Steem UBI ! - Bitcoin Sidechain Transference

Hey you, welcome back to the channel. And today we want to talk about Universal Basic Income on the Steem blockchain and transference of Bitcoin value. And we're gonna talk about that a little bit today. So very exciting video. So wasn't very long ago that cryptocurrencies like EOS and were kind of putting out there the idea of universal basic income using their inflation to pay for, uh, ideas like URI, or what they deem to be Universal Resource Inheritance Credits. And so let's talk a little bit about why they might have thought that would be a good approach why other cryptocurrencies have sought to do that, not always successful. In fact, probably I'd say over 99% of them have failed trying to implement some type of universal basic income. And, um, so we're going to get into a little bit of that today, some of the technical issues with that. And, um, we're going to go, we're going to go on a scale. We're going to, we're going to start at some of the simplest ideas and work our way up. So So the first idea to understand, uh, in this is, um, the, the old saying in cryptocurrency: the group with the most wallets wins, right? So obviously, if you have a well, um, uh, used cryptocurrency, millions of people are using your cryptocurrency, Vendors are accepting it. Then you have, uh, basically got over the threshold of what now is being considered a viable currency, right? Have the trade volume. It has value to the users. So if in a situation like this we were to start at the very simplest point, it would probably go something like, well, The easiest way to have everybody using your cryptocurrency is give everybody your cryptocurrency, right? And now everybody has it and now it has an economy onto itself and they're using it, they're finding value in it. So that's at the very simplest scale. Of course, that is quite difficult to do in itself. And there are many reasons why that is. Uh, You know, the first part being, uh, first you have to reach all these people, uh, in order for it to have value, you'd have to be able to authenticate that they're unique people. So then there would also not only need to be that part taken care of, but then you would need, uh, sustainability, right, of the cryptocurrency itself. You've just given it away to everybody. How is it going to be sustainable? And so, um, as it begins to get more difficult along this, along the scale, we start to see some of the hindrances with having something like universal basic income. But in the very simplest approach, it works theoretically. So one problem would be the authentication of accounts. So What came up a lot in EOS was universal basic income, but what didn't ever really come up is universal basic income with the Steem blockchain, which I think, uh, is probably one of the easier blockchains to implement it on. And that's why we're integrated into the Steem blockchain, and we're in experimentation of it now with this model. I want to tell you about why we think it'll work and it'll be successful. So In the first part of authenticating accounts, a lot of people have had that problem. We've tried to come up with several ways to solve that, and the way that we've come up with to solve it is quite simple. Um, it uses something called social media verification keys. Now, one problem we had come up a lot was, well, the whole purpose of cryptocurrency is to be anonymous. At least this is some people's narrative. And there should be no level of KYC and we should be able to navigate. And that is true. A lot of people would prefer things that way. And there are many advantages to that. There are some disadvantages to that, but let's talk about how we figure that out and get around that. So the first part is, uh, we use something called social media verification keys where it basically links accounts together, right? And, and that is, uh, if you want to call it KYC, it would be very low-level KYC. Um, now in relation to, um, being able to authenticate accounts, we have, uh, certain levels, uh, to— of severe levels of where if you're claiming X amount of tokens that is over a certain threshold, uh, there's a very simple, simple way of authenticating you by— excuse me— an identification and a picture with all of your information blotted out except portions of your name, except like your first name or your first initial, right? And what that does, it links one person to all of those profiles, right? Now, uh, this wouldn't, uh, take away any identification issues from you in that, uh, there would be no, uh, data to necessarily link you to those accounts, but it would let us know that you're a unique person along with a piece of paper stating something like the date that picture was taken. And we find this to be a very easy, easier, more effective way to get this done and just upload the image. And that way you don't have any problems with the government or anything like that, or, um, you know, any of your privacy compromised in that way. So those are just a few ideas on how we can get that done. And then we also would use something called network suppliers, which are like, I guess you can call them gatekeepers. They run hubs to keep this secure from fraud and a variety of things. And what they do is they're elected by the community and we entrust a certain amount of power to them, similar to what you get with a proof of stake type model. Where you elect the miners who run the network. We actually, uh, elected the people who distribute the tokens out as a community. And what these people do is, um, the power we entrust with them, uh, they get to, in the finale of the situation, make the decision as to who gets those tokens or if they should be approved or not. And these are— this is on this level of scale, and, uh, you know, it goes from different levels depending on the tokens being claimed, who the people are claiming to be, and a variety of things like that. So it's actually a very efficient system, very simple, but addresses some complexities, right? Um, now let's— next, let's talk about one of the big problems, which was sustainability, right? So, um, with sustainability, uh, One problem a lot of these projects— reason the projects have failed is because obviously if cryptocurrencies are being given out, people don't have to pay for them, then where's the market for them? So, um, there are several ways that's approached. We know like what's happened with Steemit.com is after 3 years, uh, with a lot of pushback from the community, uh, you know, it came to the point where advertising was accepted and now Steemit is doing fairly decent with advertising revenue, help to pay some bills and a variety of things like that. And so having these optional ways to deal with advertising has also been a solution to a part of the problem with, you know, dealing with sustainability issues. Another problem has been, in theory, if you give everybody your cryptocurrency, it's a great way to get a lot of wallets, right? Get everybody trying it out. Everybody now has a wallet, has your cryptocurrency. But onboarding is the problem and how to use the wallets, right? So what we needed was we needed a very efficient way to be able to— very easy onboarding solution to be able to get people on the site and get people, uh, able to effectively use wallets who are people who've never used cryptocurrency before and a variety of things. And so one way that's accomplished is through our, uh, Steemit front-end site here, bitcoinmyk.com. Excuse me. That is a very easy— uses a very easy setup. It integrates already into Steemit. People have Steemit wallets, and it allows you to integrate and have a wallet, uh, in the interim, even if you don't have a Steemit wallet, where you can still, uh, have access to STEEM and transfer STEEM in a very easy, comprehensible wallet, um, throughout the STEEM blockchain. And so that solves the issue with the onboarding, uh, by making it very easy to get people, uh, in the network, on the, on the blockchain. Who have never used Steemit before and a variety of things like that. And so, um, you know, it still kind of begs the question, is it enough to give value to the cryptocurrency if you, you really got this model that's based a great deal on, uh, people who aren't— who are able to claim through universal basic income these cryptocurrencies daily? And another way we deal with that is an attention-based economy. So, you know, what's become clear online is websites that get the most attention, uh, that's where that translates to value, right? We tokenize that value. So the attention and the value of your platform creates a money onto it itself. It creates a network of value onto itself. And through using ideas like velocity of money, which means we're just moving this value around at a rapid speed, and the more people exchanging hands with it, and the more people coming into the network is building more value. Uh, so it's a, it's a very expediated way of accomplishing that. And now you have everybody having your cryptocurrency. You can do micropayments at high speeds and a variety of things like that. Um, so this is how our Steemit Universal Basic Income would work in general. Now let's talk about some of the important things that a lot of people would now next move to onto after having some of the very basic basic ideas of how it would have value, how you get it, uh, I'm sorry, how it would have value and how you move it and why it would have value. You know, understanding the same idea why a network would have value, why the same reason why you'd be able to log on something like Facebook and it'll have value, uh, but at the same time without, um, uh, having, uh, KYC issues to the point or extreme is what you'll get in these type networks. But we're gonna move on to this attention-based idea in this platform a little bit more. Okay. So one way to understand how our attention-based Steemit platform works or Steem-based platform works is to understand attention value and contributions to social networks. Yep, the information that we relay over social networks has value to each and every one of us. The problem is it's become quite difficult to price this, uh, value in an effective way, and many times we rely on the community to do it. But as long as there are certain areas of the community that have more control over that value than others, it can become imbalanced and it can create a problem down the road for such platforms. So One way we found to deal with this is by having a consistent model that works well into the Steem blockchain in a way that kind of balances the equation a bit. So we'll explain here. So we have something called the reputation score, and we have something— we have the people who follow us. So the reputation score, to understand it, is a combination of your Steem power on the Steemit network, as well as, uh, the, uh, contribution you made to the community in the form of curating and people upvoting you. And it's all a combination of those things that give you your reputation score, right? This is very important because in giving out universal basic income, or even trying to find a model that works well within a system like this that values your contribution to the community, um, you know, it would be necessary still for us to have a market and have value and, and have people, uh, in a sense investing in that value. And reputation score solves a lot of that problem because it still takes into consideration the amount of steam power you have, although it is not the central focus of how value spread through the community. And I think that is, uh, very important. So based on your reputation score, we use a very consistent model as opposed to just a model based on how much Steam Power you have, which is how, uh, Steemit.com works right now. So just for example here, if you have a reputation score of 56 to 65, every time you make a post, uh, you receive 4 of what we call our UBI tokens, right? To the network, to that attention value. We call them Bitcoin MYK tokens, and we're going to explain a little bit later to you why that name is so important and why it works that way. Uh, but it all moves through the Steemit blockchain. Then, uh, and of course the reason the rep score is important, because it does take into consideration two very important factors: your contribution of Steem Power into the community, which is what we need to keep the blockchain alive and thriving, and the contributions to the community. And through reputation score, it is rating how the community sees your contribution. So these are all very important factors from a social aspect, from a contribution aspect, from a quality of post aspect. But it's a much more simpler approach to it that keeps in balance a type of fairness at the same time keep the core principal ideas alive in the community without offsetting the balance of the community too much. And then that's part of STEAM of followers, which I think is, you know, just that acknowledgement of the community seeing value in you enough to follow you and follow your content. I want to keep in mind that this model isn't perfect. It is experimental, but we do believe it works to solve some of the core problems that are, uh, associated with, uh, Steemit.com and some things that happen on the Steem blockchain. So what happens here is when you, uh, do these posts and you upload them, um, to the Steemit front-end site here, it's going to show, uh, posting to the site as well as Steemit.com. So it's gonna be like cross-posting. You'll simply do your normal posting on Steemit.com and it's gonna cross-post over here to our site, and that's why the system will reward you the tokens, right? And so we believe this solves a lot of problems of fairness and people feeling they're being ignored or rubbed the wrong way. And, uh, this goes into the BitcoinNYK cryptocurrency, which is a version of the SMT token that trades on an exchange, but it's all traded against Steem Dollars. So you can take these cryptocurrencies and you can actually just convert them on the exchange for Steem Dollars, or integrated into the Steemit blockchain through its interoperability, which is so very important, easy, and convenient as it allows us to tap into the over 3 million users of the Steemit-based economy, right? So now that you kind of have a clearer picture of how that works, uh, now I want to talk a little bit about why the name BitcoinMYK Why does it integrate into the Steem blockchain? And, uh, you know, basically, um, you know, why, how that whole, how all that works in comparison to the universal basic income Steem idea, uh, and the project. So I guess it would be fair to say that one huge failure of universal, um, basic income cryptocurrencies Excuse me, uh, I guess it would be— oops, hold on a second, guys. Okay, back. Had some technical difficulties there. I guess it would be fair to say that universal basic income cryptocurrencies, um, you know, have not performed well, have not worked well up until now, uh, because again of the sustainability. How do you get these things value? Essentially making it so, so many people around the world can receive these things free in a basic allotment of these cryptocurrencies every month. Clearly, somebody would have to pay for these in some type of way value-wise. And so also going back to the EOS platform, it had been entertained for a little bit that EOS should be a blockchain for Bitcoin. To solve many of the Bitcoin issues, you know, being that, you know, Bitcoin scalability issues. You could just use a platform like EOS and you can move the value of your Bitcoin on the sidechain using EOS, right? So what we figured out was that not only was EOS a very robust blockchain and would allow those things. But the same person who created EOS created the Steem blockchain, Dan Larimer. We began to understand that you could do the same thing with Steem, the Steem blockchain, although it hadn't been done yet. Nobody had proposed a Bitcoin sidechain for on the Steem blockchain as far as I was aware of. Now there will be many advantages of having something like that operate on the Steem blockchain simply because the Steem blockchain has Steemit, which is one of the biggest social networks cryptocurrency. Of course, we understand a huge immense value now of what happens when a social network decides to become a cryptocurrency. You can potentially get something like what you're getting with the Facebook Libra coin, right, where you have this large network of people now having this cryptocurrency they see value in, and now they have this immense network to transfer that value to and fro from. So being, um, interoperating and interoperability into the Steam blockchain with already millions of people, uh, where you didn't have to set up a new account, you can just log in through our system and be able to move your Bitcoin on the sidechain, uh, would seemingly make a great deal of sense. Now, uh, as we, uh, had described a little bit earlier about how we were able to authenticate accounts, we would be able to use that same idea with Bitcoin. Now the difference would be, uh, where I think a lot of Bitcoin sidechains get it wrong is that they usually swap out their actual Bitcoin for, uh, the cryptocurrency of that blockchain and some comparable value, atomic swaps or what have you. We propose something unique, something a little bit different, uh, using our platform. And the reason this would all be very important to have, uh, Bitcoin operating in relation to this is because if we have a Bitcoin sidechain in relation to with a cryptocurrency that has a universal basic income cryptocurrency, it would through default give it more value, right, and make the project a great deal more sustainable. But how it would operate and how it works now, it's already working. It's actually kind of an alpha testing, if you will, or beta testing. Uh, how it works is that we use those same methods, the, our version of, um of what we call network distributors, which are similar to what a witness might be, or a block producer on EOS, or a miner Bitcoin. They are able to move these cryptocurrencies to people who have Bitcoin. Now, where it's different is that usually what happens, you swap the Bitcoin. With us, it doesn't work like that. You don't swap the Bitcoin, you just prove you have the Bitcoin. And there are easy ways to do that. There are several easy ways to do that. You can simply do it through, through basically signing a signature, signing your wallet in Bitcoin, right? And then going through our hub here or platform to authenticate you're the sole owner of the account. So we have that way of doing it. You could do a test deposit if you're not, if you don't have signing capabilities or you're just not familiar with, do a small test deposit, then we'll know how much Bitcoin you have and authenticate it to that account. Or you could go through our network distributors who have entrusted power from the community to decide who gets what cryptocurrencies, and they go through terms and they're voted in or voted out based on their performance. So it's a very democratic process, right? And we believe this would be a very unique and interesting way to approach this issue. But in a— if it works perfectly in a In a perfect model, what you'd have is you'd have a large existing community already. You have the ability to move represented Bitcoin value across the Steam blockchain and solve many of the issues that couldn't be solved before, as your Bitcoin would rest in its wallet in a vault like gold without being moved, without the risk of it being hacked or stolen or lost, uh, and you would receive this, uh, value in Bitcoin— or I'm sorry, or in, uh, Bitcoin MYK. Now A lot of people don't like the fact we have the Bitcoin in the beginning of the name, although this operates interoperability amongst blockchains, which basically is just a way of saying we can move the value from blockchain to blockchain. Now that is accomplished through, um, the concept of, uh, what actually helps to make our cryptocurrency value valuable, and that is piggybacking off a blockchain. So And being able to piggyback on blockchains, it saves a lot of cost to run a blockchain. It saves a lot of resources to mine the cryptocurrency, and because of that, uh, it gives— it makes it possible for that value to be put back into the BitcoinMYK tokens. Um, now we had planned to have our own blockchain that interoperates into many other blockchains in 2020, but we've actually started testing for it now, and it might very well happen before 2020 is out. You actually be able to mine the cryptocurrency as well as still be able to have that value on several blockchains. Um, so that may actually happen in 2019, which moves us up ahead of our schedule, but The way it works now is quite efficient in that it allows us to move that value back to the project. Uh, so we have a white paper on that goes deep in the detail of it, but we're just trying to give you this basic idea of how moving Bitcoin on the Steem blockchain could work and why that would be so great for the Steem blockchain, and also using universal basic income as a way to create the largest amount of wallets in cryptocurrency, right? And that is very easy and very possible using this model. Um, and, uh, so far, even with the testing we've done so far, it's working quite efficiently. Well, uh, it also again solves the stigma problem of what is fair and posting content, how it's valued in a competitive pricing scenario. Uh, we find the modeled how it works on Steemit.com right now to be quite flimsy and not very appealing to many people, which we think will hurt a lot of the adoption to the Steem blockchain. But I also found it quite interesting, was watching an interview with the new CEO of Steemit, and they got a question about, you know, what happens if Steem fails? You know, is there a way to integrate Bitcoin into that? Um, but I think the easiest way would be to integrate something like Bitcoin MYK into the Steem blockchain that already, through its universal basic income model, through its Bitcoin sidechain model, allows that value for the person who wants to use Bitcoin to move value, which they'll, you know, find more safe, to be able to compare the data between both blockchains and have that value on the Steem blockchain and move it around and accomplish the same goal, yet have the value in Steem as well. And I think what that does is that creates this perfect harmony and synchronicity between both of these cryptocurrencies, and it helps— it actually theoretically should help improve the value of Steem and solve a lot of problems for Bitcoin. So that's why we think this is a very important model But the missing link between all of them has been the universal basic income and the Bitcoin sidechain. When combined together, you get BitcoinMYK.com, right? And that's why this is so very important. And, um, if it hasn't hit you yet like lightning, watch the video again, let it sit with you a while, and I'm sure you'll get it. Or read our white paper on the website. We'll leave a link in the description. But let's get you over to the Steam Engine Marketplace to give you an idea how to actually move this value and, uh, um, uh, how, how advantageous this can be to, uh, Steam Blockchain users. So we're here on the Steam Engine Marketplace or exchange And, um, to understand this, this is using a protocol that— or the SCOT protocol— what you get in SMT tokens. And what's beginning to happen is a lot of big projects are starting to head over to the Steam Engine Exchange, uh, as they create their tokens. And the reason this is done is, uh, as these new projects come in, they're able to trade their tokens against Steam. So this is similar to what you get with ERC-20 tokens and trading, um, on, uh, these Ethereum-based exchanges. So very similar things happening here on the Steem blockchain. And this is very important because all these projects, through interoperability, can operate within the same ecosystem, right? So all these millions of people who use the Steem blockchain will now have access to these cryptocurrencies, and they trade against Steem. So what happens is, um, an example of the Steemit-based Universal Basic Income in the Bitcoin sidechain, using the social media verification and being able to implement that value across the blockchains, they will be able to trade the value against Steem here. Once, of course, in Steem, they're able to trade on many other exchanges. The BitcoinMYK project also trades on the Freedom Exchange. Which is an exchange that has some great features into it, a debit card coming up, a way to buy Steam directly with your bank accounts. And so a lot of great product, a lot of great features there that you can do with the BitcoinMYK cryptocurrency here. But we believe that this would be a great way to approach many of the issues that have happened on the Steem blockchain, at the same time allowing Steem to grow and be a competitive cryptocurrency and grow up in ranks as it would be able to more easily onboard people and mass adopt people comparably to much of the more larger cryptocurrencies that are now ranked in the top 10 and so on and so forth. So we believe that models like this will help get the Steem blockchain there, and we believe The Steem blockchain is probably one of the easiest ways to do it because it has one of the easiest wallets to operate. It has over 300, um, decentralized applications, all that could be connected through the Steem Connect protocol, which means you don't have to keep setting up accounts, getting new wallets every time you get ready to do something. You can do all of this in one thing. So even with like the BitcoinMYK project, if you've got a Steem-based account, You don't have to sign up for anything. You don't have to register for anything at all. You're already integrated into the BitcoinNYK platform. And the great news is you already have valuable cryptocurrency. All you have to do is sign in and pick up. So does it get much better than that? But, uh, what we'd love to hear you guys' thoughts and opinions about the project, to, you know, tell us, um, if you think a project like this sounds great and if it does solve many problems. And if not, What are some of the issues you find with a project like this? Again, we'll try to leave a link to the white paper in the description, but that's all I want to say in this video. If you like content like this, don't forget to like, subscribe, and until next time, take care.