YouSaid · the spoken record

Romain Rouphael

lines on the record: 48
first: 2024-02-07
most recent: 2024-02-07
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

“People interested in DLC, they can just go to DLCmarkets.com and sign up for the beta that comes soon. And I'd like to take this opportunity to thank you, President, for the continued support Since 2021 tweet to”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's a really good point. It's a really good point. It's something that we could, there are some kind of standardization, market standardization that could take place in the end. That's a very good point. And when you say that it simplifies a lot of similar things, that the ethos of Bitcoin, and if I come back to Bitcoin as a payment system, it's magnificent because it's so much simplifies how what a payment system is and how money should work compared to the legacy system.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Basically, it will detail all the closings about what would happen in case what is a credit event, what is a default, what happened in case of default, et cetera. And that's what made OTC market robust in the financial world, in the traditional world. If the agreement do not exist in OTC markets or Bitcoin derivatives, so basically people, no options they want to trade Bitcoin derivatives OTCs and to go to a trusted third party to go to a centralized marketplace, which is at the same time where there is at the same time selling and custody, which is in the end a security. What we want to do with DLC market is create an alternative to the agreement, but build for the Bitcoin world. Four Bitcoin derivatives. And instead of having a 60-page PDF, all the holds of the trading are written in a smart contract, in a DLC observer.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“No, yeah, it's an absurdly big market, yeah, definitely. And for OTC, you know, in order, so in eastern markets, they rely on introducing softly, which is the exchange. And when institutions trade OTC trade directly in the traditional world, what they do to lower their risk in case one of the counterparties goes bankrupt, case one of the counterparties cannot meet its commitment, if they would enter into what is called an ISDA ISDA agreement, which is basically 60 to 80 page PDFs and financial institutions we see, they will launch with my legal department.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I mentioned bitcoin native products. There's also, if we see more broadly on how Bitcoin can help reshape finance in the traditional world of finance, there are big ways to trade derivatives. One is on exchange. It's what we call listed derivatives, and the other one is OTC, when institutions trade directly between themselves and it's a massive, massive market. I mean, the total size of the derivatives market is like 600 trillion US dollars per year, so it's a very, very big market. And the majority are settled OTC.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Of course, there are some technical, I don't think it's as simple as it wouldn't be as simple as that, but we can, so I don't think we can fully solve it, but we can design a scheme in which there is much less reliance on a trusted third party as it is.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“For example, block space, it's something that is upselling by everyone. And so you can have this kind of distributed oracle, which is the Bitcoin network itself. So it makes a lot of sense for us to build this kind of product. And it's wide on LN markets. We've been very focused on PTC USD feature for DLC markets. We are really going to focus on the Bitcoin native economy and how we can leverage derivatives to edging in a secure way because your ACL is Bitcoin.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, yeah, you've got high C embedded and privacy is important when you do this kind of connection. So yeah, it's embedded by design in a way. And you talked about the Oracle problem and it's a very important and crucial topic when we talk about non-custodial trading, translating. It's a very, very hard problem. It's not a problem that we pretend to solve or to tackle with our solutions. There are several ways that you can mitigate the importance of the reliance on the Oracle. You could use different oracles. You can do a set of Oracle and do the media and exclude the higher and lower values. We also think that that point is interesting also to build products tied to Bitcoin. Because in a way, Bitcoin Core can be the alcohol. Like if you think about free.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The beauty of it is that you can do translate on top of Bitcoin. And it's just awesome when you look at the blockchain and when you see the product working and actually being able to enter derivatives contract without taking any counterparty risk on Bitcoin. We are very proud of it because we think it's what will help accelerate Bitcoin as an infrastructure.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, and also what's good, I guess it's kind of like LN market DLC market is going to be out really soon right now in Vita. And the best is to use it. I talked to you about how I found out about Bitcoin. You know the white paper, Bitcoin white paper, if I had started with the white paper, it would have been much too complex. And I would have stopped there. It's just using products, using stuff that you get to understand them and be more serious about them. It was this for Bitcoin, I think, with LN Marquette who created an experience in which in the case for Lightning, you make the technology invisible in a way, you just use it because it's useful. It works. It enables fast settlement. And with DLC, we want to make the same. I mean, for all the tech interested people, et cetera, there is white paper. There are a lot of stuff to which they can refer to. But we think the beauty of it, and when we start, you know, doing demos to hedge fund, et cetera.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The option dilemma has flagged DLC. Thus, you know, working on, and there's been a lot of R&D, which has been done by KO, our in-house researcher, we've also been able to build on the GLC protocol to replicate the life of the derivative product in the real world. So replicate, for example, marginal code, replicate liquidation and the final settlement of cosmology is much fertile if it's doable and then is much more simple thanks to the coordinator. Now it can get a bit technical, so all this is in our white paper.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“DLC is a little bit, which is a three option dilemma. Without a coordinator, when we do this exchange of signature, there's always one of us who is the last one that needs to sign the transaction. And in a sense, I have your signature and I can wait a little bit to see if the data from the real world goes on my side. Let's say we bet on BTC USD price. You are long, I am sure, at the final step of a DLC, there's always the initiator is always in a bad position, the initiator of the GMC, because he has to wait from the signature from the other party. And if the other party is non-cooperative, they can exploit this, they can wait to see how the price will go. Thanks to a centralized coordinator, we solve this dilemma and we make sure that there is no longer”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's a bit hard to implement. And that's why we produce this centralized coordinator, this coordinator, which is the service provided by us. So the name of the platform is DLC Markets. We never take custody of the funds, never, but we play the role of coordinator to simplify the setup of GLCs. And by having a centralized coordinator, which is always online, we make sure that it's very easy, just a matter of letting me in your Bitcoin wallet and clicking on several buttons to sign a few transactions and boom the DFC is settled. So we ease this setup. Plus, it's a big technical. It's in the white paper for people who want to listen to it. Go deeper, they can go to our white paper. We solve a problem which has flagged”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's mainly one of the reasons in our view why TLCs have not taken off yet. It's also because they are cumbersome to implement. And not only implements, hard to find a counterparty level. For your example, you know, it's a theoretical setup between you and me having this opposite expectation. In real life, it's really hard to find one peer which has the exact opposite expectation as you and who wants to enter GFC, who is having enough to do that, etc. There's a market idea. So the practical implementation of it, if we have to do this peer-to-peer DMC together, well, it's a bit cumbersome to do. We have to do some backend runs to exchange, some signatures, blah, blah, blah. So we have to stay online.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, yes, correct. I think you mentioned a lot of very interesting points about DLC. First, it's that in a way, that's why also it's called discrete log contract. It's because the Oracle doesn't even need to know that there is a smart contract, that there is a DLC between you and me. The Oracle just certifies prices, you know, like, let's say every minute, every 10 minutes, certifies some piece of data. doesn't know who uses it if it's being used, etc. So there are some sense of privacy that is really interesting in it. There's also some sense of auditability because when we do this DLC, you and me, we lock fund in the Bitcoin blockchain and each of us can look at it in the blockchain and make sure that everything goes as planned. There's a sense of programmability.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Automatically without any action from our side. So with DLC, we can do some financial contracts, some derivatives products, which could be linked. So we could customize any type of product as long as there is an Oracle which publishes a price and there is a settlement which happens in PTC. Is that okay for now?”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We have an anoxyn in the Bitcoin blockchain, and the release of the fund will be tied to the publication of a price by an Oracle from the real world. And let's say we do a product, we do a future product, for example, which is tied to BTC USD. Well, there will be an ORCO, which will be an exchange, which could be Coinbase, which could be whatever, which will decrive the price of BTC USD. upon publication of the price by an oracle like Coinbase at the expiry of the product automatically each of us will receive our respective payoff so let's say you are long bitcoin I am short bitcoin and the price of Bitcoin goes in well at the end of the product zero will fit some data to the smart contract and you will get the positive PNM of the product and all this will be done”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And in markets, the platform that was designed for retail clients, we build a platform for institutions. Can we think it makes much more sense for institutions to use DLCs? Why? Because we introduced a normal approach to DLCs. So now let's go back to DLCs. In a way, they are quite similar to the way they work is quite similar to the Lightning Network. In the Lightning Network, people before opening a channel, they exchange values, signature, before they open a channel, and then they can use this channel to make a lot of payments between themselves. With DLCs, DLCs are a kind of one-time payment channel. What DLCs are, if during me, Eston and me, we open a DLC together, what we are going to do is we're going to lock funds in the Bitcoin blockchain. We're going to do a multi-sig from the...”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Exchange. So we should made a lot of sense to build the daily latest platform because Bitcoin is a native unit that you exchange at the end of the product. It's the same today for DLCs. These smart contracts on Bitcoin, they can only be traded and settled in Bitcoin, in BTC. And the blood within the LC market, the platform that we build, we are thinking about different kind of products. First,”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“In the first place is because being derivatives, they can be either physically or cash settled. You remember when we talked about the treasurer of American Airlines, we needed to hedge its exposure to the barrel on oil. Well, we can enter into derivatives contracts which are either physically settled or cash settled. Well, physically settled, meaning taking delivery of the parallel. Usually it's not physically settled. It's mostly cash settled. You just get the difference in price. Well, with derivatives, there are retracts and Bitcoin derivatives like futures and options, the one we do on LN markets, they can be set up. And that's extremely important because when we launch TLN markets, on lightning, you could and you still can in a way only trade Bitcoin. It's the only value, it's the only token that you can.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Authentication, for instance, payment. A lot of stuff that made it very simple, very easy to create an account and trade. And what we think we realized with LN markets, we want to do the same thing with DLC. So for now, Ebola thought that it's complex, it's hard to manage, hard to deal with. We want to build a very simple user experience on DLC. And what we want to build is a new kind of crediting platform, a trustless trading platform built natively on Bitcoin. So basically a platform on which people can trade derivatives without taking any counterparty risk and ensuring that trading and custody are not risks never. So that's what we think we want to build. And just a quick note because we mentioned derivatives. Why we decided to draw their”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“In the crypto world and the whole blockchain, et cetera, DLCs are smart contracts but make the Bitcoin way, meaning they are secure and fully secure. The white paper, the DLC white paper, was written in 2019, I guess. It's been around for a long time. There hasn't been really so far any application, any app taking off on DLC. And in a way, we think our view is that it's a matter of use case. It's a matter of how you build a product which is easy enough, which is as simple to use as possible to make it a success in a way that's what we've tried to do with LN market, which became a very popular application on Lightning. We pioneered some protocols like LNU URLs that you could use for instance.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We do not do yield. We don't have a token. So we really focused on risk management and on having something secure. So happy with our journey so far. And now back to GLCs. We've paid attention to DLCs from the start because they share a lot of similarities with the Light New Network. First, they were invented in a way by the same MIT researcher which is Tadius Riga, which is a co-hoster of the Lightning Network white paper who designed DLC. DLCs are native smart contracts on Bitcoin tied to the publication of data feed, a price provided by an Oracle. So now we're quite familiar with”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Sadly, people realizing that trusted third parties are dangerous and that we need to build more non-custodial trading. That's what we've done with LN Market. It's for retail. Now we've always been following VLC. And now I got to your question.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's the best collateral. So we started with LN market, and with LN markets, we had this idea that they could leverage the Lightning network for instant settlement. And if you have instant settlement, you can move money in and out very quickly from your wallet to the exchange back and forth. And in a way, you can reduce the time that you are at risk. You mentioned this abacus on Lightning. Well, you can on NN Marte who made it very easy to move money just when you want to trade and to get funds back to your wallet just after your trade is closed. So basically you seal your risk, but only while the position is open. And you can move money instantly. And we think that the big value proposition of Bitcoin, and we've seen our volumes skyrocketing since 2022. And I guess this has a lot to do with...”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And just to reap up the same place within exchanges, whether it's spot or derivatives. And we've seen throughout the history of Bitcoin, to quote Satushi that thrust up third parties are security rules, well, they continue to be security rules since MTOGOX and during the crypto contagion of 2022, we've had all these bankruptcies, all these failures. And in a way, you know, thanks to Satoshi, Nakamoto, we fixed money, but we didn't fix heading yet, you know, because trading is still centralized at trusted third parties with trading and custody, which happen at the same place, which is, of course, highly insecure, highly dangerous. That's the main issue that we wanted to tackle with Zelen Market since we start. And we wanted to release on Bitcoin because we see...”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Mutual that maybe, I'd just like to say that our goal is to build the future of finance on Bitcoin. And we think Bitcoin. Leverage to be innovative financial services. And in a way, you know, when I talk to you about how painful, you know, the relationship with the exchange was, there was a problem that luckily we were not exposed to, but which is an even much bigger problem, which is that often, and it's still the case.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We firmly believe that there's going to be more and more Bitcoin native products, whether it's linked to hash rate, hash price, transit like block space. I see that the nearest use case we see and actually doing a product on block space is something we are very interested in. And I'm sure this will lead to other ideas and other needs that we don't really see right now.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think it's probably a product that will emerge, it's a product linked to block space, I think, because a lot of business tend to be more and more sensitive to transaction fees, it can be exchanged when they need to validate transaction. Or if we take the example of Lightning, there's a specific use case which is going to be, I think, interesting as the network grows. So in Lightning, whoever opens a payment channel needs to close the channel, needs to be the one closing the channel and needs to be the one sending the channel closer transaction. And in this case, you are exposed to the evolution of transaction fees and you may want to hedge potential risk that you have. Today, it's something that is not hedged by market participants, but as Coin and Lightning take off, I guess it's going to be a”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I love the AGs to be always long BTC, but you know, you run a business, you have to pay salaries. So if you have expectation that there's going to be a steep decrease in BTC price, it makes a lot of sense to be able, for example, to short BTC. Shorting, meaning like selling a future contract or short work contract on BTC USD price. And in this case, you will make money with BTC USD decrease, which will compensate the loss that you will incur on your regular business.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“which is Bitcoin because your revenues are in Bitcoin and you're. They are in US dollars That I knew. Basically, you are structurally long BTC and short USD. And sometimes as a business operator, it can be risky. Yes.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We exercise the option, you will buy at 75 plus the $10 of the premium. So we buy at 85. If it's below 60, 50, you will not exercise the option. You will buy in the market at 55 plus the option 65, for example. So this is the hedging use case for the innovative. Now there are also speculation and arbitrage. It's hard to save the world of derivative, which is the most popular use case. I would assume that in terms of volume, it's mostly speculation Bitcoin derivatives. For example, but there is also and always people who use derivative for hedging. And that's why they were invented.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Treating a way because Robin Hood made it very easy for people to trade options, but they are much more complex product with option what you could do is instead of locking the price at $75 per barrel, you could say, I want to buy the right to buy the barrel of oil at a future date at 75. I want to buy the right, meaning that I have the right to buy it at 75. But if it's below, I don't buy it. It's a different product. You don't have this linear payoff. So you have to pay a premium to buy this option. So it's called the auction premium. You have to buy it up. So let's say it costs you $10. You pay $10 today. And then you have the option to buy it in three months at 75. So if it's way above, if it's 100, 100.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So let's say within three months, the price is at $90. You pay $75. Everyone is happy in your team. Now in three months, the price is at 50. Well, you still have to pay 75. But at least, and you were not reckless, you know, you hedge this risk. So that is what forward contracts are. It's a firm commitment to buy something at a future date at a given price. This is the first big type of derivative. It's forward and future OTC contract, meaning it's two counterparty links them together. Futures are, we say, listed contracts, they are listed on an exchange. For example, on CME, you have listed future contracts on Bitcoin. Forward futures, it's a firm commitment. And then there is options, options. Nowadays, the more main”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Usually that's why derivatives contract exist. What you could do is there are two main types of derivatives contract. We say there are swords. Option. Let's see the first type of contract, which is a forward contract. You could say, okay, I want to lock today the price is $75 per barrel. I want to lock this price. So you're going to buy your forward contract. You're going to lock the price of a barrel at 75.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You are two options as a treasurer. Either you do nothing or you try to hedge. Let's say you do no seeing. You are a lazy treasurer. You do nothing. It's a bit risky. Now, in three months, the price of a barrel of crude oil is at $60. People will congratulate you and tell you. It was a need risky, but in fact, okay, we can buy 60 what we would have bought 75. Now in three months, the price is at $100, then people will yell at you and tell you, Preston, you should have never done this. You should have had this. Of course, the price was going to go up. So you should have hedged this risk. Now, how can you hedge? Well, you can physically buy oil today at 7. You store crude oil It's not really your job as a treasurer to store crude oil at your office.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Let's say Kristen, you are the treasurer at American Airlines, at an airline company. So you are treasurer. So your role is to manage the cash of the company. And people book their fly. When they book their flight, they pay today. So let's take the example of a flight which is due in three months. Tickets are sold today. The plane is full. It's good. You have the cash people pay. Now, what is your risk as a treasurer? There are potential risks, but let's say the main risk is the price of gasoline, which we know is volatile and the current climate, it can go up, it can go down. You don't know, but if you are a careful treasurer, you would need to hedge that potential risk. Let's say tickets are sold today. Today's a barrel of crude oil is at 75 US dollars.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So basically, a derivative is a contract. It's a contract whose value depends on the value of an underlying asset at a future time. So it's a very old concept since you are the first forward contracts on olive oil in Antiquity or even on rice in old Japan in order. So this was a complex sentence. A contract loose value depends on an under. So let's take a very concrete example”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Online shop with payments on Bitcoin. So basically, we sold Bitcoin stocks. We produced in Bitcoin socks that we sold on Lightning. And we had people purchasing it from all over the world. And even a guy from Australia who purchased socks. And we saw the money flowing almost instantly. And it was, you get this magical filly. You know, when you do this lightning complexion and you see, in fact, that you can confirm money without taking any counterparty risk in a very efficient manner, such as with LIBE. And you got to thinking, yeah, lightning is very, very useful for payments for sure. But we could also use it for trading. We could leverage this technology, not only for payments, but also for collateral payment. And that's how we decided to build the first very values exchanger on the land.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“At the same time, in 2017-18, then the Lightning Network started to emerge and mature. And thanks to the Lightning Network, so this layer on top of Bitcoin, what the Lightning Network has enabled is the ability to do instant payments so you can instantly do payments on Bitcoin in a scalable manner and at a very, very low cost. So when we first saw Lightning, we were like, okay, this is the feature of Bitcoin because Bitcoin is supposed to be the more the internet that you can exchange online. And now, you know, we have this protocol, Lightning, which enables us to move money anywhere in the world very fast. And we were still, you know, like building a couple of stuff on Bitcoin and we had this idea. I think we were one of the first maybe with Block Rill, BlockStream. We opened and”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so you were digital gold, etc. And then you get Bitcoin. The protocol Bitcoin, the programmable money, the financial architecture on which you can try to build financial services. At the beginning, we didn't really know which road to explore. And we first started exploring Bitcoin's asset. So basically, we did some consulting, some research, some development around Bitcoin, and we managed the fund invested in Bitcoin. And so basically more focusing on Bitcoin, the asset, managing this fund, and doing that, we realized firsthand how stressful it could be to manage Bitcoin funds, like to move Bitcoin firms in and out, you know, from an exchange. Because even today, it's a very stressful experience sometimes to do a Bitcoin fund to see it on the blockchain, to follow, to make sure it's concerned. Plus, it can take time, the fees can be high. So it was always quite stressful to manage Bitcoin.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“No, no, no, it was the early day, and I remember, I think, in 2016, you had the first talks by Joseph Poon speaking about what could be lightning and maybe the first version of the white paper, but it was really early. No, so it was before lightning, we were very interested in Bitcoin, the object. And we had this idea that it was to think that it's very hard to define Bitcoin, but that it was to think that at the same time that there were two main angles to Bitcoin. One's the asset, Bitcoin and asset. We talk a lot about it these days with ETF, et cetera. Bitcoin store.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Then I'm like, okay, now I need to, I wanted to launch my own business. I wanted to be an entrepreneur. And I was like, I need to be in this field because it's too interesting. It's at the intersection of economics, of finance, of technology, of the hiking world. You've got a bit of politics, a bit of sociology. So it's too fascinating to miss it. So I want to be in it. And we had this discussion with our co-founders, with my co-founders come and Victor. And we're like, we want to be part of it. We don't know yet what we're going to do, but we want to be a part of it.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Like Switch payments, et cetera, blah, blah, blah, payments take time. It's very complex, et cetera. And now he's got this software, which he developed open source, and you get this network peer to peer, everybody can connect, everybody can log in, everybody can make payments. And it really seemed like the future. Like the future of payments and of what finance should be. I paid more and more attention to it. And a couple of years later, so we discussed.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Anywhere within 10 minutes, and nobody could prevent you from doing that. And if you sent 100 bucks, then your counterparty was going to receive, let's say, 99.5. And I was amazed about it because when I was living in Hong Kong, I'm from France. I'm French. Maybe you noticed by the accent. Whenever I wanted to send money to my family, to my brothers, for example, in France, it was a nightmare because it took several days as the fees were really high. It was a really, really bad user experience. And then with Bitcoin, I had this tool in which I could very quickly and efficiently change the local currency to Bitcoin and send it away. Then I freaked out. I was like, okay, so it works. It works for real. And now I need to understand how it works. And especially when you work in the benchmarking industry and you're used to all the very old plumbing.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Reading a bit about Bitcoin on Bloomberg, and it seemed like complete nonsense to me. Like I didn't understand anything about it. You read this article about this anonymous currency created by somebody nobody knows Satoshina Kamoto, and you've got this money which is run by computers doing complex computation without central bank. It basically didn't make a lot of sense to me until in the street I was living in, in Hong Kong, opened a shop with a big Bitcoin sign and in fact it was a Bitcoin ATM. And I just went to check it out of curiosity. And when I realized what you could do, I was mesmerized because I realized that you could go there, you had Hong Kong dollar, you could change them to BTC and then you could send Bitcoin all over the world anywhere.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Know it's a question that a lot of people ask, and I think for us all, people working in Bitcoin or in the Bitcoin industry, it's the people a lot of people ask over at dinner. Why do you do that? Or what led you to that? No, I mean, it's a question that I like. I was not instined to work in this field at all. I am a business background first, so I'm not an engineer, which I always say it's important to say because a lot of people can be frightened about working in Bitcoin or working in the space because they think it's highly technical, etc. Well, you don't need to be an engineer. You don't need to be a developer to be in the space and to build in the space. And I think it's very important to say this. So I was working in the financial industry. I was working in investment banks, doing trading on commodities in London, in France. And then I moved to Hong Kong. And while I was working in Hong Kong, I was reading a bit. It was 2012, 2013, and I was”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, yes, after the volume, yeah. And yeah, I'm really excited to be here and speak with you, Preston, because I remember back in the days when we just launched LN Markets, you did this tweet. Basically, you tweeted our first original tweet, our Hello World tweet, saying, hey, we are the guys from Eden Marques. We are live. You can do instant trading on Lightning. And you quoted this saying like, hey, this looks cool. Have you tried it? And then we had this, like, it was our first winter storm, like so many answers, so many people reaching out like, yeah, I know this guy, Don, I know. It was really exciting and we had this crazy weekend in which we had a record number in sign up and volume. So thanks a lot for shading.”
2024-02-07 · We Study Billionaires · BTC168: Bitcoin Discreet Log Contracts DLC on LN Markets w/ Romain Rouphael (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT