Recap — PegNet X Crypto^^Nation AMA
Recap — PegNet X Crypto^^Nation AMA

By CryptoNationIN AMA | AMA Recap | 18 Jan 2020


 

PegNet Website — https://pegnet.org/

PegNet Telegram — https://t.me/PegnetOfficial

Introduction:-

Hi everyone.

So PegNet is the world’s first mine able stablecoin network. It includes 30 different pegged assets (pAssets) Including 14 top fiats, 14 top cryptos and Gold + Silver. The project was fair launched August 19th based on proof of work mining. No pre mine, no team reward, no foundation. No ICO.

You can see the assets here: https://pegnetmarketcap.com/

PegNet Market Cap shows both the reference price of the pAssets as published by the miners every ten mintures. Lots of assets already on PegNet more than $6,000,000 worth. The tech is built on Factom.

You can see all the mining stat here: https://www.factoshi.io/pegnet

We have a quickly growthing CPU mining community. Over 100,000 computers worth of hashpower. Almost 2 Billion hash per second. All CPU as the LXR hash it uses it memory bound (RAM) not computationally bottlenecked. So everyone can mine. No ASICs.

AMA Starts now!

Q1. As we know, every successful project has a few stories behind the scenes, what’s the story behind Pegnet success? What was that vision when Pegnet first emerged as an idea? Are there any special prototypes or upcoming Pegnet updates that you want to show/share with us?

Dave:- The success in PegNet has to do with its design. Instead of being “reserve” based or “collatoral” based PegNet uses the miners as decentralized “oracles” to peg the prices. Here is the full article about it. https://medium.com/@DJohnstonEC/pegnet-decentralized-minable-4th-gen-stablecoins-e7b890a7edf6 The result is there is no central reserve you have to trust / pay fees to & and you aren’t balancing crypto collatoral and paying “stability fees”. On PegNet its only $0.001 (a tenth of a penny) to send or convert any amount of pAssets.

Q2. Why is PEG built on Factom over other comparably quicker and scalable chains? Why don’t PEG build their own solution system/chain?

Dave:- Factom has experience with immutable oracles for yerars and is designed to handle billions of records and its cost is only $0.001 to record any data so it was by far the cheapest, most proven blockchain fo this type of application. Its also been a great way to boot strap the PegNet as people have been able to burn Factoids into PegNet assets. https://www.factoshi.io/factoids

More than 1,100,000 FCT have been burned into PegNet assets. That’s more than 10% of all Factoids. So the Factom community is on fire for PegNet.

Building PegNet its own blockchain would have taken 12 to 24 months. Instead by building on Factom it only took 3 months.

Q3. The main problems in some DeFi projects in Interoperability issues. How PegNet solves this Interoperability problem ? with Which blockchains, Pegnet is interoperatable?

Dave:- PegNet is blockchain neutral. Factom anchors its records into both BTC and ETH blockchains every ten minutes so it leverages the largest proof of work in the world on the two largest chains. Here is an article about the work being done now to integrate PegNet into Etherem. An ERC20 wrapped token has just been added for pAssets, so now all 30 pAssets are on IDEX for trading. Next PegNet software developers are adding Ethereum signature types to the PegNet wallet so all the ERC20 tokens will work in PegNet wallets. https://medium.com/pegnet/adding-pegnets-passets-to-ethereum-6b20d63ae635

Q4. How will PegNet resolve three major pain points for crypto investors: diversity, value, and convenience? Which specific about technology and stategy of PegNet that make you believe it will be successful?

Dave:- PegNet directly addresses the pain points of Diversity, Value and Confidence. First it makes it simple to convert any pAssets into any other pAsset inside of the PegNet wallet at a cost of only $0.001 per conversion. So you can reblance your diverse portfolio for almost no cost. As for value all the stable coins on PegNet are very useful for this, so far pUSD is the most popular pAsset. And finally the confidence is in the mining. Lots of hash power moving onto the system. See my article on how low the fees on PegNet are. https://medium.com/@DJohnstonEC/ready-trader-one-83ca7c30d596 As for mining if you want to get involved there I funded the first open source mining pool https://prosperpool.io/ come and check it out.

Q5. PegNet offers a low transaction fees of $0.001 (1/10th of a cent) whether we send five cents or five million dollars.
Will PegNet able to maintain such low in future?

Dave:- Yes the fee for conversion in PegNet is just the cost of one entry credit on Factom and has always been $0.001 for 5 years now since it was launched in 2015. PegNet’s native token (PEG) maintains value in the system because people use it as an entrace to the network. They can buy PEG and then convert into pUSD for example. So the more demand for pAssets, the greater the demand for PEG as a gateway into the network.

Q6. As an investor, it is important to first ensure that the Company i want to invest in is able to deliver its finest performance.

Dave:- Yokai, Thanks for the question. PegNet is a community. It has no company. Anyone can mine it. Anyone can add value to it. Its value is connected to the most popular assets in the world, so if there is demand for pUSD or pGold for example then PegNet will grow. We have seen the community has a great deal of interest from many users and so I think that is the key. Permissionless, low barrier to entry and open for all.

Q7. DeFi seems to be on everybody lips in 2020, now what roles does PEGNET play in the innovativeness of DeFi and how would it aid g

Dave:- Marantha, Great question. Yes I belive DeFi is the big trend of 2020. PegNet offers native DeFi stablecoins. Stablecoins are growing in mass adoption see Tether passing BTC in daily volume in 2019. So having a DeFi stablecoins that doesn’t have a reserve risk and doesn’t have stability fees like DIA is a great advantage.
As for liquidity that is PegNet’s great advantage. There is no order book, no counter party. Just you and the protocol. Meaning there is no limit on liquidity. You can convert as much value as you have placed into the system : )
Pegged Assets are connected to the price oracles as reported by the miners every 10 minutes. So there is no direct connection to the base asset. Its like a digital mirror of the asset its pegged to.

Q8. Pegnet is a Great Project Im sure Pegnet will be very successful now my question is: Some of the biggest players in th

Dave:- Great question Erven. PegNet deals with transparency because all of the pAssets that exist were either mined or converted into the system ans 100% of that is auditable on chain. So no central party to trust. That’s the key.

Q9. As far as I know, Peg token is not seen in FactomWallet right now. When will Peg token’s visiuality be activated on Factom Walle

Dave:- NTLDR, The pAsset might be visible in the PegNet wallet in the future, but in the mean time there is a dedicated PegNet Chrome Extensions (like Meta Mask) and PegNet web wallet. The GUI wallet is two parts:
1. A MetaMask-like Chrome browser extension (that also works in Brave). Get it here: https://chrome.google.com/webstore/detail/kambani/oiceedellfbhhplkfkpkkocbdkifpili
2. The extension then interacts with https://factomatic.io/wallet/

Q10. How do you see the project develop in 3–5 years from now, PegNet business wise & company wise? What are the plans to expand in d

Dave:- Cartman, PegNet has no formal team or foundation. Software developers volunteer or get donations from the community. Miners secure with their hash power and are rewarded with 5,000 PEG (split by the top 25 miners) each block.
Here is the list of projects and developers in the community building cool stuff on PegNet. https://docs.google.com/spreadsheets/d/1R7NtU83E9NoSEfbrWjugobCcqjv4it8wEN7SGw85fR0/edit?usp=sharing

Q11. Nice to be here:heart: I tried to have my own PegNet wallet but I understand that in factom wallet you still can’t see it for now, I

Dave:- GUI wallet is now here : ) 1. A MetaMask-like Chrome browser extension (that also works in Brave). Get it here: https://chrome.google.com/webstore/detail/kambani/oiceedellfbhhplkfkpkkocbdkifpili
2. The extension then interacts with https://factomatic.io/wallet/

Q12. What are the great achievements that #PegNet has achieved so far? What difficulties and risks did you encounter during project

Dave:- Rony, So far PegNet has launched its mining and seen great adoption there, next it launched conversions and those have worked well, and now its launched arbitrage and that is starting up with all these pAssset listings.

Q13. What are the actions to increase awareness around PegNet in non-crypto space?

Dave:- Cartman, I think we are still mostly educating the people in the crypto space that there is now an alternative to USDT and that DeFi has mine able stablecoins.

Q14. Explain more about your 2nd layer protocol and relationship between PEGNET and factom? Explain more about your Frictionless tra

Dave:- Maranatha, PegNet publishes prices from the miners to a chain ID on Factom every 10 minutes and the prices are graded for being closest to the median. So miners are ranked both on hash power and on price accuracy. The Factom block takes care of all the transactions, conversions and so forth so PegNet is a very light dapp on top of Factom. The security is very high. Factom is used by major companies, governments, and crypto users all over the world since September 1st 2015.

Q15. A strong project needs great investors, so how did #PegNet raise funds successfully? How do you convince investors to trust and

Dave:- Chandan, No funds were raised for PegNet it held no ICO. Its strength comes from the community of Factom + Ethereum. Many of the early supporters of both are involved and since they all have a fair chance to mine and convert into pAssets there is no short period to gain support. PegNet can go on gaining support forever from every new miners and every new person who adds their value to the network.

Q16. What do you think is the biggest challenge in PegNet at the moment ? What’s your strategy to overcome these challenge ?

Dave:-Your Heart, The biggest challenge at the moment is getting more traders and arbitragers to know about PegNet. The mining community has arrived, the value is flowing into the system, now we need more traders and arbitragers to use the PegNet in order to close all the gaps in pAssets and their prices on exchanges.

Nguyen: PEG tokens are used both as a means of entering the PegNet system, as you can convert an unlimited amount of PEG into any pAsset you want. PEG is also part of the arbitrage function in the sysem. See this article which has great graphics on that subject.

Q17. How was the Factom Protocol created? What is the importance for PegNet? Can Oracles users manipulate prices in the Pegged Netwo

Dave:- Zafer, PegNet oracles have to submit their proof of work every block. So the miners are the oracles in the system. The same economics that protect ETH and BTC with PoW protect PegNet from bad actors. Good actors get more money : )

Q18. What innovations make #peg stand out in this new economy, and why did you choose pegnet? where does peg’s profits come from ?

Dave:- Kudo, I choose PegNet because I care deeply about blockchain and economic freedom. There is a risk that Tether’s reserve is not secure because of hack or other reasons. For DeFi and blockchain to succeed there has to be an open, honest and permissionless stablecoin network. PegNet is that network.

Q19. Having your every question answered can make you satisfied of invisting in a platform and your experience with their services wi

Dave:- Cardo, Great question. There is a great community with a lot of knowledge on the PegNet Discord channel. There is a support section for mining, wallets, listings and so forth. Ask questions there and you normally get a very fast answer. Since its decentralized anyone who has the answer can provide it.

Q20. Is there any plan for full Ledger nano integration?

Dave:- Bernard, That would be great. I know PegNet can be stored on Ledger today given they support FCT addresses. If someone in the community knows the Ledger folks it would be great to get additional support from them.

Q21. PegNet uses a unique Proof of Work algorithm called LXRHash which is only for CPUs. How is this system optimized to be 90 perce

Dave:- Enes, Because the LXR hash uses RAM to build the hash for the most part it isn’t using much electricity for computation, about 90% less as you mention. This is great as we want proof of work, but its good to minimize the electrical cost involved.

Q22. How is it possible that PegNet can interoperate with different blockchains?

Dave:- Great questions.
1. So PegNet works with Ethereum today in addition to its native token. More protocol support can be added in the future.
2. There are indeed pGold and pSilver pAssets on the network. Some people want to hold value in Gold since there is $8 Trillion USD of Gold in the world and its historically been very reliable for thousands of years with low inflation.
3. Yes anyone can suggest more crypto tokens be added to PegNet but it has to have a market cap of over 100 Million and 5 Million in daily trading volume so people don’t try and mess with the markets. PegNet works for large projects with deep daily volumes.

Q23. What was your Motivation to build #PegNet??? and what is your Mission now???

Dave:- The motivation with PegNet is to bring DeFi stablecoins and digital assets to everyone. Make the cost so low that anyone can access the system. The mission now is to tell everyone in the world about it.

Q24. Do you think it makes sense to have a pegged with commodities like oil, gas, soy? Could you tell

Dave:- Yes I’d love to see more commodities added. They just have to have good data sources at least 2 APIs that miners can report on every 10 minutes and deep enough daily liquidity.
As for Shorting it will be interesting to see how that can be done on PegNet. Here is the white paper for those interested. https://docs.google.com/document/d/1w_0Ys2vQJUCoFdhLQTbeUf2ix2FwvQdmXj59kZVdWso/edit?usp=sharing

Q25. Why did the project choose to use the POW consensus mechanism rather than POS, BFT?

Dave:- The developers wanted a proof of work because it can be done by everyone. Proof of stake requires you already have lots of users with tokens, seems more appropriate after a big network effect is already established. The computer requirements are very low, most laptops or desktops can mine. Just needs a CPU and at least 2 gigs of RAM.

Q26. How are data validated in Factom blocks? How does Oracle check the accuracy of this data? How to filter bad market data in PegN

Dave:- The data on the Factom blocks is not validated on purpose. It allows for any data to be published onto the protocol, this lowers the cost of the computation that must be done by all the Factom nodes.
The PegNet softare checks the prices submitted and rewards miners that have both enough Hahspower and the prices are within 1% of the price median. So miners have to submit prices very close to the other miners in order to win.

Q27. what are the ways that PegNet generates profits/revenue and what is its revenue model ? How can it make benefit to both invester

Dave:- Lucky, Because PegNet is a community run network it has no profit, no revenue model. This is great for the users because there is no fee (Synthetix for example charges 0.25% for every conversion in their system). The FCT tokens are used and that creates demand for FCT. The PEG tokens are used and that creates demand for PEG. These are utility and payment tokens pure and simple : )

Q28. Can current peg miners eventually b able 2 mine p assets? Will there b govern or voting on new p assets? which partnrshps in t

Dave:- Already pAssets are on many exchanges and DEXs. ViteX, IDEX, VineX, CiteX, Bilaxy and so forth. I would love to welcome any wallets, DEXs and other DeFi projects that want to add pAssets to their dapps.

Q29. Many countries have communities interested in the blockchain industry. In the Turkish community, a detailed analysis of the Pegn

Dave:- NTLDR, Thats great to hear people are publishing analysis in their own languages. One way to support this is that PegNet has a community presentation that has been translated into German, Russian, Chinese, Japanesse, Korean & French and even more languages would be great. https://www.pegged.network/#pegnet-presentation

Q30. partners in every project play a huge role as backup and support at every start of a project/company, so my question is What rol

Dave:- The three communities that drive PegNet’s success are miners, hodlers / traders / and arbitragers. Its giving fair access to these communities that is the key to the success of PegNet.

Q31. Is it possible for the encrypted addresses generated by PegNet to be decoded or readable by external sources? How is the securit

Dave:- The security and privacy model of PegNet is similar to Ethereum. Anyone can see the balances on PegNet addresses (Factom addresses) but nothing is relieved about the identity of the owner of the address. The private keys are held the the owner of the address. So there is no central party involved in key management.

Q32. Recently , I saw PegNet hosting a lot of #Ama at many group . Why you spend a lot of Money to hosting AMA ? Is this your strateg

Dave:- Lucky, Since there is no foundation or pool of resources I donate my own PEG to the community and do these AMAs to the spread the word. That’s how much I believe in the project.

Q33. So. Why PoW? Greta said its too bad for global climate change…

Dave:- Chiliua, Actually PegNet uses a hash that requires very little electricity. A friend of mine used a power meter and measured other 10 watts of electricity being used on his laptop. That’s less the a single light bulb. The existing banking system takes huge numbers of people, buildings, servers, and power from around the world that drawfs all of crypto power usage. If everyone in the world had to run a light bulb worth of hash power on their laptop for a free and honest money system to work I think it would be a great trade. I belive a lot in renewable energy, I used to world in that industry in the 2000’s and I think cheap solar is here and that’s what much of the crypto miners use, that or hydro / wind.

Think I got most of them. Thanks to everyone. Glad you to answer your deep questions. Lots to learna about PegNet I believe it will be one of the big stories of 2020. Hope you will be part of it.


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CryptoNationIN AMA

CryptoNationIN Telegram community started in August'19. We hosted 20+ AMAs till now including Binance IEO projects i.e Kava, TROY and Band Protocol. Also hosted AMA with MXC Exchange. TG- https://t.me/CryptoNationIN


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