Building on Bitcoin

Building on Bitcoin


everyone welcome to another episode of
Block Talk my name is Cody Born and today I’m joined by Samson Mow who is the
Chief Strategy Officer of BlockStream welcome to the show Samson place Cody so
you are running a company called Block Stream so I know that a lot of people
are aware of what bitcoin is but probably a lot of not a lot of the
audience have ever used Bitcoin or are like too deeply familiar with it so
maybe could you I think I think a lot of misconceptions there are a lot of
misconceptions around like where bitcoins intrinsic value comes from so
in your mind where does the value of a Bitcoin come from well I think the value
comes from social consensus there was a segment recently on 60 minutes and
they’re asking that question why is Bitcoin valuable I think the answer that
person gave was we decided is and that’s kind of true you know social consensus
is what drives a value for a lot of money’s why does gold have value well
yes you could use it for jewelry or something but largely we decide it’s
valuable for various reasons so for gold its shiny it doesn’t rust and you can
make things out of it for a Bitcoin it’s valuable because it’s unsensible no one
can block your transaction your Bitcoin transaction you can store value in it a
lot of people think well it’s a volatile how can you store value but if you look
at Bitcoin on a longer time horizon like say two years if you bought it two years
ago you’d be up four times I think that’s a pretty good store of value but
a lot of the media focus on you know a month ago or a week ago and they
sensationalize a lot of that but it really is just social consensus we
decide it has value therefore bitcoin has value I think there are applications
for Bitcoin even in developed nations to because it is really easy to transact in
Bitcoin it doesn’t close on the weekend or holidays you know if you’ve done an
international wire you’ll know that there are a lot of pain points and there
are high fees to transact over a wire transfer network so it’s like if
20 sometimes 30 dollars on the sender side and on the receiver side and for
Bitcoin you can move hundreds of millions of dollars for you know a
dollar yeah it’s crazy and and also there’s this new innovations coming out
with the Lightning Network on top of Bitcoin which I think will help solve a
lot of the kind of problems that people have today with Bitcoin so maybe could
you talk a little bit about what Lightning network is and and as a user
what what kind of what is the experience of lightning Network
sure so at layer one for Bitcoin the base layer it is slow there are 10
minute block times so it’s not ideal for payments people may have thought Bitcoin
was good for payments when it was first out because they didn’t fully understand
it but now that we have a solid grasp of how it works we know that it’s not ideal
you can have reorg you need to wait for several
confirmations before you’re confident that that you have that finality but for
lightning you don’t need to actually broadcast the transaction to the network
and have it confirmed you open a channel and you can route through other people
on the network to make that payment and lightning Network removes a lot of the
friction because it’s instantaneous and you have very very low fees so is it as
secure as something that’s on the main Bitcoin blockchain I think there are
different use cases so lightning is more tailored towards small purchases so
there is a hot wallet risk and what that means is that your keys are exposed to
the Internet for lightning so you wouldn’t keep more money in your
lightning wallet than you would in your spending wallet so maybe a few hundred
dollars and you know if you did lose it you could live with that yeah
very cool and so um you guys blustering just announced a new project called
liquid platform can you describe what that is and and kind of how it works
right so the liquid network is an inter exchange settlement network it’s meant
to link together different exchanges crypto exchanges so you can move liquid
Bitcoin very quickly through this network
so as a sidechain you have different properties we’re anchored to Bitcoin so
to access Bitcoin in liquid you have to first lock up Bitcoin in the main
network and then you unlock it in liquid so there’s always a one-to-one
relationship and then when you have your bitcoins in liquid you have the benefit
of one to one minute block times and you have confidential transactions so you
have enhanced privacy as well interesting and I also read the liquid
helps with digital securities can you describe how it works so a lot of people
are interested in tokenizing securities or tokenize equity or anything like that
and what you can do with liquid is actually issue a token in the network so
we have confidential assets as well it’s one of the key functions of liquid so in
addition to liquid Bitcoin moving Bitcoin you can also issue your own
asset at the same level as Bitcoin so you can have a Cody coin and then you
can transact that and all you need is the liquid client so it’s very
lightweight and very efficient for creating a cryptic token and transacting
a crypto token very interesting I like the idea of Cody coin yeah I think I’ll
do it today great well that’s all the time that we have for today thanks
Samson for joining us on the show thanks Cody and as always you can find us on
twitter @MSFTblockchain and where can they find out we’re going to learn more
information about BlockStreem we have a twitter as well @blockstream and
i’m also on twitter @excellion excellent great thank you thanks you

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2 thoughts on “Building on Bitcoin”

  • Crypto-currency has no intrinsic value. It is "fiat" currency that isn't backed by a government with an army, as such it can be declared valueless, on a whim or in an instant, by a government with an army.

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