PegNet AMA Recap

PegNet AMA Recap

CryptoDiffer team

We are glad to meet here David Johnston (@raj888), Community Member at PegNet

Q1: Can you introduce yourself to the community? What is your background and how did you join PegNet?

David Johnston
Community Member

Sure so this is me. http://www.davidajohnston.me/

Crypto nerd since 2012.

The guy who coined the term “Dapps” in 2013. Helped with a bunch of early protocols. Helped with a bunch of early protocols.

Here is the website: https://www.yeomans.capital/

As for PegNet. I knew a bunch of the early Factom and Ethereum guys. I was following the developments in DeFi and stablecoins. Then Paul Snow the inventor of PegNet told me about his idea and I thought it was brillient. Mine able, decentralized, stablecoins based on oracles. So I started writting about it, became a miner, and have been active in the community ever since : )

 

CryptoDiffer team

Q2: Can you briefly describe what is PegNet in 3-5 sentences?  What technology stands behind PegNet and why it’s better than the existing one?

 

David Johnston
Community Member

So PegNet is a network of 30 different assets. These include the top 14 fiats, top 14 cryptos, the Gold + Silver. You can convert between any of these pAssets for just a tenth of a penny $0.001 USD. Send them to anyone. The whole system is user run. There is no company. No foundation. No ICO or token sale. Just miners and open source. People convert their crypto into pAssets via burning PEG. You can see all the assets here.

https://pegnetmarketcap.com/

As for why its better.

No fees. No central party. No central reserve that can be hacked or the founder runs away or the company is shut down.

In PegNet the user is king. He holds all the power and needs no permission from anyone.

 

CryptoDiffer team

Q3: What are the major milestones PegNet has achieved so far?

David Johnston
Community Member

The PegNet mining went live via CPU mining on August 19th 2019. See mining info here: https://prosperpool.io/ In October of 2019 the conversions between pAssets started. There is a GUI wallet that makes this super easy to convert any pAssets into any other pAsset. 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/

In December of 2019 the arbitrage function went live. So users can be involved as miners, hodlers, arbitragers, and so forth. There is a lot more development coming. Each month the community votes on all the things they want developed. And the community has donated more than 22 Million PEG to developers the past 6 months. Here are a few of the things the community is working on.

ChainLink Integration to use PegNet Decentralized Oracles – 27 Votes – 100,000 PEG Pledged

1 Minute Conversions on PegNet settled in the next block – 20 Votes – 500,000 PEG Pledged

PegNet Trader Tools – 12 Votes – 500,000 PEG Donated – 500,000 PEG Pledged

pAsset Listing on Exchanges (especially pUSD) – 11 Votes – 1,500,000 PEG Pledged + $30,000 pUSD Pledged

Lending of pAssets for Crypto – 9 Votes – 50,000 PEG Pledged

PEG Staking Development – 9 votes – 50,000 PEG Pledged

Developing Shorts on PegNet – 8 Votes – 2,500,000 PEG Donated – 50,000 PEG Pledged

Adding Public Stock Assets to PegNet – 6 votes – 100,000 PEG Pledged

PegNet Mobile App Wallet – 5 votes 750,000 PEG Donated – 250,000 PEG Pledged

BIP 32 Type Support for PegNet Merchant Payments – 3 votes – 100,000 PEG Pledged

Top Priorities for February.

1. pAsset Listing on Exchanges (especially pUSD) – 11 Votes – 2,750,000 PEG Pledged + $30,000 pUSD Pledged.

2. PegNet Mobile App Wallet – 5 votes 750,000 PEG Donated – 1,000,000 PEG Pledged

3. One Minute Conversions on PegNet settled in the next block – 20 Votes – 500,000 PEG Pledged

4. PegNet Trader Tools – 12 Votes – 500,000 PEG Donated – 500,000 PEG Pledged

 

Cryptodiffer Community

As you say PegNet is a network of 30 different assets. These include the top 14 fiats, top 14 cryptos, the Gold + Silver  i would like to know do you have any plans to launch pegged token on Precious stones like diamond, ruby etc?

Could you please mention some more benefits of LXRHash algorithm except saving 90% energy?

 

David Johnston
Community Member

Red Z, I think the list of pAssets will continue to expand yes. I don’t know if diamonds or rubys will be included though because there has to be a deep public market for each asset so you can get a public price for the commodity every 10 minutes. I think more likely is Oil, Copper, Steel, and other big markets. On Wednesday this week an upgrade goes live that adds 7 more fiats, and 5 more crypto tokens to PegNet so then there will be 42 pAssets.

As for LXR hash it was picked because its friendly to CPUs and that way a broad community can be included in Pegnet.

 

Cryptodiffer Community

What is the Importance of Pegged Assets? Where Pegged tokens were used & Whats the benefits of Pegged assets?

As a trader, Whats the benefits of Pegged Tokens for me ? Can i trade with pegged assets with other cryptocurrencies or assets?

David Johnston
Community Member

S.A.M, As a trader you should love PegNet because you can convert your pAssets freely. No limit on liquidity, no slippage in the market, and fee is only $0.001 (tenth of a penny). I wrote an article about the advantages for traders here: https://medium.com/@DJohnstonEC/ready-trader-one-83ca7c30d596

 

Cryptodiffer Community

Why is PEG built on Factom over other comparably quicker and scalable chains?

David Johnston
Community Member

Dark, PEG is built on Factom because it is one of the most scalable and cheapest chains to publish data on. Factom also has a very high level of security given its anchored into both BTC and ETH chains every 10 minutes. It already secures billions of records.

Cryptodiffer Community

Can you explain about LXRHash to PEG ecosystem?

What is the role of Factom Protocol to PEG ecosystem?

David Johnston
Community Member

The LXR Hash is Ram / memory bound so lots of compute doesn’t give you a big advantage. That means ASCIs aren’t the main miners, its the community with CPUs. 

As for Factom its the blockchain that secures all the data on the PegNet applciation.

 

Cryptodiffer Community

How does PEGNET work?

David Johnston
Community Member

Caterian, PegNet works by the miners publishing the price of all the assets each 10 minutes. The system can then allow users to convert from one pAsset to another based on those prices. So for example pUSD to pETH. There is no order book or “trading” its all value moving around in the users wallet.

Cryptodiffer Community

Why is $PEG built on Factom over other comparably quicker and scalable chains?

 Why don’t $PEG build their own solution system / chain?

David Johnston
Community Member

Building a full featured blockchain is really expensive. And why do it if existing blockchains such as Factom and Ethereum offer everything the system needs to function. PegNet was launched in only a few months thanks to leveraging the existing blockchains.

 

Cryptodiffer Community

1.  Many people doesn’t understand the real product & do invest for short term profit, How you see those investors?

2.  In recent days there are many innovations in Blockchains like Layer-2 & more, How $PEG is there to not miss any advance technology?

David Johnston
Community Member

Crypto, PegNet does function on a blockchain 2nd layer (Factom) that works on top of both BTC and ETH. That has given the project many advantages.

 

Cryptodiffer Community

Pegnet seems a very nice opportunity for startups. But what do you need to do to increase the brand awareness & adoption?

David Johnston
Community Member

Trader, Beyond AMAs, the community is very active on Telegram. You can see the channel here: 

https://t.me/PegnetOfficial

There is also a very active Discord community for PegNet.

https://discordapp.com/invite/Xz2ZN6p

So people can get involved deeply.

 

Cryptodiffer Community

Nowaday DeFi is changing our relationship with money, investing, credit and debt . So, how do you think of the future of DeFi? What are the factors that peg could make a difference since there are lot of projects involved in DeFi?

David Johnston
Community Member

Silver, I think DeFi will be THE big trend for 2020. I was happy to see DeFi pass $1 Billion in contracts. PegNet is about to reach a big milestone of its own. Today it will likely pass $100 Million in conversions completed on the PegNet.

https://pegnetmarketcap.com/

At $98 Million right now.

Cryptodiffer Community

Pegnet is indeed the number 1 DeFi product to look out for throughout this year. What really amused me was the fact that you were still able to achieve such significant milestones with No ICO/ IEO/ Founder/ Fund/Premine/ airdrop/  Collateralization and Reserve dependency.

1. How were you able to pull all those achievements together?

2. Asides transparency and trust which other principles does Pegnet adopt that made you standout among others? I’m optimistic this will go along way in preparing we the visionary leaders for the future.

David Johnston
Community Member

Thanks Kunlefighter, Yeah its been great to see all the growth. I think one key is having an experienced community that knows how to build and grow a decentralized project. The principle of users being in control is the big difference. Don’t let a central reserve stablecoin control the crypto world or we will see just another banking cartel. PegNet is a people’s revolution.

Cryptodiffer Community

Why did you choose blockchain for your technology and why do you need blockchain tech?

David Johnston
Community Member

Navi, Without blockchain you have to use a data base. Someone has to control a data base. Blockchain is a way to remove all the operators, controlers, and middle men from a system so only the users are in charge.

Cryptodiffer Community

What makes a network of pegged tokens more efficient than a simple two token systems for example a peg token and a pegged asset?

When mining becomes dominated by ASICs and GPUs it becomes centralized. How does Pegnet LXRHash mining algorithm address this bottleneck?

David Johnston
Community Member

Aluta, The advanatege of a ANY pAsset to ANY pAsset conversions system in PegNet is you don’t have to have a common trading pair. So the user don’t have to do two conversions like they normally would. Say from BCH to BTC to ADA if you wanted to convert from BCH to ADA. In PegNet you can just do one conversion.

Cryptodiffer Community

All efforts to know how Pegnet Arbitrage stability work proved abortive. My question is as follows

In a situation where by pUSD is below its peg by 7 percent, and pEUR is above it peg by ~7 percent. How does the arbitrage stability mechanism works to bring both the pUSD and pEUR to their respective pegged values?

David Johnston
Community Member

Abisola, Arbitragers have a financial reason to buy cheap pAssets off the exchanges (and get full value on the network) and add more high priced pAssets to the exchanges until their prices reach the correct reference price. This is an early process, and PegNet needs more active arbitragers for sure.

Cryptodiffer Community

PegNet exchangehas a transaction/withdrawal fee of 0.25%.Why should I use PegNet exchange when its fee is exorbitant compared to many exchanges with excellent features some of which PegNet  exchange doesn’t have?

Does PegNet exchange have any plan for the PegNet exchange  mobile app? when will it be completed and on what operating system it will be run on? Android or IOS or any other operating system please let me know more

David Johnston
Community Member

LA LA, There is no 0.25% fee on PegNet, you might be thinking of a different project. The fee on PegNet is only $0.001 USD. As for a mobile app, yes there is one right now. Midas Protocol. It supports PEG. And the native web wallet is great too. https://www.midasprotocol.io/

Cryptodiffer Community

Hi David! Regarding your recent blog post. The exchange data/conversion rate is always 10 minutes old. What are the risks for PegNet coming from 10 minute block conversions to 1 minute block conversions for pAssets and how is it connected with liquidity levels of assets? Will be grateful for a little explainer.

David Johnston
Community Member

Chiliua, I’m excited about moving toward 1 minute conversions as traders on the PegNet system have been asking for this type of faster speed. The risks are that a trader will try and front run the conversions on the PegNet. Which is why I wrote another post recently about having different levels of speed on PegNet for different pAssets. See the link here: https://medium.com/@DJohnstonEC/risk-levels-of-passets-on-pegnet-362a9e6eb9db

Cryptodiffer Community

Miners in the PegNet network are responsible for fetching the latest pricing data, and reporting the prices to the Factom Blockchain. So, how will Pegnet verify that submitted datas from miners are correct or incorrect and if these is some suspicous data from some miners, which will PegNet solution be?

With the appearing of more and more cross-chain solution and DEX, as a frictionless trading platform with pegged solution, will the trading on PEGNET will be affect by this and do you think PEGNET still keep its role with the rapid change of crypto industry?

David Johnston
Community Member

Parphan, Thanks for the question. In PegNet the system relies on the incentives of Proof of Work to reward good miners who want to see the system succeed because their money is connected to the outcome. In addition the PegNet software grades the miners by how close they are to the median price of all the prices submitted. So a miner needs hash power and accurate data to win the PEG reward.

Cryptodiffer Community

Security and privacy should be a top priority for any network.

Tell me, how does the PegNet authentication system work, how is it protected from fraudsters, and are user personal data protected from hacking?

Where did the team get the money at the beginning of the project if they did not conduct ico, how is the project earning now to guarantee long-term growth?

David Johnston
Community Member

Serg, Agreed privacy is key. The nice thing about PegNet is there are no accounts. No personal identity data from users is required to take part in PegNet. Since there is no custodian, no middle man involved. There isn’t even a counter party in a trade. The user is just converting value inside their own wallet.

Cryptodiffer Community

Do you have any buyback or burning program ?

All we know that collaborations in industry is very crucial in order to survive and dominate in long term. What kind of collaborations/Cooperations have been made by  PegNet?

David Johnston
Community Member

PEG is burned when people buy it off exchanges and convert into pAssets. The other day a big buyer converted 241 Million PEG into pBTC. And that reduced the total PEG supply by 11%.

 

Cryptodiffer Community

DeFi is one of the hottest topics in the blockchain space right now.Can you share your opinions on DeFi with us?Do you think that DeFi will disrupt the existing financial system?What is PEGNET approach towards the defi sector

David Johnston
Community Member

Polinator, PegNet is bringing all the world’s real world assets to the blockchain. This unlocks a flood of value from fiats, metals and other assets to be represented on the blockchain.

Cryptodiffer Community

How’s the listing process going on PegNet, how many criteria for this were included in PegNet?

David Johnston
Community Member

Sonia, An asset must have at least 2 public APIs to be added to PegNet. It also must have more than $100 Million in market cap and $5 Million in daily trading volume.

 

Cryptodiffer Community

I’m very much interested to know about your upcoming Project TITAN and Project NEBULA. Could explain about it little?

What are basic requirements required for mining??

David Johnston
Community Member

Thiyagarahan’s mining is pretty easy on just about any computer with at least 2 gigs of memory. As for the more advanaced projects on PegNet it will be great to see shorting and other type of activities like this. Folks should visit the Discord for details.

 

Cryptodiffer Community

you are the winner of community vote for the most promising #DeFi project 

What steps would you say are important to do within the community in order to establish more PegNet Adoption ?

David Johnston
Community Member

Crypto Kids, I think the key for adoption is word of mouth. What reasons do they have to talk about PegNet. Well one things is it creates stablecoins for Indian currency, and many others that have no stablecoin today.

 

Cryptodiffer Community

Whats the main utility of Pegnet token and how does team behind Pegnet generates revenue for its own salaries and the projects since Pegnet didn’t host a crowdfunding?

David Johnston
Community Member

Developers in the PegNet ecosystem have gotten huge donations from the community. They deliver great software and the community is happy to pay them.

 

Cryptodiffer Community

Can I build Custom mining machine for Pegnet mining?

David Johnston
Community Member

You can build a miner for PegNet if you want. But since its best to use CPU, you most likely just want to install the mining software on an existing laptop that will be cheapest.

 

David Johnston
Community Member

Wow. Great questions everyone. Thanks for really digging in. Reading the articles. Knowing the context from previous AMAs. Awesome to see. I hope you will get involved. This is the project I’m most focused on this year. Happy to have you in the community.

 

Cryptodiffer TEAM

Thank you @raj888 for your time! Very good answers! Thank you everyone who took part!!

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