The Nexus Revolution, Part 2: Creating A Challenge With Colin Cantrell And Phillip Lee

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The first part of Nexus Revolution talks about the technical and social implications of the Nexus system in the crypto world. As we dive further down the rabbit hole, our guests Colin Cantrell and Phillip Lee walk us through the application and discuss how we can set challenges in the app. They guide us through the daily personal journal, weekly challenge organization, and coaches corner. Tune in to this episode to learn how to utilize the playbook and more!

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The Nexus Revolution, Part 2: Creating A Challenge With Colin Cantrell And Phillip Lee

This is a very special edition of the show. This is a part two conversation about something that I believe is vital to the future of this country and humanity. In part one, we talked about the Nexus cryptocurrency. I have both founders on the show with me. We covered a little bit about the technology behind it, the blockchain, and all of the elements of how it works.

We also covered a little bit about the evolution of cryptocurrency, and how it has moved from the original thesis we’ve created around Bitcoin, and now into a more refined and evolutionary version of that, which my guest believe is the Nexus.io system that they have already shared with us. In this episode, we’re going to go even deeper and not so much into the technology as we are into the implications for society. It’s not just society, but communities for people, health, finance, banking, and most importantly, humanity.

I say humanity because there’s never been a system that removes the trust factor completely from the way we are and the way we work. I’ll tell one quick story. When I was a little boy, my mom was a jeweler. She used to go down to the Diamond District in New York City. In the Diamond District, you would see these Hasidic Jewish men all dressed in black with payots, curly sideburns, weird hats, and all. They’d be walking around with little crumbled-up paper bags. What most people didn’t realize is that inside those bags were millions of dollars’ worth of diamonds. They would walk into one of the other members of the community, drop that bag on the counter, and walk out.

There were no contracts. There was nothing but trust. That community operated for hundreds of years on the concept of trust until, eventually, that broke down as new members of the community joined. That old system of total and complete trust is something we have been missing and lacking nowadays.

Let me re-introduce my guests. We have two very important members of the team with us. Both of them have been involved from the beginning. The Founder of this is Colin Cantrell. What Colin has done from the very beginning is he conceptualized the system. He was able to technically bring it into focus and code it with himself and his team. The other member of this interview is Phillip Lee. Phillip is a visionary. I wouldn’t call him a partner so much as he is an ambassador to the company. Is that right, Phillip?

I am an ambassador to the Nexus Embassy.

Can I make a quick correction too? In the whole entire system, a lot of times, we see legacy mindsets with it. That’s one of the things that can segue into the philosophy of it. It’s a different mindset. It’s community-driven and global, like borderless countries. There are nonprofits. Essentially, there’s one in the US that we use to interface with the legacy system, but it is a global democracy, where it’s like the United States was intended to be a Republic, and it’s not necessarily a classification company. It wasn’t issued. You see a lot of ICOs. There was never an ICO. There was never fundraising. There are no shares in a company. It’s a global decentralized democratic system. I wanted to clarify that.

Thank you. I appreciate that. We’re going to go a little bit deeper now into that concept. Let’s start with Bitcoin. We chatted about this in the last episode. Bitcoin’s value comes from the fact that there’s a limited number of coins available. That’s number one. Number two, it is completely decentralized. Stormtroopers can come in and shut it down because there are thousands of servers all over the world. Number three is that because the number of coins is limited. The way the limitation with Bitcoin works is that they go through a process they call halving.

What that means is that every four years, the value generated from mining these coins drops in half. What this has done is provided a way to increase the value of the coin by making it scarcer. Ultimately, there will never be more than 21 million Bitcoins mined. Hence, the rush for billionaires, like Michael Saylor and others, to accumulate these coins. In some ways, they’re recreating the world we have now, where billionaires are in charge of the bulk of the currency, and the rest of us can have a millionth of a coin as spending money. We want to get away from that.

As we can see, the entire crypto community and crypto markets at the time of this interview have been crashing very regularly. We want to change the paradigm. I have never seen anything other than this Nexus.io protocol even attempt to do that. What I’m going to do is I’m going to start with a basic question. Please tell me the exact but substantial differences between what Bitcoin is and what the Nexus.io protocol is.

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Since you’re talking about the economic model of Bitcoin halving, that’s one thing that limits the supply, but it’s come with certain costs economically. You lose half of your rewards overnight. That can be very shocking to the industry, so the price has to double before that halving in order to maintain the same level of security because Bitcoin security is dependent on the price. When it’s a higher price, it’s more profitable to mine. More people are mining it. It’s more difficult to control the expenses.

As we’ve noticed, we’ve seen the first halving was $400 and went up to $800. 2016 was the second halving. There was a halving where it had a gain of $4,000 to $8,000. As you become familiar with markets, as they grow in liquidity, it also exponentially grows in resources required to move the market. Now that we’re at $20,000, I’m suspecting that by the next halving, based on the pattern I’ve seen, it will be $40,000. It will have to gain $40,000 on $40,000. It could work this time or not. One problem that Bitcoin has is the potential for deflationary collapse.

Here’s what I mean by this. Let’s say this next halving in 2024 does not reach the required threshold to remain profitable, a lot of miners are going to jump off. They’re going to start mining Bitcoin Cash or any other coin that they can mine. What’s going to happen is Bitcoin retargets its difficulty. The difficulty is how difficult that problem is. That regulates how fast the blocks come in. That adjusts every 2016 blocks. At a ten-minute block time, that roughly is about two weeks. Let’s say half the miners jump off because it’s half profitable to mine. That 2 weeks is now 1 month because your block time is going to be reduced. That is going to get slower and slower.

What could happen is this type of death spiral, where every time this halving happens, if it doesn’t reach that threshold, miners can jump off, which slows down a chain and its ability to retarget its difficulty. It could end up having a stuck chain. One of the first things I did was no reward halving. Pre Nexus, I was a miner. I just got into crypto and started mining and learning how that works. Overnight, I was doing good. I was making enough for rent. All of a sudden, reward halve. My profit was completely gone. I had to move to another coin because I couldn’t maintain the profits and cover the electricity costs.

With Nexus, we have a slow, gradual change where every single minute, the value of the block changes. If anybody is familiar with radioactive decay, you’ve probably heard the word, half-life. That means the time it takes for half of the radioactivity to be gone. Radioactivity doesn’t go like, “It’s been half the time. I’m going to dump out half of everything immediately.” It does it slowly over time. We use that same equation for radioactive decay. We have the slow change in it. We have a reward halving, but not a certain block. It halves over half-life for a period of time. It’s a good reduction in the supply.

What I’m hearing is that you’ve improved the way the halving system works. Like Bitcoin, you also have an ultimate limit to the number of coins that can be mined. Is that right?

No. It’s slightly inflationary based on gold. If you’re familiar, gold holds value because it’s very rare, but people are still mining gold. There’s still a slight amount of gold that’s coming to the market every year. That’s what Nexus does. It has a period of initial distribution until 2024 to about 78 million coins. It’s about 0.5% non-compounded after that to maintain security in the mining system.

The reason we did that is because with Bitcoin, as the rewards halve, what’s going to happen is there’s more and more stress on the transaction fees. If the transaction fees can’t meet the demand for mining, the security is going to collapse. Since Bitcoin’s security model is purely based on how much Bitcoin is available to be mined, they could end up having some pretty severe issues.

We made Nexus slightly inflationary so that there’s always going to be a mature industry around mining. It’s constantly emitting coins, but it decompounds. In 100 years, there will be 100 million coins. It’s only about 450,000 per year. We’ve made this tightly regulated too. You can check any coin in the future and know exactly how much will be produced because I made a precise measurement. It’s not dependent on the time. With Bitcoin, if block time doubles, the supply speed doubles. It’s independent.

I understand. Let me ask you this. With Bitcoin, the only real attraction has no use other than to hoard and collect. The real attraction is the fact that it will eventually be more valuable because, eventually, there will be few of them available. Does the Nexus model promote the idea that if you get in early, your coins will be more valuable later? Is that not part of the way the Nexus coin and Nexus system works?

Nexus: “The teams” are used for organizations like operations versus HR.

It’s assumed for certain people that if you buy it at a low price, it grows in adoption that the value is going to increase. That’s not our primary focus. We’ve created an interesting way with our economic model where Bitcoin relies on no more emitting of a currency once it reaches that maximum amount of coins and relies on transaction fees to maintain security. What we did is we made it slightly inflationary, so miners will always be getting some Nexus. It decays to a minimum of one Nexus.

Transaction fees for processing smart contracts are burned. That deflates the currency as it’s inflated. More use of the currency causes more fees to take the Nexus out of supply. We can counteract the inflation and maintain some level of value like Bitcoin where it’s very scarce. It doesn’t rely solely on transaction fees because you could have low network activity at one point. If it’s always relying on the network transaction fees, you could have serious dives into network security. With us, it will always maintain that security because there’s always going to be a predictable amount and excess emitted.

As more network usage happens, it deflates the actual supply. At a certain point of usage, there will be an equilibrium where the use of the network and the mining fees equalize each other. If the networks increase above that, we’re going to have a deflationary cycle where it’s going to reduce the money supply, which will make it more scarce and valuable. It creates this double-pronged benefit as more people adopt the technology and build decentralized applications on it. They’re able to contribute to the reduction in supply in the economic model.

I have one more question about power. One of the criticisms of Bitcoin, as everybody realizes, is that it takes a lot of electricity to mine a coin. Without getting into all the details, is the Nexus mining process as power-hungry as a Bitcoin? Is it less so?

Overall, as we get to the size of Bitcoin, its capacity will consume a lot of power as well. That’s just part of the need. I couldn’t see any way around the mining just for the cost to create the coin and create it correctly because you need physical resources to generate like you’re mining gold. An important part of the security models is why we maintain the money. Bitcoin proof-of-work is useless for anything but Bitcoin. All you can do is verify this work was done for these transactions, and that’s it. With Nexus, we have scientific proof-of-work.

I developed a prime number searching algorithm to prove the little Hardy-Littlewood theorem, which calculates the density of prime numbers. Prime numbers are important for cryptography as well. Our whole blockchain is a prime number database as well. We have another channel called proof-of-stake, but this is a type of trust-based proof-of-stake. That checks and balances with the mining so that you don’t have one sole authority of block creation. It’s checked and balanced between the half channel and the prime channel and then the Proof-of-Stake.

The right question is not, “How much energy does it use?” but, “Is it worth it?” because we’re going to be replacing the banking system and how much energy all these physical banks use.

You’re right, but we’re trying to contrast the Bitcoins. What I’m seeing is, based on the simplicity and the way I think about it, with Nexus, there is a cost to mine. There are no limits to the ultimate number of coins mined, but the value of a coin is not the primary objective as it is with Bitcoin. The next question takes us away from the technical side of this. I want to move on to the core of this conversation. The core of this conversation is the vision for a society that can become completely dependent on the system for trust as opposed to the human element, which is not as reliable for trust.

Explain how that works in the way of regular transactions. You make broad statements like, “This will replace the banking system.” We’ve heard those statements before from other technology companies. Why do you believe that? I know you guys sincerely believe that. Forget the cryptology part and the prime numbers stuff. Let’s get into the philosophy of this. Why is this important? Why would it replace an actual multitrillion-dollar environment that is already in place?

I’ll start with a little bit of philosophy, looking at history as we were talking about earlier, then our past. Let’s look at the world 500 years ago. Trust was given to the church. The church held that they had a connection with God and saw their connection to that, so the authority of information came from the church. This method came around called the scientific method. What it did is it said, “We’re now switching the way to create trust.” Instead of it being you’re an authority and so, therefore, your authority is what I gained trust from. It came from independent verification, where people would no longer trust something as fact unless they could replicate this themselves.

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The scientific method is important to understand because we can see the results of it. We can see all this modern-day technology. If technology was based on authority, I don’t think we would have as much as we have nowadays. It’s the ability for people to check and balance each other that made science become what it is now.

Think of it philosophically. That same concept is happening on a computer in an automated way. When you’re running a Nexus wallet, you’re verifying your peers so that the authority of information and truth is no longer based on authority, but it’s based on my ability to verify you. That philosophy is the fundamental driving philosophy for why I believe the legacy banking system is going to eventually be replaced.

Buckminster Fuller said, “You don’t change things by fighting the existing reality. You change things by creating a new model that renders the existing model obsolete.” A centralized model becomes obsolete, especially as the population grows. If we’ve seen Hurricane Katrina, that’s a good example of centralized management issues. There was not a decentralized disaster response team, so they couldn’t get enough supplies because it always had to run through one place. You have to ship this to Chicago and back here or whatever else. Centralization is reaching points where people are recognizing the issues with it.

Another one is you don’t necessarily have authority over your own money. The banking system is solely reliant on, “I’m loaning the bank my money, and the bank can do whatever they will with it.” If you’ve been keeping up with what’s happening in China, there have been bank runs. Depending on what perspective you see and from what I understand, banks don’t always keep all of that in the vault. They tend to go and use it to invest in stock markets or buy shares in other banks and anything like that. They share all this money.

The money that we put in the bank is not ours. What’s happening in the world nowadays, whatever our opinion may be on it, what I’m seeing very strongly is a drive for people to start to take things into their own hands a little bit more and have some more sovereign responsibility. That’s the next step that we need as a society. It’s for all of us to start to be able to become independent free-thinkers and check and balance one another.

That fundamental philosophy is what drives it. It’s decentralization. They say power corrupts, and absolutely power corrupts. The way that you protect against that is you don’t have too much power concentrated in one area. It needs to be distributed out. That’s the first thing. The second thing is centralization is the linear relationship between people and profits. In typical company models, you have a linear relationship. I invest as much money into a product, sell it, and earn this much ROI.

Here’s what’s beautiful and powerful about networks. This has been more understood through what’s called Metcalfe’s Law. This was done by studying telecommunication systems. They found that networks multiply value exponentially. At this point that we’re at, we’re still small. They’ve got a multitrillion-dollar business and hundreds of trillions of dollars in equity powering all of this, but their power is derived from the people that use their system. When we create a new system, it solves a lot of these issues and makes it safer to interact. It’s cutting out middlemen, reduces your overall costs, and increases your security. It’s also a new economic system that we have influence over. We help build it.

It changes the entire dynamic where they’re scaling linearly. They’re only scaling linear, but if we take the graph of an exponential curve, in the beginning, the exponential is going to be behind, but it surpasses it. That’s why I am a firm believer in it because it’s not just the concepts and philosophies that it’s going to bring something to wider global adoption, but it’s also the timing. At the time we’re at now, I don’t think there could be a better time for coming up with this type of technology, especially since we’ve been developing it for several years. We’re very well along. The world now is starting to wake up and realize, “Some of these people that we’ve looked for are authorities that are supposed to care for us. It doesn’t seem like they’re providing that.”

Phillip, what is your viewpoint as far as how this would impact the society that views this as an alternative to a centralized system? Why would someone who has $1 million in Bank of America all of a sudden say, “I’ll just move that money into the Nexus system and now disperse it through the Nexus coin to purchase the services and goods I want?” Explain that to me.

The motto for Nexus is, “Connecting a decentralized world.” The first time I heard it, I thought it sounded cool, but I didn’t understand the significance of it because it’s pretty huge. You have to understand history to understand how important it is. If you’re paying attention to the world economy now, it’s pretty obvious that things are starting to fall apart. We’ve gone through this long period of globalization, where large corporations from rich countries exploit cheap labor from poor countries. That’s how these corporations are able to get so large.

Nexus: There is functionality and capability where you can limit people inside the company to access that challenge.

This has led to dissatisfaction in the working class everywhere, here in America as well. Part of the reason why Trump was able to become so popular is because he had that message, “Make America Great Again.” For a lot of people, that meant being able to find a job in America. There’s now this feeling of resentment towards corporations and the system in general.

This era of globalism is coming to an end, and people are becoming more tribal in nature. If you look throughout history, whenever there were tough economic times, people became more tribal. If you look at the fall of the Roman Empire, it was followed by the Dark Ages. The Dark Ages was a time of tribalism. Colin has pointed out to me that the reason that Dark Ages was dark was because people weren’t traveling. If people don’t travel, then the information doesn’t travel. What brought us out of the Dark Ages was the increased interaction between different cultures.

Let me ask you a question to go back a step here. I get what you’re saying. I want to bring it into modern times. The tribalism that you discussed, I see that reflected in the thinking of people nowadays. I see that reflected years ago when we were pushing inventory and testing globalized supply chains. We were talking about even the possibility of operating in a one-world environment. That’s now all changed. Without getting into the political aspects of it, one ruler, dictator, president or individual says, “I want more of that country’s land,” and decide to take it or declare, “That was originally ours anyway, so we’re taking it back.”

What happens is people pull back and say, “We don’t want to source from that country anymore. We want to be able to be self-sustaining. We want to be able to self-fulfill our own needs.” If you want to talk about the good things Trump did, there are plenty of bad things people say he did. I agree. The good thing he did is he wanted to decentralize our supply chains and bring more of what we needed as a country back into this country, which as we’ve all noticed, this has become a trend now in every country. We can’t depend on each other anymore to do that.

When you talk about Nexus being in the middle of this, how does that work? First of all, why would I trust it? Second of all, if I have my million dollars inside the Nexus system, how would I transact with another company? Would it have to be converted back to fiat in order to be used? Does the government, as we’ve seen in the past, want to ban this or any other cryptocurrency because of the fear of loss of the ability to tax? Talk a little bit about that because, without that, there is no true way to turn what you have into something that universally could be used.

Can I take this pitch to preface it a little to start? I wanted to add an idea. This is something I’ve been working on a lot because you bring up a valid point. If I want to use this as a currency, I need to make sure it’s not volatile. In order to get it to not be volatile, it needs to be adopted, but in order to get people to adopt it, it has to be not volatile. It’s a circular dependency. We’ve focused on the near interim.

This is something Phil can preface. It’s localized food production and trade, where people that have an apricot tree in their yard can register, and people can start trading and create their own currency based on the weight of this produce so that people can start interacting and using the technology in a way that doesn’t necessitate buying the currency. The utility is important to build before you get to the adoption of the currency. You can’t have utility come after the adoption. The adoption comes as a result of utility in a way that relates to people and their everyday lives.

Somebody will be able to use Nexus at some point and say, “I’m going to the farmer’s market in town.” I look in some orders for people that are selling tomatoes. My neighbor is selling tomatoes, and I buy these tomatoes from them. They can use regular fiat currency, but that bridge is fundamentally important. We focused on doing that by seeing the blockchain and the cryptocurrency as a subset of a larger framework. We’re focused on improving the web and our overall connectivity through decentralized services and peer-to-peer marketplaces. The ability also is you can create your own localized currencies.

You guys have created this vision of an ideal world. Why can’t I do that with Bitcoin? Why can’t I do that with fiat? I know the answer to that, but I’d like to relate it back. Before you answer, let me back up. We’re talking to Phillip Lee and Colin Cantrell. Colin is the Founder of Nexus.io. Nexus is a cryptocurrency. More importantly, it appears to be an ecosystem for exchange, a trustless or trustworthy exchange system that extends beyond what we would normally consider or think of as cryptocurrency.

A lot of what Colin talks about because he’s the architect of the entire system, is technical. You might want to review this more than once. More importantly, as you review this, I hope you’ll be able to start to see what hopefully we’ll talk about next, which is the big vision. What do we expect the future to look like? How does Nexus play in this realm? Why would this exclude or not work with other cryptocurrencies? I’d like Phillip to talk more about that. He has a more worldly vision of this in a non-technical way, which I relate to more easily. Phillip, tell me what you think.

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I want to make clear I’m not for or against Trump. I’ve completely lost faith in the political system. For me, the solution is economic succession. I’ve been looking at human behavior for a while now. It seems like people don’t change because they want it. They change because they have to. An example would be my friend, who’s a former professional poker player. He used to play online in these tournaments. That was until the government banned online gambling sites. What happened was people started to play poker for Bitcoin instead of dollars. It was this legal loophole. That’s an example of a use case outside the system. It’s not like they wanted to play for Bitcoin. They just didn’t have any other choice. In the same way, the use case for Nexus will be outside the system.

Personally, people will use Nexus because it will give them the ability to buy food. We’re now going through energy shortages, and energy shortages lead to food shortages. People want to eat, so more and more people are going to have to start growing their own food. This is going to create a need for a more efficient way to distribute food because it’s now going to be a decentralized food supply. We might not be able to find everything we need at the grocery store, so we’re going to buy from other people. We’re going to need this peer-to-peer marketplace, which is what Nexus is developing.

This is not like other cryptos when you think of decentralized exchange, where it’s like tokens. I’m thinking more of real items like food. I know the Nexus Latin American Embassy is working on this project to grow food on rooftops. These decentralized food markets are going to pop up more and more. The goal for Nexus is to create this online, decentralized Silk Road, but for food.

Let me ask you a question related to what you said. Why do I need Nexus to do that? Why can’t I create a directory that I could sort by distance of people who are growers and are growing food, and when I find someone where I want their products, I go and transact with them no matter what I’m transacting with, whether it be fiat, Bitcoin, Ethereum, or Nexus? Why is Nexus even important in this regard?

Trust.

Making a peer-to-peer marketplace is not easy. It’s very complicated. All these projects are trying to do it, but they’re full of security flaws, get hacked all the time, or are not scalable. We have that blockchain trilemma that most of these projects haven’t been able to solve, but Nexus is on its way to solving it. I was at a farmers market. I was thinking about how I could convince people to use Nexus to buy food. It’s unrealistic to think that I can convince people to go through the hassle of learning how to use crypto just to spend $20 on vegetables. Maybe for large purchases, like large pre-orders, if you want to buy 100 pounds of tomatoes or something, you could pre-purchase it online and pick it up at the farmer’s market.

I don’t see why I would need Nexus to do that. In other words, let’s say you have tomatoes, and I want them. You say, “Sure. Send me $20, and you can pick up your tomatoes. If you don’t send the $20, you don’t get the tomatoes.” If I send the $20, and you’re not there and I can’t find you, then I guess the money was stolen from me. I don’t know if that’s something that would happen often enough to be a concern because once you did that, you’d never be a trusted vendor. Nobody would ever buy food from you again. I’m trying to understand why this particular cryptocurrency can do these amazing things that I can’t do without it. That’s what I’m striving to understand better.

I answered the question. I’ll do my best to explain it non-technically, but trust. If I go in to buy these tomatoes, I can send you the money, but there’s very little recourse for me to receive that money back if there’s no product. You then have this registration system that requires you to vet all of these people, which requires you to be trustworthy. It creates this circular dependency of trust. With Nexus, it also creates middlemen too. If you have your platform, you might have to pay a trade fee in order to use the platform.

With Nexus, what it does is it’s an open-ended software development kit. The marketplace will allow people to create a token. In response, I grew 1,000 tomatoes and made 1,000 tokens. You put it for sale on the market. Being a geospatial market, other people discover it. You then use a smart contract that engages an escrow. Let’s say I’m buying tomatoes from you, Mitch. I’ve proved to you I have the money. I put it into the escrow contract. You put 100 tomatoes I’m buying from you into the escrow contract, and you have a transportation issue. You can either go and pick it up. Both of you can sign and agree, the funds are released to you, and then I get my tomatoes.

Let’s say it’s something across town, and I don’t have the capability to pick it up. Let’s say it’s a large load. That’s where you’re getting into the peer-to-peer transportation system. We’ve seen Uber. Uber was so powerful because it was somewhat decentralized. It’s still run through a centralized framework that would allow anyone with a car to start driving all around. We’re building a similar model as a part of the peer-to-peer exchange. You have the escrow contract, which is important. You then have the tokenization of supply and discovery of the orders. The third thing is transportation.

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With crypto, for instance, I can put $1,000. Let’s say Phil is the driver. He puts $1,000 into a smart contract that says, “This is my collateral.” Phil, having that collateral now, can engage and transport escrow contracts. He’s got tomatoes, and it’s $100 worth of value. He picks up that contract, and he, through the blockchain, will be the custodian temporarily of those tokens and then transport the tomatoes. Ideally, he would sign with the buyer to say, “Here are your tomatoes.” The buyer says, “The tomatoes look good. You transported them here. I’m happy with that.” They’ll both sign. It will take 2 or 3 signatures to release. If Phil never gets tomatoes, the seller is like, “I gave him the tomatoes, and I gave the buyers the money.” Phil’s deposit would be forfeited to the first and the last of the material.

Let me unpack this a bit. What I’m hearing is that you’re getting rid of the centralized computer system that runs the transportation system, but someone smart who knows how to program appears to be needed to create these marketplaces. It sounds like what you’re doing is building the toolkit for that.

We build marketplaces too. We built the tools so other people could launch marketplaces. One such use case is carbon credits. There’s a double spending problem with carbon credits. There’s a use case called the biological and ecosystems futures. They managed to solve the double spending problem with the blockchain. They’re now going and making waves out in the world and have a full carbon credits trading platform from that API.

We’re developing a marketplace on top of Nexus because this is something Phil and me have been working on as a joint project. It focuses on food and transportation. Those are two important things. Looking at the world’s needs, there’s potential for food shortages. There are supply chain issues and transportation issues. That solves all of those problems. Also, there’s a big problem with Uber and the management. People have not liked the CEO or the way they spend money. They take 20% of everything.

This transportation app, since it’s decentralized, wouldn’t have any infrastructure required to run it. Everybody’s phones are the infrastructure. It’s free. All you have to do is to deposit in if you want to transport merchandise. You can transport people. Semi-truck drivers would be able to get involved. There are a couple of platforms that we’re developing on top of Nexus. One of them is my music platform. Phil and I are working on this decentralized peer-to-peer trade platform.

The transportation platform is important. It’s pretty easy to see how successful that would be by looking at Uber and Lyft. Those have made their waves, even with a 20% fee. Lyft charged less fee. That’s why people started moving to Lyft. At times, when the gas price is $6, everyone’s going to be looking to shave those dollars off. That’s the incentive for people to move into this new infrastructure.

I got it. What I’m hearing is that in Nexus, we remove the middleman. Our goal is to provide you with the same services as before, but no need for customer service or a middle person because you either receive what you are paying for or don’t. That is the trust-based equation. Let’s talk about human nature here. I’ll pay Uber to pick up and get a ride. I may not like Uber and the CEO. The driver might not love driving for Uber, either. They do take a percentage of his earned money, but it works. It’s growing.

Where’s the breaking point in what we have that would force people to take a look at this and say, “This is what we’ve been looking for. Let’s adopt this?” Does that not ever occur? Is it more gradual, one little marketplace at a time? We don’t have farms in cities, not too many of them. That model in a city environment may not work. Where’s the inflection point? I’m having a hard time understanding that.

The inflection point I’ve always said is when the risks that remain in the current system exceed the risk to join the new system. As we’ve seen, 80% of all US dollars have been printed in the last few years. Inflation is 10% to 12%. Food is not being stocked on all the grocery store shelves. The system we’ve felt safe with is starting to feel less and less safe. Nexus, being new, people are going to naturally perceive that as not being as safe until the safety of the system reduces and the safety of Nexus increases.

We develop technology to help make it safer. You cut out the middleman and reduce counterparty risks, such as transportation. If you reduce costs overall, you create local self-sustaining economies and also give people that power. One thing I found that was a powerful thing to different people who are looking to develop communities off the grid or whatever is they’ve always come with a currency problem. They’re using these US dollars. Even if you use a Stablecoin pegged to the US dollar, there’s still inflation happening. People can fire up their own local token in their own economy. There’s going to be a breaking and an inflection point.

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We’re already seeing signs of that with Bitcoin and its adoption over the last few years. As uncertainty in the system increases, then it seems a lot better to be using these new systems, especially since a lot of the issues we’re seeing are a result of bad leadership and people in power that are making decisions that aren’t for the best interests of the people. It’s going to cause people like, “If they don’t care, we got to do something ourselves. What are we going to do? Go hold signs and protest. That doesn’t seem to work.” It creates a new avenue for people to be able to express those things. It will take time to adapt, but that’s what we focus on in these technologies.

It’s a bit different than a lot of cryptos where they’re like, “Decentralized finance. We’re going to change the whole banking system. We’re going to make countries run on it and everything.” We’re starting simple in relatable ways. That’s why our primary focus now is on food, the next step on music, and then transportation. Arts are a big thing. There’s a whole big issue with record labels that people know about them not taking care of people. What I’m seeing demonstrated in the world is that there’s a big issue with the corporations and the control that all of these corporations have over all of our daily lives when they’re unelected individuals.

That natural mistrust creates this lack of safety in our current system, where people look for alternatives. The safest thing that any of us can have is the ability to take these things into our own hands and have a system that supports that. It verifies it too. That’s another important thing about this that will make Nexus more desirable than the banking system. You can audit anything. The embassy where we worked here is completely financially transparent. Anyone can look at every little bill. They can see how much Phil, I, and everyone are being paid. It creates this new level of transparency, which helps develop that trust.

As I was saying in the earlier part, it’s the philosophy of independent verification, allowing people to verify things for themselves. This allows that to happen. It’s the same with trading. If somebody has tomatoes and puts them for sale, and somebody goes to pick them up, and the tomatoes aren’t there, that contract is going to be canceled, but that contract is on the blockchain. That adds to the reputation of that individual. You have this permanent record per se that can’t ever be manipulated. We get assurance that it can’t because of the math and the cryptography.

Let’s start to wrap this up a little bit. I’m going to summarize and you add to what I say. If I get it wrong, if you want to take what I say and take it to the next level, that’s very welcome. What I am hearing is that you are creating a platform for the future based on cryptology that will allow the average person to build structures like marketplaces, and run them frictionless without a profit for their efforts. More importantly, by creating this market, they will be served by that market as well.

If you choose to create a market for the music system or for musicians to trade coins for talent, money, performances, recordings, or rights, all of that can be completely controlled inside the Nexus platform. It’s frictionless, meaning that there are no fees involved to do it. If I’m hearing this and said, “I might like to develop a marketplace after reading this,” why would I do it? What’s my incentive for doing it other than the fact that it’s good for the world or something? In other words, how do I get paid if I’m going to invest time and money and create a tool based on the Nexus platform?

There is a fee model that you can add. The carbon credit trading platform isn’t for free. People pay for different services, depending on what market. As far as relating to the food markets, we’re building that as a web platform, and all you have to do is create an account. It’s like creating an email account. That’s all you’ll need to do to sell your tomatoes. There won’t be a need for you to create a local market. If you want to, you can. Like I said, there is a fee model built into the API if you, as an entrepreneur, want to build a fee-based market. Personally, since we’re developing this market, we’re making it free and usable, so anyone in any place in the world can log in and create a market based on whatever token by clicking a couple of buttons instead of having it coded.

Phil, is there anything you want to add to this conversation that would elevate the value of what you guys are doing so that other people can see it and want to know more and take it from there?

We’ve been throughout history going through the cycle of a good economy, followed by globalism. That then leads to a bad economy, followed by tribalism. This cycle repeats itself over and over. The reason why globalism leads to that economy is because of centralization. When few individuals have power over many different countries, eventually, that centralization of power gets corrupted, people get greedy, inequality between the rich and the poor gets too wide, and the economy collapses.

If we wanted to stop that cycle, we would want to do it at a point where the economy is good, but before it reaches that point of globalism. We can do that by staying tribal because tribalism is a form of decentralization. The problem with tribalism in the past was the barrier to the free flow of information. Things are different now because we now have the internet. The internet changes everything. It has to be uncensorable, which is why blockchain is so important and why I’m passionate about Nexus. It’s because that’s the only way we can have a decentralized uncensorable internet.

Nexus: We’ve got a micro lesson for you with an action plan check-out for that weekly challenge, and that’s something you can do over these five days.

We can finally break that cycle that has been going on for thousands of years by connecting all of us while simultaneously remaining decentralized. You mentioned earlier what’s in it for you. Every one of us can be rich, but we have to change the system. If you look at the Nexus community, we’re a rare breed at the moment. We’re like spiritual nerds because it takes the nerds to sit down and try to understand what Nexus is all about.

It’s not just about understanding tech. We want to use it to help society. That’s what makes it spiritual. I’m very thankful to have found this community because we have this blend of both logic and intuition. We need both of those things to have an accurate view of what the world is like nowadays. Most people are focused on logic or intuition, but we need both. If there are people out there that think like that, I hope you will join the Nexus community because that’s how we’ll grow. What Nexus is about is community.

Here’s what I also want to say here as we come to an end. What I am understanding now better than I did the first time we had our conversation is that there is a very strong technology-based to what you’re doing, but that’s not what’s important at all. What appears to be important and what I’m getting from this is that what you guys are doing is you’re on a mission to create a tribal world where tribes become equal and can trade and share with each other without conflict and 100% transparency and trust. That is not something that I perceive any other cryptocurrency is doing. That’s what the big difference is. If people are interested in finding out more, like to investigate your tribe, or have a profit motive and want to develop something around Nexus, where do they go?

You can go to Nexus.io. A lot of our community hangs on Telegram too. We’re on Twitter @NexusOfficial. If you want to message us there, there’s a Nexus community. It’s @NexusOfficial for Telegram.

Readers, I hope this was intriguing. It’s different than what we normally do on this show. The vision was what impressed me most. The strong technology, architecture, and foundation enable a vision that I personally have not quite seen anywhere else. That’s why I invited these two crazy guys onto my show because they bring something very important to the party. Maybe not now, but it’s a bubbling cauldron that soon will create something valuable that I would love to hear whether or not you choose to get involved with or not because we need something like this.

We may not need Nexus. Nexus might not be the solution, but what these guys are pointing at and to is a viable solution. Potentially, Nexus could be the engine that powers it. Gentlemen, thank you so much for your time. It’s been quite a haul getting these interviews done, but I’ve also enjoyed it a lot. I’m learning more about you both and the system. Gentlemen, again, thank you for your time and the information. Readers, please go to Nexus.io, dig in a little bit, and let me know what you think. Thanks, guys.

I want to add closing thoughts. For anybody who wants to join, there’s something important to add. This technology supports the philosophy. The philosophy is decentralization and helping us learn to live lives and resolve conflicts in a correct way. If we’ve looked at social systems for the last thousands of years, they haven’t changed. You have kings, democracies, and republics. You have a leader and the people to follow.

Nexus is a new decentralized social system as well. When you join the community, you can get involved in the DAO and be a part of this new social experiment where we’ve developed a social architecture that doesn’t have CEOs, leaders, or anyone in control. I’m the Founder, but I’m just one cog in that wheel. I invite you if you’re interested to learn and to help develop these new structures.

It’s important because the social structure system too could be something that could support our own self-governance in the future in a way that protects against the human nature element, like what you were talking about, Mitch, and what people are naturally wanting to do. It protects us through a social system. It’s a type of social technology that’s woven together through software. I wanted to bring that to attention too. We invite you to get involved and be a part of it because it’s a community-driven project and a fun experiment.

You don’t hear this from the people at Ethereum. You don’t hear this from the other types of cryptocurrency out there. That’s why I like what you’re doing. It’s not just a cryptocurrency or a piece of technology. It is a structure for the future communities of the world. Thank you again, gentlemen. I look forward to our next conversation.

 

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About Phillip Lee

FTC Phillip Lee | Nexus RevolutionPhillip Lee, registered nurse, attorney and founder of Project Phoenix, seeks to add the human component to Nexus blockchain technology. Volunteers as a Nexus Ambassador, constantly searching for ways to incorporate Nexus into everyday life in a way that helps the community, in order to gain trust that will lead to worldwide adoption. He believes that a system which incentivizes cooperation over competition is the way of the new world.

 

About Colin Cantrell

FTC Phillip Lee | Nexus RevolutionColin Cantrell is a software architect, engineer, musician and father, who started programming at the age of 11. He has experience in network development, social systems, security, decentralized networks, cryptography, quantum computing, and is a contributor to the IETF.

 

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