside Binance and continuous growth
00:35:34
Speaker
through new projects and partnerships, even if some days are easier than others. And let's see what the future would say. I prefer to have a reserve and not say that BNB is the most secure or best project I have traded. But in any case, I'm not recommending anyone to
00:35:55
Speaker
to buy it and we are not here to do financial advice and we won't do it in this podcast. So be careful about Solana, about Binance, about Bitcoin, about any crypto that you are trading. But what I want to say here is that Binance has created a dynamic space, development has been
00:36:14
Speaker
incredible. And again, I have maybe not taken down and taken not of all the last updates. So for the latest and most accurate information about BNB, I recommend checking the official Binance website and other reputable sources.
Risks and Cautions in Crypto Trading
00:36:31
Speaker
So yeah, I hope Binance will be here tomorrow and will not do a kind of ethics story. I think you, Samuel, have traded a lot more tokens on futures market. Can you maybe name a few and explain their history and particularities?
00:36:53
Speaker
Yeah, sure. I mean, over the years, I've traded tons of coins, a lot of which I probably don't remember because using momentum strategies, you kind of ride the waves throughout. And sometimes some coins are very short lived and they tend to crash, unfortunately, for people that invested long term in them.
00:37:15
Speaker
and other ones tend to thrive through time and they're the kind of the golden ones, the solid ones you see through times that live through the bear markets, live through the various cycles. So it's good to kind of keep an eye on those that persist through time really. One of the ones that
00:37:36
Speaker
I traded recently was probably Polkadot, so runs off to Polkadot platform as opposed to ERC20, offers governance consensus mechanisms across parachains, staking and bonding.
00:37:52
Speaker
I mean, it's kind of got four main things. It's got the relay chain, which is the core of Polkadot. It helps to create consensus into operability and security for the network of the various change. Parachains, which are independent change that can have their own token and be optimized for specific use cases.
00:38:12
Speaker
parafred which is similar to the previously mentioned parachains but it has flexible connectivity based on paper use business model and then finally the bridges which i think is the one of the very interesting ones it enables parachains and parafreads to connect and communicate with external blockchain such as ethereum so i mean a lot of complicated words i'd suggest um
00:38:37
Speaker
I'd suggest, I mean Polkadot is a whole ecosystem to itself really. Through time, obviously I've traded the dot token, but also some of the projects running on Polkadot. I mean, one of them was, used to be called Pokemon, and I think it's called Polychain Monsters nowadays, so,
00:39:04
Speaker
that was an interesting one because there was a big community behind it there was a huge gain in momentum so basically you could buy the coin the token sorry and you could get a little kind of it was kind of in the gaming realm where you could get a you get pemon
00:39:22
Speaker
So dollar sign Pemon is the coin. And you'd be able to collect battle and earn from it. So this was kind of at the hype where crypto gaming kind of was starting to become a thing. And the Pokemon that you used to get, you could sell them on platforms. So it's kind of a different digital asset, which I thought was really interesting. I remember buying it
00:39:49
Speaker
uh quite high and now the coin is pretty much worth nothing unfortunately but the the whole realm of gaming there's definitely something to do with that polka dot that definitely solid coin that i'm keeping my eyes on at the moment uh also you mentioned solana and there are obviously some other ones uh all the stable coins
00:40:12
Speaker
I tend to trade always trade the pairs that I trade I tend to always trade versus a stable coin so I only have one variable which is volatile and the other one is tends to be pegged to a fiat currency so it's pretty stable when compared to like traditional finance system and then
00:40:32
Speaker
Another one that I think is really interesting to mention is Pax Gold. So Pax G. I found this coin because at the time I remember when I was in a position in trading I had my funds were allocated and as a trader you always want to or investor
00:40:54
Speaker
you always want your money to be kind of working for you so when you're not in a trade you want to put it on something like staking or at least gain some kind of interest on it but I wanted something that was pretty stable and when I was looking at
00:41:08
Speaker
I was at the time, I remember I was looking at the thing, I thought something that's like based on fiat currencies like USDT, USDC. First of all, there's been a couple of scandals with some of those, those ones that are pegged to fiat currencies. And so I was looking for something else that might generate more, more profit and that
00:41:35
Speaker
was linked kind of to the traditional financial system. So Pat's gold is pegged off of gold and should be backed by gold. It's pegged off gold and there is a gold reserve kind of behind it. And I thought, well, gold is kind of a safe haven asset and
00:41:53
Speaker
In normal world, traditional world, you can't earn interest on gold, which is why when interest rates tend to be high, people tend to less invest in gold. And when they go down, they tend to invest more in it because
00:42:12
Speaker
That's kind of just how it works. And so having gold, which for me was going to go up, and also this was kind of during the COVID area, I thought was a good time because safe haven, people going to want to protect their assets, go into gold. And if I've got gold and I'm earning interest on it, I think it's really interesting.
00:42:34
Speaker
I think that was a really interesting coin and obviously there's loads and loads of different coins. There's some less
00:42:43
Speaker
less well-known projects. There's some coins I've traded in and out. I've only been like an hour in or a couple days and there's others which have been more long-term. But yeah, you just got to make sure you do your own research and you know what you're putting at risk. Obviously, none of this is financial advice or anything.
00:43:05
Speaker
but make sure you're always doing your research, looking into the project, looking behind it, making sure it's not a scam, rug pull, or any of those other things, because you can be caught out, and when you lose money, it sucks.
Popular Cryptocurrencies and Market Trends
00:43:20
Speaker
I think that's all I have to say on the crypto's voice. Yeah, I totally agree, and I think it's the road of everyone to
00:43:33
Speaker
to check behind the project. I don't know if we will do a specific episode on the scams and the different projects, not even projects, organizations.
00:43:48
Speaker
I mean, it could be interesting, because over the years, the scams have evolved. They've gotten smarter. There's sometimes they're a bit harder to find. And obviously, there's kind of trends of how things work. And it's interesting the psychology, because although people might know it's a scheme or it's a scam, people will tend to focus on the short-term gains. I mean, one of the things we didn't mention in the timeline was the whole BitConnect.
00:44:17
Speaker
That was a huge kind of Ponzi scheme. And although people didn't know it was a Ponzi scheme, they still invested in it because it offered crazy returns. And as long as you were in it before and out first, you were fine. But nowadays they're a bit more complex and all the more importance of looking at tokenomics, the team, et cetera. So could be worth doing something on.
00:44:39
Speaker
Yeah, because when you mention PAX Gold, I know that there are some people that are following some telegram groups and sending you, hey, can you send me one Ethereum and I will send you back 1.5 or there is the airdrop of PAX Gold or there is the airdrop of...
00:44:55
Speaker
airdrop of solana or you see vitadic buttering now with ei speaking and saying hey i'm giving to you for free some aetheryms send me some aetheryms and then i will give you back my only point here is to say that someone that is asking you generally to send him money and to send you the double or even 10% without doing anything
00:45:19
Speaker
generally it's a scam and I think it's better to record a video to show the kind of messages to show the kind of Twitter accounts etc because as you said it's pretty sophisticated and I think a point also that it's clearly an unpopular opinion and that's why I want also to
00:45:41
Speaker
to record an episode that will be pretty funny, I guess, and in popular opinion, so it's a kind of a spoiler. It's that there are also some inferences I won't give any name.
00:45:56
Speaker
but in France or in other countries that say publicly, okay, look, I'm investing into that. I don't think that there is a real future, let's say. And basically what they are saying is, I think that it can be a pyramid, then it can be a scam, but as long as I make money and I exit before the last one,
00:46:17
Speaker
I try my luck and I don't recommend you guys to do the same, but I'm just informing you that I'm doing that and that, etc. It's not financial advice. So I think it's both the organizations that become better and also it's not helped by this kind of agreement, implicit agreement of influencers or not, but of people that
00:46:42
Speaker
buy or trade some coins even if behind it's not solid then I think it's a point where I want to mention and say to people
00:46:52
Speaker
It's like in the real life, I really believe that the purchase power of someone, when you decide to go to buy in a shop or to buy a brand or to support the brand or no, it's a kind of a vote. And for crypto, for me, I see it as the same. So when I own, because I don't want to speak for someone else, but when I own or when I purchase something, or when I purchase a crypto,
00:47:20
Speaker
I like to think it as a vote and as something that means something. So I would recommend to myself and I would recommend to everyone to think twice if it's worth it or not. And of course, quick money, no one can criticize if some people can generate profit through air drops or anything like that because I have written articles about that.
00:47:43
Speaker
So I have been one of this kind of people, let's say myself, so I'm not blaming myself for anyone. But I'm just saying, let's maybe try with this podcast and with other content to educate ourselves and to invest and to trade into projects to become wealthier, that's for sure. And also, if it's possible, and in most of the cases, to make the ecosystem better because the value creating
00:48:11
Speaker
at the end it's an important point as well. So the last topic I wanted to touch on is the crypto trends of the moment because I'm not going to cover all the crypto trends as there are many but I would like to take a quick look at the layer 2 concept and I would like to go into more details on how layer 2 works
00:48:32
Speaker
in a dedicated episode. So this is something I have said a lot. We will record this in a future episode. We will record that in a future episode. And as I said in the first episode, this podcast is a kind of professional therapy. It's a kind of also of
00:48:49
Speaker
professional course in the sense that we will speak with people that have much more knowledge than us on different topic. I'm thinking of the one in two weeks that will be about building a mobile app.
00:49:03
Speaker
I'm thinking about one that will be in February 2024 that will be about artificial intelligence and how to assess the different kind of tools that are available. So please I beg your pardon if for you it's too much and if the dedicated episodes on layer 2 or on scams or on
00:49:27
Speaker
different topics don't arrive in the coming weeks but I will dedicate my time to assess the different podcasts that we created and every time that I say this to focus and if it's not a dedicated episode at least mention it but I really think that layer 2 requires a dedicated episode and the other topics that we have mentioned
00:49:52
Speaker
Ethereum etc also requires a specific reason.
Layer 2 Solutions and Blockchain Scalability
00:49:56
Speaker
So I'm not going to talk about prices, I'm just going to talk about few projects and few concepts.
00:50:04
Speaker
Because in my opinion, this is the most interesting technical trend to follow in 2024, layer two. Technically, I say the most interesting business trend in 2024, in my opinion, is the so-called tokenization of real world assets, RWA, the tokenization of real world assets, a topic we touched on briefly in the episode two.
00:50:30
Speaker
two episodes before this one, which is an interview with Anton Golub, a crypto OG because in the ecosystem since 2013. So if you haven't listened to this episode yet, I highly recommend it. Today, let's explore the concept of layer two in blockchain technology. So layer two refers to
00:50:53
Speaker
A secondary foam rock or protocol built atop an existing blockchain, often referred to as layer 1. The goal is to enhance scalability, efficiency and functionality while maintaining the security and trustless nature of the primary blockchain. On primary motivation for implementing layer 2 solutions is scalability.
00:51:16
Speaker
Blockchains like Bitcoin and Ethereum face congestion during high demand periods due to finite processing capabilities. Layer 2 alleviates this by processing certain transactions of chain, reducing the load on the main blockchain. Transactions cost
00:51:36
Speaker
and speed are also key motivators. Layer 2 significantly reduces transaction costs and enhances speed by moving a portion of transactions off chain. What it means is that it enables faster and more cost-effective transactions compared to the main blockchain. Another motivation is
00:51:58
Speaker
as I said of chain processing so the layer 2 executes specific processes of chain recording only the final outcome on the main blockchain so this reduces the overall load and improves efficiency
00:52:17
Speaker
I wanted also to mention that there is three various types of L2 and L3 that include state channel, so there are off-chain channels where participants transact privately and only the final state is recorded on the mainchain. There is what we call also sidechains, so separate blockchain, interoperable
00:52:39
Speaker
with the main chain, allowing asset movement between them. And there is Plasma, a framework for creating hierarchical and scalable blockchains attached to the main chain. So security and trustlessness are crucial considerations also. Despite operating of chain, there are two solutions, employee smart contracts and cryptographic mechanisms to maintain a high level of security ensuring
00:53:08
Speaker
parties cannot cheat to the system. I don't know exactly how technically, that's why we need to invite people to explain this to us. Interoperability is another motivation, enhancing flexibility by allowing assets to move seamlessly between the main chain and the AR2 environment.
00:53:28
Speaker
And popular solutions include the Lightning Network for Bitcoin and various scaling solutions for Ethereum like Optimistic Relapse and Zetka Relapse. These solutions aim to create a more efficient and scalable environment for decentralized applications, dApps, and enhance the overall user experience in blockchain network.
00:53:50
Speaker
So now that we have dive into the layer two, let's dive into the Lightning Network for Bitcoin. It's clearly a game changer in the world of cryptocurrency. So imagine you want to make a Bitcoin transaction, but you are bothered by slow confirmations and high fees on the main blockchain. That was the case a few years ago, and that's still the case on Bitcoin. You can enter the Lightning Network and welcome
00:54:20
Speaker
to this layer 2 solution designed to speed things up and reduce costs. So here it was how it works. Instead of recording every single transaction on the main Bitcoin blockchain, the Lightning Network uses payment channels. These are direct connections between users allowing them to transact off-chain. To open a channel, participants create a shared wallet
00:54:42
Speaker
with multi-signature security. They form this wallet with an initial on-chain transaction. Once the channel is open, users can engage in multiple transactions between themselves of chain. These transactions are fast and they don't clog up the main blockchain. The channel keeps track of the latest balance between the users. So know here is where it gets really interesting.
00:55:11
Speaker
Payment channels are bidirectional, meaning phones can flow in both directions. If two users don't have a direct channel, they can still transact by routing their payments through interconnected nodes on the Lightning network.
00:55:27
Speaker
Each off-chain transaction is like a commitment between the users. So if they want to settle or close the channel, they can broadcast the latest transaction state to the main Bitcoin blockchain and this ensures that the final balances are recovered securely. So the Lightning Network
00:55:46
Speaker
also introduces the concept of routing nodes. These nodes help find paths for payments between users who aren't directly connected, making the whole network more interconnected. What's cool about the Lightning Network is that it allows for almost instant payment confirmations. So this is a big deal, especially for small transactions or micro payments, which might be impractical on the main blockchain.
00:56:12
Speaker
In a nutshell, the Lightning network enhances Bitcoin by providing a scalable and efficient solution for transactions, all while maintaining the security and decentralization we love about the original blockchain. Keep in mind that this technology is evolving, so stay tuned for more developments in the crypto space.
00:56:33
Speaker
And I also see the people coming and say, yeah, but Boris, in the episode with Anton, I have listened. And you say that you don't think that Lightning Network would be the big thing.
00:56:47
Speaker
I still maintain that Ethereum for me would be the main thing and I can be totally wrong. No, I don't want to neglect the Lightning Network and I want to see how is it going. I don't believe that the payment capacities
00:57:06
Speaker
will be developed until a point that we will all transact in between. But to be honest, I would love to be wrong about that. So let's dive into the last topic that I wanted to bring, that is the world of scaling solutions for Ethereum designed to tackle limitations in transaction throughput and fees. Two prominent solutions, as I say, optimistic relapse and zedcare relapse.
00:57:32
Speaker
they are making waves. Optimistic relapse, so to give you an overview, optimistic relapse function as a layer 2 scaling solution relying on an optimistic approach to transaction execution. So what it means? It means that they utilize the Ethereum blockchain for settlement while moving the bulk of transaction processing to a separate layer. So how it works concretely.
00:57:56
Speaker
One, users submit transactions to the layer 2 rollup chain. Two, transactions are processed off-chain with optimistic validation, avoiding full computation. Three, periodic submission of a rollup summary to the Ethereum mainnet, acting as a kind of judge for dispute resolution. Four, if no dispute arises, accepted state transitions are reflected on the mainnet.
00:58:24
Speaker
ZK rollups, so zero-knowledge rollups, are also layer two solutions, differentiating themselves by using zero-knowledge proofs for trustless verification of transactions without revealing actual data.
00:58:41
Speaker
So how it works? It works like this. One, users submit transactions to the layer two, ZK-rollup chain. Two, off-chain computations occur, generating zero-knowledge proofs for transaction validity without exposing details. Three, submission of proofs to the Ethereum mainnet, allowing anyone to verify correctness without full computation. Four,
00:59:06
Speaker
may not update its state based on validated transactions. So it seems simple, but I can imagine that you have questions, I have questions, and I hope we can get someone technical to explain us a bit more. How is it working? Let's speak about the key advantages of scaling solutions.
00:59:28
Speaker
It increases throughput, so both solutions significantly boost transaction throughput compared to the eternal mainnet. It reduced fees by processing transactions of chain and settling periodically on the mainnet. These solutions contribute to lower transaction fees, that is good because we always want to pay less fees. And last but not least, it allows scalability
00:59:54
Speaker
providing a scalable framework for decentralized applications by offloading computational and transactional burdens to layer 2 solutions. It's vital to know that while both optimistic relapse and ZK relapse aim for scalability and decentralization balance, they come with distinct trade-offs.
01:00:14
Speaker
in terms of security, complexity and user experience. The Ethereum community remains dynamic, continually exploring and implementing various scaling solutions to enhance the network's overall performance.
01:00:30
Speaker
Thank you for that, Boris. I think it's a really interesting insight on the top trends to follow in 2024. I think through this podcast, we've given a lot of insights on kind of the origins of Bitcoin, Satoshi Nakamoto, the kind of cryptos that followed and also cryptos that we've seen through time and interesting technical functionalities that we want to keep an eye on today. Thank you very much for having me.
01:01:00
Speaker
on the podcast once again, and I look forward to seeing you next week. Cheers.
01:01:16
Speaker
and full of technical complexities, we will go into more detail about each technology and protocols with our future guests. If you know anyone in the Solana, Ethereum, Lightning Network, Zitka Relops, Optimistic Relops, BNB or other ecosystems, don't hesitate to put us in touch via LinkedIn or on social networks by identifying that person and mentioning the Twitter account at numeramesh.
01:01:42
Speaker
We hope to have guests who can better explain these concepts and how the projects they are developing are helping to improve blockchain technology. See you next time and until then, work hard and take care. Ciao!