Swarm Alpha Online Event - BZZ token - What it is and why it is needed by Daniel Nagy

so next up this topic has gotten a lot of questions in our AMAs freeware on Twitter and on reddit I guess it's best that before we go to AMAs and ask questions about this topic could we actually listened to the guy who knows a lot about it I would love to invite Danny to talk about the bus token Danny if you are here I hope that you are here and your camera is there okay awesome I can see you I can almost hear you oh no I can hear you awesome Daniel our kids do you have you here I'll just give the floor to you and you're a really interesting presentation on the bus token so go ahead hi everyone so before I actually start the presentation I would also like to get a little bit philosophical of what actually we are doing here and why decentralization is is interesting and important and the way forward and for that I would like to bring up a metaphor that how happy brings together so when we're rowing in a boat alone you know the two paddles the boat brother so all this kind of is within the sphere of control of one person and we can manage if we have two people in the boat then it's a little bit more difficult to coordinate but we can still make but if we have a big rowboat with like 30 people in it then things started breaking down and it becomes really really difficult to you know just to to decide where we're going how fast we're going when people are rowing and so on and usually the first thing that emerges the first thing how we start moving is that somebody itself appoints as a coxswain and you know starts crying out row row row and people start obeying and the boat moves forward and you know this person is often celebrated as a visionary but but it's a very fragile way to coordinate because this one person is a single point of failure both accidental and deliberate everybody submits their economy to this one person which means that even with the best intentions this person can not take everybody's interests into account even to the extent possible well this person might you know misjudged how fit the people are and either under use them or overuse them and get dusted before we reach the destination so this centralized way of coordinating is much better than nothing but but we can do better data and the ancient way of coordinate in the robot without coxswain is singing the song and rowing to the rhythm and this way we can kind of take everybody's voice into the account to the extent it's possible so if people get tired the song slows down people feel strong it speeds up and and and and it's it takes a lot of learning how to how to do it but if people master the skill they will be much better than the dukakis and what we're doing in the digital real when we're transitioning from the client-server model from the centralized web tea world to to the web treat will be centralized web it's in a way similar so the there are certain things that need to be coordinated on their first attempts at decentralized storage which came before the blockchain things like Nutella they don't really work well because the coordination kind of falls apart like when everybody just wants to grow their own way but with the blockchain things that require consensus like if I type a name I would like the same pile come up to everybody this is provided by the blockchain specifically by the iana's the etherium name service which was already mentioned here so they so the blockchain is kind of of a sock it's it's it's the way we coordinate our digital actions without actually having some centralized entity playing the coxswain and swarm does is basically the heavy lifting behind the drawings so the blockchain kind of provides us with with this coordination but somebody still needs to push around the data to store it to move it and that is that's what swarm does and in order to coordinate the the resources that are starts in in swarm such as bandwidth and storage we also need a song and this song is the bus token so basically the first people who get to get the bus they are going to start singing and as they you know distribute give give their for sell their bus tokens to other people basically they will make these other people join together and this song of storing information will become you know bigger and louder and more beautiful so basically this is this is the matter for how I see what we're doing and so now a little bit let's delve into in today the spore of of this song and see what the what the bus token actually is so let me share the presentation you so first open so again the first question that usually comes up is why don't we just use it like that's the obvious native token of the etherium Network swarm is type deuterium it used to be a inseparable part of the Holy Trinity of aetherium and this changed a little bit because first it became a separate sub system within Imperium and then during this graduation process it grew into this independent project that we are and because of that deep objectives have a little bit changed so first of all now there are more EVM base block chains not just aetherium if cerium itself has hard work because of the day off work and there's this other hair to the etherium Heritage Imperium plastic which is kind of the orthodoxy after the split which aims to basically be faithful to what they perceive as the original vision behind the areum or there's this other project our escape which uses aetherium smart contracting the capabilities and attaches them to the Bitcoin blockchain consensus and all the security that comes with bitcoins mining ah and of course both of them in order to fulfill etherium IBM's promise would need something like swarm and it would be extremely inefficient and plain stupid for all three EVM based networks and there may be others in the future would want to join swarm to have their own swarms so store the same info or store largely the same information under the same address and yet not take advantage of the redundancy of the efficient allocation of resources between addy storing nodes and so on so because of this small table of chain nature the native token of one of them material is no longer adequate from that from that point of view and also the market priced of this token if it's tight to eat eat then it is subject in addition to the natural for patient that come from you know swarms own event flow Trading gun and usage it also will become subject to fluctuations that have nothing to do with swarm so because of that because of all these things it has been decided that instead of using eat the worm is going to have its own token buzz so what is it most importantly it is the means of deposit and pain let's begin with payment so there are consumers and there are providers of resources in the network some people download files other people root it to them yet other people actually stored and in order to allocate these resources efficiently in order to encourage economical use in order to encourage adequate supply there needs to be some organised exchange between the consumers and the providers and of course this is very dynamic actually one second boomer the next second they might provider so this can change quickly within relief several times in a second people who consume to profit right but also swarm because it provides long-term storage it deals with promises that I will store this information for a certain period of time and in order for this promise to be credible there are some deposits which are subject to slashing in case the promise is broken so for these two purposes we use an ER C 1 token initially on the etherium network but as I said earlier our objective is eventually to create a multi-chain token which is going to be moveable between these three EVM based networks so basically lock up the token on one network one blockchain take the proof of it being logged to the other blockchain and unlock the token on the other blockchain and so the token can travel between different block chains and coordinate the efforts of the B's that form the network so the next question that is very natural to ask is okay but how does this talk and how how does buzz come into existence so we are on Oh so we're conducting an initial sale which is going to allocate tokens to investors just like aetherium was allocated initially we don't invent anything here it's very closely based on material experience and later it will only be issued against hard deposits against die and finally I would like to show you the answers that we have to the what-if question so what if the contract that's had what it maker Doggett said so we have an emergency shutdown procedure for d1 linker contract that issues the tokens against our deposits but this is not going to be the end of us it just means that it's no longer issued it's still available it will work like swarm will continue functioning as before it will keep using this token and it only concerns about three percent of the total market value so I ran out of time unfortunately but if you have questions please post them in the Q&A section and I will do my best to answer so thank you very much yes Danny thank you so much for your presentation and you may not realize it but you meet that telecom group go nuts with this announcements that people actually will be able to own and and treat this token so you'd better hop over to the Telegraph group and to the orange launch to answer all these questions later on we will see Daniel again for the AMA and I know there are many questions for you so I hope to see you back at that moment thank you so much Daniel