Nikita Kuptsov, the Communications Director of [IZX](https://izx.io/) startup from Kazan told the "Tatar-Inform" news agency about a new unique project combining blockchain and augmented reality. The developers of IZX created an application similar to Pokemon Go in that it allows users to gather tokens and exchange them for valuable prizes. In this interview, Nikita Kuptsov shared his vision on how blockchain technologies and AR are going to change the world.
**T.I.:**
So what's the IZX?
**Nikita Kuptsov:**
In fact, this project is a new approach to loyalty programs. It can be extremely useful for any organization providing services, whether it's a cafe, restaurant, or a store. Instead of handing out discount cards or making the client to activate some obscure discount codes, a company can offer him to play a game where he'll have to catch tokens in augmented reality and exchange them for some prize, gift, or discount. Those tokens can also be placed in the VR environment like in Counter-Strike or World of Warcraft. It's very easy to do technically. Tokens can be placed inside the game, and at the same time, they will be visible on the blockchain.
**T.I.:**
Can you tell more about this app?
**NK:**
The first thing this application does is that it determines your geolocation. So it sees, here, for example, placed an IZX token. You need to come up to it and press "catch". Then you see it through your phone's camera. You need to catch it in the crosshairs. If it was placed here in our studio, it could be somewhere above our heads, or on the table. It's simple, but you need to get close to it. Tokens are placed every time a new user downloads the app. So a person can be in Antarctica, Greenland or Australia, doesn't matter, the moment he downloads the IZX app, four tokens immediately appear around him, and he can start playing.
**T.I.:**
What's unique about your project?
**NK:**
The novelty of the project is that it combines two breakthrough technologies: Augmented Reality and blockchain. It hasn't been done before. We have studied the market, nobody among our competitors does exactly that. We engage the people who never had any experience with cryptocurrencies or blockchain before. It can be anybody. Among our fans are businessmen - serious people who take a minute from their work to come outside and catch tokens. There are schoolchildren or housewives who never heard about it. There are daredevils who get kicks from chasing tokens located in some hard-to-get-to places when the process of getting tokens is associated with difficulties and risks.
**T.I.:**
So how your project is related to blockchain?
**NK:**
Blockchain literally is a chain of blocks. In other words, it's a decentralized technology that registers all the moves. Our tokens are based on Ethreum blockchain. It's impossible to tamper with the blockchain records, to forge the signature or anything. The chain of blocks contains all the information, from the first to the last transaction, and it's organized in a way that neither transaction can be altered without rewriting all the subsequent transactions. In short, it's a breakthrough technology that potentially can change many spheres of our lives, like public services, banking and so on. Like any job that requires filling and checking an Excel table will be replaced by blockchain. Some even talk about blockchain-based traffic lights. There won't be any people sitting and comparing columns of numbers. In fact, it's both cheaper and makes more sense. You use your private key, and your document cannot be falsified because the data is recorded in a chain of blocks that cannot be altered. Probably in the next 5-7 years banking system will change beyond recognition.
**T.I.:**
Are there any threats associated with this new technology?
**NK:**
You know, when Ataturk first introduced mass literacy in Turkey, there had been the whole dynasties of scribes who made a living rewriting various letters. The majority of people were illiterate, so their work was very valuable at that time. They were rewriting letters, books; they had beautiful handwriting. So when Mustafa Kemal began to enforce literacy among the general population, they suddenly found themselves out of work. Like after 300 years of stability people started telling them "I can write this all myself, what do I need you for?" Of course, for the scribes, it was a tragedy, and they started to rebel. The same thing here. Everything changes and everybody has to adapt to the changes. People today don't want to sit 8 hours in the office doing some drudgery. They want to reveal their creative potential at work. They want to spend more time with their families, pursue their hobbies and interests. Eventually, all the monotonous, mechanical jobs will be replaced by algorithms. Even now it's difficult to find a rationale behind the existence of some governmental institutions. They apparently can be replaced by algorithms.
**T.I.:**
What were the first steps you took to bring this idea to reality?
**NK:**
This all started as a concept. Actually, the project is only three months old. We quickly found good specialists who could implement this idea; then our technical director got on board. It was easy to program this stuff on blockchain, so shortly, we had a working prototype. Technically, this is still Beta, but it works. People all over the world download the app and catch tokens. So it's kinda cool.
Some time ago two of our current co-founders discussed a completely different subject. They were in the blockchain community, buying crypto, mining, etc. At some point, they came up with an idea: to integrate blockchain and AR. It turned out to be an interesting project, and soon people started to join our team. As a result, now we have a team of 7 professionals, plus the advisors, and some people working on outsource. After the ICO we are planning to expand our team when we approve our marketing budget. It's clear where we are heading.
**T.I.:**
How did you come up with this name, IZX?
**NK:**
It's a secret. We decided that we will reveal the meaning of this abbreviation IZX after we raise $100,000,000
**T.I.:**
So how many people have already downloaded the application?
**NK:**
Once again, we are still at a beta-test stage. During this period before the ICO, we are planning to fix the bugs, get the feedback from our users; there are really some technical issues there yet. In three months our app was downloaded and installed 5,000 times all over the world. And this is without aggressive marketing or for that matter any marketing whatsoever. The only thing we've done is that we promoted our project on YouTube. We set up a budget and promoted our video on the English language version of the platform. Now we have more than 100,000 views. During the test period, we involved several stores to see if it would work for them. The Quest Quest franchise in Ufa decided to offer 500 RUR discount for five tokens. We had a one-time event when the visitors of a restaurant we collaborated with got a dessert in exchange for a token. Now we have a working model and it needs to be developed further; for example, we can introduce branded tokens, make them spin, make them look like a rhino's head, etc. The main idea about users performing some tasks in AR and getting rewards has already been successfully tested.
In general, I think AR is a trend that will continue during the next 3-5 years, it can be a bit longer in Russia. Everything eventually will migrate into AR, and this will lead to phasing out of computer monitors and phone displays. Instead, it will probably be Google Glass or some AR helmets when you walk around and receive the information about surroundings like in the Terminator movie. Loyalty programs also need to evolve from those promo codes and discount cards to the augmented reality. I think, when all the shopping will start being conducted via AR as well, we will already be prepared. Now it seems like a funny and trivial game, but what is really happening, in fact, is that we dive into a trend.
**T.I.:**
What's the geography of your users?
**NK:**
Recently we checked our user's geography; it's about 60 different countries. There are even some installs in Africa and South America, so I can say that we’ve covered all the continents, including Australia. Most of the installs are, of course, in Russia. Also, there are many in Europe, particularly in Spain. In Russia, most downloads are in Moscow, Kazan, Ufa. In our home region, people know about us through the word of mouth and from the conferences we participated in. Somebody heard something, downloaded, passed it on. As I said, we haven't organized any marketing campaigns yet. To do that we need to conduct ICO, raise funds. Then we'll be able to focus on marketing and enroll everybody on IZX platform.
**T.I.:**
Is there any statistics on IZX token?
**NK:**
Right now, there are about 10,000-13,000 tokens, distributed in various locations. Shortly before the ICO we will exchange those tokens gathered by our users for real ERC20 Ethereum tokens. This way our hunters will become the owners of our platform's digital assets. After the ICO we won't provide such an opportunity; this is exclusively for our Beta users.
**T.I.:**
How many businesses have already agreed to participate in your project?
**NK:**
There is a lot of requests. It's just that we need to approach each of those requests individually. We don't have any special priorities at the moment. It can be a kebab shop or a bank. Right now we are ready to issue tokens for any company for free, with a condition that they'll do something to promote us. It can be just a post in Instagram like "Guys, we have an exclusive deal for you. Catch the tokens near the other bank you usually visit, bring them to us and get a gift."
**T.I.:**
There is a section on your site about pre-ICO, what is that?
**NK:**
An essential part of every ICO is providing the White Paper. It tells about platform's mechanics, company’s strategy, its plans for the future, etc. Before publishing, White Paper has to be examined by legal advisers, consultants, etc. We've already prepared this document, and now it's evaluated by lawyers. We'll roll it out before the ICO. Before that, we conduct a private token sale for the close circle of our supporters who believe in our project and for whom we provide a shortened version of White Paper. They get better terms than the standard ICO terms. This is only for our hardcore fans. There are 15 of them.
**T.I.:**
When are you planning to conduct ICO?
**NK:**
ICO will be conducted on November 29 in Singapore. We took the second place at the ICO battle in Barcelona conducted by Crypto Friends. One of the conditions for getting the prize - travel to Singapore was that we conduct our ICO there. We also have a company registered in Singapore, so this is all very convenient. So it will be there, in sunny Singapore where we will announce our plans to conquer the World.
**T.I.:**
How are you going to attract investors?
**NK:**
First of all, we have this beautiful and thought through White Paper. Another thing, the investors should take into account that we have a working project as opposed to a bare concept or an idea. Most of the ICOs are based solely on an idea and raise millions of dollars. We, on the other hand, have something tangible, a platform that can already be used for marketing campaigns, etc. I think they'll see a potential in this. They themselves will be able to connect to the platform, check it out. Take a look at the reviews of professional communities and interrogate our consultants.
**T.I.:**
Do you think there is a problem of investors distrusting ICOs?
**NK:**
Yes, indeed, anybody can conduct ICO and raise some money. It's important to be in a community, to know the team, to know what those people worked on before. This way it's possible to filter out scammers. It's essential to study the company's background. It makes sense to have doubts and subject anybody in this field to a close scrutiny.
**T.I.:**
You said you participate in conferences. What does it give you?
**NK:**
The benefits are huge. Our team participated in a conference in Barcelona, several conferences in Moscow and Saint-Petersburg. In November we are planning to visit Dubai then Singapore. When we attend the conferences, we always present our stand, throw around our IZX tokens, give away various gifts, baseball caps, t-shirts. In other words, we try to involve people in our gaming process. On the other hand, it's useful because you have an opportunity to see what the others do, their practices, and methods. You can see the efficient ways for development.
**T.I.:**
You have participated in the "Blockchain: Russia's New Oil" conference, is it correct?
**NK:**
Yes, our team was included in the Jury at Hackathon. There we conducted our first public test of IZX platform; people could exchange tokens for t-shirts, baseball caps, beer, dessert. It was a really huge event. Even Vitalik Buterin was there.
**T.I.:**
Have you got a chance to have a word with him?
**NK:**
He was in the first row; I was in the second. I took a selfie with him; everybody there took selfies with him. I didn't really have any questions I could ask him. Probably I haven't reached that level yet.
**T.I.:**
What kind of feedback you generally receive from your users?
**NK:**
Everybody likes to get freebies, and it's much more interesting than activate some code or carry around a bundle of discount cards. In general, it's cool, people join, we, in turn, hand them our t-shirts and stuff. It wasn't like anybody complained.
**T.I.:**
Have you received any offers to sell the company?
**NK:**
Yes, there were such offers, but we are not interested. We are planning to conduct marketing campaigns with advertisers, to have hundreds of millions of installs and global popularity. We have huge plans considering the development of the game. Plus we are planning to create several other even more interesting games where the appearance of tokens also would reveal a particular brand or advertiser.
**T.I.:**
What kind of specialists are you planning to hire in the nearest future?
**NK:**
Right now we have a lot of openings. We need marketing specialists, people who will be able to attract advertisers. We need to establish ourselves as a recognizable brand. We need somebody who'll become the face of our company. We consider Kim Kardashian, with her huge number of subscribers I think it'll be easy for her. We need copyrighters, translators, people to organize the conferences and exhibitions. We need people who will communicate with investors, account-managers, office manager, etc.
**T.I.: **
What criteria will you use selecting the candidates?
**NK:**
Our main criteria are the candidate's interest in our project and a positive attitude. Maybe, they have already caught a thousand of tokens. Or they have an experience in similar projects.
**T.I.:**
How do you assess the prospects of this concept in Tatarstan?
**NK:**
We don't really want to narrow our focus on Tatarstan. We think how it'll work in New-York, Paris, Berlin, etc. We are planning to scale up our operations, so we don't focus on some particular region. Of course, Kazan is a huge city with millions of people who might be interested in blockchain, but it's not a priority.
**T.I.:**
Do you have any strategic tasks you want to solve before the end of the year?
**NK:**
We want to successfully conduct ICO, raise $10,000,000. We want to improve our game, make it more interesting. Speaking of this, by the way, we collaborate with one game developing company that has already given us some valuable suggestions. Also, we are going to zero in on marketing and start taking people on board. That's the plan.
**T.I.:**
So you are talking about your short-term objectives, but what are your strategic goals?
**NK:**
Our strategic goal is to conquer the world, to become one of the top-100 biggest IT companies. Also, we want to popularize blockchain.
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### Useful links
[Website](https://izx.io/) | [ANN](https://bitcointalk.org/index.php?topic=2188282.0) | [Whitepaper](https://github.com/izetex/documents/raw/master/IZX_WHITEPAPER_EN.pdf) | [Telegram](https://t.me/izetex_en) | [Twitter](https://twitter.com/izx_io) | [Medium](https://medium.com/@izetex_project) | [Facebook](https://www.facebook.com/izetex)
Authored by: faragly
BTT profile: https://bitcointalk.org/index.php?action=profile;u=900780 </center>
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