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CWT leader and the founder of advanced crypto currency PRIZM Mr. Aleksey Muratov gave an interview to MK "Chernozemye"

The past year of 2017 was a period that caused a huge attention to the market of crypto-currencies. Today, not only crypto-enthusiasts who represent the blockchain-community are interested in the innovative industry; on the contrary, today media of absolutely different orientation and focus try to pay attention to the topic of the cryptocurrencies one way or another. A new phenomenon of the world economy, a multi-billion dollar market and the undoubted innovations that come to our world, cannot leave anyone indifferent.

The development of the blockchain world was discussed by the Chairman of the International public movement "Change the World Together" and the founder of the advanced crypto-currency PRIZM Mr. Alexei Muratov with "MK Chernozemye"

"MK Chernozemye": Alexei, let's first talk about the first and most top-end crypto currency Bitcoin. About Bitcoin, probably, everyone already heard, so what is the secret of its popularity?

Alexei Muratov: Everyone is talking only about Bitcoin, everywhere only Bitcoin is discussed. They shout about decentralization, about the legalization of crypto-currencies – but no one who specializes in this, does understand the consequences it can lead to.

There is one astonishing feature of crypto-currencies, which went unnoticed almost by everyone, which has not yet revealed its potential. But when this happens, it will cover the whole world, changing every aspect of society's life. The true strength of the crypto currency is the ability to print and distribute money without centralized power. It may seem obvious, but I assure you, it is not so. The world financial system has been in private hands of financial elites for more than a 100 years. Blockchain technology allows you to take power from these hands. It will open the door to a new world economy, leaving the old world order with a deficit economy in the pages of history textbooks. Money is also a commodity and it is fighting for a buyer. Today, crypto currencies is winning over fiat money. The "Genie" escaped from the bottle and we observe the greatest experiment. A worthless monetary monopoly can not stop it. Crypto currency will absorb the trade, which was tied to a fiat financial system.

Soon everyone will know and see how the market of trade and the world economy as a whole can come to life if it is based on an open and transparent system that excludes fraud in the form of unlimited emissions. The world is getting rid of the monetary middle Ages. It will be tomorrow, and for now, a little bit about the myths associated with Bitcoin.

Myth 1: Bitcoin is eternal. Everything that is written in the blockchainis left forever.

Yes, indeed, every client of the network stores the entire history of all transactions, and it is already more than 180 gigabytes of data. This is the full capacity of the disc of a cheap laptop or the most modern smartphone. And the more transactions in the Bitcoin network occur, the faster the volume grows. The most part has appeared in the last couple of years (the growth of the volume of blocchain. Source).

And Bitcoin is still lucky - as its competitor, Ethereum network, just two years after the launch and half a year of active usage has already 350 gigabytes of blockchain data. So, in the current reality, the eternity of Blockckchain is limited to a decade - the growth in the capacity of hard drives definitely does not keep pace with the growth of the Blockckchain volume. But in addition to the fact that it must be stored, it must also be downloaded. Everyone who tried to use a full-fledged local wallet for any crypto currency, was amazed to find that he can not make and accept payments until all the specified amount is downloaded and verified. You are lucky if this process only takes a couple of days. "

For a long time Bitcoin users are divided into enthusiasts who "suffer" and pump everything, and on ordinary people who use online wallets, trust the server and who, in general, don’t care how it works there.

Myth 2: Bitcoin is effective and scalable, so ordinary money will soon die

If each network node does the same thing, it is obvious that the bandwidth of the entire network is equal to the bandwidth of one network node. And do you know what exactly it is equal to? Bitcoin can process a maximum of 7 transactions per second – that’s it.

In addition, Bitcoin - Blockchain transactions are recorded only once every 10 minutes. And after the appearance of the record, for reliability it is recommended to wait another 50 minutes, because the records regularly spontaneously roll back. And now imagine that you need to buy bread for BTC. Just an hour or so to stay in the store, no problem.

If you take the whole world, this is ridiculous now, when Bitcoin is used by hardly every one thousandth inhabitant on Earth. And at such a speed of transactions, the number of active users will increase substantially and will not work. For comparison: VISA processes thousands of operations per second, and, if necessary, it will easily increase capacity, because classical banking technologies are scalable indeed.

Myth 3: Miners provide network security

You've probably heard about the miners, about the giant mining farms that are built next to the power plants. What are they doing? They are wasting electricity every 10 minutes, "shake" the blocks until they become "beautiful" and can be included in Blockchain.

The second key point: Blockchain is based on cryptography (hence the "crypto" in the word crypto currency). The correct operation of the system is guaranteed by mathematics, and not by the reputation of a person, organization, the Central Bank or the state.

Those who create new blocks are called miners. As a reward for each new block, its creator now receives 12.5 BTC. To date, the price of 1 bitcoin is almost $ 20,000. By the way, awards for the creation of blocks - this is the only way for emission of Bitcoin. That is, all new Bitcoins are created with the help of mining.

Electricity is consumed as much as the city of 100,000 inhabitants consumes. But you can add here also the expensive equipment, which is suitable only for mining. The principle of mining (the so-called Proof-of-Work) is identical with the concept of "burning the resources of mankind". This is an empty work.

Blockchain optimists like to say that the miners do not just do useless work, but ensure the stability and security of the Bitcoin network. This is true, but the only problem is that the miners protect Bitcoin from other miners. If the miners were a thousand times smaller and burned a thousand times less electricity, Bitcoin would function no worse - the same one block every 10 minutes, the same number of transactions, the same speed.

With regard to the blockchain decision, there is a risk of "51% attack". The meaning of the attack is that if someone controls more than half of all mining capacities, he can secretly write an alternative financial history, where, for example, to write not to give his money to anyone. And then show everyone such a version - and this version will become a reality. So he gets the opportunity to spend his money several times.

It turns out that Bitcoin has become a hostage of his own ideology. "Superfluous" miners can not stop mining, because then there will be mot likely that one will control more than half of the remaining capacity. While the mining is profitable, the network is stable, but if the situation changes (for example, because electricity rate will increase), the network may face massive "double expenses".

Myth 4: Blockchain is decentralized and therefore is unbreakable

You might think that since Blockchain is stored on every node of the network, the intelligence services will not be able to close Bitcoin if they want to, because it does not have any central server or anything like that - no one to close it with. But this is an illusion.

In fact, all "independent" miners are pooled (like cartels). They have to unite, because it is better to have a stable and a small income than a huge one, but only once in 1000 years. (Distribution of Bitcoin capacities by pools.  Source)

As you can see on the diagram, there are around 20 large pools, and only 4 of them control more than 50% of the total capacity. It is enough to knock on four doors and gain access to the four control computers so that you have the opportunity to spend the same Bitcoins on the Bitcoin network more than once. And such an opportunity, as you understand, will devalue Bitcoin. And this task is quite feasible. (Distribution of mining by country,  Source).

But the threat is even more real. Most pools, along with their computing power, are in one country, which simplifies the potential capture of Bitcoin control. And, owners of mining pools establish rules inside, precisely not to determine their own interests.

Bitcoin, which in fact, possessed a decentralized model at the start, becomes an increasingly centrist model in the hands of miners and stock speculators from year to year. And this scourge today is absolutely for all the crypto currencies.

All crypto-currencies are conceptually identical. They all have one problem. Even if they are born decentralized, as they grow, they become centered like Bitcoin now. In order to generate a new coin - for example, to smear a "cue ball", you need to select pairs of prime numbers through which the block is generated, ie if you have generated a new block in Blockchain, then the Genesis block gives you a coin as a reward, sending it to your address. And so almost in all cryptocurrencies: in order to generate a new coin you need to maintain a network. Maintaining the network – wether it is mining, forging, it does not matter.

Miners do not engage in the production of bitcoins, as most people imagine, they generate blocks in a blockchain and are rewarded with Bitcoins for this. In the Bitcoin Genesis block it is already mentioned how many Bitcoins should be given for each block and at what period of time.

Depending on the complexity, it will give Bitcoins. Same with the most of the cryptocurrenices. This single concept leads to the centering, ie centralization. At the initial stage, there are a lot of miners, as it is easy, because it is easy to generate blocks and to maintain the network.

Accordingly, anyone can mine, there are a lot of miners and they do not allow anything to happen to the network. Moreover, this is the concept of POW and the concept of POS.

In POW - if the complexity of the network increases, then more powerful equipment is needed in which it is necessary to invest a lot of money to generate new blocks of blockchain. Respectively, competition is reduced, since to create blocks you need a lot of hardware. It's the same with the classic POS concept. To generate new blocks, you need to have coins. The more coins you have, the more blocks you forge. The more blocks you forge, the more coins you are given. Accordingly, you become stronger and stronger.

Competing with you becomes more difficult. And if you do not sell your coins to anyone, it turns out that you are concentrating the whole network on yourself.

And because of this, all the networks of Blockchain, which work on this principle, seek from decentralization to centering. So, the more hardware in POW or the more coins in POS, all these systems tend to center or capture this system. Therefore, all crypto-currencies are not decentralized. This is an illusion of decentralization. In fact, each of them has its own master, and in most cases no one knows it.

Myth 5: Anonymity and Transaparency of Blockchain is good

Blockchain is open, everyone sees everything. So Bitcoin does not have anonymity, it has a "pseudo-anonymity".

For example, if a villain demands a ransom on a particular Bitcoin wallet, then everyone understands that this wallet belongs to the "bad guy". And since anyone can follow the transactions from this wallet, it will not be possible for scammers to use the obtained amount, because it's worth revealing the identity somewhere, and shortly such scammer can get caught. Almost at all stock exchanges it is necessary to pass through an identification process.

Therefore, attackers use the so-called "mixer". Mixer mixes dirty money with a lot of clean money, and thus "launderes" them. The villain pays a large commission for this and takes a big risk, because the mixer is either anonymous (and can run away with money) or is already under the control of someone influential (who can surrender it to the authorities).

But let's leave the problems of criminals. Why is pseudo-anonymity bad for honest users? Here is a simple example: I transfer some Bitcoins to my mother. After that she knows:

  1. How much money I have at any point of time.
  2. How much and, most importantly, on what exactly did I spend it on, what did I buy, which roulette I played and what kind of politics I supported "anonymously".

Or if I have returned my debt to a friend for lemonade, then now he knows everything about my finances. Do you think this is nonsense? Is it weak for everyone to open the financial history of his credit card? And, not only of the past, but of all the future.

If for individuals this still might be ok (well, maybe someone wants to be "transparent"), then for companies it's deadly: all their counterparts, purchases, sales, customers, the volume of accounts and everything-everything-everything- becomes public. The transparency of finance is also for many people a main shortcoming of Bitcoin.

Almost all crypto-currencies are forks (copies) of Bitcoins, or tokens on Ethereum. With all the variety of the choice, there is nothing much to choose from. You ask, why did you learn about this from me, and not from someone else before? Is it really that nobody sees these problems?

Someone is blinded, someone simply does not understand how it works, but someone sees and understands everything, but it's simply not profitable for him to write about it. Think for yourself, many of those who bought Bitcoins begin to advertise and propagate them. Why to write that technology has shortcomings, if you count on the growth rate?

I am sure that there are also those who consciously lead the society into the illusion of this decentralization and "financial freedom", consciously realizing that in this case the state would finally lose control over the national currency and the financial system of the country, by transferring it to a private capital. I am a supporter of Blockchain and I believe that the future will be really built on the decentralized world financial system, but not on the illusion of this decentralization.

I'm sure Bitcoin will have competitors that will solve the problems mentioned above. It is these crypto-currencies that will become the basis of the future world financial and payment system.

I think Russia should go exactly on the path of creating such projects, and should not try to catch up with leaders adjusting to other people's rules. We have a team capable of creating projects of this level. And the PRIZM cryptocurrency is a proof of that.

"MK Chernozemye": Who is the leader in the market today, and what is the position of Russian in this market?

Alexei Muratov: Russia is just catching up. The locomotives are the USA, China, where Japan is actively developing. In the US, it is customary to treat crypto currency as a commodity, but the absence of VAT does not imply major problems for miners and those who use crypto currency. In 2016, one of the US courts decided to recognize the crypto currency as a means of payment, with the aim of legalizing the proceeds of crime activuty, so there are corresponding legal consequences. In the State of New York, a special license regulating certain types of activities (mining and exchange) was introduced - NewYorkBitlicense.

In the state of Vermont, they are drafting a bill under which SmartContracts will become legally effective. In the European Union, they regard the crypto currency, primarily as a means of payment, which does not allow taxing it, which is welcomed by start-up companies, in particular, by mining companies. But to say that the US, the EU and China have emerged as leaders due to the active policy of the government of these countries, will not be entirely true. More precisely, it will be said that this result is achieved due to the efforts of recent large private capital and large investors. For a long time Bitcoin and other crypto-currencies tried to ban the authorities of all countries, but it did not work, so the tactics changed. If you can not forbid it, you'd better be the head. It is this approach that guides the financial elites and governments of the world's leading countries.

At the same time, they will try to regulate the turnover of the crypto currencies as much as possible. Russia repeats this path, but lags behind for a couple of years. India, for example, lags behind Russia for a year. The backlog of Russia is due to the fact that for a long time we did not take Bitcoin and the crypto currency seriously, there was no qualified center for analysis and decision-making on this issue. In fact, I think that it is not available today. Over the past year, I attended almost all conferences in Russia on this subject, and including the working groups on the adoption of the draft law on the turnover of crypto-currencies.

The level of qualifications of specialists is low. These are theorists with stereotyped thinking. The issue of crypto-currency should be considered in a comprehensive way: from the point of national security, state and financial sovereignty, to geopolitics. It is this approach that will allow us to make the right and balanced decision. I just try to explain the need for such an integrated approach.

"MK Chernozemye": When will the law on crypto-currencies be adopted in Russia?

Alexei Muratov: To date, there are two main positions:

- to prohibit the turnover of crypto-currencies, including their creation;

- to resolve and regulate the turnover of the crypto-currencies.

The locomotive of the first approach is the Central Bank of Russia. The Central bank today is an element of the existing world financial system, so its position is not surprising. Gold and foreign exchange reserves of the Central Bank of Russia are 100% composed of foreign currency, 47% of which is US dollars. In fact, this is not a state bank, but a currency exchange. For more information,

The Central Bank lobbies interests of the IMF and bank elites who are not interested in developing alternative financial instruments which they do not regulate. But to prohibit crypto-currencies in a single country like Russia is absurd. This is also impossible to do, same like to ban the Internet in a single country or to prohibit rain outside the window. It is for this reason that despite the Central Bank's desire, there was practically nothing done in recent years. I note that at the moment, the list of countries where Bitcoin is banned includes Nepal, Bolivia, Colombia, Ecuador, and Bangladesh. I'm not sure that Russia needs to hurry to get on this list. Even if the law on the ban is adopted, the goal of the regulator will not be achieved.

Some part of the population will stop using it, but the main one will go into the shadows and will be the real violators of the law. In fact, the people who lobbied the law on the ban intentionally push people to crime, involving them in illegal circulation of the crypto currencies. They can be manipulated, controlled and taken to the streets.

The locomotive of the second approach is the working group under the State Duma of Russia, which is set up to prepare a draft law on the turnover of crypto-currencies. I think this lobby group is strongly influenced by the lobby of Chinese producers of mining equipment, as well as Russian "crypto-enthusiasts".

Legalization of cryptocurrencies is as a matter of fact, state capitulation before global speculative business - private money enters the country. At the same time, I understand why many states with some ease refuse some of their state sovereignty associated with the issuance of their own bank notes. They just did not have it before. More details about the role of the FED, the IMF, the National Banks are in my link above.

I'm also worried about Bitcoin's lack of information on who controls more than a million Bitcoins on the wallets of a certain "Satoshi" which were never shifted from these wallets.

Also, according to information from many sources: 96% of Bitcoin is owned only by 4% of the addresses (they hold 2.9 million BTC).

$ 19 billion is the value of one hundred richest Bitcoin-addresses. This is especially important given that Bitcoin becomes centered as it develops and, as a result, can be controlled by one of the largest mining pools. Including the fact that all emission of new Bitcoins will be carried out only by them.

Control issues remain open, because when it is not known who the developer is, when it is not known who invests and supports the project, anything is possible.

"MK Chernozemye": So what is the way out?

Alexei Muratov: "I think that in this situation, Russia needs to create a truly decentralized cryptocurrency in contrast to Bitcoin, without national binding. This cryptocurrency should not only technically outperform Bitcoin (speed, transaction costs, bandwidth), but as it develops, it should not become centered as Bitcoin. It is such a cryptocurrency which will bypass Bitcoin by criticizing it, it will be popular not only in Russia but throughout the world. You can adopt a bill on the regulation of the turnover of the cryptocurrencies, as their development can be contained, but it will not be possible to stop them in any case.

It is necessary to license crypto-exchangers and crypto-exchanges, through which the crypto currency is output into the currency. It is the creation of a favorable climate for the work of international exchanges and exchangers that will attract not only investments into our country, but will also reduce the risks of users of cryptocurrency, and will exclude fraud. Oblige the crypto-exchanges and exchangers, as part of licensing, to do verification and user identification. This will solve the problem with the threat of terrorism and money laundering. It is possible to oblige crypto-exchanges and exchangers to become attached to the national payment system “MIR” instead of VISA, thereby by popularizing it all over the world. It is an integrated approach to solving this problem that will allow the country's financial system to be restored to state control. 

At the same time, you can intercept the initiative on Bitcoin as well. For this, it is necessary to concentrate efforts on the production of own mining equipment.

It is better to build plants on the territory of the Russian Federation for the production of chips and video cards, rather than buying old ones at inflated prices in China. It is important that in terms of productivity and cost, domestic equipment outperforms advanced Chinese counterparts. Using the industrial sites (for example, nuclear power plants) and special tariffs for electricity for the placement of mining farms on domestic equipment. Then people from around the world will begin to invest in this equipment and farms. On the basis of these mining farms, one can create the world's largest mining pool that should be located on the territory of the Russian Federation. Only such an integrated approach will allow us to compete with other countries in the extraction and control of Bitcoin. The participation of state capital in the framework of a state program or a state corporation (such as Gazprom, Rosatom) for the implementation of this project will help to maintain state control not just over the project, but possibly over the future world financial system (if Bitcoin will be strengthened and transformed into a full-fledged global payment system).

"MK Chernozemye": Please, tell us about your crypto-currency PRIZM?

Alexei Muratov: It is completely development bu the Russain programmers of the social movement CWT. There is no emission center, it can be used as a fully transparent (Blockchain) and decentralized means of payment.

Advantages: transaction speed - up to 1 minute. Bandwidth is not limited. Up to hundreds of thousands of transactions per minute (1 block / 1 min). The minimum commission is 0.5% to $ 10. After the transfer amount, where 0.5% exceeds $ 10, - a fixed $ 10 comission. So, when transferring $ 1 million through PRIZM from one point of the world to another, you will pay a commission of only $ 10.

Due to the technical implementation of a completely different concept of emission of new coins than in all other cryptocurrencies, PRIZM becomes even more decentralized as it develops and is not centered. We are the first who solved the problem 51%. This problem could not be solved by any team out of the existing cryptocurrencies in the world.

Open source here»

"MK Chernozemye": For whom did you create your cryptocurrency and whom did you count on? Who will be its users?

Alexei Muratov: The project is designed for absolutely any audience, in absolutely any country in the world; the target audience are all the people of the planet. Mission of PRIZM is to make a smooth transition from the world financial system, based on the US dollar, to crypto-economy, the future economy, built on the blockchain. We believe that Russia in this regard can become a leading player, directing the development of crypto-economy into the channel of decentralization, can win due to this, and can become a leader for all, including the developed in the financial sphere countries.

"MK Chernozemye": What is the current situation of PRIZM?

Alexei Muratov: First of all - the full implementation of PRIZM pre-mine (10 million coins). It's like ICO in other projects. Only after this, the project becomes truly decentralized. All new coins are accrued only on the basis of the old ones. The pre-mine will be completely distributed and will not be in the hands of its creators, but in the hands of the users of the system.

The PRIZM payment infrastructure will be created with the proceeds from the sale of the pre-mine. Which will be: the listing in online and offline exchanges / certified crypto-exchangers, linking of PRIZM to VISA payment system. As well as active promotion of PRIZM crypto currency - production of TV series translated to different languages ​​- about PRIZM crypto currency, organization of dozens of regular online / offline conferences and daily trainings around the world, etc.

"MK Chernozemye": What is the difference between PRIZM and other crypto-currencies?

Alexei Muratov: Blockchain technology is used in PRIZM project, it is based on NXT Core, which was completely redesigned during development. A unique Paramining mechanism has been implemented, that is, the emission of new coins is untied (separated) from the mining / forging process, as it happens in any other crypto currency (Proof-of Work / Proof-of-Stake).

In PRIZM, the decentralized emission of new coins is carried out in the wallets of all users of the network simultaneously. Due to this, as the network develops, new coins from the Genesis wallet are being allocated to an increasing number of addresses. Thus, PRIZM coins are constantly being dispersed and decentralization is constantly increasing.

The speed of creating of new coins depends on two factors. The elements of network marketing on blockchain is used in the mechanism of Paramining. Due to this, the network can develop by itself, expanding and absorbing more and more users.

The PRIZM system will never become a centrist model, as it happens with Bitcoin (mining pools) or in Proof-of-Stake cryptocurrencies (the volume of the stake). Setting up the nodes and generating the blocks is easy and possible for each person by using his/her home computer as this task is not complicated.

The unique paramaming PRIZM is technically nowhere else implemented, in any crypto currency, in any country. This is a unique development, which has no analogues in the world, so this part of the source code is currently encoded by the licensed Java encoder. It will be decoded and laid out in public access after the full implementation of the pre-Mayan.

The unique paramining of PRIZM is technically not implemented anywhere else, in any crypto currency, in any country. This is a unique blockchain development, which has no analogues in the world, so this part of the source code is currently encoded by the licensed Java encoder. It will be decoded and kept in public access after the full distribution of pre-mine.

In PRIZM cryptocurrency all the minuses of other world's crypto-currencies have been completely eliminated and all the advantages of other world's crypto-currencies have been collected. Since the launch, PRIZM team has overcome many difficulties: but not only the viability of the project in a rather aggressive environment, but also its prospects and long-term perspectives – were shown.

The main difficulty, of course, is the stereotypes imposed on the existing world financial system over the past 100 years, as well as the superiority of top-level crypto-currencies. We hope that our ideology and our PRIZM tool will erase these stereotypes and PRIZM will serve for the benefits of the people not only in Russia, but all over the world.

"MK Chernozemye": What is awaiting for PRIZM tomorrow? 

Aleksei Muratov: As written above, at the moment the distribution of pre-mining is carried out, for the purpose of implementation of the further development strategy. But we are interested not just in investors for our project, but we are primarily looking for partners in countries that can "spray" PRIZM to as many participants as possible.

It is this approach that will allow PRIZM to pass the path of development which Bitcoin had, in the shortest possible time. We are sure that PRIZM will not only catch up with Bitcoin in terms of capitalization and the number of users, but will also bypass it, as it is technically superior in its parameters.

The project was created primarily as a convenient and modern international means of payment. To become a payment tool – the tool which Bitcoin has never become.

"MK Chernozemye": You have serious opponents, I would even say, almighty opponents. Aren’t you afraid that they will be able to curtail all your projects and intentions in the shortest possible time?

Alexei Muratov: We use unstructural influence on society. The book "Ideology CWT" has been sold in a few hundred thousand copies and a dozen languages. It exists as a printed version, there are electronic versions and audiobooks. The International movement itself is already operating in many countries and the leaders, if they want, can register a movement in their country, if they do not want to – it is not compulsory, but at the same time the same leaders are always the carriers of our ideology and they actively promote it.

Cryptocurrency PRIZM is a fully decentralized financial instrument. As you can see, all our tools have no pain points. A little later, we will show everyone our international decentralized system for registering rights to real estate and movable property, including the decentralized land cadaster, an international decentralized voting system and something else. But the time of these instruments has not yet come. Everything has its time. While society is not ready to perceive these instruments, authorities of absolutely all states are not yet ready for this.

But tomorrow, I'm sure everything will change!


  • February 22, 2018 8:00 PM MSK