How to Earn BTC With Your Dogecoin | Redouane Elkamhi - GOAT Network

[Music] so our next talk coming up is how to earn Bitcoin with your Dogecoin exploring strategies and how to maximize your the potential of your digital assets is something I think all of us are pretty interested in so I'm very excited to introduce you to red one from goat Network to dive into more thank you pleas share it okay uh good afternoon thank you for having us to present our work and I think I'm uh delighted I don't know what you guys see the screen on this one uh what is the title okay perfect okay I think this is um the title is actually probably the first question that comes up well let's first a snapshot my name is Redan ilami I'm a professor at the University of Toronto for the last 15 years and before that at the University of Iowa I teach economics and finance and I'm kind of the first course on blockchain since 2014 uh I'm excited to be working on this project for the last one year and a half and I'm excited here to present to you two things first I know anybody who going to read this the first question that come to their mind why this has to do with ethereum first thing comes it's Bitcoin Dogecoin and we are in ethereum conference H you have to wait a little bit to to understand why that makes sense the second question I'm really interested in explaining to you but that's will be a little easier is how do you earn Dogecoin using your how do you earn Bitcoin using your Dogecoin I think the I was thinking about this actually why come in here and I thought I think everybody probably watch Harry Potter hopefully and everybody knows what's the was the philosopher stone basically turning lead or silver into gold and that's the first thing people will think about oh wait a second Dogecoin let's say is a very established silver coin now it's earning gold which is Bitcoin wait a second are we back into the Alchemy but let me break the news and the secret sauce for you guys right now what actually we did we hired a lab at the University of Toronto we hired a chemistry lab and we basically found the philosopher stone by using some of the ingredients and we turn probably not silver to gold but we're trying to turn digital silver not into gold but earning gold this is just a joke but just to give you an idea in case you're asking yourself how can something that gold be rewarding something that is not gold and the idea we're trying to establish here is more technical but the and the Genesis is going to be pretty simple after I move in the slides but I just wanted first to let people know this is what I'm trying to hit by the end of the presentation one how do you transform something that is not gold into having some gold in it and second what is this has to do with the conference which is more of a joke mean really what I'm going with this it's what problem goat network is trying to solve the oneon-one anytime you present something you're trying what are we trying really to solve all of this we're trying to solve a basic problem we're trying to say look whatever curve you think about adoption uh if you think this is Dogecoin is here Bitcoin is here in terms of the maturity the ACT taxes is the maturity uh that market penetration two things comes to mind very quickly for Dogecoin which is the purpose of this presentation it's an idle asset it's only used for speculation but it's an established one can we find a way to make it to generate some returns for the active users of Doge because as it stand today there is 147 billion on it 5.4 holders and out of the 5 point holders only probably five or something directly is using it to gain any attraction to gain any returns means you've got a problem that is clear the clear problem is can we be able to generate yield for Dogecoin and for Bitcoin and what numer rare what digits this yield is going to be made of and the answer for this is is going to be in Bitcoin it means out of if you just leave right now suppose you leave right now that's what I want you to stick in your mind if you have Dodge Coin you can bring it to goat and you can stake it in some of the sequences I'm going to talk about and you're going to be able to earn not go token only you're going to be able to earn Bitcoin as part of securing the system means this is really the one sentence I wanted people to understand out of this how we do this in a very basic non-technical discussion if you have Bitcoin or if you have Doge and let's focus on Doge for now because the title of the presentation bless you by the way for the person who just neede if you have Doge Cohen you basically think of goat as this I don't know how many people know what sequencers are but just imagine we have multiple sequencers not one we are not centralized we are decentralized sequencers and you have to think of these sequencers as think of them as agent that are out there to to secure the network basically it's a proof of stake Network for which there are many sequencers means Point number one you go home with what is differentiating goat from all the other ones that they talk about l2s oh decentralized sequencers because the majority you're going to see out there are centralized sequencers and if you have centralized sequencers the problem that comes along is how do you share and what do you share and when do you share means we have decentralized sequencers as a Genesis what are we trying to earn second thing you have to think about is that we not only only I think all of you here in the audience know what a proof of stake but maybe the only difference here is the proof of stake is a vector is not a unit you don't only establish proof of stake of one basically everybody has Bitcoin but it's like many coins that actually can be valued at some price and those value can help you generate a meaningful STI means the way you think about it you think of these are sequencers decentralized one two and three sequencers just for the simple example and then you think you come and stake here and what do you stake you stake both Doge if you have and Bitcoin you don't have to St Bitcoin but if you only have Doge you can stake it here or here or here or there you have a choice you have a choice where you stake it and if you have a choice means what means there's competition across the sequences of how much they share with you now I'm going to this is the reason why even I exist in the project because this is a project for which economy has a bigger role in the project technology is Extreme extr important but this project as a one sentence is where technology meets economics the reason we want decentralization is not just because it's beautiful it's not just because it inherit the concept of Bitcoin and the concept of ethereum it's because actually you guarantee security by decentralization and you also guarantee competition which actually yield higher yield if I don't have competition I don't have a yield to generate I basically at the mercy of one centralized and maybe be cheaper but at the end I'm at the mercy of them it means the way it works is give us your goat and BTC sorry this it's staked in decentralized sequencers with an S this is decentralized meaning there's multiple sequencers you have the choice where to stake and that's produced a basis of the security of the network means what is really your role as a Dodge holder or as a Bitcoin holder is to secure the network and the network is not only secured with one token is secured with both for now now how do we compensate these people we compensate them because anything the network generate this is why we call it sustainable or real yield the network fees are in BTC means think of it as an ecosystem anybody who are going to use it going to pay some Bitcoin to use it you use that Bitcoin and you have to share it by anybody who's actually staken in the network but they're not staken in one entity they are staking in a decentralization and they are not staking just Bitcoin they are staking both Bitcoin and Dodge it means this is in a simple setting why if you have Dodge you can generate real yield sustainable yield in BTC not in only goat token that's I think the one sentence I want you to leave with but there is a lot of technical things behind it like the all the buzzword you already have heard the bit VM the things The Inheritance the zkp the zkm we can talk about it in detail but this is not the Forum to talk about it in details because talking about it in details just talking about how we produce zkm will take us the whole session it means just think of yourself if you go to a financial bank do you ask how the back office really work have you spent some time saying oh how many people you have in back office how many people you have that's why I don't want to spend a lot of this time for you guys to spend time talking about how we do this unless there is question on this means if you have question on the details behind it I'm happy to talk about it one of the things you're going to realize is that I think the new phase of blockchain has more economics as a have to than technology and maybe I'm preaching to the acir I'm a full-time profit at the University of Toronto that's my job I've been in for 20 years this is what I breede this is what I eat this is what I spend time doing but I'm only trying to basically tell you that there's a lot of economics in order to secure a yield to the people you may secure security but security can come at a higher cost and if it's a higher cost there's nothing to share you as a Dodge Coin you can stake and if you stake with me and I'm decentralized and I'm guaranteeing security I'm giving you peanuts if there is no economics mean if there is economics you secure competition if there is competition you share the revenue but you need to generate revenue and how do you do it you need a thriving ecosystem it means there are two part that are key to do this it sounds simple but it's definitely important that you need to be able to generate security at a cheapest cost because if you have security higher cost is nothing to share you're wasting your time second you don't only proof of stake of one thing anybody who did Cal to knows what a vector is think of it as a proof of stakes of vectors there are vector of things that you actually can stti means for now we only have Bitcoin and Dogecoin in the future maybe there could be something else um as you notice hopefully I'll complicate it a bit by a bit but hopefully for the interest of seeing what this is going I have talked about in a simple terms that this is not Alchemy this is not the philosopher St we're not turning Bitcoin into BTC sorry we're not turning Dodge Coin into BTC we're making Dodge Coin value useful for us to secure a system but we share with them BTC because the gas fees is in BTC it means digital nature of gold which is Bitcoin and digital nature of the system allow us to do this now really what do we have more how do we create all this liquidity all this system it's actually in one graph by the way you think think of this as being 10 decentralized sequencers I told you before think of all this one decentralized second one third one fourth one fifth one and you can choose where to go now zoom in on one of them I'm just going to zoom in on one of them and everything can apply to all of them I'm zooming on one and I'm going to zoom in what happened in one of them me if I zoom in what happened in one of them this decentralized sequencer now if you the gentleman in the back with a nice shirt color a shirt if you have some Dodge Coen and you say know what I don't want to take Market risk I want to keep my Dodge Coin but I want to make some yield based on Dodge Coin it's the T-shirt by the way don't be jealous is the t-shirt is shiny I choose him because of the T-shirt I don't know him before if that gentleman actually would like to use his Dodge Coin to make some money I'm going to tell him wait a second let me tell you there's a double dip in here you're going to use your Dodge Co and you're going to come in you're going to choose which one you go to is this guy good how much this guy shared in the past well this guy seem only to share 15% but this guy did 14 17 but it's more stable I'm going to this you chose this zoom in if you zoom in what going to happen you basically set your Bitcoin here you're going to earn whatever the system is earning BTC and go token and now we going to create this sequencer my friend what's going to create is going to create a yield bearing token think of it as a coupon bearing bond for anybody who knows finance a bit now I'm creating a yield bearing token what is the yield there the the yield is real yield in BTC what I'm going to do with it I'm going to generate it to dip again is a double dipping where you can call it liquidity it's going to be a thriving ecosystem that is now using a yield bearing token call it why Doge or call it y BTC means first your BTC my friend your Dodge have generated you some real yield in y do second you're using your ybtc in order to create liquidity in some pair somewhere in order to do collateral lending somewhere else it means it's an ecosystem that is actually generated through this liquidity through this it means Dodge Co in guys anybody who has Dodge it has a place now I know the BTC holders are aiming for a million they may not come in now because for them they don't want to take any sort of risk but it's okay I'm a I'm a Bitcoin believer and I hold Bitcoin and it allow me to retire sooner hopefully but in and the idea is that this is actually how the network work I just use him as an example but anybody can think about it now if you have Dodge you cannot take Market risk it's okay you keep your O Dodge but your Dodge going to have a double dip in you're going to earn real yield and you're going to use the white Dodge to generate the whole system means this is in one picture but I don't want you to forget this is one sequencer not many sequencers basically this is just some growing ecosystem that we have Partners now with us I don't how much time do I have oh I have 3 minutes okay I'll skip it uh this idea by the way this idea that I just mentioned now about Doge and BTC as a vector of proof of stake means if you think about Unicity in our project like somebody's sitting down and saying okay what I have learned okay I have learned probably that now there is this ecosystem for which I can choose where to deposit or where to stake my BTC and my Bitcoin and I have to places to choose within the ecosystem and they compete with each other to basically secure the system and whatever we're going to earn and you're going to earn not in Cucka token that going to go to zero you're going to earn in BTC Point number one you're earning BTC and you have a choice of decentralizing when to go second thing that I think is pretty important that I didn't talk about and hopefully some of the questions if we had time talk about I didn't even have a chance to talk who we are well we are a team of I'm Only The Economist part because there is a lot of economics has to do with this project but this team have already generated very good return for many investors in the past I think there is one slide here that says it but um that's not the audience of investors I may skip that I I only focus for the time I only have 2 minutes 20 minutes 20 second I'm going to focus about why it makes us unique for security I have only one minute one minute and a half I choose my time on this one in order to have a very secure or this word that you hear all the time you hear this word I going to inherit Bitcoin security you hear it a lot I'm going to tell you next time when you hear it think at what cost you're going to inherit Bitcoin security Point number one I just ask you to think of this question at what cost this project is going to inherit why because if you inherit it at a higher cost you have nothing to share point number one point number two our project has in order for anybody who Implement you know bit vm2 is coming and it's very important project whatever and we already have a playground probably we're the only first project right now that have a bit vm2 playground for which you see an implementation and the reason we're able to do that is because we have our own ZK proof now I'm talking technical sorry if anybody's not in the area we're going to use our ZK proof ourself it's basically developed by zkm and anyone who implemented anything in this audience anybody knows that things are iterative what if I was using a ZK proof from somewhere else suppose I use risk zero or s p but I'm implementing bit vm2 I am telling you it's almost impossible to guarantee a cost efficient way why because when you it iterate the implementation of bbm2 you have to change your zkv and if you don't have access to it is someone else doing it it means we are a team that is proud of the fact that we have internally in house the house of ZK you can Google the house of ZK that develop our o and we add the competition of sequencers and the economic part in order to generate a good implementation of bit vm2 in a nutshell 25 second in a nutshell basically what is goat goat is a network that allowing Dodge people to make money there is a double dipping you make money in BTC not in kuua token and basically when you make kuua will end up going to zero and it's a problem sometimes you're going to make it in BTC so that you feel you're making it in something that is real second more important part Security is coming at a cheaper cost because we have an economic model that allows for competition across sequence which is actually the core of Bitcoin the core of Bitcoin is decentralization and decentralization in this case is key because it allows concentration it means check us out ask us about the details of the back office I'm happy to answer any economic and Technical question on this one and times is up sorry about that 25 seconds more I yield my 25 seconds thank you guys you share with me the my friend the whatever you make in this one no I'm just kidding mus