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Deep Dive with Jackson Palmer, Creator of Dogecoin

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Jackson Palmer
Ok signing off everyone, thanks for your great questions!!
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Ben Tossell
What is the background story of launching Dogecoin?
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Jackson Palmer
@bentossell It's a long story :) But it all started one afternoon when I was checking the prices of altcoins on coinmarketcap.com and reading this article on Gawker about the doge meme (http://gawker.com/doge-is-an-actually-good-internet-meme-wow-1460448782). As a jab at the coin altcoins popping up every week I decided to make a joke about investing in Dogecoin, and posted it to my Tumblr which then got syndicated to Twitter and went viral. The rest is history. Here is the original Tumblr post, for those interested: http://blog.ummjackson.com/post/68314849555/investing-in-dogecoin-pretty-sure-its-the-next
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Boris Djakovic
Are you working on another coin/token project - something with the intent of being more serious than Dogecoin?

What are your plans for the cryptocurrency space for the future?

What are you personally HODLING?
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Jackson Palmer
@Boris-Djakovic Good questions :)

1. I'm not currently working on any specific project, although I do have a lot of ideas... if you know any C++ developers who are familiar with the Bitcoin code base, tell them to get in touch

2. I'm still waiting to see if consumers will adopt this stuff as actual currency vs. it just being crypto assets/stocks. If it remains the latter, then I'm honestly not that interested in continuing in the space because we already have a stock market and I don't want to dedicate my energy to just helping rich people get richer. If real consumer adoption happens, then I'm in it for the long run.

3. I have a bit of crypto tucked away, mostly BTC and ETH but then I have some Tezos (who even knows what will happen with that project) and other random ICO tokens here and there.
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Ben Tossell
If you had to start your career from right now, what would you focus on?
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Jackson Palmer
@bentossell I wouldn't change anything - I've done a lot of different things professionally in my life... starting in marketing then progressing to data science and now product management. My mantra is to always be learning, and I find that if what I'm working on isn't challenging me to learn a new skill then I quickly get bored. So I'm always trying to do something that pushes me :)
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Ben Tossell
what's your favorite crypto-tools? Wallets, Hardware, Software to manage portfolio, etc.
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Jackson Palmer
@bentossell I use Blockfolio basically every day on my iPhone and then have a Trezor for hardware wallet storage of crypto assets. I also use Electrum on desktop and MyEtherWallet on web. I'm a big fan of 1Password for managing all my passwords and Yubikeys for U2F 2FA of all my accounts that support it.
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soona
Walk us through the decision to take a break from the crypto community and why you decided to come back
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Jackson Palmer
@soonaorlater Back in 2015 I decided to take an extended break from cryptocurrency as even back then I saw a flood of money entering the space which didn't team to correlate with technical merit or user adoption. Back then adoption was shrinking and today we're seeing companies like Stripe, Steam and Microsoft all removing support for Bitcoin and cryptocurrencies. It's shocking to me that people are investing money in technology that is seeing *decreasing* adoption - but I don't understand how this market works as it is.

A big part of me taking the break in 2015 through to early 2017 was the toxic community that I felt I could no longer avoid. I go into more detail in this article: https://www.coindesk.com/dogecoin-founder-bitcoin-toxic/ - ultimately, I don't think this problem has improved at all. Just last week I saw an article about one of the largest Bitcoin conferences in the US being hosted in a strip club, and how that is alienating women in the industry. It's pretty gross, and I hope that the community can grow up + aim to diversify it's demographics if it ever wants to be taken seriously.
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soona
@soonaorlater @ummjackson 💯 the community needs to grow up and correct these behaviors now if it ever wants to be taken seriously.
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Bit_Faced
Can you explain what you know about the Tether situation?
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Jackson Palmer
@Bit_Faced It's really hard to tell what is going on with Tether. In my investigations I can't find any evidence that the company is printing fake money, but they're honestly not doing a great job of building any confidence in their claims that they are 100% legitimate and above board. The loss of the auditing relationship is a large red flag and smells of a company with something to hide.

Recently, my focus has been more on the exchanges that support USDT and why they've been super quiet about the whole thing. Tether lets them get away without having banking partners in the US and we have very little insight into how USD vs. USDT balances are actually backed on these exchanges. I'm still waiting for Bittrex, Polo etc. to confirm they have 1:1 USDT reserves and aren't operating fractionally. That could be a big issue in the future, in addition to the possibility Tether are printing fake money.

Check out my video on the topic for a rundown: https://www.youtube.com/watch?v=MwKYbT9MoPE
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Raj Vir
What aspect of crypto do you feel is most underappreciated / under-the-radar right now?
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Jackson Palmer
@rjvir The fact that Bitcoin wasn't actually that revolutionary - that it simply glued together a lot of existing puzzle pieces and technologies to form something that worked. A lot of people try to equate Bitcoin or blockchain to technical advancements on the scale of the invention of the internet and I think that's pretty dishonest given most of the prior work had existed for 10+ years before Bitcoin combined it together. It's an evolutionary and pretty neat solution, but again, there isn't a lot of user adoption happening outside of speculative trading.

The technologies I value the most are those which help benefit society on a macro level. Blockchain doesn't do that, yet.

As far as under the radar stuff goes, I think it's simple solutions to these problems which further evolve the tech. DAGs, SPECTRE in particular interests me a lot. I'm also really into protocols like DAT (Google the Beaker browser) and stuff that gives users control over their own data, too.
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TheOwlAdvisory
If you were creating a coin - what is the best possible path for adoption? There's a lot of people who want to make coins (which is getting easier ) but finding merchants to accept these tokens seems like a "we'll get to it later" by most of the people creating coins.
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Jackson Palmer
@OwlAdvisory Great question! I think the key is to find a vertical industry that you want to "own" as a payment rail and then go after that. That'd help you focus on building something that solves a real end-user problem, rather than starting with a solution then moving backwards to find a problem.
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Bitcoin Problogger
@OwlAdvisory if i may, there are several niche sectors (legal ones) that have a legitimate and pressing need for cryptocurrencies - one of them is money transfers - remittance centers, if you've been to certain asian nations, you'd be surprised at how fast adoption is for bitcoin not merely as a speculative vehicle, but really as a means for sending money back home, paying bills, buying prepaid cellphone load and such. The lending industry right down to the smallest scale could also make these a premium. Pawnshops, etc.
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Alex Pifield
Are there any scaling solutions for Bitcoin/cryptos that you have seen that use sharding? What is the most interesting attempt at implementation or implementation of sharding as a scaling solution that you have seen so far?
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Alex Pifield
@Alex-Pifield @ummjackson Yeah I have also been reading a lot about similar systs but they only solve one one of the few major problems, speed. They don't solve, in anyway, scalability as they do not remove the requirement for all nodes to process every transaction (I am looking at you, Raiblocks). Although they remove the bottlenecks for speed by removing the requirement for a central blockchain, they do not at all increase scalability and still require all nodes to download (using up bandwidth), process (using up processing resources and battery) and store (using up storage space) all transactions and events that go through the ledger. In addition to the above problem,I Raiblocks also has no way for trustless light wallets to work, has no scripting, can't support atomic swaps, has no multisig and most importantly
has no privacy. This I am interested less so in coins like Nano and IOTA but more in coins that actually solve scalability by removing the requirement for all nodes to process every tx.
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Jackson Palmer
@Alex-Pifield Agreed! I need to dig deeper into Rai/Nano but I have the same concerns as you. This stuff is going to be evolutionary though, don't expect a solution to all these (very hard) problems tomorrow. That's why I say this stuff is 5-10 years away from really being able to keep up with mainstream adoption.
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Jackson Palmer
@Alex-Pifield In a system with zero trust, sharding is actually really hard to pull off well. I don't think it's the best solution if you want to maintain a 100% trustless network ala Bitcoin today. The best scaling approaches I've seen essentially remove the block creation bottleneck in novel ways. Combo blockchain + DAG solutions are neat and I think they're the future.
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Alex Pifield
@Alex-Pifield @ummjackson interesting, thanks :)
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Bitcoin Problogger
For someone new to the space who'd like to get in development, which programming language would you recommend learning?
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Jackson Palmer
@Bitcoinproblogr Probably Go or Rust, as new tech like Cosmos/Tendermint and Grin (Mimblewimble implementation) are being written in that. I do encourage everyone get basic familiarity with C++ though so you can browse the Bitcoin code base and not be completely lost.
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Jonathan Miller
Hi Jackson -

What are the top three things that make an ICO successful?

Cryptoneur
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Jackson Palmer
@Jonathan-Miller

1. Only doing an ICO if you absolutely need a token baked into your project
2. An honest, transparent team running it
3. Working technology before raising any money
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2018
@Jonathan-Miller @ummjackson Not shilling but AML https://amltoken.com/ is either ticking all the boxes or a scam? Could be way over priced I wouldn't know.


Nice thread!
0
Chris Shao
do you think Decentralized storage will be a thing/competitor to AWS,
Sia, Maid, Storj, and others?
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Noah Walker
Do you have any thoughts on the use of blockchain technology as a means of crowd sourcing solutions to analytics/data science problems?
1
Ben Tossell
Something you've recently changed your opinion on in the crypto space?
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Jackson Palmer
@bentossell I used to believe that price/market cap == utility the technology was offering to society, but 2017 really taught me the power of speculation in driving up the valuations of very early technologies. I think we're still seeing the repercussions of this, and the market will have to correct further to match the actual (read: very low) value the tech offers back to society at this point in time. There's a good chance that'll change with time, but we need to give it another 5-10 years.
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Ben Tossell
What is your favourite White Paper and why?
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Jackson Palmer
@bentossell This extension of the SPECTRE whitepaper, just released recently: https://eprint.iacr.org/2018/104.pdf - I'm a big fan of anything that looks to scale Bitcoin and I think the work these researchers are doing is very promising.
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soona
@bentossell @ummjackson ooh, have to check that one out
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Ben Tossell
What do you believe in crypto that others disagree with you on?
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Jackson Palmer
@bentossell I'm fairly skeptical about most things, so I don't have the "faith" that a lot of people have in these technologies. I believe things when I see them. I think not having that blind faith in Bitcoin etc. sometimes rubs people the wrong way and makes them annoyed with me... but I really just try to look at the facts when assessing this stuff and I don't see crypto adoption increasing right now, outside of speculative trading. I think that's a problem, just like I think the stock price of a regular tech. company increasing exponentially despite the company bleeding users and not releasing any software updates would be a problem.
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Alex Pifield
What do you think the likelihood is of any relaying node on the ln bring classified as a money transmitter? What do you think this would result in?
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Alex Pifield
@Alex-Pifield @ummjackson yeah I hope a law in proposed which explicitly declassifies ln relays as money transmitters as otherwise in the med-long term that could result in govts being able to have more control over the ln and possibly even enforce mandatory licencing on ln relays...
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Jackson Palmer
@Alex-Pifield That's a good question! I don't think regulators really want to shut down or stifle innovation from the technology side of things, so I think this will remain a bit of a grey area for a while. If anyone is touching USD then obviously it becomes a much clearer story. In the short term, I think regulators will be more focused on the ICO market and exchanges which support ICO tokens. Keep an eye out for the Feb 6. joint SEC/CFTC testimony. Going to be interesting.
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CryptoSkelet0r
Who is your favourite super villan?
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Jackson Palmer
@CryptoSkelet0r The Riddler. I'm a big Batman Forever fan :)
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Pranay Srinivasan
Do you feel Lightning will speed up BTC transactions? Can you see another altcoin becoming a stronger transaction blockchain than ETH?
Thank you!
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Pranay Srinivasan
@utekkare @ummjackson Thank you for this - What do you think of Ripple as a blockchain?
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Jackson Palmer
@utekkare @utekkare It's more like a shared database with some limited consensus layered on top. That means it can be super fast, but at the cost of decentralization.
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Jackson Palmer
@utekkare Lightning is really cool but the efficiency of multi-hop routing in the real world is not yet proven. We'll have to see how that pans out - I don't think it's a silver bullet for Bitcoin scaling though. It solves some very specific type of payment scenarios and not all of them.

Technology has a history of leapfrogging itself... look at Myspace -> Friendster -> Facebook -> Snapchat. I think there is nothing stopping a newer, better alternative to Bitcoin or Ethereum coming along and leapfrogging what we have today. If they nail the end-user experience, make it fast and free to use then I think there's actually very little switching cost for people to move over to the more efficient technology. The problem with cryptocurrencies is that we have to convince people to move from Venmo, Square Cash, Apple Pay etc. which is already incredibly efficient and low cost. Big challenge.
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Pranay Srinivasan
@utekkare @ummjackson What use case would decide that a centralized blockchain is acceptable - In your opinion, how useful are Immutability and Decentralization as mutually exclusive conditions to run complex transactions?
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Jackson Palmer
@utekkare @utekkare I think that Stellar is a great evolution of the Ripple-like setup and prefer it. Like with most things, it all depends on your threat model and if having some trust is fine won't have catastrophic consequences then go for a less decentralized and more efficient protocol. Bitcoin *does* go to the far end of the spectrum in terms of trusting nobody, and we are going to have to accept the fact that will introduce inefficiencies.
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Pranay Srinivasan
@utekkare @ummjackson Thank you so much for your thoughts.
0
Erik Torenberg
What don't people understand -- or what misconception do people have -- regarding your goals for Dogecoin?
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Pranay Srinivasan
@eriktorenberg My first thought was that "how many coins to buy that shiba inu"
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Jackson Palmer
@eriktorenberg I think the fact that there were no goals, haha. It was a joke at how altcoins were being spun up every week/month and nothing more. The community tried to take it in a lighthearted direction once it was released, but ultimately greed set in and now it's kind of aimless in my opinion. I still laugh at the meme, but don't think the project has any serious goals.
1
Bitcoin Problogger
@eriktorenberg @ummjackson any chance of you changing this? I mean, the bitcoin space is mostly toxic. Good things can come out of a good community. Why not maximize it? Personally, I think the fact that dogecoin exists up to now means a lot. Strike while the iron is hot.
0
Stankea
Which is the most overrated crypto right now?

And the obvious (for you)coun fraud with the biggest market cap is?

Love your videos
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Jackson Palmer
@stanisica That Tron (TRX) project that stole other people's whitepapers is pretty overrated. I also think the Telegram ICO for $2B is ridiculous and very hand wavy. Will probably end up as vaporware, or just have a bad user experience.

I believe BitConnect are running another ICO called BitConnectX or something, so that'd be the fraud :)

Glad you enjoy the videos!!

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