 from Toronto, Canada. It's theCUBE, covering Blockchain Futurist Conference 2018. Brought to you by theCUBE. Hello everyone, welcome back. It's theCUBE coverage live here in Toronto, Ontario, here in Canada for untraceable Blockchain Futurist conferences, day two of coverage, wall-to-wall content, great networking, great activity, great community. Even in light of all the pricing of Ethereum and Bitcoin, a lot of great people coming together, regulations getting clearer, entrepreneurs are building great companies, there's a flight to quality. I'm John Furrier, your host. We're here with Jason Barkaloo, who's the founder of Nobelotech. Interesting example of where Blockchain and Crypto is going. I think this is representative of kind of a new movement, a twist on crowd sourcing with quality. Welcome to theCUBE. Thank you so much. So I love your opportunity, I want to spoil it. Take a minute to describe what you're doing, because you're taking the wisdom of scientists and intellectual property and creating an open source ethos around it. Take a minute to explain what you guys are doing. So there's approximately $4 trillion worth of dormant and orphan intellectual property, just languishing in institutions around the world. So we took kind of an Uber, Lyft, Airbnb idea of crowd sourcing all of that dormant intellectual property. That represents 80 to 90% of most technology transfer offices, intellectual property portfolios. So it's a huge amount of intellectual property. Give an example real quick on what that dormant, what does it mean, where's it stored? Institutions, universities? Right, yeah, so every university, almost every university has a technology transfer office where they try to commercialize intellectual property through licensing models. So their entire model is licensing. Well, very few of their patents get licensed out. The vast majority just sit there. So we take all of that intellectual property in and we crowd source the global scientific community around it, particularly the underserved scientists in Asia, Africa and Latin America who really want to collaborate, but there's no platform for them to do that or seed of technology to do that. So we freely provide to the scientists the intellectual property on an open source Creative Commons 4.0 copy left model. Any scientist can come in freely and go to work on that intellectual property and push it further into the world. The idea is to create economic sustainability for local scientific communities as well as providing the global community advances on technology that ordinarily may have never seen the light of day. It's like open bar, you know, about IP. You're bringing all this IP out there. It's kind of like everyone's feeding on it. It's really energizes the world. Right. But take me through how it works, because I love this idea, because I think it's very disruptive. You have all this emotion probably locked in, buried in back closets of these institutions. Do they opt in and like an upstream project contribute the IP or do they go to the, how do you envision that happening? And then I can see how people can feed off of it since you got a marketplace, right? So how does it work? Do I opt in? Do I, is it an upstream project? Is it like downstream productization? Take us through the model real quick. Right. So there's two sides of the model. The first side of the model is getting the intellectual property. So we have to do that in a one-off way where we go to institution by institution and show them the value proposition of opening up that dormant intellectual property. And they get tremendous value by open sourcing that through our platform for free. So we don't charge them anything for that. The scientist comes in for free and they get to rally around that intellectual property. And then we provide them grant opportunities. We provide them free lab equipment. We provide them manuscript development platform. We provide them a pre-print server. We provide them career matching opportunities with employers. And then we reward them as they collaborate in real time. We reward them with Helix tokens. So you're making the markets, making it easy for them to plug into it. So you don't have to provision all the service levels. You guys are making that happen. How does a token economics work? Contribution, are they doing smart contracts? I'm like, I imagine that if two guys are collaborating, hey, you know, smart contracts. No one, you know, that sounds like a cool idea. Is that how it works? And then how do they earn the tokens? Yes, so really what we've done is we're launching a securities token offering, a STO. And what we've done is tied the tokens to equity in the company. Because we believe that as the scientists are collaborating, they're generating value in the network. They're making the network bigger. So they're generating value that the company is benefiting from. So we think that the scientist should also benefit from that equity generation of value. So we peg the equity in the company to the actual tokens themselves. So as the company becomes more valuable, the helix tokens become more valuable. And if we have a liquidity event, then the scientists get 25% of the value of that liquidity event. So say we IPO. So we have a very different model than most ICOs have. So you're looking at about 25% ownership for the community. That's correct. At large. And the management obviously has a portion of it. Are you, and the investors coming into, they're going to have what portion you think? Right. So unfortunately, we're a US based firm. So during our seed round, we can only take accredited investors. But we're taking a very different bend on our next round because we're really filing hard for a regulation A tier two that will allow non accredited investors to also participate in buying tokens. That's a very lengthy, very expensive process with the SEC in the US. But if we're successful getting this reggae launch for our stow, then people around the world who are non accredited can also participate. And participate in a security token. That's correct. Okay, no utility token involved. No, we recognize that what Chairman Clayton said at the SEC in December that he's not yet seen a utility token that's not a security. We took that to heart and that's how we've proceeded in the market. He's actually right. But actually you probably have a better case than most but better to err on the side of. Any thoughts of dual token? We heard people in the hallways here talking, okay, security totally makes sense. I like that model. No problem there because value creators capture. But you have such a good idea. 25% is good for the community ownership-wise. There might be more action inside the community. Thought about that piece. So we think that the community itself can benefit through the trading of helix. So you might imagine one scientist needs some statistical analytics done on some data. There's another person in the scientific community that has that expertise. So they may exchange expertise for helix tokens within the network. External to the network, Thermo Fisher might have a piece of equipment that they've decided they want to sell into the community and they'll accept helix for that when they can just transfer that to Fiat. Classics, two-sided marketplace. Exactly. And the nice thing about our model is not only are we offering the scientific community and the investors helix, but because it's pegged to equity in the company, when we IPO, we have two things trading. We have equity trading on one exchange and we have tokens trading on the other exchange. So the holders get both. What exchange are you looking at? It was right now I haven't seen a good exchange out there. I don't think Hollymath is up and running. T-Zero's coming. Yep. What's your take on the exchange situation? Yeah, I think that as soon as the SEC gives the green light, we want to be one of the first tokens, security tokens on that exchange. And those institutions you just mentioned, we're very, very familiar with those guys and we really hope to be one of the first there. And then of course we want the equity to trade on the NASDAQ just as quickly as we can get it there. Wow, kind of an IPO and an ICO all once, all listing. Yeah. Nobel attack, big name going to be happening. So I've got to ask you, how long have you guys been around? How long have you been working on this? What's the history storytelling on the history of the company? So the company is a year old and the idea has been worked on for quite a while and we should be an MVP by the end of August. So we've got about three or four years worth of R&D into this and that's already been paid for. So the only thing the investors are paying for is scalability and refinement. So it's all about taking something that nobody else is doing anything with and making it valuable. Yeah, and it's open model so that's got a nice flywheel to it. How many people on the team so far and what's been the reaction to some of the technology transfer licenses office? Right, well we have four full timers on the team and a number of consultants that are engaged with us. Fortunately, I have some phenomenal advisors and if you look at it, you'll see that they're not really blockchain-centric advisors. They're business advisors, science advisors, that sort of thing because we're not enamored with blockchain. We're a bunch of gray beards, I'm 53 years old, this is not my first rodeo and blockchain is an enabling technology and I will use whatever technology I can use in order to generate an ROI and sustainability for my company and so blockchain meets a couple of needs in our company but it's not the end all. We do not try to jam a square peg into a round hole. Well I think you had a great model for waiting it out. You don't need to make a move on the blockchain because the key for your model is token economics. Right. And smart contracts you can do on ERC20 easily. Very good insight. No latency at all. You just wait for that tie to turn and then if you want to put more on the blockchain in terms of the community, you wait, meanwhile put it in a database. Right. Yeah, great insight. So it's a classic, I think I've seen kind of these kinds of shapes using the unique deal, kind of like how we're doing with our content business. It's not a dow, you don't need to do that. You can do a benevolent dictatorship for a while and then the community can earn governance over time and if you look at open source projects, Linux is really the shining example of how open source should work. Right. And then some of the new commercialized open source projects in the Linux foundation, for instance, all have great upstream etiquette. The downstream is where the opportunities are. Right. For you that's the marketplace, that's reputation. Right, so not only a regenerating reputation but our business model, we're very keen that we got to show investors an ROI and sustainability. So our investment model or ROI model, our business model is really interesting. What we do is aggregate a talent pool, bringing all these scientists in around these number of incentives, Helix tokens, intellectual properties, grants, all of that, by bringing all that talent into the network and they're working in real time. You can think of GitHub, they're working in real time. Now institutions such as Boeing or J&J says, hey, I'm looking for a STEM worker for carbon nanotubes. That we then sell access to those opted in scientists to those employers. It's a win for the scientist because he or she may be looking for a position and it's a win for the organization or the enterprise because they're looking to recruit but we shorten the time and cost for the recruiter and it's that business model of taking a LinkedIn like model and coupling that with GitHub that makes this powerful. I mean, I think, I mean, your investors should be able to see this obviously but I think I'll just spell it out for them for you which is, it's not just LinkedIn. That's an easy one. I guess the lower IQ, you go to LinkedIn but the model that you have is that if you look at open source like Google, their top engineers want to work in open source. So to retain employees alone is valuable. And most of the scientists around the world went into science for the love of knowledge. They didn't go in to become rich and as a result of that, we have one of the most highly educated populations on the planet who really care about moving science and knowledge forward in the world. We just become an enabler for them to do that without locking them down in silos. So we remove redundancies, we speed up innovations and we remove the silos that allow that collaboration. Jason Barkaloo, founder of NoBella Tech and the website is nobella.tech. No, B-E-L-L-A dot tech. Congratulations, love your idea. Good luck with the token sale and private sale with that security token. Wish you the best of luck, it's a great idea. Obviously we're fans. We're doing the same thing on a content side. Right. Nice to meet you. Thank you so much. Okay, more live coverage here in Toronto, Ontario, the CUBE coverage of the Futurist Conference after this short break. Stay with us for more coverage after this short break.