Updated: Oct 25, 2021
Intro: Mo: Hello everyone! It’s really nice to have you all out here today. So welcome to today’s AMA. So many have joined us today! I see more than 45. So as everyone knows, I am Mo; your new news guy. Today we will be having our own CEO Sheen and Aaron joining me today along for this AMA. So, before we can start just to let everyone know that this AMA will only be for 1 hour until 6PM (CET). We have a list of questions from our passionate supporters which were sent to our MXC Ambassadors Monok and Keith; which we will be answering first before we let the stage open to everyone. Today’s AMA will be focusing on our upcoming big releases for the fourth quarter (Q4) including the hottest topic BTC mining aka DKP3 which is open to everyone (with an M2 Pro). We will also be talking about scaling up device provisioning and other IoT products. Also, as everyone is waiting to hear news about NFTs, we have some big news regarding NFTs. I almost forgot to mention. Last week, we also launched our application for getting registered as an ETN (exchange traded note) on our very own German Deutsche Börse stock exchange in Frankfurt. We are the first German IoT company to make this investment opportunity open to many other institutional investors (https://techbullion.com/mxc-takes-iot-movement-to-german-wall-street/) . We will keep you posted about this in the upcoming months. Exciting times are ahead! So, let’s get into it but before we start I will first give the stage to Sheen. Sheen, would you like to say a few lines?
Sheen (Co-founder & CEO): Thanks everyone, and thanks Mo! Good morning, good evening and good afternoon everyone. I’m Sheen here based in Berlin. It’s a great honor to be here again. The last time I remember doing this was on Youtube where we did a massive AMA with everyone answering questions and talking about what we do and what is our vision. I think today we are going to welcome more newcomers and new family members here to get to know more about us and about this project, its vision and where we are heading to. I feel very excited! This is the most important Web 3 infrastructure in the blockchain industry. I believe you all only see a few projects like us building such important wireless infrastructure for Web3 applications. We are glad you all are building with us and I feel very honored to answer your questions and to exchange ideas with you all.
Mo: Thank you Sheen. Aaron, would you like to take a few minutes?
Aaron (Co-founder & COO): I’ll take 30 seconds. Hi everyone, and welcome to another AMA. Thanks for joining us today. I think there are probably a lot of questions out there in regards to what’s happening with our future roll outs. I think, or I know, we are expecting a very strong Q4 to end this year. As Mo already touched on, a few different aspects are rolling out. Device provisioning will continue to roll out and that is a super exciting aspect in regards to IoT. We are also integrating a lot more hardware partners on board. We will be talking a little bit about NFTs, I noticed some questions about DKP3 as well - BTC mining. As I said, there are a lot of big things to look forward to in Q4 this year. Running into the end of this year I expect some big growth in regards to our operations, our network, the team. I’m really excited! We have a future that we are heading towards now that we’ve got a strong vision that varies from other people within the IoT industry and I’m very proud of that. We’ve always taken an approach that is very different from typical mining. I think a lot of you will notice that now with other companies and other miners and what they are doing and how those networks slowly but surely start to break down and there seems to be a lot of issues around that. The decisions we made approximately 4-5 months ago now are exactly for this purpose so we can talk about sustainability. That’s why we make these decisions. We don’t make these decisions because they are necessarily popular, but rather because they are the right decisions to make. I hope everyone now has the hindsight to look at those (decisions) and understand why we made the decisions and why we will continue to make the decisions such as this in the future in order to strengthen the network and strengthen our support and really ensure we can get more people involved. It’s been exciting times and as I said Q4 should be quite big I think for everyone involved and for all supporters on a variety of levels. Anyway, after saying that I’ll hand it back to Mo.
Mo: Thanks Aaron. I’ll keep it short. How we will do this is first we will answer those questions from our supporters in the community. Those that are a bit shy to speak so let’s answer those questions first. So starting out, I have a few questions from Andy:
Question: What is miner difficulty and how will it affect miners’ earnings?
Sheen: Cool, thanks for that question and I think I will start first and maybe Aaron has something to add so I will hand it over to Aaron later. So, actually mining difficulty is something that is already in the Miner Health, right? So, as you all see the Proof of Participation model is something unique in the whole IoT & blockchain world. The design is to introduce some metrics like Proximity and GPS. In this way, we want everyone to participate according to some metrics. According to these metrics, which are mining difficulty, people can earn different miner incomes depending how much they contribute to the network. As you can see there are already some metrics introduced, but we think there are still very important metrics like the number of miners in that region, the longevity, and a lot of different metrics about how well you contribute to the network will need to be introduced as miner difficulty. This is something that I want to address to the fuel tank design because the proof of participation model is something that you need to lock in MXC tokens to mine more MXC token according to the Miner Health design. So, you really need to lock the MXC in as fuel in the fuel tank. This is something we see as the only way, and pay attention, the only way to make this network stable and to ensure we offer good services to outside sensors like alarming sensors, bikes, street lights, or NFTs. That will rely on the network that someone else built for them. So think about the other company’s IoT miner design. Their miners can come and go and there isn’t anything like our design to make sure that you have this kind of stake, like proof of stake, in your node. The node is our miner. The other designs don’t have this kind of thing. Not reliable at all and no one will use such a network. So we built this network and we will introduce mining difficulty like Proximity and the other metrics design with the goal to provide something reliable. To provide something that offers real commercial value to the society and allow them to feel comfortable so that they will use this network that isn’t built by them, but built by someone else. Even if the miner is located 10km away he is still comfortable that this network is reliable. I think we are the only one in the industry that has answered this question and introduced a lot of good metrics to make sure the network is reliable and is something the people can trust. Think about the other projects. Just like DOGE you can play the endless token game but at the end someone needs to pay for it. Someone will need to pay for the usability and if you don’t have this kind of miner difficulty or the Miner Health metrics I don’t know where you can find this kind of (network) robustness or reliability. Aaron, do you have something to add?
Aaron: Not much. I think also in regards to that this is showing the strength of our network and what is currently happening. I think, to an extent, we are kind of boring. Why is that? Because we haven’t had any major dramas in the last many many months in fact. That’s due to the stability we are trying to build into the network. There haven’t been any hacks where people are spoofing miner locations and getting more tokens as a result of that. We haven’t had any issues in regards to us reducing people’s mining capabilities (halving). That’s something that people do as a decentralized network that we build. So all of these things have a purpose and I’d like to say that we are still in a good position and continue to be in a good position and we are going to strengthen the network as a result of that. The mining difficulty is loosely based on what Bitcoin is doing, and to an extent Etherum miners. It’s something we want to build into the network to strengthen it. I do want to add on top of this, as was discussed last time we made changes to the network, everyone will be given ample time before any sort of changes are made in regards to extra earnings such as DKP3, or in regards to mining difficulty or any of the different elements. We will aim to do a 30 day notification to all people to allow them to adjust and get used to the new elements that will be built into it. So I hope that helps everyone.
Sheen: Also, to add onto that as Aaron mentioned miner difficulty is a term that is already used in BTC and ETH mining so you all can search the term there and how they implement that so it would be very similar and I would say it is just another metric for the Miner Health and the goal is to make the network very stable. I also want to talk about the next steps on how we want to make this network much more stable. This is through locking multiple tokens, right? Now you see there is BTC. We have BTC mining. The reason why we introduced BTC mining is also something that is a way to make this network reliable. It’s not only to lock MXC. We can also add a fuel tank in BTC, in DOT, and also in VeChain token or something like that. There could be an endless possibility to add more tokens into the Miner Health design and into the fuel tank design to make the network stable. You don’t want to turn it off, and you don’t want to move the miner away from providing usability to the outside world. You want to keep it running and very stable. This is also why we see large exchanges like Coinbase, Huobi, or Binance have multiple tokens inside of their wallet. This is the reason why the more tokens they have in their wallet to trade the more stable those exchanges can be. We designed this to make sure you don’t want to easily turn off your miner because this miner (M2 Pro) only consumes very little energy and internet bandwidth. You will need to maintain it and possibly add more tokens and make sure it is reliable, stable and provides commercial value to outside networks like 2G, 4G, 5G that are already out there.
Mo: Perfect thanks Sheen, thanks Aaron for Answering. Another question from Andy.
Question: How will Chinese regulations affect the deals with MXC?
Sheen: I think that would be the question for me to answer. I think Chinese regulations are always something that is good for the whole industry. Just like some jokes about the Chinese crypto ban from 2013 - each time creates a good entry point into for everyone, even this one if you see the BTC price today. Crypto blockchain and Web 3 is inevitable. We are very sure that those who are doing something authentic and are delivering good value to society like BTC, like us and Polkadot and other projects. Doesn’t matter which governments ban it, it is unstoppable. But taking a look at this ban or policy it isn’t something that is bad for society. They are worrying about leverage, shorting, and financial derivatives in Huobi and how they are causing more problems in their financial systems since they should be regulated. Since the Chinese government doesn't want to regulate it as a financial tool, like the US does with Coinbase or other exchanges by doing the checks and processes that the SEC does, the Chinese government says we don’t want this and don’t do this. For those that just want to trade or hold crypto assets it is still ok. For those that are mining BTC and using a lot of electricity I don’t think it is only the Chinese government that hates this, it is others too. That is why we built this low-power miner. Generally speaking our biggest market is not in China rather it is in the EU and the US. I believe Web 3 development in the EU and the US, but China will gradually catch up. Overall, Chinese regulation will be good for the industry and will make mining and the blockchain as a whole more global and decentralized.
Aaron: I just want to add something as well. We need to make a clear distinction between crypto and blockchain as they are two different things. Blockchain technology can work without crypto but crypto can’t work without blockchain. What a lot of things we have been focusing on is blockchain technology and our infrastructure and our data network on the blockchain in China. We’ve never discussed the tokenization of different elements with any of the Chinese governments that we’ve been working with. Therefore in regards to that it has zero effects on MXC. Of course, from a global perspective, it is somewhat less favorable as crypto as a whole. In regards to us in particular, this is where blockchain technology within China and we respect the local laws there and that is how we got these government agreements. If people are worried about certain aspects such as if this is going to affect MXC or that we are overly invested in China it is just not the case. We are all about rolling out our blockchain and our data network, but in regards to our tokenization it is not something that we have approached any government or any company in China in regards to that and I want to make that very clear. They are two very separate things and I hope that clears things up. Back to you, Mo.
Mo: Thanks Aaron, thanks Sheen for answering that. Talking about Bitcoin or BTC mining, Andy would also like to know will Miner Health play a part in BTC mining or DKP3?
Aaron: I can take that one Mo. This is the Andy show. That was in regards to Health and BTC mining? (yes). In regards to DKP3 and BTC mining what we will be looking at is a certain minimum Miner Health level in order to do BTC mining. Now I think that is a reasonable request. We want to make sure we have a robust network which Xin mentioned earlier (Sheen). We want to ensure we can continue to grow the network in a healthy and stable manner. So in that sense we will be having a minimum health aspect. I don’t know how much percent that will be yet; that is to be decided. We will be rolling out in Q4. I see a lot of people requesting when it is coming. It is coming in Q4. So that means anywhere between now and October, November or December. We will give everyone fair notice to understand what they are required to do and what they need to do in regards to preparing for it. That will be, I'm hoping, a minimum of 30 days notice. Worst case scenario 20 days notice but I hope people aren’t too offended by that because it is about adding on earnings as opposed to reducing any earnings. Back to you, Mo.
Mo: Thanks Aaron for answering that. Moving on. This question was raised generally in our community, and that was regarding FastMiners.io. Question: Did MatchX sign a contract with FastMiners to sell M2 Pros?
Aaron: Yes, we did.
Mo: Perfect, moving forward. I think maybe Sheen can answer this better.
Question: Will MXC be working with 5G technology in the near future?
Sheen: Definitely. As I mentioned in the beginning, we are the Web 3 infrastructure between the real world and the metaverse. Think about the future. We are bringing devices like your bike, street lights, containers and even agricultural products and everything from the real world to the blockchain. We are building this kind of network that is bridging the real world and the blockchain world as the metaverse and everything in the real world can become an NFT and this NFT can go on any blockchain thanks to DataHighway. So it is interchain/parachain infrastructure. So, this is something really exciting and this really drives me every day. Every day I wake I imagine that in the future everyone will use Web 3 infrastructure, not telecom or centralized wireless networks. Then we will naturally think about not only these kinds of low-bandwidth IoT networks. There is also a technology called Multi-Fire. I have been participating in their board meetings since 2019. I’ve been there and talked to their management and they got very excited. We’ve been talking to them in the last few months, especially Nokia. Nokia is leading this unlicensed 4G and 5G networks. This kind of unlicensed 4G and 5G networks, running in the 5G bandwidth, can support a larger variety of devices in the future. It will be our network, and this kind of thing works everywhere all around the world. They are very excited about that since this would be the first time something real like combining all the low-bandwidth and high-bandwidth works for the Web 3 world. Most importantly we are not doing monthly fees for the data fees. This is something clear like in our MXC design. You see that we are doing device provisioning. This is where device provisioning is how miners can automatically mine MXC because their devices join the network through the QR code, and this QR code costs money, and the miners mine according to their Miner Health. We don’t have data fees through this process since the Web 3 network infrastructure should be open and should be free and this is very clear. The business model will always be like that and will always make it open and free on 4G and 5G network, along with LPWAN. Also low-power to allow everyone to enjoy the Web 3 and the decentralization of data and the control of their own things.
Mo: Perfect, thanks Sheen for answering that. This one is from Mark. Question: Will the number of American miners exceed the number of Chinese MXC miners by the end of the year (2021)?
Aaron: It’s looking like that, I would say. I mean, that is from what the latest progress we can see. To be honest it isn’t really something that consumes me in regards to where our miners are. We are building a global network. We started off in China, and that is why we had a predominantly large Chinese base. Although, we are growing extremely fast in the US. Much faster than predictions. I don’t have the data on me right now, but I would assume by the end of October the US will be our number 1 region.
Sheen: As a developer I also want to share a little bit on why we started with China. That is because all these radio network devices don’t need certifications in China. It doesn’t matter which kind of devices you have and what they are emitting as long as you put it outside. For the indoor devices that emit radio there are certifications but for the outdoor devices we don’t need certifications for that. So, it is very easy to test how everything works such as the miner and hardware. When the CNFCC approves it it will get more mature. The other companies also try this approach and that is why we can deliver better user experiences to our users. It’s always something that concerns us the most is the quality of these products and the choices of the electrical components. If you tear down our devices and compare them with other IoT miners, we chose components that work in -40 to 80 degrees Celsius. This was very important as we wanted these devices to be in very rigid environments and work 5-10 years to provide consistent and robust connectivity to society. It’s not just some raspberry pi or toy that can degrade in a few years. I recommend everyone check the model of all the chips we selected. They are all industrial grade and the working conditions are very rigid and lasts for a long time.
Mo: Perfect, thanks Sheen and thanks Aaron for answering that. The next question is from Willie Wilson.
Question: What improvements are planned for the MXProtocol and how large is the MXC team?
Sheen: I can take that. There are always plans to improve the MXProtocol. The MXProtocol is a layer 2 IoT scaling solution. No other blockchains… Some blockchains claim they can support millions of devices to pay each other to have such high TPS. From my perspective, it is all BS. It is just a ledger, a database, just something to book the transactions. It’s not possible to support such a large amount of devices connecting at the same time and processing the IoT device payments. That’s why we designed the MXC Protocol in this supernode way, in this layer 2 way. That is quite scalable. Let’s say the US has more devices and there will be more supernodes there. Right now we only have 1 supernode there . If there will be more devices we can work with local IoT companies to add more supernodes there and the whole network can become very scalable and robust. The MXC network is not only scalable and robust in this way, but also will improve to support unlicensed 4G and 5G networks. It’s also very scalable in that it can process a lot of IoT data transactions every second. The most important thing I am thinking (and the team) is how to make this network robust and stable and how to provide commercial value to society. It’s not some raspberry pi toys that everyone can power up and everyone can shut down. That is not going to provide any commercial value. We see that the proof of participation model is very good and we will keep evolving. Overall, I believe we have the best IoT model in the blockchain world and the MXProtocol will keep evolving to provide that.
Mo: Thanks Sheen, and the second part regarding how large is the development team I would say more than 25.
Sheen: Exactly, and we have more and more people joining us in the next few months. I also want to say, if any of you have good back-end or front-end developers that use Rust, Flutter, etc please connect with our team members and join us so we can build some really exciting projects.
Mo: This will be the last one before I make the floor open to everyone.
Question: Will all the China FUD have an impact on MXC as a project?
Aaron: I’m not sure that means exactly and I think we have addressed this already. In regards to China FUD, I’ve never heard of any time that China has supported crypto as a whole. I mean we hear these kinds of announcements and justifications for the reason Bitcoin going down or the market’s dropping. I think we already explained the issue here in people not being able to explain the difference between blockchain and crypto currencies or tokens. We are very much a blockchain company. We also have a crypto aspect to us as you are all aware, but at the end of the day we have been rolling out our blockchain infrastructure and that is what our miners have been doing in regards to our data network as well. I think we’ve covered this question.
Mo: So these were all the questions from the community that I had. Now the floor is open for questions. So, go ahead and ask us questions. Firstly, I’d like to invite Brokk onto the stage.
Question: Will there be an article on miner difficulty coming out? I have a hard time understanding where it applies, what is needed to be done, and the general setup of the difficulty. Like, is it for Bitcoin mining, is it for MXC mining, is it for the whole thing? Do I have to butter up the miner with MXC all the time like with DHX stuff. Can you catch my drift?
Aaron: Of course, I can catch your drift. We will release articles, we will release videos and give more than enough notice to all interested parties. I understand that during the last news update Siwon mentioned these two words and they have been echoing throughout all the echo chambers. We will ensure we announce it. I think sometimes we try to be extremely transparent, which causes a lot of fear in the community which is very… Like I said, we've committed to rolling out updates with a minimum of 30 days notice so of course we will roll out some articles and of course some videos to explain it so people understand the process and how it all works. I don’t think it is anything to be majorly concerned about. That’s being brutally honest. It’s something that will probably affect miners in regards to difficulty same as BTC mining, as their age increases and they’ve been on the network longer they need to learn how to participate in regards to certain things. Although for other miners I don’t think it will even be noticeable for them. I don’t want to go into it too much as I feel it will become a discussion purely around that. I will state yes 100% we will release articles and potentially have a follow-up AMA on that topic if needed and if requested by the community. I would be more than happy to discuss that as we continue moving forward.
Reply: I will be looking out for it, because I need to understand what it implies. If I need to put in more MXC to get rid of miner difficulty it eats up MXC, it eats up capital and I would like to know what it is for and what you are doing with it.
Aaron: Before we come up with ideas what it could be I would just suggest… we will release it with information in regards to an announcement, articles, videos and then I’d be more than happy for people to discuss it further and get feedback on it at that point.
Sheen: I can also add on that Brokk. Thanks for the question. The reason why we designed this Miner Health, fuel tank, Proximity, GPS, and mining difficulty is to provide a robust and commercial-value ready network to society. Right now you understand what we are doing is to provide wireless connectivity to all the devices (using the MXProtocol). In the future there will be 4G and 5G unlicensed added there. How can we make sure these kinds of miners that are already running in the city or rural areas will be consistent and robust? This is what I think Satoshi had in mind when he had the proof of work 10 years ago to solve this kind of problem. However, he is solving the ledger, the consensus, as in who can write this database. This wireless network (and it is one). When your 4G is down you call the telecom to come and fix it and it is easy. But the miners that are providing wireless connectivity and so we designed Miner Health and mining difficulty in the future. We will also do multiple tokens that can be mined and added to the miners. All of this is an answer to the question on how to make the miner more consistent and more robust. To let the people know that I don’t want to turn it off, and I should keep it on, put it higher, put it outside, manage it, and make it more stable. This is something you see in the exchange industry. You see, the more tokens an exchange has the more stable it is. The longer it survives the more requirements will be there. This is what we call the Proof of Participation model and MXProtocol design. We really designed everything to answer this question (network stability).
Mo: Thanks Sheen, thanks Aaron. Moving Brokk back to the audience. Inviting Burnedby89 to the stage.