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Blockcast.cc: Hello guys, today we have Dr.Z, Co-founder of CZZ joining us in this AMA session on Asia Blockchain Community. I am Jenny Zheng, Cofounder of Blockcast.cc, moderator for this session.
CZZ: Hi Jenny and everyone in the channel.
Blockcast.cc: Tell us more about yourself. What you have done before CZZ, your education background, hobbies and anything you can share.
CZZ: Good afternoon everyone, 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. For example, we used to have kings who would rule over all subjects, and over the course of last 500 years, it had somewhat evolved to the system of liberal democracy. But I would argue that this is only a first step in the grand scheme of things. Financial decentralization is the next major step mankind would take.
Blockcast.cc: We understand that you studied and worked in Australia for quite long time. How was your life there? How is that experience affected your life?
CZZ: Well, I did my undergraduate degree and PhD degree in Australia. The first job I had after graduation was at Macquarie Group, I worked the equity derivatives desk. We built mathematical models that would compute prices of exotic options on the fly, so a lot of high performance computing was required. We were one of the first in the world to deploy large scale GPU clusters back then. My interest has shifted to high performance computer ever since.
Blockcast.cc: How you get into blockchain? What is your role in CZZ? What excites you most in CZZ?
CZZ; I first started getting involved in crypto mining back in late 2015, mainly using graphics card in the beginning. I’ve invested in some ASIC miners in 2016, and also got involved in designing ASIC chips. So I’ve always been a big fan of proof of work, because I think it’s a meritocratic system. But by 2018, I was particularly concerned with the way ICO’s took place, because ERC 20 tokens were just created out of thin air, and it was held in a very centralized manner.
By contrast, I got interested in the Class ZZ project because of its emphasis on decentralization. It was first announced on deep web http://teyqgzkbgyltkddz.onion/ with a project whitepaper and an initial version of the main-net code. Myself and a team of enthusiasts organized ourselves, in a completely decentralized manner, decided to work on the project building the key functions outlined in the whitepaper. There’s no official leader, and there are no pre-mined tokens, everything start from scratch for everybody.
Particularly, the Class ZZ whitepaper was authored under the pseudonym of Nicolas Bourbaki. Anyone familiar with 20th century mathematics would know that that’s the pen-name of a team of French mathematicians who published mathematical papers and books since 1936 and they continue to publish until today. I think this is a great example of a DAO (decentralized autonomous organization) having achieved great accomplishment.
Blockcast.cc: Tell us more about CZZ, what problems it solves? What is the appllication scenario? What is your happiest and saddest moment while developing it?
CZZ: The biggest problem of our time, particularly since covid 19, is the QE-to-infinity policy adopted by the US fed. This would obviously create a lot of inflationary pressure for the decade to come. So the biggest question that people would ask is, what’s the best hedge against QE?
Probably the first thing that comes in mind is gold. Except the problem here is that what consumers are really buying are electronic gold, which can be printed, and not gold bullions. In fact, it’s incredibly hard to obtain gold bullions in the recent months, there are multiple reports about it, you can just search it on duckduckgo.
Next, you may say bitcoin, and I would agree that bitcoin is a better alternative than gold. I think bitcoin would rise to new highs in the next 18 months or so, because of halving of supply and QE-to-infinity policies of the Fed. The weakest link with bitcoin, and indeed all cryptocurrencies is the lack of interoperability. Hence, exchanges must operate in a centralized fashion. This has two undesirable consequences,
- Exchanges can “print” bitcoin internally.
- Exchanges are vulnerable to shutdowns.
So one of the key functions of the Class ZZ blockchain is that there’s a set of main-net level consensus protocols that allow miners to interoperate with other blockchains such as bitcoin, ethereum, litecoin, bch, bsv and dogecoin. The Class ZZ main net also has 90 beacon node addresses, these can be registered through a staking process. It’s the beacon nodes that will facilitate inter-chain transactions such as, exchanging 10000 USDT (exists as a token on omniledger or erc20) for 1 BTC. The transaction will not take place on the database of an exchange app, it would happen directly on the main net.
In a way, you can think of the beacon nodes as a network of commercial banks that deals with customers directly, while the Class ZZ main net would act like the central bank, except it’s totally decentralized. Or another way of putting it, the beacon nodes of Class ZZ is like the participating nodes of the Libra network, except the role of the Libra association is replaced by proof of work miners on Class ZZ.
Blockcast.cc: Tell us about the tokenomics and how individual investors like our community members can participate in and benefit from it?
CZZ: Providing a base infrastructure for decentralized exchange is one of the key functionalities of the Class ZZ network. Each time the exchange occurs, a certain amount of CZZ tokens will be burned. For example, each time I buy 1 BTC with 10000 USDT on the Class ZZ network, this will burn a certain quantity of CZZ tokens. So this is like an exchange charging a transaction fee, except rather than the profit going to some centralized company, the whole of Class ZZ community benefits for the deflationary pressure created. So one could imagine that if the Class ZZ network gets extremely busy with all the exchanges that are happening, the amount of CZZ that’s burned in the process could be quite extraordinary.
I often tell people the story that, there are two types of people in the world: Those who believe in the value of CZZ tokens and those who do not. Those who do not can use the network’s functionality to trade. Those who do can just hodl on their CZZ and wait for it to appreciate in value due to the deflationary pressure created by the traders.
Blockcast.cc: The blockchain and crypto market have been changing. What do you want to see in the near future for this industry?
CZZ: Blockchain technology will provide for the necessary technological infrastructure to meet the needs of a decentralized world. I think we are still in the very early days of the blockchain industry, kind of like the days when Edison and Tesla were battling out on the war of the currents. The whole covid pandemic has pushed a lot people to work remotely; many of them would work from home long term. Twitter for example wanted to 98% of their staff work from home, Facebook 80%, even Goldman Sachs said they wanted about 50%. I think this will trigger off a new wave where atomic individuals control means of production.
We all know the Fed can just print trillions of dollars in a few weeks, and we can expect the USD to depreciate over the coming years. So smart people would be buying BTC right now, to hedge against inflation. What about their future income? They receive the same dollar income in their next payday! How can you hedge against that? The policy of quantitative easing to infinity is literally declaring war on the wage earning working class. So I think the great movement toward decentralization is only just starting, we will have an interesting decade ahead.
Perhaps you can imagine a world in the year 3000, when humans have more or less set up colonies around the inner solar system. Our current centralized financial system would appear in their history textbook in the same regard as medieval kings and warlords appear in ours.
Blockcast.cc: Why POW?
CZZ: As I was saying before, one of the biggest roadblocks for blockchain mass adoption is the extreme volatility of token prices. We know this is bound to happen because there is an inherent “unfairness” built in the economic structure of the ERC 20 token. Namely, the founders and private equity investors can obtain large amount of “premined” tokens for themselves, at an extraordinary cheap per-unit price. This would have an incentive for them to play a “pump and dump” scheme, they can sell their own token at extremely low prices and still make a profit, because it costed them nothing in the first place.
One way to avoid this is going back to the founding father Satoshi Nakamoto. When the bitcoin mainnet was first launched, there were precisely 0 BTC on the network. Every BTC was created from proof of work mining. Since proof of work costed money to run, it acted as a reverse filter mechanism. Those who did not believe the bitcoin they receive worth more than their power bill, would not participate in mining, and therefore would either not hold BTC, or they can only buy BTC from the market. This also provided deterrence for BTC holders to dump massive amounts of it, because everyone can agree on the replacement cost of the bitcoin.
Blockcast.cc: Share with us an inspiring quote for our readers. Eg “I believe in blockchain, it can change the world.”
Blockcast.cc: This is quiz time. Let’s interact.
Quiz segment. Questions were asked by CZZ to the community:
Q1: How are CZZ tokens created?
A: Proof of work
Q2: What’s primary function of the CZZ network?
A: Decentralized exchange
Q3: How many beacon nodes are there?
Q4: How are beacon nodes created?
Q5: How does the community benefit from transactions on CZZ?
A: Every cross chain transaction will have some CZZ burned
Q&A segment and questions were asked by the community:
- Creating Infinite Number of CZZ (according to whitepaper of CZZ) is healthy for the project?
CZZ tokens are created on a logarithmic time scale, there will only be approx 3 billion after 10 years and 6 billion after 100 years.
- DeFi is one of the hottest topics in the blockchain space right now. Do you think DeFi will disrupt the existing financial system?
What are your expectations in the future implementation of the Blockchain Technology. In what way will the average person be influenced by Blockchain?
CZZ: Okay, I’ll sort of mix the two questions into one. I think we are generally overestimating the short term effect of DeFi and underestimate the long term effect. We are still in the very early days of blockchain technology, so I think by 2030, blockchains will be as common as the internet today.
- Why we should prefer CZZ , there is also other projects as CZZ having gas fee so why the preferred CZZ
The biggest innovation of CZZ is essentially having gas fee burned, as opposed to be paid to a specific party. Burnt gas fee means the entire community benefits from the deflationary pressure it creates, particularly when the Class ZZ network get busy.
- In Legal aspect Is CZZ project structured as a corporate or non-corporate entity?
Class ZZ has been designed from the very beginning to pass the Howey test. This is the test that allowed Bitcoin to trade as a commodity as opposed to a security in the eyes of the SEC. Ethereum 1.0 is currently de facto being treated as a commodity because of its proof of work nature, but when they upgrade to Eth 2.0, they are at risk of losing the commodity status as they are moving to PoS. In this regard, I think CZZ will have a big advantage over vast majority of tokens that’s out there from the legal and compliance perspective.
Adoption is one of the most important factors for all blockchain projects to be more attractive in investors eyes.
- So can you tell us what CZZ has planned to achieve adoption in reality?
There are three roadblocks that prevent us from blockchain mass adoption. Particularly, projects in the last 3 years have sacrificed too much decentralization for performance (or tps). The problem with centralization is that all the promotion work is now up to the founders and initial investors. We believe that building a strong decentralized community, where everyone can see material benefits by promoting the CZZ token. Particularly, our incentive structure is very simple, most people use the network, the faster CZZ tokens get burned, the more valuable remaining tokens will be.
Blockcast.cc: Thank you Dr.Z, for your sharing the good information.
(This information sharing can be found at Asia Blockchain Community #ABC- https://t.me/Blockcastcommunity. Additional videos and images on this sharing session can also be found on the channel.
Time: 15:00pm KTS, 13th June 10, 2020
Guest: Dr.Z, Co-founder of CZZ
Moderator: Jenny Zheng, Co-founder of Blockcast
Asia Blockchain Community (#ABC) is a channel run by Blockcast.cc Team and crypto enthusiasts who believe in the future of cryptocurrency.
We have over 2,800 members in the channel and growing. Visit us at https://t.me/Blockcastcommunity.