Hello again and welcome to another issue of the latest in PegNet news. The last few times, we talked about the AMA with Factom's David Johnston, PegNet’s increase in hash rate and the joining of F2Pool mining, and generally about how you yourself could get into mining PEG.
This time I’ll be covering the highlights from the latest AMA, which saw Factom CEO Paul Snow participate and answer many users’ questions. Snow is the CEO of Factom, which he also founded and for which he built the consensus algorithm as Chief Architect. He also serves as the President of the Texas Bitcoin Conference.
Perhaps the most interesting tidbit from the AMA is that, when asked about the expectations were for PegNet in 2020, Snow said that he expected it to be a “top 30 asset.”
That’s no small ambition, but PegNet certainly has the potential to make significant progress in a short span of time. Let’s jump right into the AMA.
Q1. Hendra setiawan [@arifin031095]: In 2020 do you have a plan to launch in a new exchange?
PegNet: The community is always working hard for that. The good news, the novel technology aside, our community members are among some of the most accomplished and well-respected in crypto.
Q2. MatrixHoang [@Maitanhoang1]: What are PegNet’s plans for 2-3 years from now? What are the growth targets for sales, users, markets?
Paul Snow: Again, PegNet is a protocol, so it has no "sells." I do expect PegNet to be a top 30 crypto in the next year. I expect use of pegged value in crypto to be the basis of significant DeFi applications in 3 years, and PegNet to be a major player.
Q3. toanpham [@toanphamhd]: What is the core feature that creates the value of PegNet? Can you tell some lights from them?
Paul Snow: PegNet supports 29 assets, allows conversions between them. Means you can balance your exposure to the assets within your own wallet without third parties. Make payments in currency values like pUSD even if you're holding assets in pGold or pBTC.
Q4. Agus [@supriagus189]: There are many projects launched to overcome the disadvantages of blockchain, so what has PegNet contributed to the development of Blockchain technology?
Paul Snow: Creating stable pegged assets without:
- centralized oracles
- reserves and centralization
- market manipulation, leverage, smart contracts
- ICOs, EIOs, VCs
- No centralized issuers
- Conversions between assets without counterparties
Q5. Mocha [@Mochaz123]: Many people only focus on short term profit, can u tell us what is the benefit of holding this token for long term? and what is your plan to gain new investors?
Paul Snow: PegNet pays for stability via arbitrage opportunities in the market. No smart contracts, no market manipulation via leverage, no issuers, no operators so no overhead, efficient payments, store of value management creates market opportunities, game theory maintains token value.
Q6. Shivam [@shivam39389462]: There are 3 core issues prevalent in crypto and blockchain: Security, Interoperability, and Scalability. How does #PegNet plan to overcome these issues?
Paul Snow: The biggest advantage of the PegNet is building on an immutable data layer. Factom doesn't validate and verify transactions, but all the implementation is distributed and puts no overhead on the Factom protocol. And data is always interoperable.
Q7. Lalit Meena [@lm442389]: What are the advantages of PegNets for miners?
Paul Snow: CPU mining, easy mining pools. 25 winners per block.
Q8. toanpham [@toanphamhd]: Who is building on PegNet and what are they doing? What are the major milestones you have achieved so far?
Paul Snow: Mostly the developers come from the Factom ecosystem, with some exceptions. Anyone is free to contribute. We did launch mining in August, conversions in September, and pricing of PEG in October, got listings on the first exchanges in November.
Q9. toanpham [@toanphamhd]: Can you tell more about roadmap for future developments? What is the unique feature of PegNet?
Paul Snow: The ability to make payments with an oracle to price conversions means PegNet can be very compliant, and provide the data needed for audits and tax reports.
Q10. Shivam [@shivam39389462]: How do you attract developers or companies to develop on #PegNet? What moves has #PegNet made to #encourage developers to come?
Paul Snow: Various parties are investing in infrastructure to create opportunities for developers to monetize their applications. All development using open and transparent platforms. Parties are contributing funding and support. Expect doubling of investment per yr for 5 years.
Q11. toanpham [@toanphamhd]: How does PegNet evaluate the importance of the user community? In the near future, does PegNet have any special plans to attract and expand the community?
Paul Snow: We highly value community on this project, because that's all there is. PegNet has no company, no foundation, no "CEO"... Just community. Together we are looking at how to grow the community and gain attention.
Q12. btc4life76 [@btc4life76]: I see that PegNet is still in its early stages, is there any plan to do Token Sale? If yes then when can we expect it?
Paul Snow: No token sale or fund raiser. We are a community building a utility. There may be some advantages to joining early, but it is too soon to tell.
Q13. Nguyên Khang1610 [@NguyenKhang1610]: The role of the Peg token in the PegNet ecosystem. What are the benefits of an investor holding a Peg token in the long term?
Paul Snow: The PEG is central to reflecting the value in the protocol. So think of it as an asset that reflects the value and liquidity of all the other assets in the protocol. Its primary use is arbitrage, but it doubles as a reflection of a wide range of economic positions.
Q14. BABYSHARK [@Babyshark1996]: How do you plan on differentiating the PEG network from others?I know a lot of the tech industry as a whole feels like anything like blockchains are not really "prod ready" or at least the negatives outweigh the positives due to a lack of stability.
Paul Snow: We are adding stability, distributing the problem of on ramps and off ramps, value conversion, easing tax reporting, limiting counterparties.
Q15. H-D [@HIsmangoen]: What is the main idea in creating PegNet community and what is the issue for Peg need to overcome?
Paul Snow: The main idea for PegNet is to facilitate the management of value without counterparties for payments and store of value. The underlying mechanism is very simple, but the building of the infrastructure is likely to last forever! Innovation never ends!
Q16. Nguyên Khang1610 [@NguyenKhang1610]: Which markets does PegNet focus on? How would you rate the market in Southeast Asia?
Paul Snow: Payments and store of value. Asia is critical, which is why we have the yen, Korean Won, and the Yuan, as well as dollars and euros.
Q17. Steven Agustian [@Steven_Agustian]: Any asset can be converted by destroying the original asset and by creating a new instance of another asset class with equal value. What does it mean? can you explain me more?
Paul Snow: If you are holding pUSD tracking the US dollar, and you want that in Bitcoin value, then a conversion of pUSD destroys those tokens, and creates pBTC tokens, value to value, at the market price of Bitcoin at that time.
Q18. Paulo [@oluap5773]: When can we expect the Enterprise wallet will be available to PegNet Token and what are the Killer Features of PegNet?
Paul Snow: Very soon on the wallet (next few weeks). Low cost Payments in a range of valued and management of store of value without counterparties are the killer features. Built in auditing and tax reporting support rank pretty high too.
Q19. Indra [@Indraadi00]: What is your strategy for attracting new users to the PegNet platform with already tough competitors in the market?
Paul Snow: At this time, we don't really have any competitors with our particular mix of features/decentralization/compliance. We are as regulatory compliant as possible. We greatly reduce AML/KYC issues by actually eliminating third parties that obscure money sources, increase risk.
Q20. Agus [@supriagus189]: What are the biggest obstacles to your project when you implement it to the real world, and what is your plan to overcome these problems?
Paul Snow: Government and regulators are always a risk, even when designing a system to be compliant with all existing regulations. We have participants that closely follow regulations as they develop. Scale can be an issue, so continued infrastructure improvements are necessary.
Q21. MiXëD ČüŁtÛrË [@OpPWN3nT_sL4y3R]: Are there plans for a PegNet GUI wallet with a one click pegged asset transfer type format and built in CPU miner in the works?
Paul Snow: We are working on a GUI wallet that will be out within weeks. Community members are working on one click mining pools on your computer. And we are working on other solutions for infrastructure to make crypto easy.
Q22. Ramesh Jankar [@Rjrameshj]: What incentive programs do you have to increase the token usage? Any token burns or staking plans maybe?
Paul Snow: Tokens are converted (not exactly burned) in the arbitrage mechanisms. If pUSD is high on the market, and pBTC is low, selling pUSD and buying pBTC on an exchange, while converting pBTC to pUSD at market price makes money. Also reduces/increases supply of pBTC/pUSD.
Q23. Jay Hwang [@JayHwan555]: As we know there are many scalability issues on Ethereum Blockchain! Then why did you choose Ethereum Blockchain for PegNet project?
Paul Snow: We are creating a gateway for ERC20 tokens that wrap PegNet assets. Because Ethereum has way more infrastructure for tokenization than Factom has at this point.