YouSaid · the spoken record

Jesse Shrader

lines on the record: 38
first: 2023-06-07
most recent: 2023-06-07
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Certainly, read as much as you can if you understand Bitcoin and you want to dive deeper and start to understand not only Bitcoin as a store of value, but Bitcoin as a settlement network and Bitcoin for payments for global settlement. Yeah, I'd push them to pick up mastering Lightning. And yeah, start building, run a node, install ThunderHub and start exploring on Ambos.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“101 stats just sending me like a little LOL message with Satoshis that I can save as real money and use my node to convert to Bitcoin and I can move it to cold storage, what have you. The whole thing is exciting. It just really lowers the friction involved in payments.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“For meeting their workout goals at work or showing up to meetings on time. And everybody in the room that I would never expect to be excited about Bitcoin and Lightning are really excited about it. They're freaking out if they're going to be over a minute late to their next meeting because they would miss out on the stats that they would get. The other aspect is just new use cases. Noster is incredible as a new social network and a social network protocol. Like we can have just internet native payments that are just flying around. You know, I'm posting a meme a day on Noster and people are sending me sats just like throughout the day. I check my phone. I've got a new notification from Wallet of Satoshi saying, you know, you just received 21 SATs.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I'm really excited about enterprise adoption of the Lightning Network that comes in two forms. One, in just the formation of markets around Lightning. The fact that folks with Bitcoin holdings can start earning yield at very low risk without making the same mistakes that people made by allocating their Bitcoin into CFI yield platforms. This whole system doesn't need to blow up and we can have cheaper payments. So that would be a win. And the second piece is after attending the micro strategy conference and having KPMG on one side of me and Fidelity on the other side all done up in suits and getting palpably excited about the lighting network. Michael Saylor can essentially tip his employee.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“To actually have potentially private payments and not have this inbound liquidity problem. One thing I'm curious about is the network effect. Because with Lightning Network, we've got now businesses that are set up on it and developers that have different camps and are working on different aspects of it. It's a whole flourishing ecosystem of development that's happening. And that might be hard to replace just because of the network effects that it has. Like this is when you go down to El Salvador, like people are using Lightning. Like that is like the method of payment that people have become familiar with.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Would like to put this in context because lightning was a white paper in 2016. And it's still early days and it's seven years later. Arc has received a lot of excitement recently. And I hope the ideas accelerate. But I think that's really the stage that we're at right now is like the initial idea phase. It's being talked about quite a bit. discussion about is this the direction that we want to take a second layer on bitcoin and what does it mean for the lightning network it sounds like arc may be able to work with lightning in a way and using a shared utxo model it's still like early days to even understand what this thing is although it's uh it's exciting to”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's just this huge gap where there was essentially zero volume through our marketplace for lightning channels because the network was just like, well, forget about it. I'm not paying that much. Like, can't I just wait to set up the infrastructure at a time when fees are much more reasonable?”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You pull up the order details chart on AMBOS. You can actually see this really significant gap in when we've seen magma orders happen. And that was quite recently with this like BRC20.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Despite the higher fees that are being paid, there's still an opportunity to earn yield by setting up this infrastructure. When folks are adding inscriptions, they're adding images and whatnot. They're essentially stamping the blockchain. They're also doing that with new assets under this BRC-20 standard. And consequently, there's been a lot more concern about am I opening the channel, a lightning channel to the right person or to the point where it's just saying, okay, this is a crazy fee spike. I'm not going to pay it a transaction fee that's quite that high. And I'll just wait until this hype, this mania is over and then set up my infrastructure at a time at some point in the future when I think the prices for a Bitcoin transaction will be more reasonable.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“By putting other things in the blockchain, everyone is essentially bidding to get into the Bitcoin blockchain and be part of this immutable record. When that happens, in order to create a channel, you're going to have to bid a higher price to be part of the Bitcoin blockchain. And it's costing a lot to actually create this new infrastructure.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Now, on the other side of things, there's the people that are using their savings to create a new payment network. And that's what we're calling the liner yield. So that's the green line, which is below the liner cost. And that actually shows that people can earn yield without giving up custody of their funds at any point. So people can earn up to what we're seeing is above 2% yield for providing liquidity to the lighting network. This is really where it comes together because on the one side, if you're a holder of Bitcoin, why aren't you using your Bitcoin to create a new payment network? And on the side of the business operator, why are you using a less efficient settlement method that uses credit? In debt, when you could use the lighting network and you could have instant settlebt and no chargeback risk.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Really, no words for it. But instead of LIBOR, where you have an idea of like a reference rate for interest, what you have up is called what we're calling the liner, which is the lightning network rate. And this is a dual index. There's two pieces to it. So there's the liner cost, which is what does it cost a merchant to get set up with liquidity? We can see that when we first started the marketplace, there wasn't a ton of volume. So it was up closer to 5%, but we watched it drop down to about 2% that folks were paying for that initial bootstrap of liquidity. If they're paying 2%, that means that they're saving an entire percent of their transactions versus a payment processor.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Ever existed is you can earn yield from your Bitcoin without having to trust any other party. Really, you just have to trust your own infrastructure that you've set up.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You're using a credit card, for example, that issuer is essentially loaning you the funds and they're going to charge a high interest rate if you fail to pay. Instead of doing that, what we've created with Lightning is a way to simply take your Bitcoin and make it be used for payments. And when you're doing that, you're actually not giving up custody of your Bitcoin, even if you're the channel creator. So you don't have to worry about someone else taking your Bitcoin, even though you've just increased the utility of this new monetary asset. Now I can use this awesome store of value as a medium of exchange. And I've just set up that network. Now, I don't have to trust the other person, and I'm getting a yield off of it. So this is the first time that this has”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Market is finding. So you could price your channels very inexpensively. And then we'll have a better sense of what's the cost of settlement from like continuously. Yeah, this gives us each of these channels that are sold for like a month, three months, or six months at a time, they'll agree to keep it open and they'll also promise to keep their routing fees very low. So they won't pay consumers won't be paying a transaction fee each time. So a merchant can go through and just buy one of those channels and set up a new payment rail to their business.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We launched Magma a little over a year ago, and we allow people to just say how much they'll charge to take their Bitcoin savings and allocate them towards payment rail. And so that's what's being created with the Lightning Channel is a new payment rail going to a new destination. So anybody that wants to start up a business and accept Lightning payments with their own node and their own infrastructure just goes on to Ambos.space slash magma and goes and clicks buy on one of those nodes. And they can also like review and determine whether that's a valuable node to buy a channel from. And depending on the price that they're willing to pay, we'll get information about what's the value of liquidity that the”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Be money back in the account. But what we're not taking into account is the actual increase in prices just because of the inefficiency of the settlement system. So the prices that we're paying are being marked up by 3% or more just because of the fact that the merchant is actually going to have to pay those settlement fees and take on the risk that there could be chargebacks.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, when we look at payment processors of the world, really there's three visa, MasterCard, American Express. And just Visa settles $5 trillion worth of payments every single year. So this is a massive industry, but Visa used to be a nonprofit, and it is now a private company. It is using the same technology that was set up back in the 1970s. So there really hasn't been a whole lot of innovation that's happened in terms of payments. So when you go to swipe your card, the merchant is actually going to pay about 3% of the transaction just to make that settlement happen. Now, on the consumer side of things, we've been enticed by the idea that we're going to get one to 2% cash back.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There's still a risk that the merchant, whoever sold you your meal, your goods, what have you, that they may not actually receive those funds because you're going to pull what's called a chargeback. And so you can just reverse that payment. All of the fiat payment system that we've become accustomed to is a debit system. So if your information on your debit card gets leaked, then someone else is actually going to be able to pull money from your account. Now, that's the opposite way that Bitcoin operates, where every single payment is a push payment. So you're individually approving every time any funds leave your account or your wallet.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So I've been reading this book called The Anatomy of the Swipe, and it goes into detail about what happens when you're actually swiping your payment card at a payment terminal. And you'll swipe your card. And then soon after, you're going to see a nice check mark, whatnot. It says, oh, yeah, transaction approved. And then at least in the US, you're going to add some funds to it right after that as like a tip. like the actual debit from your account is the original amount, but then you're stacking on this tip on top of it. And the actual settlement from that payment doesn't happen until like 45 to 60 days later. Now during that time, like no money actually moves until much, much after that swipe period, days, weeks. Those months. And during that period while you're waiting for the actual settlement to happen,”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is trust in our payment system? And this was like happening automatically. And I had no worries about it before. But now I'm concerned about it. Now I'm wondering, is the FDIC going to step in and bail out my deposits, my payroll? Am I going to get that money back at all? Or are they going to devalue the money and bail out the banks like they did in 2008? This is the problem. that we're trying to solve by creating a complete alternative to any trust-based financial settlement. And we can do that using our own infrastructure and by using Bitcoin, which can't be devalued in that same way as the US dollar or any other fiat currency.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, I mean, people are going to be able to. Let me share this story with you that we were processing payroll for AMBOS. And we were thoughtful that something may be happening in the banking sector. Now we're processing payroll and using a payroll provider. But what we didn't know was our payroll provider was banking at Silicon Valley Bank. And half a month's payroll had already left our account. And we find out soon after that Silicon Valley Bank has gone bankrupt. Wow. And has no funds. Now, what situation are we in right now? Do we just lose half a month's payroll? And not because of any fault of ours, but simply because we were using a vendor that was banking at this bank that until then I had never even heard of.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Now, to actually take another step and say, I'm not going to trust another company or person, like I'm going to have to set up my own infrastructure. And that infrastructure is essentially a small server. Now, we've kind of operationalized this a lot. Umbral and voltage have done phenomenal jobs at like making running your own server a much easier process. But that is a way to do it and minimize the amount of trust that is going on in payments. What this actually does in effect is like almost sets up a city on a map and there's going to be highways going between all of these different cities on the map.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“When people, when the end user uses lightning, generally right now, you're using custodial wallets. That means that your Bitcoin that you claim is yours is actually being held by someone else. Now, thankfully, we're in early days of Bitcoin where a lot of these developers and wallet creators are our friends. There's not a lot of enemies to Bitcoin and to Lightning right now. But that may not always be the case.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And they all have prices there. So you could just with a simple lightning payment be able to buy a channel to your node. And your lightning payment only goes through if they actually open the channel to you. So that's how we set up this marketplace because like in the early days, I was actually trying to sell channels. Say like, oh, okay, you need liquidity. Well, it costs me money. So how much are you going to pay me to open a high quality channel to your node so that you can receive payments? So this is something that I was doing via Telegram, just a simple messaging app. But with AMBOS, you're like, hey, we put a company together like, let's create a marketplace for this that actually matches up people that have been saving Bitcoin with the people that need to receive payments. Because we know this is going to be huge in the future.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“One piece that we noticed is that people were coming into the Lightning Network and it was happening faster and faster. So when people joined, they would usually come into the I want to send lightning to my node. And we would just have to tell them, oh, like you can't do that because you need someone else to open a channel to you. Like, how are the SATs going to reach your point B if there's no road that's going there? So really like liquidity and lightning is directional because there's no credit and no debt, like someone has to allocate their savings to you so that you can receive a payment. We realize that this is a huge user experience problem. That huge problem of acquiring inbounds liquidity means that there's a market there. And so what we put together was what we called magma, where we just created a marketplace where you can log on and look at the different nodes that are willing to open channels to you.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Like what Bitcoin does really well is accounting. You're just keeping track of things. And, you know, my background is environmental engineering. So there's going to be flows from one point to another point. And it all, at the end of the day, has to all add up. Like these are the calculations that I'm doing. And in order to return a profit, you have to have an idea of what kind of funds are you spending. And so I'm having to do that calculation and like checking against my node, making sure that everything lines up just to give myself comfort. And now with AMBOS, like we're just trying to streamline all of that activity to help people make better decisions when it comes to using the Lightning Network so that we can actually create an alternative to traditional payment networks.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Figuring out, like, okay, how much did I just pay to open a channel? Like, where did the money go? And we know it's reckless at this point. Like, we're always double checking the node. Like, how do we know that the money is still there? Because I'm watching my balance and it's changing around. Why is it changing? And there's no one that is able to really answer that question for you because there's like developers that are working on the protocol. Like, how are we supposed to make safe guardrails for people to help understand what just happened with their money? I'm glad.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Make a whole bunch of data visualizations to help you understand the data about your node. So that was the main driver and then figuring out like, oh, okay, we need to start organizing node operators using markets.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“How do I package all the data together about this network and kind of create a map of it and be able to guide people on how to make a better payment network without credit, without debt that works really fast where you could pay next to zero fees? We started indexing the Lightning Network and there were a couple of tools out there that did some things similar. You know, one was like 1ML and then Fiat JAF behind Noster, he actually created one of these explorers as well. But the early product was a Lightning Network Explorer, which basically just means all the nodes on the network were going to give you a profile page. You can have your name, the color of your node on there. You can have all your different channels listed. And we'll just.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Early days, there's a big question of who do I connect to? What are smart decisions in this new economy that we're creating? I mean, the whole Lightning Network in general, I mean, you're taking your savings and you're deciding I'm going to put it in a new format that creates a pathway to another node. And by in so doing, that creates a payment network that operates without credit and without debt. You have to make decisions that are costly. I'm going to make a Bitcoin transaction that's going to create a new pathway. In order to make that decision, especially if the decision is costly, I'm going to need some information. And so that was the main driver behind AMBOS.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So, those early tools, like us getting together was pretty important. Me on the more social side and then Tony, who's like just a ruthless tool builder that iterates really quickly.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And one of those was Tony Poteman. And he was building Thunder Hub, which he had built in a hackathon. And when he built that, that was like an actual user interface that I could understand. I'm not a wizard when it comes to working in command line. And I know a couple of commands just enough to be dangerous, but putting together a user interface for Lightning was so important. I got connected with Tony, sent him a few suggestions and he saw me helping early lightning users out in the chat just, you know, how to get ThunderHub set up, how to navigate the interface, like what opening a channel was, what's sending a payment, what's receiving a payment, these types of basic pieces, as well as like setting”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So early days of lightning was just a couple of telegram groups where some folks that were wanting to experience lightning were getting together and say, I'll open a channel to you. Maybe you can open a channel to me. And like this was like the reckless days, that hashtag reckless was all over the place because lightning was very experimental at that stage. Now as we're experimenting with these things and L&D is improving, which is like one of the main implementations of Lightning, as that was improving, it became more and more comfortable. So then there was a size limit for lightning channels that was part of like the initial setup just to like protect users from funds. But really, I got connected with some of the early tool builders.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“As well as other identity security breaches, the target issue happened through there where every target customer that had a debit card transaction in between several years, their information was leaked. So that was kind of laying the groundwork of letting me know that there's some real problems with our payments infrastructure, even if you're talking about just debit cards before you get into credit. Of course, like in the building, there was also like mortgage lending, discrimination, et cetera. But really it was a huge learning moment for me about payments.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The legal services background, most of that was in class action lawsuits. Really, I was there as a temp worker answering phones, reading from a script, and just reading to the people who called what was the class action lawsuit that the callers were involved in. And the first case they put me on was about overdraft fees where banks and like one particular bank, but really all the banks did this, they would reorganize debit card transactions in highest to lowest dollar order. And the consequence of that was that the bank could charge more overdraft fees to a customer because they had more overdraft fees when their bank account balance was zero. If they switched around the order of it, like there were tons of cases that went through that building. You know, there's a whole section dedicated to Wells Fargo.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I got into Bitcoin in 2017 really. Yeah, got pretty excited about the number going up. And then, of course, the numbers started going down. And that's when I really dove into figure out what it is that I actually bought. And part of my excitement was buying gifts. And like with Bitcoin and I paid just crazy high fees after experiencing that, that really pushed me into, okay, how do I pay less in fees? Because really I was paying like $60 for a single transaction. And that was just a crazy time for Bitcoin transactions. And that pushed me into lighting.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So much, Preston, and super happy to be here and share what we've been working on. Your podcast is legendary and also the reason of so much traffic to ANBOS was because you spun up a node way back in the day. Man, I was just learning to be able to talk to you.”
2023-06-07 · We Study Billionaires · BTC133: Creating a New Libor on Bitcoin w/ Jesse Shrader (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT