Bitcoin and Sound Money Deep Dive with Blockstream's CSO Samson Mow

CRYPTO 101
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Automatic TRANSCRIPT

Right. What is up up all you good citizens of nation? We have probably one of the most special guests that we've ever had on the show today. We are honored to introduce you to him. I'm Bryce your host. I'm joined by my compadres pizza. Mind as always say what's up. I put on my nice clothes for this interview and that is to say I am wearing clothes. We are joined by the chief strategy officer of WLAC stream of WHO everybody. WHO's listening to this owes a lot to? They are some of the core developers For the bitcoin core software that runs the BITCOIN. That everybody knows and loves Samson welcomed the show. Thanks thanks for having me you are very welcome. Welcome and Let's just kick it off with. I'm just super interested personally about how you got into Bitcoin. You've been the space for so long. And how did you golve into your role as chief strategy officer at block stream right so I guess I I Heard Bitcoin I think in twenty thirteen just reading about it online. Fine and I got involved. I guess officially when I joined. BTC China which was the largest exchange. At that time I think amount gawks imploded in a lot of people just just moved over to BBC China and we rebranded laid onto BTC. So you might have seen that name but it's a ramp down a lot since I've left I think and end in two thousand seventeen joined block stream to focus on liquid and getting liquid launched. That's amazing and tell us a little bit about what block streams role role in the industry. As I think everybody's familiar with them. But what's the actual you know from the Horse's mouth what what's the role so typically we say we are a Bitcoin IT infrastructure company and that could mean all different things to different people but for us. It means we're working on Augmenting Bitcoin so love our tech is at the base layer protocols stuff we also work on things like lightning network. So we are. One of the three major implementations would see lightning But we do a lot of other stuff too. Do we have wallets o'clock explorer. Basically things that we think could make bitcoin more robust and of course blocks from satellite which as another layer layer of redundancy to the bitcoin network. So it doesn't depend on terrestrial Internet so just in case someone's first episode that they're listening to. Would it be fair to say that that block stream is to bitcoin. What McDonald's hamburgers like you just can't have one without the other? I mean you could say that I mean there's other other companies that make hamburgers by out makes way better hamburgers. You kidding me. McDonald's but McDonald's is worldwide over billions and billions served. Well we do focus on bitcoin predominantly. So everything is somehow related to bitcoin. We don't work on coins or enter a block chain stuff awesome. Yeah that makes a lot of sense. So I've seen you speak at several conferences and I love how you talk about Bitcoin. As a settlement network as opposed to what everybody thinks is a payments network. And it's a concept that a lot of people don't really understand so you could you break down this idea for for us. Sure so bitcoins. Design is really to settle because a block has generated roughly every ten minutes but it is not necessarily ten minutes it it could be more. It could be an hour sometimes or sometimes even longer than that or could be three blocks and ten minutes and you can't really have a payments network. That is so unreliable. You can walk into a store. Buy Something for thousand dollars in you guys. Wait there until itself just doesn't work that way. At least. I don't know any stores that would do that. So you could could take us your confirmation Results has a confirmation than that is not secure. It could be spent so by design. BITCOIN is not payments. If it was payments it would be lightning right now. But it's not I guess it has to do a lot with the name of the white paper because the Toshitaka motive. I said you know Should appear electric cash and I think a lot of people have forgotten what cash means cash is a bear asset. If you have have cash in hand it's your cash and while buying a coffee with cash is easy. It's cheap been free I have like ten ten bucks in my pocket. I go and spend it and I didn't lose anything. There's friction sometimes people. Forget that if you wanted to move large quantities of money in cash it would actually be very very very difficult so if you wanted to move a hundred thousand dollars in cash. You'd need a backpack if you wanted to move a million dollars in cash it. Will you need an armored truck so it gets very unwieldy. The bigger it goes so bitcoin is our cash. It's a bad thing if you have bitcoin. It's your bitcoin and it is better than cash because it can be digitally transmitted but have that same property speaking kind of cash. Can you give us a comparison between sound hard money and easy Fiat money. Sure so I like to use goal arrison and it. It just makes it easier for people to understand because everyone knows what gold is in that gold is valuable a nice cat So gold is down the money because it cannot be printed out of thin air whereas fee currencies can be printed at will that's the definition of feet. which is you know from nothing but gold actually has to be mind needs to be processed and it needs to be secured so that is a large amount to why it is some money because it's not easy to get whereas fee it? It's easy to get and just because people don't understand what money is these days it's a Is Easy to manipulate too because they can inflate the supply a quantitative ease or repo or any number of tools to manage. And what are some metrics that you guys are using to track the success of the BITCOIN network. Well I don't think we lost your mark tracking the success of the bitcoin network uh-huh But there's a lot of metrics that you can look at. You can look at on chain transaction volume obviously you can look at the price You can look at the market depth across exchanges Let people get market CAP. But that's not really that meaningful market is a more interesting metric because it shows how much you can actually buy and sell in aggregate and I guess another metric could be transaction fees so every day. The bitcoin coin at work is paying minors Hundreds of thousands of dollars in transaction fees. And that shows it's healthy because eventually fees will need to replace the subsidy I would mix block stream so special. In addition to all that is there's actually several usable live products now or ninety nine percent of everyone else. In the CRYPTO industry might be working still on their very first one and one of the most important products that you guys put out recently is the liquid network. Can you tell us about what the liquid network is and why it's important so the liquid network is an inter exchange settlement network. It's a way to move money quickly. Mu Bitcoin quickly between Exchanges as well as token is assets. So we have A weight issue now sit in liquid. We're calling them. Issued assets or liquid assets. So you can have something like a stable coin such as a tether or Japanese yen stable coin which is being worked on by one of our partners as well as Canadian. Dollar coin Along with other tokens assets too. So you can. Also do security tokens antiquated. which would be controlled in certain ways through weightless and with permissions or a utility token which could be used to say replace a game currency which is also something being worked on by a company called but liquid? There's a lot of different things but what it ultimate ears is fast settlement and we have a lot of exchanges already integrated along with financial institutions OTC desks brokers and also companies. That just WANNA do Tokens as well but you can move. bitcoin quickly from exchange eighty so we just announced the bitsy announced yesterday they integrated so now you can move between biff next bitsy in two minutes which is great arbitrage opportunities or being able to take your funds off exchange in store them in a wallet so say blocks green which is our bitcoin wallet that supports liquid as well. So you can put money onto exchange ticket often you done trading and you don't have to worry about the third party risk. They have your money in their risk at that point You can move on quickly. So let's say you got a margin call To Bounce back then you can do so quickly without having to wait for bitcoins blocks to come out every ten minutes or so

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