ColossusXT Interview With CMO Xquad
Xquad joined the blockchain industry in 2017, and since then worked as CMO for ColossusXT where he is responsible for community management/technical support, business development, partnerships & cross marketing, as well as administrative matters. His experience spans across 18 years in Sales & Marketing. Coming from a technical engineering background, he has mostly worked in commercial roles as a Marketing Manager, Product Manager in a multinational company within the manufacturing industry. He is also acting as a CMO in another blockchain project, namely Gath3r.io.
ARMIS has been dubbed your “custom privacy technology.” Can you explain what ARMIS is and how it is different from other privacy protocols and VPN products?
Armis is an I2P privacy layer solution. When we look at other similar protocols, we observe some attempts to partially utilize I2P, major example being Monero which uses an optional bridged proxy solution to span regular and I2P networks (i.e. IP & I2P working side by side); that is prone to bringing additional privacy, security and performance concerns. Armis will be a fully integrated I2P network, messages and tunnels will flow to/from I2P directly. Briefly: IPs protected, geotracking & traffic analysis are not possible.
Pros of I2P over similar solutions:
- Hardened I2P Addresses
- Outproxies: each node runs an out proxy or exit node by default to allow routing of traffic to other nodes
- Multi-path routing: the traffic from the router will take different routes for send and receive traffic
In your white paper, it was stated that the “COLX blockchain was designed from the outset to provide a privacy coin for the everyday user.” How has the recent move by exchanges to implement “KYC” affected your blockchain? Do you think that the rather stringent stance of regulatory organizations against privacy projects will in any way sway the direction and development of COLX in the future?
As we approached the blockchain industry when we first founded ColossusXT we realized that the industry was very much a fledgling industry, we understood that as the blockchain industry continued to grow different regulations would flow out, some not always great for developing blockchain projects.
Certainly, KYC has affected privacy coins, but we’ve been saying in our AMA’s since we’ve started them that we expected blockchain laws and regulations to change. We expect exchanges to require some level of KYC as this is an AML standard. This doesn’t change our focus on consumer privacy rights, and we adhere to all current laws and regulations and we are one of the few privacy coins registered within the United States.
Now, as we move closer and closer to blockchain adoption than I believe we are more likely to see a gradual acceptance of privacy features. Even the federal reserve Chairman Jerome Powell is quoted saying "A ledger where you know everybody's payments is not something that would be particularly attractive in the context of the US.” This makes sense doesn’t it? You want some layers of privacy protecting you on a public ledger.
In September 2018, COLX integrated the zerocoin protocol. Later in 2019, a vulnerability was discovered in the zerocoin protocol. What is the current state of COLX’s privacy network? Is ARMIS supposed to replace zerocoin or work side-by-side with another privacy protocol?
The current network privacy is through obfuscation as Zerocoin has been disabled since the vulnerability was discovered in 2019. Armis is a layer of privacy within the ColossusXT blockchain, after we bring Armis online we will begin the process of replacing the previous layer in which Zerocoin was; We’ve looked at several different routes other projects have taken since the Zerocoin vulnerability was discovered and plan to discuss more with the community different options as we move towards this task.
The idea of renting out unused storage and computational power is quite novel. Apart from decentralization, how is Colossus Grid different from existing services? Can you shed more light on the economics of Colossus Grid?
ColossusXT’s focus will be working with government contracts, university researchers, although anyone will be able to access and utilize the Colossus Grid. We are already making business moves, and registrations within the United States to be able to operate with federal and state agencies. We continue to build relationships with industry leaders.
Where we plan Colossus Grid to differentiate from others is:
- User experience: We want to close the gap for less savvy users. Whether they want to utilize their existing resources to earn in return by sharing or whether they want to play a high end game with their old computers - they should be able to connect easily to Colossus Grid and achieve what they want with couple of clicks with the use of COLX digital currency
- Privacy is at the core of our values: We want providers and consumers that are connected to Colossus Grid to make transactions for their needs without compromising their anonymity, security and performance. Considering we specifically want to be active for cyber security, government contracts and similar, these will always be an essential part of cloud computing use cases Colossus Grid will be powering.
- All under one umbrella: There is currently no other project in the same field combining decentralized storage and computing power with a high focus on privacy by incentivizing its network participants and targeting a meaningful use case for its coin utility.
Existing and Future Coin Economy for Network Incentivization:
Current network is powered by PoS miners & masternodes. 1500 Colx generated in total per block as a reward, with an inflation rate of 7%, decreasing yearly as the generated amount is fixed and circulating supply is growing:
- 720 Colx to a Masternode
- 480 Colx to a PoS Miner
- 150 Colx is reserved for Governance
- 150 Colx is reserved for Development
With Colossus Grid, we target to create an ecosystem where users can buy/sell resources in a decentralized marketplace without any top level intervention with free market dynamics.
On this platform, to further reward masternodes, external investors and network and to control inflation, certain allocations will be set as per ColossusXT annual two step new coin economy model.
From each resource marketplace transaction 25% will be allocated;
Step 1: Remove inflation effect:
- 15% of the coins will be removed from the supply till annual inflation is zeroized (Annual Inflation with block rewards: +788M COLX. To zeroize inflation, 5.256B COLX transactions should take place in marketplace with 15% coin remove rate)
- 2.5% of the coins will be rewarded to masternode owners
- 7.5% of the coins will be used for external investors and network maintenance
Step 2: Higher incentives, pushing masternode owners and external investors to make marketplace attractive (so they can earn more after step 1 is complete)
- 7.5% of the coins will be rewarded to masternode owners
- 17.5% of the coins will be used for external investors and network maintenance
In addition to the Grid, COLX is working on a general-purpose decentralized marketplace. How much progress has been made in this regard?
The marketplace will be released with the Colossus Grid. Its focus will be geared towards the Colossus Grid sharing of computing power and storage, shortly thereafter we will begin rolling out more marketplace options. One of the most common questions is how we will handle anything illegal put on the decentralized marketplace. We’re looking to see how other projects handle this risk, as we move forward with different ideas the community has shared with us.