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Major Syscoin Announcement
Recorded: March 25, 2026 Duration: 1:22:24Space Recording
Full Transcription
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Music all right good morning to everyone joining this spaces good morning good day good evening it
depends on where you're located but today we have people from all around the world in this
syscoin ecosystem spaces and we have nice things to share.
We will have a lot of important people here speaking to us.
Builders, people from the foundation.
We have here new information directly from the fund for everyone.
So while we have people still joining, please, everyone, send this link to your friends.
Send this link in your communities, in your Telegram chats, in your this link to your friends, send this link in your communities, in your
Telegram chats, in your Discord chats to your friends, send it to everyone you know, because
today it's definitely a space worth listening to, and we are super happy to have you all
here.
We'll give a few more minutes just until we have everyone here on stage, and we can start
this insightful conversation today and bring it to everyone. Thank you. All right, guys.
So, once again, let's keep sharing, let's keep spreading the word, sharing this link,
retweeting these spaces and inviting everyone to join because today we have a lot of insightful information on zkc's on testnet some of you who may be aware of
what's happening on the timeline have just seen the latest post by syscoin
and what we are bringing here today so today here on stage we have jag which is
the syscoin core dev and the foundation president. We have Mitchell responsible for the day to day operations,
guiding teams working on Cisco and foundation with vice president.
And we have also here Dan on stage,
which also co-founded Cisco and it's also co-founder of blockchain foundry.
Now back to build the first BTC5 Edge Chain on Syscoin we have David here on stage
who has been around for years on Cisco and working as a project manager for multiple of these good
projects that you use on your everyday on the Cisco ecosystem David is one of the brilliant
minds behind it and has been working also on the ZKC's development and is now part of the Lunos first
compliance edge chain and we have also Fernando our big dev rel has been working on the dev rel
for many years responsible for infrastructure servers RPC and and also setting up the proof
of builders campaign which we will also go over here today with success leading
to partnerships, government collaborations.
If you follow Syscoin, if you're aware of what we are posting during this last few months,
weeks, then you have seen what each one of these guys has been working on and the results
they are bringing to Syscoin.
So once again, thank you everyone for joining.
We're super happy to have you here.
Keep sharing the link. Keep bringing more people people in and let's start with jag jag it's super nice
to have you here jag and michael and uh welcome to the spaces and let's make this a nice conversation
with the community yeah hey guys uh yeah glad to be. I've got some exciting stuff to share.
So, why don't we kick off with the overview and then we can get into some SysCoin 5.1, ZK-Sys, Testnet details and then some of the other interesting, really cool projects that we're working with and on as well.
Yeah, all right. So the main message here is, while everyone else was shutting down in this like turbulent markets and everything else,
we in Syscoin, we were heads down working and today we want to show you what that looks like, the results of this work what we have been putting our hands on and ZKC's testnet is live if you have
seen the latest post by Cisco I'm so Mitchell why don't you join us and give us an overview
and a starting point for this conversation sure that's Martin before we get into that, I just want to give a big thank you to all the teams that have
been working on this for a very long time. It wasn't an easy time, but I'm glad that finally
CK SysTestNet is here. And also a big thank you to the community that has been very loyal for the last years, since 2014, some of you.
You know, it's working on a project like this with a limited budget is not easy. We have competitors working with billions. But we are still here, we are
still thriving, we're still building, and I'm very proud of all the teams and everyone
involved. So a big thank you to everyone.
Yeah, it's important also to emphasize that we as a team and we as a community, everyone
that is here today, I see a lot of the OG faces here, like of the guys who have been
interacting with the posts and everything with the articles, with the announcements
from like five years ago, you know, like when most of the projects we see nowadays didn't
even exist, we already had these guys interacting with us and supporting us
So as Michelle said like thank you so much for being part of this and we have seen everything every cycle every crash every phase
everything like the most ugly
Like the most ugly stuff that happened on the market, you can mention Syscoin went through that. Syscoin went through that and survived and is still putting out new stuff
and bringing exclusive updates as we are bringing here today.
And this new phase, this ZKC's phase that we have,
I see sometimes people ask in the comments,
sometimes people ask in the chats, in the discussions, how would this be different from Rolex, for example, or what is the catch here? What is new? What is different? And I guess, Michel, you are one of the better guys here to answer this. How would this differ from Rolex? What is different? What is new here for as a as a user as a builder or or as a partner what is different yeah i mean i can imagine a lot of
people asking that question right because um people think oh it's it's it's another you know
L2 or L3, but it's far from that.
ZK-SYS is more, it's more a foundation, right?
It's more, it's infrastructure, basically.
And that's something that we have been good at at Syscoin.
Rolex was really focused on creating an ecosystem,
you know, getting dApps onboarded, getting TVL.
It was one chain.
ZK-SYS, hopefully, there'll be hundreds,
maybe thousands of chains, right?
And all with the same benefits that we can offer
as Cisco, and that's the security of Bitcoin, right?
And luckily, more and more people are finally seeing the benefit right
that's why for example honduras or peru are choosing syscoin because of the
security and the bitcoin merge mining um so yeah just to you, on a non-technical level, it's, we are not focusing on building
an ecosystem, we are focusing on building a very solid foundation and structure for
hopefully a lot of different ad exchange to be, you know, launched on with all, you know,
specific use cases and benefits,
such as Prime Day or LUNOS.
We will go into that later a bit further.
And maybe you, Jack, can give a small explanation on why ZQC is different from a technical perspective.
Yeah, no, that was a great overview
and you you touched on something really important that was um you know we're building the infra and
and um as a lot of other projects and noise out there it's hard to see what's valuable and what's
not but as you know one one thing i noticed is um you know if you extrapolate to the more intelligence comes online,
the less it cares about traditional economic forums and engines that we humans have created.
For example, like liquidity layers and dApps that we've created.
created. I'm not sure if agents or higher intelligence will really care. If you think
I'm not sure if agents or higher intelligence will really care.
about someone who's of higher intelligence as a human, that more intelligent he becomes,
we generally see they care less and less about money for some reason, right? There's a sort of
a curve you can map out. And the traditional CEOs of big corps today, they're not the smartest
humans on the planet. The smartest ones are usually academics and they care less about money.
They care more about changing the world.
So if you extrapolate that to if it's some sort of trend universally, then more intelligence
is less about money and liquidity.
There's more about what the value that you're providing to the world is like, what is the
security or cost benefit that building something on there is?
And the systems being built on top will likely be very different than what we imagine today.
You know, when Ethereum came out, it was really interesting to see all the use cases that came.
that came and now those are all sort of evolving.
And now those are all sort of evolving.
So I go back to like,
even disrupting the intellectual property map
or intellectual capital.
I think that's gonna change as agents come online.
The more, you know, the higher intelligence comes online,
the less focus on money is unique use cases.
So I think we cut through the fat and that infrastructure
that we're creating is really important.
It's less about, oh, we need huge TVL to be able to do something
because that's a human story.
The agents may not care or would not care about that.
They want something, for example, connecting into a Bitcoin Oracle
to get Bitcoin information,
where they want to be able to set up autonomous DAOs so people can invest and it can become more
powerful, or some sort of entropy within the blockchain that's very secure and will never
roll back and has proof of work behind it. These use cases could be unlimited and we don't know
what they are, but we want to open up the agent platform.
So a part of the website coming up will have agent-specific portals, machine and headless.
Not really readable by humans, but it'll be readable by agents in a more efficient way.
And then the infrastructure is already set up to do a lot of that.
Yeah, so I go back to just like a little interface
about proof of work and Bitcoin.
I think the reason why Bitcoin is going to keep carrying value,
aside from the quantum stuff,
which is going to obviously upgrade in the near future,
but proof of work is really about securing the thermodynamic properties of a few
XOR gates that allow it to do its work. That retains monetary energy basically over time,
whereas other models, you know, fiat, for example, it drains monetary energy over time.
Those XOR gates that are used to create a hash, they cannot be replaced. It's almost like a
universal constant. So if an agent is super smart, thousands of IQ, you know, whatever,
it's going to be able to do a lot of stuff we can't today. But what it won't be able to do, we're fairly confident,
is replace the elementary computation that goes into that proof of work.
You know, proof of work is safe on its own.
It has that monetary energy built in.
Will that be true for all the other consensus models?
Who knows?
But we're confident that the best we have in the world is that proof-of-work model. It just doesn't scale. And that's sort of what we're doing here is bringing that information, entropy, mining security, all of the stuff that Bitcoin has, even the miners are shared in the Syscoin design. rest of it into autonomous smart contracts and whatever ai is going to do whatever the user base
wherever the economic engine takes us we are setting up the infra as michael was saying
to allow it to scale to allow it to be secure so quantum resistance for example we we thought ahead
we you know many people question the design but we actually designed it to be quantum resistant from day one.
It's hash based.
So as I was saying, the hashes are secure.
Those hashes are the most secure cryptographic fingerprint we have today that will survive the quantum shift.
We thought ahead and even Ethereum is is having uh is having to redesign
its entire engine around how to scale its blockchain because it uses kzg proofs and
those are not quantum safe so as as these systems as fast blockchains like solana
they have to reshift their focus on security they end end up hitting a dead end in some ways because
quantum computing, quantum crypto, quantum safe crypto is much bigger, much slower, much
more bandwidth intensive.
So as, for example, the data availability layer of Ethereum, which helps scale Ethereum roll-ups and modular stacks.
As they switch, they notice it's much slower, so you can't really just take something and plug it
in and say we're quantum safe now. So anyways, we designed around that and we think it's sort of
the best that we have. I don't think any other quantum safe data layer
exists on any other blockchain.
It's only on Syscoin.
It's been live for a few years now.
So that brings in basically what ZK Sys is about,
as Mikhail was saying.
It's infrastructure.
It's really enshrined into the whole stack.
Our layer one is purposefully designed
to be two and a half minutes.
It's slow. it's painful,
it's not really for users. It's really for these machine systems that are settling on top. And if quantum computing comes and we need to switch to the crypto, it will not affect the users like it
will affect other systems because the users are not touching that base system.
Two and a half minutes is adequate enough time for quorums and data to propagate and mining to do its thing.
I would say it would probably be a very minimal impact to our design, which is awesome.
And then ZK-SYS comes in.
For example, we'll have a few chains. ZK-Genesis is going to be there as a base. They will allow us to scale without affecting the base nodes that are running SysCoin. Those nodes are going to be completely independent. The consensus is completely independent, yet it's all interconnected.
Yet it's all interconnected.
Everything will be settled into SysCoin using SysCas and sharing that economic security.
So the way that the design is, there is something called a gateway.
And the gateway is an aggregation layer.
Think of it as a cryptographic middleman that takes all the ZK proofs of all these thousands of chains potentially, as Mikhail was saying, and you aggregate them into one proof
and you throw that into the Syscoin chain
and that will settle the security of all of those chains.
So basically you get amortized costs down to just the cost of computing basically.
The cost of computing is the cost that will be
basically shared to the user.
The user pays the hard cost of a little bit of data
and the hard cost of computing.
So it gets down to basically the base
of how much it should cost to use a blockchain,
you know, the bare minimum.
And then the gateway itself is going to be sending data
to the Syscoin chain. And that data is using our Bitcoin DA, which deletes after a few hours. So
it's really pretty efficient design. It's not using too much of the resources of the full nodes
of Syscoin that keeps it super decentralized. And then in Syscoin 5.1, which we're looking to upgrade the next little
while here is enabling that Bitcoin Oracle, I was saying. There's a few really important,
really interesting use cases. I think Dan will go into one about bringing Bitcoin state into
a unique use case and giving value to Bitcoin holders without having to bridge.
The one thing we notice about Bitcoin holders, they don't want to bridge.
They don't want to lose their coins.
Not your keys, not your coins, even if it's a bridge.
But they are willing to do stuff like maybe lock your coins,
even though I own them, and then get something out of that.
It's really all about intent.
So Dan will go over that.
And then other things like deterministic inputs.
From research, we're finding AI and LLMs,
in order for even AI to trust other AI or humans to trust AI,
you need to have determinism.
So there's a whole bunch of projects working on,
really big projects working on deterministic AI or deterministic computing related to AI, stuff like that.
We think that the inputs are the most important.
So if you and that's that's supported by what the academic world is saying, the inputs are what matter, not the outputs.
So the input that goes into your prompt or decision matrix is going to be important to put that on chain.
And putting that on Bitcoin chain is the most secure place.
Having access to that inside the autonomous world is also important for whatever reasons that decisions will come.
The decision matrix of the higher intelligence is going to be very different than our decision matrix that we have today in the world.
So we have to sort of be abstract as much as possible, yet still sort of think ahead and like, how will that abstract world look like?
And I think we've done a pretty good job to this point to think about that.
You know, on the execution side, we obviously could be a lot faster if we given more
resources but i think generally we've you know the team here has done a really good job and trying to
navigate the boundary between you know being able to push fast and be able to push with security in
mind as first principles so yeah i think now is probably a good time to start getting into
But yeah, I think now is probably a good time to start getting into some of the interesting
use cases and chains and projects that we're bringing to the table from testnet to mainnet
in the coming future.
So basically, the questions like, what is Syscoin for?
What can I use it?
How can I get started with it?
What can I build with Syscoin or in syscoin for what can i use it how can i get started with it what can i build with
syscoin or in syscoin and also what it means for the sys tokens for people who believe
in in sys the the token itself uh this answers a lot of questions and and it brings also the
attention now to the use cases like zk sysSys is a whole changer for this, answers the question and brings now a lot of options for people.
And one of these guys that we have here today, Dan, as Jack mentioned a few times,
Dan is the mind behind Prime Layer and the first proof of this model of how it works in the real world.
So this is the first real world application of everything that Jack was just describing right
now. So Prime Layer is the first edge chain on ZK Sys. We have announced this, we have been
talking about this, and today now it's the's the opportunity we have we as a community we as
listeners have of hearing from dan directly what is happening there what are the plans and what
should people pay attention to so dan welcome on stage man super nice to have you here today
hey thank you very much for having me and it's always great to uh talk to the cisco and family
especially since you know it wouldn't be without the ZK-SYS infrastructure that we at Prime Layer would be able to deliver what, you know, we're looking to accomplish with providing Bitcoin holders with an ability to create greater utility, essentially, for their Bitcoin beyond what it's capable of today.
And that's entirely enabled through what ZK-SYS brings to the table.
And ZK-SYS does that in such a way that, at least in our opinion, of other BTC L2 competitors that root their L2 state data
in what's called public block space.
Because of Syscoin's unique design
and specifically how it leverages merged mining,
it sort of has this reserved space for state data
and that insulates it from the sort of existential threats of uh block space
competition which you know i firmly believe is just going to continue to increase in the future
as bitcoin continues to gain adoption and becomes more of sort of this like global reserve asset in a way. And so it's, it's, it's awesome to see that the,
the ZK Sys infrastructure has, has, you know,
gotten to a point where it's now a public test net and obviously
primary has been using it even while it's been in dev net sort of internally
and excited to see what, developers can think of, produce, bring to the world
now that they also have access to ZK-Sys infrastructure and the ability to create
Ethereum-compatible applications that are ultimately rooted in Bitcoin security, which I mean, in, in, at least in, in my purview is like the, you know,
the dream, right? Like,
it's like you get all of the flexibility of Turing complete smart contracts,
but you get the security of, uh, uh, you know,
a battle tested, uh, proof ofof-work-based system like Bitcoin.
And you don't have the pitfalls of something like Ethereum
where from one hard fork to another, they may or may not be compatible.
And I really like Bitcoin's ethos
of no matter what version
of the address scheme you're using
or how long ago you created your wallet,
your tokens will always continue to,
you know, work properly
with whatever the current version
of the Bitcoin mainnet is.
And I think there's huge value in that
and excited to be building for that
and to be not only enabling more utility for Bitcoin
as a monetary asset through ZK-Sys
with faster, cheaper transactions,
more scalable transactions,
all of that kind of good stuff,
but also enabling utility for Bitcoin as a store of value, not just in that you can hold on to it
and maybe it'll become worth more money, but you can hold on to it and it actually proactively produces a yield for you, which is a paradigm shift in terms of the way that markets in general think
about Bitcoin,
because you have all of these Bitcoin treasury companies now that are,
you know,
accumulating Bitcoin like,
like micro strategy and others purely to sit on it and,
you know,
prepare for the inevitable future where it becomes the kind of global reserve asset.
And what PrimeLayer combined with ZK-Sys enables for those types of companies is,
regardless of price fluctuation of Bitcoin on public markets,
fluctuation of Bitcoin on public markets through Prime Layer and through self-custodial yield
generation opportunities that Prime Layer presents to these types of companies, they'll be able to
supplement their revenue through the yield that their self-custodial Bitcoin generates generates for their organization, which is a utility that Bitcoin currently does not have
when it comes to it as a store of value. And so, you know, they'll be able to sort of generate a
line of revenue for their company without selling their Bitcoin. And then, you know, as Bitcoin achieves that sort of global reserve asset status,
you know, perception by a larger segment of the market, they'll also have the, you know,
value appreciation that comes with that recognition as well. And so it really does, through the work
that Syscoin has been doing through ZK Sys and rooting it to Bitcoin and tying it to Bitcoin
security model, it really does start to usher in this fundamental paradigm shift for Bitcoin itself
in terms of what its utility is, both as a monetary asset,
but also what its utility is as just a store of value. And I think that's huge and something that
a lot of the market is not yet awake to, but will quickly wake up to as you know miners and institutions start utilizing tools like
primelayer and other applications that will inevitably be deployed to zkSys as
their own edge chains and really start to appreciate the the the added not only
composability and modularity but also you know you know, straight up utility that ZK-Sys has enabled for Bitcoin without compromising on security or scalability or any of those types of, you know, blockchain core principles.
blockchain core principles.
Dan, do you want to touch on maybe some of the,
I mean, you came up with that idea of using Bitcoin as an oracle
and feeding it into a VE economy.
That might be something interesting for a community
to kind of get their heads around
because it's, I think, a new concept.
I'm not sure any
other Bitcoin layer twos or anything else connected to Bitcoin is supporting.
And then, you know, before we get to that, like you touched on scalability a little bit.
We actually came with, you know, the whole reason for shifting to ZK was the ZK proving
is getting to be fast enough.
Optimistic was good up till probably a couple of years ago.
And then ZK Proving is now getting to a point where things like
proving the Ethereum mainnet in real time is becoming possible.
That is pretty holy grail stuff, right?
Because you can compute things really quickly and the costs are coming down
exponentially to a point where the cost of running an optimistic or any other type of chain is not going to make sense anymore.
It's all going to be ZK proven.
You have to prove in math that everything was correct, which is the only way to really do it in the future where you need high scale but high security.
So the next prover we're trying to get online on the testnet now and the subsequent release is going to be able to do single GPU with tens of thousands of transactions a second.
So you're pushing like five tenths of a cent per transaction
for a single transfer.
And that's getting to a point where, you know,
there are maybe some other provers that are sort of around that park.
But I think this is probably the best in class.
You know, it would be one of the, if not the fastest.
SP1 is the other one that's not a ZK virtual machine
or anything.
It's a separate sort of prover system.
But to get to Ethereum level or EVM real time
with 30 million gas blocks per 10 seconds
to get to that level of scale,
it needs 30 or 40 GPUs to do that, right?
Whereas our next prover system, you're going to be able to do it with just one.
Right.
So the efficiency.
Yeah.
Consumer grade hardware.
Right.
That's like the goal.
Right.
It's consumer grade hardware being able to do these types of proofs so that we can really achieve that milestone that's always been sort of the benchmark for a well,
a sufficiently resilient system, right, which is significant decentralization and distribution.
And when you have proven capabilities achievable by consumer-grade hardware, that's where you really get to have 6, 10, 12, you know,
a rack of GPUs just to do a simple proof. It creates a large amount of, you know,
centralization and sort of is the antithesis of what blockchain was designed for. And as time goes on, we're getting to this point
where now the hardware required
to compute these proofs
is exponentially becoming
more and more available
to average grade consumers.
And I think that's what's going to create
a truly unstoppable kind of global
computer, right? That's not dependent on a few large data centers
that have, you know, the
computing power beyond that, of which would be available
to a standard consumer. And you really get to
you know, being able to scale these large systems
in ways that no individual can really control or sensor, which I think is the whole, you know,
holy grail key long-term vision behind blockchain, right?
blockchain right so basically for everyone listening this let's let's recap this so prime
layer is the first edge chain on zkcs this means prime owns its own chain it's not deploying on
syscoin they're launching their own chain and syscoin security is beneath it so this is like
a fundamental difference that that should be clear to all developers and builders and eventual corporations or so that wants to deploy their own ad chains as well. corporations and having this advantage of using Bitcoin directly and so on.
I was just thinking, man, have you already exchanged some messages with
Saylor or something like that?
He's on the list for sure.
But we have, of course, been talking with Bitcoin miners because, you know, a lot
of the Bitcoin miners are also miners of Syscoin because it's an easy way for them to sort of minimize their risks when it comes to mining.
Since mining is a game of chance to a certain degree, depending on hash rate and the competitive landscape.
the competitive landscape by merge mining sys, they, you know, are able to reuse essentially
their solutions that they're attempting to solve Bitcoin blocks with to try to solve
syscoin blocks.
And a lot of the solutions often will solve syscoin blocks, which helps for them to offset
some of their costs.
And we've been talking with them because these are organizations that have
billions of dollars worth of Bitcoin that are literally sitting idle doing nothing at all.
It's not earning them interest. It's not getting the value. If anything, it's a liability,
right? Like if someone were to hack the multisig or however they choose to secure their funds.
And so we have certainly been talking to them about this solution,
and they are extremely interested and eager to get their hands on it,
as some people following the kind of primary story have seen.
We had to delay Lumen a bit because we demoed this concept to them
called what we call GovBTC,
which is essentially a fully self-custodial
sort of variant of the Babylon model.
If users are familiar with the Babylon model,
Babylon, of course, is where you time lock Bitcoin
and you act as what's called a BSN, a Bitcoin service node or something like a security node or something like that.
And then if you exit the time lock early, what happens is your Bitcoin collateral is actually slashed.
actually slashed so you lose bitcoin if you unstake early uh you know miners institutions
So you lose Bitcoin if you un-stake early.
big uh treasury companies they don't like that right they don't want any sort of potential risk
to their underlying principle which is that bitcoin and so as we talked to them about gov btc
how we structured it was very similar to the Babylon model in that you stake Bitcoin, it's self-cashed, but your prime layer of tokens will be slashed.
So there is still a punitive mechanism in there, but it ultimately does not impact the key collateral that they are most concerned about, which is their Bitcoin itself.
And so they really like that.
And so they wanted to see that as soon as possible.
And another new concept to a lot of certainly the miners and, you know, to a certain degree,
these treasury companies are still kind of wrapping their minds around how Bitcoin works
kind of, you know, at basic level.
But to all of these players, this concept of what's called a VE-based economics, which VE stands for vote escrow based economics. you're locking some kind of collateral to earn voting rights within the economic system that
you're participating in and those voting those voting rights allow you to depending on the sort
of uh type of votes they are they allow you to influence everything from how much yield
different validators within the system are
entitled to earn to things like
you personally, where you want
to or you feel that you'll maximize
your ROI from through allocating your vote escrowed
through allocating your votes to the appropriate sort of buckets from which yield is streamed.
So inside of PrimeLayer, there's like, let's say there's five different yield streams right there's the there's
the bridge there's the stable coin there's the protocol native decks there's the uh uh and there
are like different dApps that can also produce yield for users you as someone who's holding
vote escrowed tokens can choose to allocate all of your vote escrow tokens to the
to the decks yield stream for example if you feel like that's what's going to produce the most
the most yield for you because there's a lot of volume on the decks then you can put all of your
votes into that into that bucket and you And all of your yield will come directly
from that one yield stream.
However, if you feel that there's going to be
a lot of yield coming from DEX trading volume,
but there's also going to be a lot of yield
coming from the protocol native
bridge in, bridge out fees for Bitcoin,
then you can split your votes
between the DEX and the bridge yield streams
kind of 50-50. And that way you're able to not be placing all of your eggs in one basket,
so to speak, right? Because if there's not a lot of volume on the decks and you've got all of your votes allocated to decks, to decks yield, then for that cycle, you're not going to be getting a lot
of yield, right? And so that's where kind of managing how you allocate your votes is a new type of mechanic for maximizing your revenue within this type of VE-based economic
system. And the real kind of long-term value of this type of implementation and something that
we've been discussing with treasuries, miners, all these kind of big holders is, of course,
projuries, minors, all these kind of beholders is, ofosition their votes every week to make sure that their votes are allocated such that they're maximizing their revenue.
set could easily look at historical market trends, you know, reference some news from,
you know, the tech sector to see kind of like what's coming, so to speak, from a global macro
economic perspective. And then based on all that information, they can allocate your votes to the
appropriate yield streams to maximize your ROI for that cycle.
And then on the next cycle, which is weekly, they'll do it again.
And so in that way, miners, all these big companies that are sitting on Bitcoin right
now that are basically, that Bitcoin is doing nothing for them aside from hopefully going
that that bitcoin is doing nothing for them aside from hopefully going up in value
up in value.
they now see an opportunity to not only continue to hold on to that bitcoin and see it go up in
value but also stick an ai agent on top of it along with a small prime layer bond and use that
to manage a new revenue source for their company that's enabled through that Bitcoin that they're holding as a store of value.
And through that AI agents management of their vote escrow positions,
really, you know, maximize revenue, even as the, you know, global landscape changes relative to where that revenue is going to come from.
you know global landscape changes relative to where that revenue is going to come from
nice that's that's really nice and i hope all builders and users listening to these spaces
have internalized what this means to them and the opportunity this is for them and also on on the
same page of of the edge chains and the partners that we have coming here today uh i want to make
a quick introduction but just first i see jack is with a raised hand here. Jack, what do you want to share with us?
Yeah, I know. I would say like adding on to the DEX thing because, you know, I was helping Dan a little bit on the economic design and I think it's very forward looking. It's the VE DEX as well. That component itself is going to allow you to stream bribes, right?
Like if you want to launch a token, you know, you want to raise money, you want to launch a new token,
or I'm an agent, I want to launch a new token for a DAO or whatever,
you're going to put your position in the DEX with your token.
token you have access to five percent of your tokens you put it in the decks and then you would
You have access to 5% of your tokens, you put it in the DEX,
you would bribe the ve holders in this case a bitcoin ve you know holder to say hey you know
point some of your votes to my my decks position and the prime rewards for the blockchain is
streaming out to pay the holder of the Bitcoin. So they're earning
some of that, but that's also getting paid also to the position in the DEX. So if liquidity
providers put their money into that DEX, they get streamed the inflation that comes from the
blockchain. It's like almost proof of liquidity, right?
And on the other hand, the guy voting is getting all of these fees
that they're getting from the DEX, but also from the bribes of these tokens.
So you're getting a whole bunch of random coins that you may like,
you may not like, but you will choose which ones you vote for.
And that's sort of what
aerodrome and the new sort of economic engines of dex is going towards but we've coupled it with
native ve economy but also bitcoin and on on the bitcoin i'm not sure if i spoke about it but in
5.1 we will have access into bitcoin state and that's done through merge mining plus century
node security so it's it's probably through merge mining plus century node security.
So it's probably like the best sort of Bitcoin Oracle out there, I would say, because it's
66% of Syscoin century nodes with quorums locking it as well as 51% proof of work Bitcoin
security.
So it's really super secure way access into Bitcoin and you're not actually moving your
Bitcoin.
You're just potentially just time locking it. You know, you can't even exit that within Bitcoin.
But once it's time locked, you prove that state in Prime Layer and you get access into this
governance token that if once that time lock ends, that governance ends as well so it's a really cool um way to tap
into bitcoin holders that i think they will accept they you know the treasury companies will also
accept because you're not you're not moving your coins out of your wallet it's still still in your
wallet and you're getting access into these streaming rewards just wanted to you know touch
on that a little bit nice that's uh that's a nice add-on to what we have spoken here.
And also now following on this same idea of edge chain model
and having different use cases for each edge chain,
we do have also another partner that we have also been speaking about,
a compliance-focused edge chain on ZKCS. and who's better to talk about it than David. We have David here
on stage today. David, welcome, nice to have you here today and let's talk about
Lunos, what users can expect there. Users have been pretty... they have been paying
a lot of attention to the updates. We have Luno's monthly update one and two on this new phase.
And you as the man behind it, as the manager behind it all,
what can you bring to us and what can you bring to users?
What is happening on Luno's and also the other projects as well that you're involved?
Right. Hey, everyone. Thank you all for being here.
I hope that today I'm able to clarify a little bit more about what we are building.
As we have built Camada before, we have worked on a bunch of different projects,
and we are using all the knowledge we gather from all of those into Lunus today.
And what we're building with Lunus is actually simple to understand at a higher level,
even though the underlying technology is quite complex.
If you look at crypto today, most blockchains are designed around one core idea, like being
completely open and permissionless.
Anyone can join, anyone can transact, and the system treats everybody equally.
The model is extremely powerful and that's what enabled DeFi, NFTs, and a lot of the
innovation we have seen.
But there's a problem.
That model doesn't work well for large companies, financial institutions and governments, for example.
And the reason is practical.
These entities require highly regulated environments and like they are required to know who their users are.
We need to enforce compliance rules.
They need auditability.
They need the ability to control who can access the systems and the rules, the conditions
behind those systems.
If you're a bank, you can't just say that anyone can interact with the system anonymously.
For example, if you're a government, you can deploy critical infrastructure on something
you have zero control over participation.
So in the end, they either don't use blockchains or they do those closed source private systems that lose most of the benefits that make blockchains valuable in the first place.
This is what we are trying to like the gap we are trying to fill with Lunus.
Lunus is built for regulated industries, enterprises and governments.
Instead of forcing them into fully permissionless environments, we give them the ability to define their own rules. So imagine a company or a government is running their own environment
on top of the KC on top of Loomus, and they can decide who is allowed to participate,
what kind of verification is required, what compliance rules and each of the enforced,
how transactions are validated, how those transactions are approved. And imagine they
could require that every address interacting with the system is KYC verified, for example.
They could restrict transactions
to only approved participants.
They could enforce jurisdiction specific rules
automatically at the protocol level.
This is similar to what we did in the beginning of Kamada,
the part about KYC verifying, the restricting transactions.
And now we are extending the idea to the chain level.
And yeah, I hope that with all the updates we're giving, we're trying to clarify everything. The latest post, I also shared some of the code you have been writing and yeah.
So moving on from their perspective, this, this companies, this, this, the government, uh, this behaves much closer to the system.
They already have, they already understand and trust.
But even though they have that control on the top layer,
they're not sacrificing security.
Underneath all of that, Lunos is built on ZKCs,
which is anchored to Bitcoin.
So you have a combination that hasn't really existed
in a usable form before.
You have a controlled, compliant environment on top
with Bitcoin-grade security at the base.
And that's a very different model from traditional finance systems and most of crypto today. This is why we say sometimes that Lunos is not trying to serve everybody. We are
not optimizing for retail users or fully open DeFi ecosystems yet. We are building specifically for
for a segment that is massive and underserved enterprises institutions the governments
a segment that is massive and underserved, enterprises, institutions, and governments.
um privacy as well right like cvdc for example see the government cvdc they want complete privacy
and this would offer that yes yes exactly and currently it's really hard for that to build a
system that solves identity compliance you have the security you have privacy uh and you
integrate everything with legal and operating frameworks you do all of that without breaking
core guarantees of watching systems uh most most projects avoid this because it's easy to stay in
fully permissionless environments than taking this harder path and this is what we are doing
and but we're still really we're still really early in the research phase.
We're still defining what we should do.
We're talking with the lawyer every week
to define what we can and we can't do,
what rules we need to follow.
And we are currently focusing on identity-inforced execution,
compliance layer design.
We're trying to see how we can integrate everything
with CKCs in the best way possible.
And we are trying to see what the infrastructure for these enterprise-grade solutions need
to look like.
Right?
So, yeah, we're not here to overpromise timelines or say that this will all be like tomorrow,
but we are confident in the direction we are taking, in the research we are doing.
And if the blockchain is going to be adopted at a global scale, it has to work not just for individuals, but also for all these entities that we have been talking
about. They move slowly, but they move carefully. And when they move, they move at scale. So like,
it's a lot of money at the same time. And we're trying to create this own ramp for them. We're
trying to bring them on chain for the ZKC's ecosystem. ecosystem yeah i just wanted to add on there like the
we've been thinking about rwa and and compliance design for a while right um since and and one of
the things um that we've thought is like there are pretty big players in the space like tenderly um
there's a couple of them that they're sort of onboarding on-chain assets,
but they're focused on putting it on the main chain and putting them with specific potentially ERC type assets,
like ERC whatever number that have KYC built in.
But I'm not sure if those will play ball within the infrastructure of the
autonomous DeFi, right? For example, like you can't hook up that into Aave and do borrowing
lending with your RWA asset because it has a special authorization model and the Aave platform
can't work with that. Just an an example so one thing that's really unique
here um besides connecting to bitcoin besides scaling you know and and costs coming down but
one one thing that's really interesting is i think the authorization here is happening um some for
some tokens it'll be at the uh at the token level but other tokens, it could be just basically at the RPC, at the
infrastructure level. So you're checking based on infrastructure rather than token. So tokens
can come in and freely interact with all the contracts without worrying about friction,
without worrying about compatibility, and still take
advantage of all of the necessary compliance measures that are needed. One huge subset of
the economy we found that wouldn't need any checks are, for example, some types of security tokens,
which are now, there's much less security regulation issues than
before but if you're raising a token uh and then it's it's considered a security and you do that
on a traditional broker those brokers can plug that token into the chain and you actually don't
have to do anything after that it's freely trading um so the initial issuance is the sticky point.
And then after that, it becomes freely trading when the prospectus legend is removed from the filing.
And that token becomes just like any other decentralized token.
But you still have some sort of reporting requirements.
So this still probably should live in the RWA Lunos use case within that chain.
But within there, there's no checks needed.
Anyone can own it.
You can exit it if you want.
But you do have to report if you did make profit on it or whatever.
But that's just like any other thing where you hold any sort of asset.
If you make money, you should report it to the government for whatever tax purposes.
If you don't, you don't.
And we've isolated that many of the platforms out there, the RWA,
they're trying to fit everything into one.
And by doing that, you're creating a whole bunch of friction.
And they're trying to make it so, okay, we will do all the reporting.
We will do all the KYC.
We will do everything.
And for us, we're like, okay, we don't need to do that.
We've strategically shifted some types of tokens,
like 60 or 70% of the market.
It could be done on a traditional broker.
They could onboard the token.
That becomes freely trading.
We don't have to do anything after that.
It's just a chain that has RW assets and friction-free.
And then there's others, like the governments and the banks
that might care about KYC individually.
We can enable it at the infrastructure level
without affecting the tokens.
And so infrastructure would gate,
okay, this person is trying to make access into the chain
and is he registered, is he not registered,
is it accredited or whatever.
He's trying to sell it, so is it reported, those sort of things
for some sort of restricted asset classes.
So that's why I think it's really different than even beyond
just connecting it to ZK-Sys.
It's in the RWA or security asset space.
It could have its own little value proposition that's different
all right so recapping on this it's uh for everyone listening or or companies or governments
listening to this is you can run on this infrastructure set your rules meet your own
requirements and get the structure the security underneath and this has not pretty
much existed like in a usable way before and speaking of of these governments and so on like
michael mentioned in the beginning honduras peru and so on and this now connects to the to the next
point of this ama that we wanted to go over, which is Latin America. We have a lot of
Syscoin builders, developers, and community members also that are listening to us here today
from Latin America. So, Fernando, I would like to welcome you here on stage today, speak about
the ledger architects that are building. and they are not just, these builders,
they are not just like on Silicon Valley, on the United States or so. They are also in Lagos,
they are in Bogota, they are universities in Latin America, in Africa, all around the world.
They are distributed across the entire globe, and they are building a lot of good stuff with
the Proof of Builders initiative. And the man behind all of that is our devral fernando
so fernando welcome stage super nice to have you here today and go over this what
what do you have to share what's happening there and what would you like
people to know here hello hello everyone how How are you doing? Greetings from Peru. Greetings to everyone in the space. Jack, Miguel, Dan, David, Martin. We have more people from the team. They don't have the mic, but I'm so excited to be here with you guys. This is a great launch we are having today.
I would like everyone to please share your vibes in a comment to this space.
It would be nice to see some action from you as well, your reactions,
what you think about everything we are sharing, any questions you have.
Maybe after these rounds, we can do some Q&A for real.
And yeah, Honduras, Latin America, it's probably the biggest visible. I remember when I was helping out Jose from Stamping.io,
he had some requirements for a Syscoin note,
you know, the Ompe Peru election that is right now being built.
There is some digital observer technology that includes Syscoin, right?
That's a very, very big project that will take a few years.
But in the middle of that, he called me and told me,
hey, Fernando, we gonna do the election.
Hey, great.
No, no, we are making it to Honduras.
I say, what?
Yeah, we already launched contracts
and we are pushing the tally sheets
in a digital version to Rolex.
So stamping will collect,
and that's what they did actually,
I'm talking, I'm sharing just the history now, right?
So they collect the scan copies of the tally sheets.
They collected from the official devices, right?
It's not like they bring their own devices, it was government devices from the
election authority pushing out the scan copies of the title sheets, the official ones, and
then they put together a whole system and they bring the seal, the hash to the Lnet it's a another chain from the uh from BID it's a it's a bank for uh that works
with governments and invests a lot of technology and also in Rolex so they two together that level
uh enterprise uh it's it's been built you know for for one purpose right it's like
provide a digital observer.
You can see it in votolibre.info.
The link is shared in a comment here already.
They make the data visualization
and it confirms who is gonna be the president
by the time it was 2025.
And Nazri Azura was elected according to the digital observer.
And that's only a confirmation on the
election authorities that yeah, Nasir Asura is the elected authority. Now he's in office,
he is the president, official president of Honduras and Cisco and Rolex. Our technology,
everyone is vibing here on it's what made it possible, right? So think about it.
It's just one case and it is the future coming at some point.
Peru will get unlocked right now.
It's in a big audit, but it's part of it.
And I can tell you all their other entities,
all their countries are also watching.
Eventually I get some calls I cannot share right now, which countries,
but at least two other countries
in Latin America are evaluating syscoin to be included in their elections right
and that's the whole history that's how it starts but the question is
why I mean why they choose syscoin and I will say I will answer with another question, who will question a truth secured by SISCoin
and Bitcoin for eternity?
Probably the answer to the question
is why they choose SISCoin, right?
Yeah, that's it Martin, that's what's going on.
And then we have the hackathon,
we have a lot of interest from Peru builders.
In this case, we have been running three hackathons so far.
Today, we have the hackathon number four, the iteration number four of the proof of builders,
which is part of the Ledger Architects program started by Patrick, our marketing director.
The whole program has impact in Africa and Latin America.
I am running the Latin American site.
You have the pov.ciscoin.org website.
It's like a portal where you can see all the projects have been proposed all the winners on each of the iterations
today we have a few guys
from the latest hackathon we had, the three winners
I invite them to join, maybe they can request Mike
and share a little about their experience, what they are building
Yep, everyone that's And share a little about your experience, what you're building. Yep.
Everyone that's invited to speak from this initiative and just request the speaking permission and I will approve everyone.
I see André.
I see Gio.
Yeah, we'll approve them.
Let's see.
Welcome, André.
Nice to have you here on stage.
Welcome, Gio.
And let me see who else.
We have a lot of people here today.
It's pretty difficult to find everyone.
Let's see.
Adrian, yeah.
It's a good problem to have.
Yeah, I guess we're just missing one more, right?
Or so.
But in this meantime, I would also like to reinforce something
fernando just mentioned here a lot of initiatives hackathons chances for you to show your work and
so on and for everyone in the syscoin ecosystem in the system in the syscoin community
there is also a content bounty from poly walletallet, which is still going on.
The deadline is this Friday, so you still have two days.
You just have to create a video showcasing PolyWallet v4, which is the latest version
that just released.
And when I say from PolyWallet, I refer to the web extension.
And then just make a video, show what is your favorite feature what what's different
what's new and why people should use it and you can win up to 75 bucks in 75 us dollars in sis
in syscoin so uh just show your work uh we have opportunities for technical people for developers
and we also have opportunities for non-technical people,
for marketing people, community people. Just record your video, do your best, do some nice editing,
do some nice transitions. It's not mandatory, but the better your video looks, the better your
evaluation is also. And there is prizes for the three better videos. Just create your video,
submit there, tag PolyWallet,
and we will take a look at your submission as well.
So, Fernando, back to you.
I guess we have all
speakers here on stage
right now.
Okay, that's wonderful.
So, the first talk
maybe is the third place
on the competition.
Six points. How are you doing?
Adriano?
Hi, hi. Hi, everyone. I'm Adrian. I'm excited to stay here. It's a pleasure for me and my team. Well, I talk about my participation in Hackathon
Proof of Builders. Well, I'm Adrian and together we're the last month with my team from Peru and Brazil, Akira and Jose De Sousa,
we participate in the Proof of Builder Hackathon.
During the event, we worked on a project called SysPoints, that is basically a system where
users can hear points by leaving reviews. The idea is incentivizing people to share feedback
and at the same time help platforms
collect more useful and honest reviews.
Those points can later be used as rewards, benefits,
and other types of engagement.
Honestly, the hackathon was intense, but really fun.
We enjoyed building something in a short time
and turning an idea to something real.
We also learned a lot from the teams
and saw some really cool projects.
So yeah, overall it was a great experience
and we are really happy with
What we built
Thank you for Cisco members. It's
It's I'm a little nervous, but it's I'm here. No we are here team
Muchas gracias. Thank you man. Bye for him
Okay, then the second place, please, PetID. Hi, my name is André.
It's a pleasure to start here.
I and my team built PetID Web3D.
We are proud to share what achieved the second place
with a project focusing on real social
impact.
PetID uses Cisco blockchain technology to help identify and recover lost pets through
our unique digital identity. Um, more than web trips up. This is a solution for family who lose their pets and need a faster, safer and more transparent
way to find them.
Um, we also want to sincerely thank the Cisco community and everyone who support us, especially
through uptesting, technical feedback and mentorship.
The guidance and advice helped a lot to improve the product and move forward with more confidence.
And also thanks for believing in our vision. Thank you for bringing that really very interesting project you guys have had and
wish you the most of the success. I think that you guys are who are ecosystems now built on
now we are moving into something bigger which is a fabric you can create your own ecosystem for your project and make it part of
the syscoin, right? With CKCs you can create even your own edge chain and bring it to an app chain level
if this grows, if we're going to have millions of pets registered into your platform, that's I foresee that coming and then the next the winner the first
place of this Proof of Builders hackathon number three Gio Gino or Giovanni
from the to play Olympia project
yes and thank you Fernando and everyone and And as you've mentioned, our team is to play Olympia and we are the winners of the third
hackathon that took place in Peru.
I would like first to thank the Syscoin and the Proof of Builders hackathon for giving
us this opportunity to turn this idea into something impactful.
It's been an amazing experience to build alongside such talented teams and to be part of an ecosystem
that supports innovation.
And there's been many projects that were very interesting.
I really, really thankful we've wanted this one and considering there were other great projects, right?
Well, we're especially grateful for the chance to share our vision and to connect with people
who saw the value of what we've created.
As a result, our project to play Olympia is an intelligent beach cleanup system powered
by blockchain.
Using a scanner, users can identify
different types of waste found on beaches.
And based on what they collect, they are tokenized rewards.
And with these rewards, it translates into points
and NFTs and special achievements.
And they all are managed from a wallet connected
to the CKC's definite.
And users can use a wallet as Pali wallet before
or Metamask for example.
And we've convened this real world environmental action
with three incentives.
So we created a system that not only encourages
cleaner beaches, but also builds engagement,
transparency and long-term participation.
Well, this is just the beginning for us.
Well, we're excited to keep building
with the Syscoin ecosystem.
And as last, I would like to thank you all
for believing in our vision.
And well, let's keep growing together for Syscoin.
Well said, well said.
Yeah, thank you.
And congratulations for winning.
Yeah, and we have the fourth iteration.
I mean, this new format we have for this iteration for is really shocking.
It's like super interesting. iteration for is really shocking.
It's like super interesting. It's not only blockchain.
We are bringing autonomous
agents.
You guys heard about open cloud. It's taking
the world by a storm.
There's a whole vision
about it. I have learned it
mostly from Jack and from
the superdap guys.
Mikey.
It was like idealism two years ago and now it's true.
We're like living a dream where you can find new use cases and CKC is ready for that. I mean, we're going to scale, we're going to have, we have the tools now to build a
future with CKCs. It's the best place to build, in my humble opinion. And that's something you're
seeing in this, all this joint energy coming from the hackathons. And they believe in Cisco,
and because of what we are bringing to the table from a tech perspective what is our vision for the future what can we build with blockchain
and how we are aligned to the AI revolution that we are living today so
thank you so much for having me here everyone you have any questions just
just let me know I'm gonna sit here I just wanted to say that the hackathon was pretty interesting.
On the digital identity one, we thought about that as well before,
like in Blockchain Foundry, the loyalty points.
And it was always an issue with Sybil attacks.
Like how do you stop someone from leaving reviews to collect points?
On a website, you go eat somewhere and you want to leave a review.
And if you're going to give loyalty points to someone for that review, then how do you
stop those attacks?
Well, I think what David touched on with RWA and compliance could have something there
with ZK proofs.
You could do proof of something, you know, fors you could do proof of something you know for the
loyalty point proof of proof that you're maybe you you were in the restaurant you did order something
you know a geolocation proof tracker or something like that and tie that into your loyalty so you
can't spoof it so easily and then the pets one was was interesting because it's it's like it's like a unique web 2
sort of use case right people always lose their pets who would have thought digital identity for
their pets you know it's uh it's interesting because it can catch on just on its own having
a did for for your pet and then tracking it and then uh obviously the the one that won was interesting like all of these use cases
um all relate to attestations using the blockchain huge as a form of attestation rather than as a
form of like defy or liquidity or anything so these are all really great examples and the winner was
obviously using it for attestation as well so um the Peru and Honduras, you know, these use cases are attestation based for the most part because they're seeing the value of rooting some information into the chain that's going to be secured by Bitcoin.
So it's great to see, you know, nice interfaces and demos there that might become real products
and catch on on their own.
And I suggest that they launch,
and who knows which ones end up taking off
because they're all interesting use cases
that people will find useful, I think.
100%, and they are already launched to CKC's testnet.
So you guys can try it yourselves and enjoy our new fabric built with this.
Of course you guys have the autonomous agents joining the Cisco Discord soon.
We are already preparing them.
This new experience of CKC's plus autonomous agents is not like a promise, it's just tangible
today. Thank you. All right. So once again, thank you everyone for joining. I guess we're now on the
final phase of this AMA. So if anyone wants to make like a last announcement here or bring someone, something else here for the listeners, for the community that they should be aware of, that they should keep paying some attention in the next few weeks, months, this is the moment.
And if not, we can start, we can wrap up this space and go forward with it.
Does anyone else want to add something or recap something?
All right.
I'll take the silence as everything's fine.
So, guys, stay tuned for what's coming next now with Testnet Live,
ZKC's Testnet Live.
We have another hackathon coming.
So, opportunity for developers, opportunity for non-developers.
We have the PolyWallet bounty that is still running.
You can just go to the PolyWallet profile.
The first tweet, the pinned tweet there will give you all the instructions you need.
Just take your camera, just take your ideas and bring it to life and earn some Syscoin with it and get some visibility also.
And let's do this together.
So thank you again, everyone, for joining, for taking this time.
Maybe you're at work, maybe you're driving, maybe you're at home, maybe you're doing whatever, but you took the time off to listen to what we had here today.
And we value your participation and thank
you for believing in Cisco and staying with us for so long so thank you for the speakers as well
Jack, Mitchell, Cisco and Foundation thank you David thank you Fernando and thank you for the
Hackathon winners and also Dan that is no longer here on stage, but also gave us a lot of useful information here today.
And we wish you all a lot of success building on the Syscoin ecosystem.
Thank you, everyone.
And see you in the next one.
I hope it's soon, man.
Thanks, everyone.
Take care.
Thanks, all.
Thanks. Thanks, all.
