De Facto – Factom Protocol distribution in Russia and CIS

Matt Osborne

Go Immutable
Exchange Working Group
Legal Working Group
Hi everyone! I could tell you put a lot of time into your presentation, thank you! Quick question: Can you tell me how you would go about executing Case #1? Thanks!
 

David Chapman

Factomize
Thank you for the application.

A. The shareholder with a stake greater than 10%. Are they in any way involved with other groups within the Factom Protocol or do they own a greater than 10% stake in any other cryptocurrency projects/infrastructure/tokens?
 

Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
Hi everyone! I could tell you put a lot of time into your presentation, thank you! Quick question: Can you tell me how you would go about executing Case #1? Thanks!
The largest russian banks (like Alfa-Bank or Sberbank) have the separate departments who is responsive for implementing new technologies. They are opened for dialogue.

Firstly, we are going to contact with them and discuss disadvantages of current processes inside the back-office and whether Factom protocol usage is available (banking software is a big complex of a lot of modules — in some of it Factom protocol can be implemented profitably, in others — not).

Secondly, when we determine processes which can be factomized, we will have the agreement with bank(s) and hire developers for making integrations.
 

Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
Thank you for the application.

A. The shareholder with a stake greater than 10%. Are they in any way involved with other groups within the Factom Protocol or do they own a greater than 10% stake in any other cryptocurrency projects/infrastructure/tokens?
1) Not involved with other groups within the Factom Protocol.
2) Do not own 10%+ stake in any other cryptocurrency projects/infrastructure/tokens.
3) We are planning to make some non-profit projects for community and, I hope, we will communicate with other entities (maybe develop some non-profit projects together — cooperate for not making the same things by few entities simultaneously).
 

David Chapman

Factomize
B. Let's say you get an Authority Node. How it performs will be easy to monitor. However, as part of your campaign you also discuss additional development work which is important since your single node Efficiency is set at 10% which is extremely low. I absolutely understand your argument about growing the protocol via development and support that as long as ideas are successfully executed. With only 10% Efficiency, the Standing Parties will want to see what progress you're making on a regular basis. My questions are:

1. How would you communicate with the Standing Parties. Examples would be blog, twitter, Discord, Reddit, etc.
2. What would you communicate and how often? How transparent would you be so we can ensure that 90% of FCT is being put to good use?
3. What metrics should be used to gauge your success?
 

Niels Klomp

BI Foundation
Core Committee
Governance Working Group
Thank you for you application

NK01)
1) Not involved with other groups within the Factom Protocol.
2) Do not own 10%+ stake in any other cryptocurrency projects/infrastructure/tokens.
3) We are planning to make some non-profit projects for community and, I hope, we will communicate with other entities (maybe develop some non-profit projects together — cooperate for not making the same things by few entities simultaneously).
Without having to name them. Could you list the other shareholders and their share?
 

Niels Klomp

BI Foundation
Core Committee
Governance Working Group
NK02)
REDACTED, 35 years — 14 years of work as Head of IT department in russian corporation with 150+ employees
Could you confirm that said person has been the head of that IT department since the age of 21? Of not, since when?

How many IT staff does Eugene oversee?
 

Niels Klomp

BI Foundation
Core Committee
Governance Working Group
NK05)
We also have initial funding in amount of $25.000 and have permanent free cashflow from other businesses and investments, which can be used in emergency situation to cover expenses.
Does the above mean your team members will not be working fulltime?
 

Niels Klomp

BI Foundation
Core Committee
Governance Working Group
NK06)
You also state an efficiency of 10% and 15%. And at the end of the form you explain that you will use it for integrations into existing products. Correct? Could you explain to me, why this could not be funded through grants?
 

Niels Klomp

BI Foundation
Core Committee
Governance Working Group
NK07)
Now we have team members located in UTC+2 and UTC+4 timezones. We are going to hire another one in UTC+8 zone, so at least one of our team will be online at any time.
Will this be a fulltime employee? What would be the role of said teammember?
 

Niels Klomp

BI Foundation
Core Committee
Governance Working Group
NK08)
2 authority nodes + 2 guard nodes + 2 monitoring nodes + additional protection from DDOS (like Qrator) to secure nodes from flood traffic + backups
Could you elaborate if and how this setup could effectively protect the auth nodes from a non-flood traffic (D)DOS?
 

Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
B. Let's say you get an Authority Node. How it performs will be easy to monitor. However, as part of your campaign you also discuss additional development work which is important since your single node Efficiency is set at 10% which is extremely low. I absolutely understand your argument about growing the protocol via development and support that as long as ideas are successfully executed. With only 10% Efficiency, the Standing Parties will want to see what progress you're making on a regular basis. My questions are:

1. How would you communicate with the Standing Parties. Examples would be blog, twitter, Discord, Reddit, etc.
2. What would you communicate and how often? How transparent would you be so we can ensure that 90% of FCT is being put to good use?
3. What metrics should be used to gauge your success?
In our business plan the efficiency is set to 12% (there was no option for 12% in the form, so we chose 10%).
And I absolutely agree about monitoring our progress and I want that our work/projects would be transparent for community.
Also our progress and results will be the source of ideas for other entities — if it worked according to Russia/CIS business, it can be used for other companies in USA/Europe/… as well.

1) So we will be totally transparent and it will be reached this way:
A. Corporate blog (like Factom Inc. blog) + telegram channel
B. Open Trello board for development (everyone from community can see on which projects and how we are working)

2) We will provide quarter reports of income/expenses for Guides or community.
All management will be also @ Factom's discord and we will participate in communication, sharing ideas, discussing it and etc.

3) Metrics are:
— Developing/realised integrations
— Number of live integrations (which is launched and used by business)
— Integration agreements with companies
— Team members / company size (with increasing numbers of live integrations/customers we will hire new employees for support, development and sales)
 

Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
NK02)
Could you confirm that said person has been the head of that IT department since the age of 21? Of not, since when?
Wrong wording.
14 years of working in large corporation with 150+ users.
Last 6 years he is Head of IT.

He knows a lot of about how HR/Accounting/Legal departments function in large companies, it's problems and where Factom protocol is needed for solving problems.

He has large experience with hardware (including server hardware), operation systems (Linux/Windows) and have the experience in resolving accidents.

I can invite him (can I?) and you can ask him more about his experience.

NK02)
How many IT staff does Eugene oversee?
2-4 depending on time. Now it's 2.
 

Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
NK03)
Could you elaborate on the "huge experience", since that claim is not instantly apparent from your application
We have the team of 3 with different experiences:
— Mine is a CEO of webdev-company and founder of startup
— Eugene's is an IT employee in large corporation (like our future clients)
— Valeria's is an marketing/analyst employee in large IT dev-company

According to myself:

1) I have started webdev company Lovedesign (www.lovedesign.ru) in 2008.
We have worked with a lot of companies — small (like e-shops) and large (development corporates which runs shopping malls)
I got the experience in a lot of areas, starting from developing (UX/UI/backend/frontend) and ending sales/marketing/negotiations/company management.
Now we don't provide webdev for clients because off new project.

2) Our new project — Instashow (www.instashow.tv).
We started it with partner in 2016.
Now it's completed (regarding to development) and working as service (all works automatically: order — pay — receive service in a few seconds).
I have 1 support employee, who communicate with clients if they asked.

From Feb 2018 I rarely operate in Instashow — one of the reasons I'm really interested in developing for Factom Procotol/community and providing it for large business.

So if elected I will be fulltime in De Facto — as well as other De Facto members.

Btw: you can look at instashow.tv and rate my background as team-leader — it was fully developed by 3 developers under my control.
 
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Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
NK04)
> Valeria Also reserve system administrator (3rd administrator) in our team

Could you elaborate on the system administration experience of said member? It is not instantly apparant
NK07)
> Now we have team members located in UTC+2 and UTC+4 timezones. We are going to hire another one in UTC+8 zone, so at least one of our team will be online at any time.

Will this be a fulltime employee? What would be the role of said teammember?
Valeria has little experience, but she is the reserve.
Main administrators are me, Eugene and new employee who will work in UTC+8/9 timezone.
He will be fulltime administrator and supervised by Eugene.
 
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Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
NK05)
> We also have initial funding in amount of $25.000 and have permanent free cashflow from other businesses and investments, which can be used in emergency situation to cover expenses.
Does the above mean your team members will not be working fulltime?
Let me explain:

1. Initial funding of $25.000 will be made by myself after De Facto company starts working

2. I have permanent free cashflow which I receive as shareholder of:

[please clear the list below if this thread will be published]
— Instashow web-service (70% share)
— My investments in e-commerce business, where I don't operate at all (it run by my spouse)
— My own investments in shares of russian public companies (regular dividends)

All team members will work fulltime.
No side projects.
 

Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
NK06)
You also state an efficiency of 10% and 15%. And at the end of the form you explain that you will use it for integrations into existing products. Correct? Could you explain to me, why this could not be funded through grants?
There are a lot of industries which use different software.
Even in one industry (banking) there are about 5-10 different software which used by different banks.

In my mind grants are about $10k equal. in FCT (am I right?).
We want to move fast — negotiations with few companies in the same time, development integrations for few businesses in the same time, integrating, testing, support and etc.

Single $10k grant is totally unfit to this process.
So are going to give 12% to grant pool (instead of 35-40%) and use other part for in-house development.
 

Anton Ilzheev

De Facto
Exchange Working Group
Core Committee
Website Committee
NK08)

Could you elaborate if and how this setup could effectively protect the auth nodes from a non-flood traffic (D)DOS?
DDOS like (UDP Flood, TCP Flood, PING flood, Syn Flood, HTTP Flood) can be filtered as well by our data-center Selectel — they provide it as service of DDOS protection (up to 100 mbit DDOS).

Guard nodes will be used as protection against non-flood attacks.
 
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