COO of Sibcoin Foundation and founder of the Blockchain Name System start-up and Israeli Blockchain Association expert, Artem Gurevych, is devoted to the ideals of decentralization and market stabilization, what in his case usually means something others lose their head over looking at the bitcoin rates.
Why do you think the world cаme to digital currencies?
Money has always been a tool that belonged to the country and managed people within it. Many countries run protective mechanisms against surrogate currencies. Money analogues appeared several times throughout history, though it wasn’t quite successful. For instance, 17th century Holland had tulip bulbs as a mean of payment for a very short time. Another example: during the post-Soviet era, the company “MMM” issued bonds as a temporary and illegal mean of payment.
Until the launch of Bitcoin in January 3, 2009, there was no such thing as private money. The reason for the worlds interest in private money comes from that on one hand, the country protects its citizens interests, on the other, manipulates them. Different countries do it in different ways and on different degrees, which provoked the global need but for funds that can be exchanged in full trust to one another and without intervention of countries shenanigans. Blockchain technology allowed digital assets release guaranteeing that it can not be forged or changed.
After all, a country that has decided to spend money on a large parade, or to annex some neighboring territory, creates a hole in its budget, that is covered by printing new money. In this case, everyone receives their salaries, but inflation is still inevitable.
Initially, digital currencies are protected from such manipulations, thanks to embedded algorithms. Moreover, cheap transactions, easy ownership, simple use, cross-border nature and complete decentralization are an advantage. It takes the same time to transfer 0.03 bitcoins or 100 bitcoins to New York, or anywhere else in the world. Many still add the absence of taxes to the list of advantages, but I do not support this idea. We too need to establish clear levy rules on cryptocurrency: part of the sum should go to the pension, medical and educational funds. Although many of these financing types can be executed on blockchain as well.
Who really manages cryptomarket and is it even managable?
Decentralization is one of the values blockchain technology has given to crypto currency. At the same time, it is naive to believe that no one manages the market. Itis very speculative, at the moment.
If we talk about ICO, 90% of tokens are issued solely for attracting product investments and their further manipulation on the market – this is understood by both the funders and investors. There are whales, holders of a large amount of funds, who, of course, have an impact on the market. But over time situation will change. So far, there are 25 million bitcoin-wallets in the world. When this number reaches 1 billion, meaning 15% of the population will be using bitcoins / cryptocurrencies and the regulations will start to work, then the whole system will get in order and we will get back to this conversation. As of now, it’s more talking less facts and the market is too young, that’s why there are so many conspiracy theories that I prefer to keep out of the picture.
What bugs and flaws in cue and ether are absent or solved in SibCoin?
One of the projects I’m involved in is SibCoin cryptocurrency: created on May 9, 2015, and widely known in Russia as a “Siberian chervonets.” Now we use the name SibCoin more often to attract international users. The value of this cryptocurrency is in two things: decentralization, as it strategically contains proof-of-work consensus (hybrid consenus PoW + PoS is on going), also we have masternodes at Sibcoin blockchain. All these solutions protect against manipulation and speeds up the network, and openness and transparency of it’s blockchain. In addition, it is a community-coin with a task to develop Russian and international communities. CoreTeam deals with technical improvements and new features development. However, the entire SibCoin Foundation team is just customer service staff for a completely decentralized cryptocurrency. At the moment this network holds 7,500 nodes. They have a right to vote and all serious issues are resolved through a general voting system. Recently, the question to increase the amount of collateral required to contain one node has been raised. At the moment the vote is on – will it be 2000, 3000 or 4000 coins. Team offers, community decides. And it’s wonderful!
We are actively working on a technology that allows users to release their tokens with the help of our ColorSib solution, because asset tokenisation is one of the temporarily undervalued processes useful for large and small businesses or even for individuals who can trivially tokenize their property to generate revenue.
Besides, P2P exchanger between users development is at its final stage – this is another step towards the exchange decentralization. Crypto-currencies began with the idea of decentralization and we support this idea.
My second project Blockchain Name System solves a huge problem. Cryptocurrency wallet addresses are a public key, which is a big inconvenient hard-to-read abracadabra. So when it comes to transactions to a large number of wallets, you need to somehow not get confused with the addresses. I came up with the idea to make a DNS analog for cryptocurrency – your own blockchain to store a couple addresses from simple and public wallets. This system allows you to work with funds from your wallet much more conveniently, and instead of remembering a 32-digit (or even more) address, use simple ones like George.Bitcoin or Anna.Ethereum. Just as we don’t access websites through their IP addresses, but use domain names where DNS technology redirects you to, our Blockchain Name System (BNS) technology can make the use of cryptocurrency wallets more convenient.
In addition, we create a decentralized marketplace on the platform, that allows reselling short addresses by analogy to domain names purchase and sale. This project already has a prototype, and this summer we will let the world know about us. The Future Times are the first who I spoke to about this technology, as we now have a prototype (MVP) ready, and we are at the stage of attracting investments.
Who among influencers contributed to the idea?
Last fall, I started writing a blog not for the community, but for those who want to understand what bitcoin, crypto and blockchain are and how it all works. The funniest thing was when I suddenly found all of my carefully crafted ideas in a book “Mastering bitcoin” by Andreas M. Antonopoulos. It was very pleasant that my conclusions coincided with the opinion of a cryptoworlds expert. Now the blog is on pause, a lot of other work. Anyhow I cannot recommend this book enough.
Your predictions – when will the financial giants stop fighting crypto and start cooperating?
I believe that the person making predictions for cryptomarket is either mistaken, or deliberately deceiving. You see, until the market is formed, it is young and fresh, full of speculation. At the moment, any attempts to predict prices, trends, vectors are quite comical.
But if we talk about institutions, some giants have already come to cooperation with the new market. Some are just wondering, some are already implementing. Just look at Facebook, who introduced severe restrictions for advertising cryptocurrency at the beginning of the year, and now are open to cooperation, developing a method to recognize the quality of the product if it is proved to be not fraudulent. More and more large financial structures are gradually changing their outlook and joining new trends. They need a lot of time for this, and some institutions even require a “green light” from the regulator.
What’s going on with market development in the field of mining?
In 2016, I became involved with crypto. Having started with mining, I went from domestic to industrial scale. Mining eventually acquired all the features a business has. This year, as its profitability has fallen, mining has become quite a niche-like story. Although at first they were engaged in everything indiscriminately. Once at a conference I consulted a journalist, and then later she called and said that she had created a home render farm from video cards. There are still miners left that do it for the idea rather than super profits, for the sake of maintaining the ecosystem itself. However, industrial mining managed to come a long way in a couple of years. In particular, a huge amount of equipment for various cryptocurrencies (not only bitcoin) was developed and produced, and the productivity of this equipment increased in times. This has already happened in the history of mankind when the looms were invented and the world went crazy, but overtime weaving became the craft for those who saw perspective in it and found a place for themselves in the niche.
Now the market is calming down, the existing hardware has already reached its performance limits; further performance growth will be more linear. The price of the crypto fell – and that’s good. $ 20,000 for bitcoin was clearly manipulative. Now the picture look more like reality. The level of euphoria and panic decreased, fewer people sell apartments and kidneys to buy bitcoin. It was the fact that there are fewer insane people in this sphere that stabilized the market, which is excellent for a long-term perspective. Reducing volatility gives hope that in the near future we will be able to use cryptocurrency just like ordinary money in everyday life.