Hi guys, how are you doing tonight?
I have a great surprise for you.
Many of you asked me to provide more details on Byteball.
As you know I have been giving away Byteball for some time.
I’m an enthusiast of that cryptocurrency, of that system.
Many people ask me why?
People ask me to provide more information about Byteball,
because there isn’t enough information available about this great system.
Byteball is one of only 3 Directed Acyclic Graph (DAG) systems.
So to say non- blockchain cryptocurrencies in the world.
I managed to get hold of Tony Churyumoff, the ingenious and legendary founder of Byteball.
I managed to get some insights about the presence and the future of Byteball out of Tony.
And interviewed him in a long interview.
I want to share this interview with you now.
So please welcome with me.
The one and only… Tony Churyumoff.
Let’s start with the resolution of the contest from the Crypto Tutorial nr. 1 video.
I have promised to give away some Byteball to commenters,
who provide theIr Byteball address in the comments.
So let’s start.
Until now I have given away in January alone, over ten thousand US dollars in Byteballs.
Today also, I will give away two hundred million Byteball bytes.
The first winner gets the main prize, 100 milion Byteball bytes.
He will become a Byteball Multi-millionaire.
Who is it gonna be?
Karl-Heinz Rieger is the winner.
Congratulations Karl-Heinz Rieger, you will get 100 million bytes.
I will transfer it to your Byteball wallet.
The next winner, the second winner will get 50 million bytes.
50 million Byteball bytes, who is the lucky winner?
Congratulations Timber Landing, I will transfer to you 50 million bytes.
And the next winner…
Congratulations to you, you will get 10 million bytes.
I remind all the participants, I choose the comments randomly, so you can win several times.
The next winner.
10 million Byteball bytes go to…
Teix Teautis again!
He was I guess the main winner from the last time, congratulations!
The next one…
Akii8 gets 10 million bytes, congratulations to you.
And the next one…
Ten million bytes go to
The last but not least…
Who is the winner?
Legit CryptoGOd is the winner.
Congratulations CryptoGOd, you will get 10 million bytes.
So for you and for all the others, stay with me to the end of this video.
At the end There will be again another opportunity to win real money
Hello guys, welcome Tony!
Tony is the great inventor and founder of Byteball.
And I am so proud to have him here in this interview.
Tony tell us, what is your background and what brought you to the cryptocurrency world?
I’m glad to see you.
I’m glad to be on this interview and first of all I’d like to thank you for all that you do for Byteball.
You essentially act like Byteball ambassador.
You get a very good, great contribution to our growth by bringing a lot of new users in your Christmas promotion.
And in your multiple videos that you do.
So we see many new users, thanks to your efforts.
But your question, what brought me to crypto?
I’ve got interested in in cryptocurrencies mainly in Bitcoin, in about 2014.
I was interested from the technical side and
I have been taught as a scientist, I was looking for ways to apply my knowledge.
My methods to the designs of cryptocurrencies.
My first thought was to, when looking at blockchain designs,
was to try to reduce it to the smallest number of basic entities.
And in blockchains we have two entities, blocks and transactions.
And what I was trying to do is to get rid of the blocks,
to have only transactions and to simplify the design.
To have as few as possible fundamental entities in the design.
That’s why, that’s how I came to DAG.
Directed Acyclic Graph.
Which has transactions connected directly to each other without blocks.
They’re not grouped into blocks.
The transactions, they reference each other by including a hash of the previous transaction.
These hashes, which are one-way functions they make the graph directed.
Because they cannot be reverted.
In this structure as soon as one transaction is added,
all new transactions include a hash of the previous transactions.
Which makes make it impossible, makes it hard to modify the previous transactions.
And then new transactions are added, then another layer transaction are added.
And these new transactions on top of original transactions, they grow like snowball.
That’s why the platform is it’s called Byteball.
But it just doesn’t consist snow, it is composed of bytes.
Right, okay, but let’s come back to the anegdotical parts.
You said you are scientists, are you a cryptologist, so what kind of scientists are you?
What is the story of you and the cryptocurrencies?
I mean how did you learn about Bitcoin or who brought you into this world?
Well, it was not related to my studies.
I am physicist and engineer, it is my diploma.
After graduating I was a scientist for a few years.
Then I had several businesses, some of them successful with successful exits.
some of them not.
Internet related businesses or technology related businesses?
Technology related businesses.
One of them was about communications, about sending SMS messages.
It was in early 2000s.
Just when this market began growing.
And another successful business was related to payments.
It is a payment aggregator in Russia called Platron.
Both were successfully sold.
And they both still exist and making doing good money.
So you did business in communications and in payments.
So this is like the optimal crossing and natural, so to say, continuation of what you did before in business.
So Byteball is, so to say, the fusion of these two worlds, right?
Oh, well to some extent, yes.
We have payments and we have chatbots, we have chat, which is deeply integrated with payment functions.
They work together.
They sort of reinforce each other.
Okay, so can you explain, because many people don’t get it?
Why is the unit of byteball called bytes or byte?
Why did you call it bytes?
Bytes are just one of the currencies on Byteball platform.
It is native the currency.
The currency which is used to pay for adding the transactions into the DAG.
DAG is once again, it’s directed acyclic graph, right?
For those who don’t who don’t know that okay?
It is just quite simple.
When you add the transaction, the transaction takes space in this global ledger.
This global ledger has to be stored by multiple peers, has to be verified and it is some cost.
And you have to pay for it.
And the amount you pay is exactly equal to the size of your transaction.
Typical transaction is about 500-600 bytes.
So for a typical transaction you pay about 500 to. .
– 600 bytes.
Right now, what’s the dollar value of that?
It’s below 1 cent probably, 1 dollar cent, right?
Oh yes, it’s much less then 1 cent.
Usually people use derived units, such as kilobyte, megabyte, gigabyte.
Okay, and this is also something that people often don’t get.
The unit on coinmarketcap, and this is what the currency is denominated in,
is gigabyte (GBYTE) which means 1 billion bytes,
1000 million bytes, right?
Okay, so what is the difference between Byteball and Bitcoin?
You have started to talk about that maybe in short words for the people who listen to us.
Well, like Bitcoin, it is a payment system and it allows to send money, receive money.
But it is not enough to be just a payment system.
It is not enough to send plain unconditional payments.
There is not much new in it.
All of it, we can do in traditional fiat money.
And for most people, well they don’t need something that solves the same problems.
They need something that solves better the existing problems.
That’s why just payments is not enough.
What you can do with Bytes or with any other currency or Byteball platform?
You can do conditional payments.
So, when you send a payment,
you can add a condition that the receiver, receives this money only when something happens.
Something that you define.
For example, when he pays back to you in some other currency.
Or w hen some event happens, such as some weather condition.
Some event in sports for example.
This is generally smart contracts functionality and additionally Oracle functionality.
You have the ability to access Oracle’s from Byteball, right?
Yes, it is essentially smart contracts.
Contract that is enforced by the platform, by the decentralized platform.
Where multiple nodes verify the conditions of the contract.
The verify it automatically.
When you use this type of contract,
you don’t have to use the legal system like traditional contracts in order to enforce.
This contract is automatically enforced, so there is no way that the counterpart just…
…defaults on the contract, right?
So the major challenge for Bitcoin right now is the performance, right?
So how does Byteball address the performance problem of Bitcoin?
Yes, Bitcoin has the scalability problem.
It is not exactly to the same as performance.
The scalability, exactly.
Yes, there is high demand for Bitcoin transactions.
The architecture of Bitcoin is that, where is a blockchain,
one block comes after another and there is limited space within each block.
And there is competition to get into this block.
And by the rules of competition you have to pay more than others,
in order to include your transaction into this block rather than somebody else’s.
So, this results in very high fees that we see in Bitcoin now.
In Byteball, instead of Blockchain we have a DAG.
It is Directed Acyclic Graph.
And there is no limit on the number of transactions that can go through this system.
Because the DAG, by it’s architecture can get wider, can expand.
But let’s say with the current implementation,
What is the number of transactions per second in Bitcoin and what is the speed of the transaction in Byteball?
I mean possible speed with the current implementation.
Well, there are 2 things that we can compare: the protocols and the implementations.
I’ll start with the protocol because the implementation depends on the protocol.
It’s sort of more fundamental.
In blockchain protocols, including Bitcoin, there is just limited space within each block.
Even if computers are powerful and networks are quick,
you just can’t push more transactions per second then the block size allows.
And in Bitcoin it is about 7 transactions per second, maybe less.
So this is the theoretical upper limit, right?
Right now, I think they have like 2 transactions per second, but theoretically they could get up to seven.
Yes, but it is an artificial limit, which is imposed by the protocol.
In DAGs, there is no limit at all,
So the throughput can just grow infinitely.
And the only limit is the implementation.
The implementation depends on,
how much the computer code that executes the transaction, this transaction validation,
how optimal it is.
In Byteball, to be honest, it is not perfect right now.
The implementation is rather slow.
It supports only about 10 transactions per second, which is very low.
But we don’t need such throughput right now.
So 10 transactions per second is quite ok for us right now.
For the current throughput.
Yeah, because we need to know that, there is not that much traffic on the Byteball right now as on the Bitcoin
So you probably use like one percent of the limit, right? Right now.
Yes, it is a little bit painful when you sync initially your full node in Byteball because it takes several days.
Even on fast hard disc.
But to follow the network it is enough in order to keep on.
Okay, so a normal user doesn’t need to download the full node, right?
I mean if somebody wants to receive and send payments,
and doesn’t do development, and doesn’t want to sustain the network and so on.
He doesn’t have to wait like three days or four days, right?
I mean the light client is very fast, right?
Yes, the light client is very fast.
They use another algorithm to verify transactions,
by asking other nodes for proofs that those transactions exist.
It is much faster, yes.
Okay, but you know DAG.
Meanwhile there are three projects that I know that are based on DAG
So it’s IOTA. It’s Raiblocks(NANO), and it is Byteball.
What is different in Byteball than in the other projects?
What do you see as advantage of Byteball?
Well, they are all different projects that just address different needs.
So, I’ll start from the market perspective.
IOTA is targeted at machine-to-machine economy.
RaiBlocks(NANO) allows to only send plain unconditional payments.
No smartcontracts, no multisig, nothing just plain payments.
And Byteball is a full fledged platform which allows to make contracts or issue new tokens
To write chatbots, applications on the top of the platform, all that stuff.
It is a platform for developing applications. And payments is just one of the functions.
Okay, so the full ecosystem of let’s say financial applications, right?
And what about, you know, because Ethereum became so valuable because of its ability to ICO.
Does Byteball have this ability?
Well, now it has it.
You can issue new assets on Byteball platform.
Can you accept other currencies for them or just Byteball?
You can accept the main currencies for it: Bytes, Bitcoin, Ether.
And in exchange you can issue your own tokens.
Then you can assign a human readable name for this token
It also recently became supported.
Also, you can do what Ethereum doesn’t allow out of the box.
Which is verify your users.
That they have real names.
To comply with KYC, AML regulations.
So the upcoming ICOs will be more and more difficult for the ICO teams, for the token teams.
Because the regulators will require more of KYC, and AML.
And this is a big challenge for the ICO projects, right?
And you provide a platform that has this functionality built in. So to say, right?
Exactly, we have this out of the box.
If you are an ICO and you want to enable KYC check for your investors.
It will be very easy to do.
You just flip the switch: I want my customers KYC, or I don’t want
And it is not only regulatory pressure that moves the market in the direction of real names.
It is also the demand of transparency.
Well, I think the era of wild west ICOs is over.
The market will become more professional.
There will be also institutional investors in ICOs, right?
So this is the requirement of the modern market.
Question I am asking myself very often, is about the quantum proof.
Is Byteball quantum proof?
Well, I don’t think quantumproofness is the real question right now.
But we have in our protocol the ability to support any encryption standard which exists or which can appear later.
There are a few encryption standards that are quantum proof.
They’re not wildly used in the industry overall just because there is not so much so much demand yet.
But if the need arises…
Yes, we can switch from the current encryption algorithm, which is the same as Bitcoin uses.
Which is based on elliptical curves which we can switch to quantum proof algorythm if it’s needed.
So what do you see as the greatest unique selling proposition(USP) of Byteball?
Something that Byteball has and no other system has,
or a combination of something that makes it especially interesting,
Especially attractive for investors or maybe for users?
Oh, I think this is the ability to make contracts.
The entire economy is a collection of contracts.
Multiple businesses have to make contracts with each other.
And make sure that the contracts get executed as they expect.
For now now it is enforced by the law.
Which is expensive and not quite perfect.
There is a barrier to entry and with smart contracts, we don’t have barrier to entry.
It is robust because it is enforced by computers.
it is reliable for the same reason.
I Think it is the biggest value proposition that Byteball has.
And also in crypto it is insane that there are so few projects that pay attention to usability.
And w e have designed a wallet that is really user-friendly.
Absolutely, this is why I recommend trying Byteball to new users,
because I don’t want them to be scared by the complicated, shitty interfaces of other cryptocurrencies.
They should start with something really easy to use and just get to know how friendly cryptocurrencies can be.
This is actually also something you didn’t talk about,
but I find the smart contracts of Byteball really usable even from normal people.
I mean you can set up your smart contracts yourself.
You don’t need to learn any programming language, right?
You can’t do anything wrong.
Like with Solidity or with other things.
That you have to pay attention to every detail, so that your contract doesn’t get hacked.
So you have like a natural language in that you can define the contracts, right?
It’s actually a bot asks you :
What do you want to do and constructs for you this contract more or less, right?
Yes, it is for humans.
It is created for humans, so that everybody, not just developers,
can us e the system for payments and use it for creating contracts.
So it is designed with lowest barriers to entry in mind.
I hope you liked this first part of the interview.
If yes, subscribe and hit the bell button in order not to miss the second part of the interview
I invite you to comment on Byteball.
What are the things you would like to know about Byteball?
What is your perspective?
How does it compare to other cryptocurrencies?
How do you see its potential, a technical potential and market potential?
How do you see it maybe as an investor?
Share this video with your friends with people interested in cryptocurrencies.
With crypto enthusiasts.
Don’t forget to provide your Byteball address in your comment.
If you don’t have a Byteball wallet, please use the link in the description.
Download the wallet, install it and provide your Byteball address.
For the best comment and the best share I will give away again some Byteball.
If you like this video you will probably like my other videos.
I talked a lot about cryptocurrencies, about my experience with crypto investments.
I am in the industry for 2 and half year.
I am a mathematician and I studied cryptology.
I also, talk about the most successful entrepreneurs in the world, the wealthiest people in the world.
I often interview them and also interesting people from the crypto world.
So if you liked this video, you will probably like my other videos.
Here you will find some of my best videos.
That’s it for today. See you at the second interview part.