ABTC Community AMA episode 1
Here are all the questions and answers given during Algorithmic BTC Community AMA in Jan 20th
ABTC 2021: Host from ABTC Community
AlgoBTC D.Cook: Developer from ABTC Community
ABTC 2021: First, i want to share an article about defi in 2020–2021. One area in cryptocurrencies attracting huge attention is DeFi or decentralised finance. This refers to financial services using smart contracts, which are automated enforceable agreements that don’t need intermediaries like a bank or lawyer and use online blockchain technology instead.
AlgoBTC D.Cook: thanks for your attention to ABTC. I’m sure it will be a project that will make you scream!!!
AlgoBTC D.Cook: we will start POW after 10m, are you ready? get the miner tool form https://github.com/Algorithmic-Bitcoin/abtc-miner
ABTC 2021: Next, we would ask ABTC community representatives to tell us about this project.
ABTC 2021: Can you give a brief introduction of Algorithmic Bitcoin? and what’re main characteristics for it?
AlgoBTC D.Cook: no problem~ Take back the BTC for community-based on the power of algorithm and pow. Algorithmic Bitcoin firstly built a Pow system on the Ethereum network, which means a more fair method of token distribution has been introduced comparing to the token mortgage issuing method. ABTC has a constant initial supply of 210,000, which all will be distributed by Pow and totally show his respect to the freedom spirit of Bitcoin.
ABTC 2021: Interesting
AlgoBTC D.Cook: ABTC firstly pegged the price of BTC based on the similar mechanism of Empty Set Dollar which means an elastic supply mechanism including rebasing and coupon function. Algorithmic Bitcoin is the first project which sets a moving pegged price and will audit it based on the voting in DAO. We hope we can witness the whole process of ABTC beginning from 0.00001 BTC to 1 BTC. In total, ABTC introduces the Pow into the Ethereum network in order to find the real fair spirit for the DeFi world, and also give all community members an opportunity which experiences the whole process of rebuilding BTC again. ABTC is really a revolution strom in cryptocurrency world.
ABTC 2021: okey. Why the DAO build Algorithmic Bitcoin? When the conversation over we have one by one F&A
AlgoBTC D.Cook: Because we need to rebuild Bitcoin. Firstly, Bitcoin has become the game of giant whales. When Satoshi created Bitcoin, he hoped that it would be an e-currency available to everyone and easy to settle. But today, the giants in Wall Street bought the producer of mining machines and prevented everyone from getting Bitcoin fairly from the source. At the same time, Bitcoin became a pure investment tool through price control. Bitcoin should have belonged to the community, to every community member. Based on Algorithmic Bitcoin, we will take Bitcoin back from Wall Street, give back the spirit of freedom to Bitcoin and return it to the community.
Secondly, introduce BTC into DeFi world using a totally decentralized method. There is no doubt that Bitcoin has the strongest consensus and the most value in the crypto assets world. On Ethereum, wBTC has issued around 110000 tokens, however, it is issued by a centralized mode, which is essentially contrary to the original intention of blockchain and DeFi. Algorithmic Bitcoin uses a truly decentralized project to introduce Bitcoin into the DeFi ecosystem and also can regenerate a improved Bitcoin through the power of algorithm and community.
Nowadays the DeFi is becoming a game for the rich persons because the mode of the initial token distribution determines the future direction of the project. Now Mortage issuing became a generally acceptable method of many projects. However, it is obvious that the richer people are, the more benefit they get from this method. This is not a fair game, but an exploitation of the poor by the rich. They have to hide their evil intentions by using the word “mining”, the fairest representative of the community. Algorithmic Bitcoin will introduce the fairest distribution mode, Pow mining, into Ethereum to fill the free spirit into the community.
In total, Algorithmic Bitcoin means the fair spirit of BTC community and will introduce it to the DeFi world.
ABTC 2021: Cryptocurrency is not only a technical problem but also a solution to future problems. Cryptocurrency will redefine currency. From this perspective, how to interpret the changes that may be triggered by the project in the future?
AlgoBTC D.Cook: In my opinion, algobtc is not only a kind of cryptocurrency, but also an inheritance of the spirit of bitcoin. Its greatest significance is to give Wall Street a blow: the cornerstone of cryptocurrency lies in the community, and the consensus of the community is the soul of cryptocurrency. The world has been dominated by Wall Street and oligarchs for too long. They use their economic status and wealth status to win over and buy off all those who want to challenge them. But the spirit of freedom will always exist. Now, this kind of oligarchy has appeared in various projects of bitcoin and even Ethereum, and the appearance of algobtc will completely break this situation. I believe that in the near future, more Ethereum projects will adopt the most fair token distribution mode of pow. I believe that in the near future, algobtc can truly represent the value of bitcoin, not only in terms of price, but also in terms of community consensus and spiritual inheritance. It’s going to be a revolution. Let’s win this war together.
ABTC 2021: which opportunity for all community members, old and new bitcoiner related to Algorithmic Bitcoin?
AlgoBTC D.Cook: First, Algorithmic Bitcoin means the opportunity to hold the Bitcoin again. If you can go back to 2009, will you participate in the great social experiment of Bitcoin? ABTC can give you a chance to go back to 2009 and simulate an improved Bitcoin in an algorithmic way, don’t you want to participate in this new experiment?
Second, Algorithm Bitcoin means the real experience of extraordinary expansion. The initial pegged price of ABTC is 0.0001BTC, that is to say, the initial market value of the whole project is 2.1BTC. With the participation of the community and the increase of consensus, the overall market value of the project will also increase, which is mainly reflected in the growth of the quantity of ABTC tokens. In the initiation period, say 84epochs (about 28 days) after the rebase mechanism is started, the oracle price of ABTC: BTC is set as 0.000105, which will generate 10% additional supply for any community members participating in the LP liquidity reward pool and Dao governance. If you experience the whole process, you will experience an expansion more than 60 times.
Third, Algorithmic Bitcoin means a community full of the spirit of Bitcoin in DeFi world. DeFi is the foreseeable future and the continuation of the spirit of Bitcoin and decentralization. Unfortunately, due to the UTXO infrastructure of Bitcoin, it is difficult to develop any DeFi protocol on it. But now the opportunity has come, Algorithmic Bitcoin combines the Pow concensus with Ethereum technology, and will be fully integrated in the DeFi ecology. It can say that Algorithmic Bitcoin was born in the today, and is really created for the future.
ABTC 2021: tell us something about the Algorithmic Bitcoin design purpose
AlgoBTC D.Cook: Let’s talk about Pow mechanism firstly.
You should be familiar with the Pow mechanism of Bitcoin. In short, all miner need take part in a mathematical tounament, which the winner rewarded by BTC is the miner who first solves the problem. Bitcoin network will verify the computation results of all miners.
The main work of Algorithmic Bitcoin is to use Ethereum’s smart contract to verify these answer. Community members can run the mining program of Algorithmic Bitcoin on their own PC. if their computer find the right answer for the mathematical tounament, the computer will submit the answer to the smart contract for verification. If it is correct, they will be rewarded and the block height will be increased by one.
Considering the high gas fee in Ethereum and all mining machines existing in the market, Algorithmic Bitcoin adopted Sha3 (keccake) algorithm which can not be exected by any ASSIC or FPGA mining machine in the market. Algorithmic Bitcoin has clearly say “NO” to any computing power privilege in the beginning.
Algorithmic Bitcoin fully refer to ESD rebase mechanism.
In short, when the market price of ABTC is higher than the pegged BTC, additional issuance of ABTC will be carried out and will be distributed to any community members who provide liquidity for ABTC:mBTC in Uniswap and participate in Dao governance. When the market price is lower than the pegged BTC, the coupon will be issued which means that some ABTC will be destroyed and the supply of ABTC will decrease accordingly. In the future, the holder of coupon will be compensated by additional issuance.
Algorithmic Bitcoin didn’t adopt the design of two or three tokens similar with BAC, BAS and BAB. The main reason is that only one token of ABTC can play the role of connecting the whole ecology better, and community members may face less risk of price manipulation in the second market.
Somebody call BAC as “underground Federal Reserve”, and we think it is a kind of betray against the spirit of Bitcoin, because there is no Fed in Bitcoin world.
But in ESD mechanism, the community can creat a win-win situation as long as the community has a strong consensus.
In total, Algorithmic Bitcoin is the combination of Pow, ESD and pegged price of BTC.
ABTC 2021: In Algorithmic Bitcoin network, how to achieve the fair opportunitys for community members？ Who will be the biggest winners in Algorithmic Bitcoin?
AlgoBTC D.Cook: In Algorithmic Bitcoin community, the mechanism of “more pay for more work” is truely realized.
POW needs computing power, which means a kind of sunk cost. Because of this cost, all community members are more willing to build communities and pay for more gains.
Note that POS has no sunk cost and only have time cost, so the greedy sprit make all persons to pursue a quick profit and always aim at the next goal. Yes, that’s what valut is like.
The biggest beneficiary of this project must be everyone who participates in the whole process. Whether you participate in the early stage or follow-up, you can benefit. As long as the pow is still there, the spirit of fairness is still there.
ABTC 2021: What risks may exist in this project, and are there any ways to avoid them?
AlgoBTC D.Cook: There are always risks, but there are also opportunities. Where there is no risk, there is no gain.
Technically, algorithmic bitcoin try to use mature technology, such as POW, and they use the keccake algorithm provided by EVM.
The project also borrowed ESD code and only made a few modifications to connect with pow.
In the cryptocurrency world, the biggest risk lies in not daring to try, not willing to pay, not having faith and imagination. If you believe in freedom and fairness, then you will understand the significance and greatness of this project; if you believe in giving, then this project is the best place to verify your belief; if you believe in imagination, this project has no ceiling, and the sky is not its limit.
ABTC 2021: In this project, what do we need cryptocurrency enthusiasts and investors to do？
AlgoBTC D.Cook: Actively participate, actively build, and then patiently wait for the return (fermented cheese).
If you are a programmer, please pay attention to our GitHub, actively participate in our technical discussion, optimize and develop various tools for the community, such as mine pool building, mining program, data statistics tool, application app, etc.
If you are a media worker, please write more publicity materials for us, spread them to various platforms, and let us know about our project.
If you are an ordinary participant, please tell your friends that you are participating in a great revolution.
ABTC2021: How to reduce the randomness of human influence from the perspective of technology to ensure that the system is relatively safe, fair and reliable？
AlgoBTC D.Cook: As we mentioned earlier, algorithmic bitcoin is the first project to implement the pow distribution mechanism on Ethereum.
POW itself is the most fair mechanism that has been fully verified and has community consensus. You can see that the subsequent projects will package themselves as * * mining mechanism, which shows that mining is a popular mechanism. But only the real POW mining is fair and can’t cheat.
As for mining tools, on the one hand, the project side will continue to optimize the mining tools, on the other hand, the community will be encouraged to develop their own mining tools. At the same time, considering that some users do not have eth to pay for gas, we also encourage the community to accept these users in the form of mine pool. It’s a community that helps each other, and only in this way can the project continue to grow.
At the contract level, the community DAO will continue to update, and at the mechanism level, part of the expenses will be allocated to the “national treasury” (as community infrastructure support) to pay for the work of the community and the maintenance of the project.
ABTC 2021: thank you DR cook. NOW question time.
Oliver Graham: Your project is so exciting！
say something about Token distribution model
Daniel M i: What are the requirements for the machine configuration？
Are there any teaching videos or documents for mining?
AlgoBTC D.Cook: The initial total supply of 210,000 aBTCs are all produced through the Pow mechanism. The average block time is 10 minutes, and the block reward is halved by every 2100 blocks;
The first stage, 1~1050 block: The rewards of each block is 50 and all rewards are belonged to the miners;
The second stage, 1051~2100 block: LP pool mining start. The rewards of each block remained 50, of which 25 were awarded to miners and 25 were donated to LP incentive pool;
The third stage, from 2101 block: Block rewards halve, and rebase mechanism and DAO governance were launched. Rebase may be triggered in every epoch which equal to 50 blocks. In the first 49 blocks in every epoch, the block rewards is 24 aBTCs, of which 12 will be awarded to miners, and the remaining 12 will be donated to LP incentive pool; In the 50th block, the block rewards is 74 aBTCs, of which 62 will be awarded to miners because the miner needs to trigger rebase contract in this block and needs a higher gas cost, and the remaining 12 will be donated to LP incentive pool.
We encourage people to provide liquidity, so in the secondary issue will give a larger proportion to LP pool
Daniel M i: How do we get the RPC interface?
Oliver Graham: Use POW are more fair than lp mining，it’s cool！
AlgoBTC D.Cook: you can get free RPC from https://infura.io/
ABTC 2021: all the F&Q in this
