Zen Protocol Website:
How’s it going everybody this is beat the bush today i’m gonna talk about icos and i’m gonna take zen protocol as a case study this video is sponsored by zen protocol and i’m taking this chance to look more into icos which stands for initial coin offerings icos are unregulated and they do not need to pass through all this red tape like in ipos this allows small
Companies to tap into early investor money whereas if they go to traditional route they have to go through a lot more paperwork and a lot of times passing through all this red tape is sort of a hindrance for new technology formation so you can imagine if it becomes harder to fund then new companies that are innovative they cannot move as fast as a pace now ics has
Its own dangers because you see a lot of them pop up and to me i think you know only a handful of them will be existing maybe ten years down the line so with any i seos or any kind of brand new cryptocurrencies you’re sort of on your own sometimes when you buy into it you may not be able to sell for some time sometime in the future you might not be able to sell
At all but given a technology that is good and sound you might have much better of a chance than if you just look up some random ipo don’t even do any research in it and it might actually even be a scam now the success of these icos and how much their coins are valued later on really depends on the adoption if people do not adopt this protocol or and if people do
Not even use it then of course yeah it’s not gonna be worth anything in the future but if people do kind of try it on and see that wow it’s really good sort of like bitcoin and this is why a lot of icos are propping up because people think oh i want to get in on the next big thing so they go and search for a brand new icos a brand new coin or something there’s a
Lot of them out there like hundreds of them and i’m certain there are a few handful out there that probably will exist for quite some time and might just be the next big thing however it’s kind of hard to pick it’s sort of like picking a stock and you really need to do your research and even if you do your research you might not always win so when you’re investing
In any initial car and offering so you’ve got to think of it like back in the dot-com days those are brand new companies those are places where if they go ipo it does not necess i mean they’re gonna stick around forever just like ico if they become public okay that you can have a little bit of liquidity does that does not mean that they’re gonna stick around for
Years to come so at the end of that dot-com days i don’t know more than nine out of ten companies just went bankrupt and you never see them again but there are the amazons there are the googles that became successful so if you were smart enough to pick out those out of you know hundreds of companies back then then it’s kind of like what it is right now you have
A lot of promising companies and you gotta go which one is the one that will make it so i seos are like this people look at bitcoin and they see oh my gosh a hundredfold gain people are becoming millionaires so why not get in on the nicks altcoin you might see at the beginning of this video some advertisements going oh you know the next big thing some genius you
Know cryptocurrency investor you know now they’re investing in this brand new coin maybe they made it up themselves or something and they want you to invest in the next big thing they want you to put money into this new ico a lot of people are drawn into this and there’s a lot of money flying around with the promise that yes it’s going to be like the next bitcoin
Where it’s gonna increase 100 fold as well it is my belief that most of these will fail and roughly i don’t know 5 to 10% will actually succeed so you have to be superduper careful and even if you are there’s a chance that whatever initial coin offering that you buy into will not be worth that much or any at all you know not even zero in the future if you look in
The typical characteristic of a brand-new ico they’re trying to sell their coin and these have some sort of blockchain technology that they’re using and they want you to invest certain amount into binder coin and oftentimes they have a fancy webpage they definitely have some sort of technical white paper that you can read into there’s of course a way for you to
Sign up and put money into it with a credit card with a transaction or something so that you can pay money into it pay real us dollars or whatever currency you have and buy their coins or you by into it as an early investor with a lot of legitimate icos of course there gonna be a lot of fake ones where they try to make it look like a legitimate protocol something
Brand new you know something believable and people that don’t do their research they might just go look at some website and you know not read any of the technical sometimes it would have things for you to read definitely and if you look deep down into it maybe they don’t even have a product and if you don’t pay attention it might sound good on paper but then if
You don’t do your due diligence it might just be sort of like vaporware now today i’m gonna look at a particular ico which is called zen protocol me reviewing zen protocol is not necessarily an endorsement of me recommending to buy into this i recommend to do your own due diligence and invest wisely now if you look at the number of ics in 2000 you have about 46 of
Them in 2017 balloon to 230 four of them there and there are billions and billions of dollars changing hands here and investing into brand new companies here’s a quick look at the 2017 categories and you can see that it’s all over the place there might be health care there might be financial services blockchain technologies is essentially being deployed and you know
Every which way of life because these centralized thinking and decentralized method of doing things happens to be a lot more robust i remember a long time ago the first i heard of decentralized anything was basically bittorrent right because in bittorrent you have multiple pieces of file and not any single place will be the source of all the files it’s essentially
Distributed so everyone cuts into little pieces of that file and everyone has certain number of pieces and not everyone may have all the pieces so if you join everyone in the network you know that’s decentralized maybe the idea of decentralization came from that because that was sort of the first time i heard of it and it lends itself well into blockchain technology
So before we look into sin protocol in particular i want to do a little brief overview of what’s happening around i seos around the world right now the countries that bans ice is china and south korea and you might wonder why did they ban it why is it a problem it might be a problem because there are too many scams going on people can make a ico make something that
Looks like an ic o—- and scam people out of their money there are definitely very legitimate icos out there and just because there’s a lot of money flying around that’s why you have different icos that pretends to do the same thing in fact the u.s. scc recently charged to ic os for fraudulently selling fake products that do not really exist so all they did was
Make some website make some white paper that sort of sounds true and then they started collecting money i cos are also prone to pump and dump schemes where the ico tries to get people to invest initially you know make the price go up really high and all of a sudden when they feel like it’s reach high enough and you know not really at a spectacular level they dump
Everything and they earn a lot of money in that process so what is the zen protocol thing you can actually buy 3520 zen protocol with one bitcoin which makes it valued at roughly five dollars for each 10 protocol coin or token given a valuation of 18,000 for bitcoins now whenever i look into i cos i look at it with a lot of caution whenever some website asked me
For money and it’s a brand new website that you know i’ve never heard that where they’re coming from what their history is and all sorts of red flags come up and then i need to research into it a lot so zen protocol is actually a really neat idea in a typical finance situation whenever you want to exchange something for example if you want to exchange a title to
A home or something you need an intermediary for example if you ever want to transfer let’s say a thousand dollars from one bank to another you go to their websites okay and you go ok i want to transfer from here to here but what’s the backbone process that they actually use to do the transfer they have their own banking system that a typical consumer does not
Have access to the idea what zen protocol is to apply blockchain technology into the banking system so that you can remove the centralized bankers in there and people end up being able to do banking between one and another so you don’t need a bank to sit in between you typically well you can do this with cash but you cannot actually do this digitally right now
You always have to let’s say you use paypal you have to use that third party to transfer any sort of digital money if you want to transfer some sort of acid from one person to another you might write a check and you go oh that’s a physical piece of paper that you can transfer to them it may seem like that it’s a direct thing from you to them but then there are
Those numbers in there and those are the automatic clearing house numbers where once they deposit it into their bank they actually use that system in order to transfer money from your bank to their bank so there’s that thing in the background that you don’t have direct access to so then protocol takes advantage of this blockchain technology blockchain means is
Decentralized already so whenever they have some sort of node that they call it has a copy of all of the contracts between one person and then they’re and they keep on writing on top of this and you cannot change these contracts once is written so how do you actually transfer assets from one person to another because there’s a trust issue here so this send protocol
To me is sort of like an intermediary it acts sort of like an automatic escrow service one person that wants to initiate a contract with another person they can set up a contract first okay and then put collateral into this contract and the second person looking at this contract they can see everything already it’s already digitized and it’s already set in stone
So if they agree to everything that’s set in the contract they can join in to it and then add their collateral and once everything is satisfied whatever requirements that it wants then there can be an exchange of assets so there’s this lockstep of trust here one person makes all the rules and stuff and they need to make it favorable enough so that the second person
Will actually accept it the second person looks at this and then go home yeah okay it already has collateral built into it for example it might have some cryptocurrency that’s attached to it and it’s already holding on to this cryptocurrency and it’s okay for the first person to lock some crisp cryptocurrency in there because it’s not essentially give thattaway
It’s locked in that contract and it will only be released if the first person satisfy all the requirements of that contract so it’s safe for the first person and it’s also safe for the second person because the second person can look at the contract and go oh okay you know there are only be an exchange of some sort if they satisfy all the initial requirements and
At the same time for the second person they see that assets are already locked into that contract and they definitely will receive the whatever payment that’s inside once they satisfy their end of the bargain so if you look at the bitcoin futures exchange it kind of works like that the exchange do not actually hold any bitcoin it’s just merely a contract between two
Parties one person agrees to sell a contract to settle a certain amount for some underlying asset maybe it’s bitcoin pricing maybe they want to sell a contract for let’s say fifteen thousand dollars one month from now and if it happens to drop below that then the original seller will profit and if the price increase from fifteen thousand a month from now then the
Second person buying that contract will profit so you see it’s a contract between two parties here and the exchange is only an intermediary so this is end protocol can actually take the place of this futures contract of that exchange instead someone on the zen protocol can make up their own contract for bitcoin futures pricing and they can plop it out there into
The internet and people can look at this and then if anybody that agrees with this they can enter into a contract put collateral in it so that whenever that contract ends the funds can be settled between the two parties that contract is essentially holding onto some collateral waiting to be settled later on at a later date now if you go on the zen protocol website
They have white papers and stuff i read through some of that oh my gosh it put me to sleep essentially reads like computer science papers i think it’s written in latex because it has that feel and look of actual technical papers so you can go ahead and read all of that but basically zen protocol is a protocol that’s built on pop of bitcoins now they also have
Zen tokens on top of bitcoin tokens the argument with having separate tokens is that they don’t want it to contend against bitcoin being a currency because it being a currency people are mining it or trying to you know earn money off of it you know the price volatility is high however zen protocol has their own separate token specifically for financial use cases
Specifically so that you can just use these tokens just for financial transactions you see across a whole industry maybe it’s in tech maybe is in healthcare all of these things will have their own coins basically something that you can use to pay for locking that contract into this blockchain technology miners essentially get paid whenever people want to make these
Contracts and they put money into this blockchain thing and then miners will mine it and then they would embed this information into the blockchain so people using this blockchain technology such as zen protocol they would put money into it so that their contract gets written you know sort of like into stone because it’s blockchain technology it’s gonna survive for
The duration of the blockchain however in zen protocol they actually have a number of blocks that i can survive for so this is a little bit different than for bitcoin if you want to use a zen protocol and you want to write a contract then you essentially need to pay for it in order to get written into the blockchain as a miner you want to take these requests because
As soon as you take these requests and get it into the blockchain by solving complex algorithms then you can receive some zen tokens which is actually worth real money because then you can sell these back out to people who want to purchase these tokens so that they can create more contracts so you can think of whenever you want to put something onto this ether
Okay this decentralized network you have to pay money in order to get it written down this is because it takes some computational power to solve some mathematical problem so that you can actually write the next block i did watch some of their videos on how to create your own contract and it did seem a bit convoluted you have to copy and paste code back and forth
So my recommendation to those guys would be you really got to make it a bit more simple so in summary i think this is a really neat idea especially when you can lock collateral in it and you essentially don’t have a third party a centralized third party that watches over your transaction you can essentially set it up so that you can go from one person to another
And essentially remove everybody else out of it and you can do financial transaction from person to person if you’re interested in finding more about the same protocol i’ll leave their link down in the video description below let me remind you that this is an initial coin offering and if you sign up for this initial coin offering i do not get any cut from it i
Personally have not invested in this initial coin offering and i have not quite decided if i will in the future or not i like to remind you that me covering this ico is not necessarily an endorsement don’t forget to give me a like on this video comment down below let me know what you think of decentralized banking if you’re interested in supporting this channel
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Transcribed from video
What are ICOs Zen Protocol Case Study By BeatTheBush
