Cointelegraph China Blockchain Week DAY 2 Part 2

Sam, Believe we've all gained some new sparks or new ideas from it. And now is the time for us to make some predictions for 2020. We're gonna leading figures come up to the stage and discuss something really exciting. So now for this panel discussion, we're doing a live streaming broadcasting globally on YouTube. Now let's welcome some of the figures we really know. Okay, let's welcome the CEO of Kronos, Ran. Let's welcome the Vice president of Huobi Global Business, Sirara Son. Welcome back. And let's welcome the founder of Burbit, Ben Zhou, Director of Finance Directives, Justin Chen and founder of Deepcoin Eagle. Welcome to the stage guys. Deepcoin Chongxian Eagle. Well, unfortunately Ben is not able to be here with us because of the bad condition of the weather, so his flight got canceled. Okay, so now let's gonna invite Ran to be the moderator of this panel. Okay, please. Hello, it's great to be here this afternoon with the futures panel with our distinguished guests. Sierra, Vice President of Global Business at Huobi, Justin, Director of Binance Derivatives and also Eagle, Founder of Deepcoin. Unfortunately, Ben cannot make it today because of weather conditions in Shenzhen. There's a typhoon going on here. So we'll have a deeper conversation with our three panelists. So before I start the first question, I'll give a brief intro for myself and our company. And then once the first question starts, we would like you guys to give an introduction for your respective organizations and then answer the question. So I am the COO and partner of Kronos Research. We are a quantitative trading company located in Taipei and Shanghai. We have a team of 50 people and we specialize in high frequency trading. So we have a lot of old friends on the panel as we are clients of Huobi and Binance and Bybit as well. Acronos also incubated a dark pool, a liquidity platform called Wutrade. And that's it. About myself. So without further ado, let's get onto the first question. And again, our guests, please give a brief intro of your respective organizations. So the first question is crypto derivatives, futures, options, swaps, these are the hottest things in the market today. As you all know, crypto futures have much higher volume than spot trading currently. And it's a very competitive market currently dominated by some of the biggest players in the world like Huobi and Binance. It's difficult for some of the second and third tier exchanges to catch up and take market share from these large players. So it's a very fiercely competitive market, the crypto derivatives market. So the question is how do you think the derivatives market will develop in 2020? Thanks. Let's start with Sierra. I guess I'll just, I'll just skip my self introduction. They were already tired of my voice. So first apologize for not really being able to open my eyes. I just had an eye surgery and this lights are just killing it so I'll be just kind of relaxing my eyes over here. But to answer your question, that's a really good question actually Hobi actually started as a spot exchange and we didn't really have futures. However we realized that when the market become more mature there were definitely needs from professional traders and just from average retailers as well for demanding futures products. So that's why we decided to really build it up and we were able to launch our futures product about two years ago and then continue rolling out new products to complete the whole product lines for example the perpetual swaps and then rolling out options and so on. And I think just to predict for the year of 2020 there will be firstly more professionalism in the product building. For example, like I said we were building options that's actually relatively more professional product not that friendly for retail users but more like for traders like you guys or from traditional markets. And I think all of our competitor will be putting more resources into developing more professional products and also secondly will be diversification in product lines like I mentioned earlier and I think for risk control as well. It's just very very sad to see that when platforms don't have great risk control procedures customer would just suffer so much from volatilities in the market and we were really proud to say that during the major crash in March 12th where we have apparently already more trading volume than Bitmax but the liquidated volume on Huobi only made up to about 18% compared to Bitmax. So I think there will be the three things that I think will be happening in the year of 2020 in derivatives markets. Okay, great. So Sierra is saying your opinion is that in 2020 the crypto derivatives market will be more professional catered towards professional traders. Also there will be more products like options, more diversified suite of products and better risk controls. Yep, okay, great. So same question for Justin, what do you think? Well, I do have a different idea because the exchange is an ecosystem and we have two sides. We have the retail and we do have the professional as Sarah just mentioned but we do think that the retail side is a foundation of the exchange ecosystem and oh well, I Forgot to introduce myself, My name is Justin Cheng, I'm the director of Binance Futures and originally I'm coming from the traditional financial markets. I work as a futures broker when I started my career and then I've been working for some fintech companies in charge of BD and marketing and I joined Binance about like a year and a half ago. And why Binance started to prepare the futures business? Well, getting back to Ran's question, actually you can see more and more exchanges are coming into the derivatives world, Huobi and us as well. And the competition definitely gets severe but definitely it's a good thing for users because if you look back a few years ago there are only one or two choices for users in the market. So users just take what the exchange offer to them and which is not a very good product by then. But you can see users have much more choices right now and even for the existing exchanges they are improving their products and the market is much more fair for common users. And in perspective of exchanges you can see basically all the major exchanges are launching more and more products when we just when Binance enter into the market actually there's no USDT margin products by then and we are the first major exchange launching USDT margin products which is perpetual swap. And it turns out the market demand for this product is very strong and you can see our volume picked up really quickly. And so given the competition these days actually we don't see lots of opportunities like that existing anymore. So I think the competition in 2020 in the derivatives world will get more severe and will get back to the basic stuffs like how good is your match engine, how is the performance of your match engine and how good is your brand? Do your users trust you? And those core competitiveness will determine who will be the winner of this competition. Okay, great. So Justin's opinion is a bit different in that you think it's more will be more catered towards retail users and these are the backbone of the crypto industry, including futures and that you think there would be, you know, it comes back to the fundamentals, the matching engine, the trust, the risk involved in setting up a futures trading system. Right, okay, great. Same question for Eagle. Hello everyone, I'm Eagle, I'm founder of Deepcoin. We have launched for two years. My background is I worked for Tencent for 10 years and then I start up my first time for Fintech for five years and this is my second startup. I think it's a very good question. I think it's essentially the basic Judgment of the competition and evolution type of industry. I think everyone will agree exchanges competition is a homogeneous competition, same model, same assets and even the technology is also have developed for several decades in traditional financial. But it's really interesting that there are always time to time some turn point will appear like Bitcoin, half reducing ico, empty gauss event and so on. Every time when a turning point appear there will something change. Some exchange will go higher and some will out and also some new players will come in the industry. For my view the process is still going on. It's not over. On another hand I think the big survival logic for this industry is regulation, arbitrage and homogeneous dividend. When this is easy to say, it's a long race, long line of battle and it's a very open market. So the leader cannot to stop new competitor. And also exchange is very easy to survive. So when there is a new cycle of the competition I think we'll be come to basic stuff competition like system like marketing and so on. But if we go to the macro level to think you will find for this year 2020 there's a lot of much more factors that maybe become turning point. This is much more than last year for last two years. Like you know, we are now in a very complex global environment like coronavirus, politics, economics. So I think the derivatives market will be changed not in derivative market, but we are outside of the derivative market. Thank you. Just to quickly add on what Justin Justin was talking about earlier regarding how retail users are really important in the whole ecosystem. I think I really believe with you and I think I agree that it's true because it's a whole ecosystem, you have to have retail for you to be able to have the best liquidity for all the institutions to be able to execute their orders which very low slippage. And I think match engine are really important too where when extreme market we can see that the platform excel itself can maintain alive all the time with zero time of downtime. And also so that we can see from all of the prices happening right on the exchange we see the price remains normal. Justin, do you have a response for Sierra's comment? I don't really and just agree with me that retail is fundamentals of this change. Okay, great. Okay, so let's move on to the second question and this is a more interesting one. So the derivatives market, especially futures swaps is very is a place where traders seek high returns, right? Crypto exchanges have higher leverage than traditional exchanges and derivatives 100x for example, we are active traders on crypto exchanges. But it's also very very risky. The risk of liquidation could be quite high. So I mean the question is for each of your platforms, how do you. What types of protection do traders have against these types of idiosyncratic risks like risk of liquidation. Let's start with. Start with Eagle this time. Okay. I think it's a common question is overload. I think for two years development now every exchange of course top exchange can handle this problem. So I think much more we can talk about the product or non product. I think the first product we have a lot of common risk management strategy like other exchanges. But maybe difficult, maybe different is that we know in the future market you need the spot price to make your index. So to measure the income of investor we find that when the extremely situation comes the price always delay even incorrect. So we cooperate with ICE Group, the mother company of New York State Stock Exchange and also the mother company of Bakkt. They provide price for us so it make us can get right price and immediately. So this we think can protect our investors. And the other side, there's no product. We know derivatives is a high risk behavior. It's not very suitable for common users. So we will do a lot of customer detection of their risk ability. If a customer is a common US customer we will just give him a little amount of other sites. So I think customer protect and customer education is much more important. Not only product. Okay, so ego at Deepcoin says their platform protects consumers by limiting the amount of order size that they can execute and also through a healthy amount of consumer education. Yes. Okay, great. Same question for Justin. So how do you how does Binance futures protect traders from liquidation risks? We do have some procedures to protect retail users and for example we do have position limit for high leverage users. For example, if you want to use 125x leverage on Binance perpetual swaps and the maximum position you can hold is 50 grand USDT and it's not like you can lose a million by 100 times the leverage. And we emphasize a lot on on investor education and besides the FAQs we make a lot of tutorial videos and Binance even have education arm called Binance Academy and there are lots of good stuff there. So basically we always told users do not take more risks than you can afford and do make sure you learn the market before you enter into it. Okay, so I think Binance Justin, you expressed some of the similar ideas a lot of customer education through Binance Academy limiting order sizes to max 50,000 for some of these consumers in order to protect consumers. Okay, so for Huobi, you know, past Huobi DM and now Huobi Futures, how do you. Same question. How do you protect your consumer? Yeah, great question. So I think these two guys have really good points and I think what you're doing is fantastic for user education and stuff, but that's more on the user side, what the users can do to protect themselves. But if we focus on what the exchange should be doing, it's more really with our system and the funds we're putting in to protect our users. So four different parts that Huobi is doing. First, we al, we offer partial liquidation. So I think you know about this. When extreme markets happens, your large order won't be liquidated at one time, it will be partial liquidated so that a part of your position will maintain life. And it actually help with risk control of the customer's funds so that they don't have to lose it all at one time. And secondly, we offer a safety fund. We share like huobi future share 20,000 bitcoin equivalent of protection fund to our users. So when extreme, extreme markets happens like March 12, if there are any loss happened on the platform from our users, that is due to system downtime, we're going to be using these funds to pay back our users. And oh, and also we're rolling out new procedures that for liquidation. We're taking average price of the EMA price so that, you know, when you have putting positions with really extreme high or low prices, it won't really affect your liquidation price. So that, that will be helpful for risk control of the customers. And also we're constantly putting in part of a percentage of our profits to constantly adding in protection funds from Hobby Futures. Okay, that's very interesting. So Huobi has a system, according to Sarah, that where, you know, there's a safety fund, 20,000 bitcoins to protect against liquidations. Also you have partial liquidation mechanism that and also more humane prices during the liquidation process so that when traders trade, they're less effective, they lose less money during the liquidation process. That's very interesting. In general, Kronos, we trade on Huobi and Binance. We're quite active on the futures side and it's been a very positive trading experience for both platforms. Okay, so then let's go to the third question. Third question is about internationalization. So now crypto, as we all know, is a very global industry, a very global business. And these are global platforms on stage. Some of the top ones in the world. So in terms of internationalization, please share some of your experiences for globalization. What are the challenges that you're meeting now and what's kind of the end goal going forward? Let's start again with Sierra from Huobi. Sure. So globalization, that's actually my job at Huobi. So that's a question for me. Like I said in my speech earlier, globalization is not just localization. With offering a product in a new language, you have to be able to tailor those products to meet needs from those local customers and also to tailor those products to meet their trading habits. Different customers from different areas all share different, different trading habits and they are just used to different type of services. So localization is extremely, extremely important for globalization. I guess for any firm, not just trading firm or cryptocurrency firm, and also work closely with local partners. For example, Huobi Indonesia, Huobi Talent, Huobi Japan, and some of the other local exchanges operating in in overseas countries. We have really close partners in those local countries and some of them are joint ventures so that we can take care of the operational experiences from exchanges and we can offer great match engine and system and infrastructure to these exchanges. And our local partners, on the other hand, they can really just operate in those local cities and, and they know the community and they handle marketing part and they handle operations part so that we are really listening to the community's voice and offer what they are asking for. And last but not least, regulation compliance. You have to be able to apply for those licenses and offer Fiat gateway in local countries for your local customers to actually get access to cryptocurrency with your fiat currency. Okay, great. So then Huobi stresses localization. You form joint ventures in places like Indonesia, you try to localize and customize to the local user base. You adapt to the local regulatory needs and fiat on ramps. That seems very, very sensible. Same question for Justin. So then how does Binance, a very global platform in itself go about in globalization? Well, I guess in regard of globalization, probably Binance is the best in the industry. And basically if you look at everything on Binance website, it's all in multiple languages. And we are the futures team and one way started futures business. Basically we inherited this advantage from our sport market. And actually if you really look at the volume distribution of our exchange, it is quite similar to global GDP distribution. So we do have many users in many key markets around the globe and we have multiple Fiat gate gateways in many key markets and we also have local managers in those Countries. So basically when we started Futures business will come to our local managers and educate them about the product and we'll work out the local marketing strategies together with them. And yeah, as for Futures team, would you think we have. We got a lot of support from local Binance teams. Okay, so Binance is very global, right? You're saying that the Binance user distribution is similar to that of global gdp, Right. That makes it a very global platform. And that you also apply similar strategies to Huobi in that you, you have local partners who are distributing or marketing for, for the Binance futures platform. Okay, same question for Eagle at Deepcoin. How do you go about internationalization? Okay, I think most industries are actually very difficult to go internationalized. For example, O2O it requires high population density and advantages of economy of scale. But blockchain is very easy to internationalize. We will find it's easy to compete overseas more than China. But why so many exchanges do not go overseas? It's just only a few good players. I think it's maybe because we use a sentence by Zhou Xiran. He said a big fish with big water, because there's a big water. So fish like to stay in the same place. So I think it's a willingness to go outside but not stay here. But there's a difficult problem about internationalized or localization. When you want to make customer to accept you more easily, you need to localize. But when you localize, maybe you cannot internationalize. For example, Japan market, you know, it's a very strict market. But if you do a lot to make Japanese easy to use, maybe it will stop you to make internationalized. So we hire people of designer or product from Google, Instagram, even Huawei. These companies, these guys are very good at internationalized. We want to build a product like Starbucks. When you look at it, when you meet it at anywhere of the world, you will not think whether it's overseas company or domestic company. It's easy to make user to accept. Thank you. Okay, thank you. Thank you Eagle. Now for a final question. It's about product, as Eagle was mentioning about their products. So the, I mean the futures market right now is like the focal point of exchanges is the most, the highest volume driver and probably one of the largest revenue drivers for exchange business. So for each of your platforms, what are the competitive advantages of your product in terms of futures and swaps? And in the future, what can we expect as traders for new products that would be developed in the future? So what will you create that will wow us? Why don't we start this time with Justin? Binance has always had a reputation of building great products. Why don't you start first? Okay. Thank you, Ren. Actually if you look at our flagship product, it is quite different from other exchanges and our flagship product is USDT Margin Perpetual swap. And by then when we launch it, basically it even these days, basically all the flagship products of other exchanges are BTCE margin. And so the good thing of USDT Margin product is that it's a vanilla contract instead of an inverse product. So it is very easy to understand with new users. And if you look at liquidity, actually, actually our USDT product, the liquidity of this product is much better than the other USDT products and actually not even USDT margin product. If you look at all futures contracts, delivery perps and whether it's USDT margin or BTC margin, actually in terms of a single contract, our perpetual swap had the best liquid and the volume is the highest and yeah, and talking about new products, actually we just launched our delivery features and this product is quite different than our perpetual swaps. It is a BTC margin and it is, we offer a high maker rebate for these products and on our perps actually we adopted a low ticker feature structure and so we want to satisfy different market needs with this new product. And if there are any market makers sitting in the audience, you are welcome to join our market maker program. Did you say zero taker fee or low taker fee? You mean our perpetual swap? No, the new coinbase delivery. It's not a 0 maker fee, it's a negative maker fee. Okay, Negative maker fee. Right. Okay. So Justin was saying how they first launched the USCT perps. We traded that. We think it's a great product. Cross margin, very easy to trade and high liquidity. Right, high liquidity. It's not just about products, about your whole operations and market making incentives. And now they have the Coinbase futures that's BTC denominated and it's low fees according to Justin. Right. So we should all be trading that. So. Okay, same question for Deepcoin Eagle. What can you tell us about your products and what's coming in the future? Actually we launched USDT Proprietor. It's much more earlier. I think future product competitions like F1 formula race, you need to optimize every factor of the product to extremely good but not only to add a good feature. So it's continually polishing your product process. For example, we use the latest technology framework to update our app. You can trade with looking at the Market and you can use only one finger, one click, you can finish the order. So I think it's a lot of things to do just like make a good risk car. And we will also enrich our product line of derivative products like option and so on. Thank you. Okay, so DeepCode will launch options as well and swaps. That's what you said, swaps. Okay, great. Same question for Sierra. I mean Huobi is one of the earlier exchanges to launch the futures product, the coinbase. And also now you have USD perps as well. We trade Hobi. So please let us know about your competitive advantages and what's coming in the future. Sure. So I guess when you say the word competitive advantage it has to be something that you can really maintain not just when another competitor they roll out a product and then they can be as good as you are. Right. That's something just advantage but not like core competence. So I guess in that sense five things let's say for Huobi. First, top trading volume. Second, one of the best liquidity. If you don't know it, get, get the account started on Huobi and start trading. You notice how good liquidity is. And then thirdly will be risk control procedures which which we just talked about. And I think the reason behind it is that we have a very professional team building those products. They were ex Goldman Sachs risk control management teams and they've been in the industry from traditional markets for years and they now putting in years of practice and development time for those our Huobi futures and swaps product. And that's how we're able to get one of the best risk. Well, not just one. I think it is. Well in my opinion is the best risk control procedures in the market that we offer and also complete set of products and we are rolling out options in September and then another great product in November. But I just can't really say the name yet. But stay tuned. And also we were able to have a very secure and trustworthy platform with almost zero downtime and zero clawback since day one. Okay. So Sierra said it's a combination of factors that enriches their product from risk controls to a very professional team. And certainly they are, we've dealt with them all the time and they are indeed very professional. It's the risk controls the team. Back to the fundamentals of the product itself, how good the API is of the technology in general and what's coming in the future will be options which we are looking forward to in September and a secret product that's coming in November, which you cannot say, but perhaps you can tweet about it later. I think always come down to follow my Twitter. Okay. Yeah. So I think that's the end of the panel today. Thank you very much. Huobi Binance, Sierra, Justin Eagle from Deepcoin. Unfortunately, Ben from bybay can't make it. And let's all trade trade futures. Thank you, thank you, thank you. Thank you very much, ladies and gentlemen. And now please, let's follow our great trade. Take a groupie together. Okay, please step forward into the center of the stage. Let's take a picture together. Thank you so much. So, hey Jason, thanks for attending today's interview and first question, Please do a short intro of yourself and what befinder is. In short. Hey Tracy, really nice to meet you and I'm so glad to be part of the CDC event. My name is Jason, the founder and CEO of Definer, Decentralized finance innovator to define the future of open finance. So we are based in Minneapolis, US and we have working on our decentralized finance lending protocol for the past two years and right now we are ready to go for our launch. I'm so glad to be part of today's event and share things about the Defi. Okay, thank you very much. So let's go to the questions session. So we collected a few questions from communities so I would like to have your opinions. My first question here is before they reached the bull right side of the define. So actually define was taking experience in cold shoulder in the market and the recent outbreak growth had brought confidence to the industry. I mean like lots of people are jumping just into defi industry. Lots of projects are coming out. So what kind of development do you think Defi will experience in the near future? Yeah, I think Defi has been this field for over like two or three years. But last year, you know, not too much attention. But this year suddenly Defi becomes so hot and popular because I think there are several things. One is, you know, last year has a lot of stable coins issued on the blockchain on Ethereum and that's become the blood for the Defi because you know, defi is essentially about finance. The second, there are many projects get investment around like two years ago and Defi is heavily based on the technology development and you know, the technology development will take time. So that's why this year you see a lot of program projects come online and it become ecosystem. So in my opinion finance is always about ecosystem. So there's not single service can meet the demand from People, it's always about an ecosystem. So this year you see things, you know, the past two years development, you see a lot insurance, you know, the decentralized finance, exchange option derivatives, market makers, all this and lending, all these come together and make the service much easier for the people to use in the near future. In my opinion, Defi needs to solve three things. First, you know the current Ethereum blockchain has already reached its capacity. You know the maximum capacity for Ethereum I think is around 1 million, 1/2 million transaction per day. If we cannot solve this problem, Defi is only available for a limited group of people like 100,000 half million people. But it never can go beyond the mass majority because we are waiting for the Ethereum network to upgrade. So upgrade the output volume. I think that's one to also there's a very exciting development going on. The second thing is about the cross chain and interoperability because right now you know, the Defi, you know we have also cefi, CEFI volume is very big, much bigger than Defi. And why? Because you know CEFI can easily support and Bitcoin and other assets but Defi just cannot. So that's another very interesting move. And we already saw many other projects has been working on this making you know, we can onboard in bitcoin asset, we can onboarding other, you know, off chain assets. So that's cross chain things. If we can have make a big through Defi's volume will at least go up over 10 times again. And I think that's the two key things. The third thing for the Defi, I think it's you know, the Defi need to be tipped open and solve the security problem. And you see there are a lot of security problems. Then we need a standard security check process and make people believe, you know, the Defi is real deal and very secure to use. I think after we solve these three things also that's the three things in this. Near future people are working on, then you will see, you know, the Defi will be more powerful and let's just start. Okay. Okay, thank you for having your opinion. My second question is as you just said, Defi is not only compatible with traditional finance but also coexisting with a traditional finance. However, recently as we all know, there are frequent security problems occurring in Defi industry. Right. So from your opinion, so can the security level of Defi achieve a level that exists as secure as centralized system? What's your take? Yeah, yeah, I do believe so. Because overall financial system globally they are managing $270 trillion of assets, right. So for Defi right now we only have like 3 or 4 billion assets on the management. So you can see the difference. Even Defi grows like 10 times, 100 times is still pretty small. Let's go back to the security issues. I think right now this current security level is good enough to support like 4 billion several billion dollars asset, but it cannot handle trillions dollars like hundred trillion dollars asset. I think Defi is still very early. I think we have a long way to go. It's more like 90s for the Internet. You know, when Internet comes there's a lot of issues and the same with Defi. That's why in the, you know, the product development they have different phase. In current Defi phase, I still call it the alpha phase. Like even we have product, but it's only experimental and for a small group of people. And then we need to solve the security problem because you know, once we solve the product itself, if they can handle billions of assets for several years, which means give a long time for people to hack it, right? To fend the bugs, to find the loophole. If there's no loophole and no bugs finding, which means this protocol is secure enough and ready to handle bigger assets. So I think the security is the most important thing and we need have very defined and standard security process which Definer has defined by ourselves. And, and that's the most important thing we need to solve because the finance is built on the trust and the trust is built on the safety of users fund. How can you guarantee the safety? The most important thing is the code safety. So that's what I'm thinking. You make it very detailed and I feel so much curious to know more about what Definer is in the following days. Okay, let's go back to our next question. As you just said like define, you see like just like beginning of 90s, something like Internet time, right? So there's still a lot of room for development in the field of Define. And the competition is also we see right now is very fierce. And what is the future development plan of Definer? When opportunities and competition coexist? Yes, yes. There's a lot of things to develop under Defi because you know there's so many things in the traditional financial systems and the services, and all the services actually can be provided through the Defi, through the code. And for Defender we put ourselves in lending and boring all of that market. So there's in current market there's no successful fix rate and the fixed terms product available but if you take a look of the traditional finance, actually the most volume of lending and borrowing or debt market goes through the fixed terms and fixed rate product. Right. All the corporate bond and the debt issuing margin loans, a lot of them are actually fixed product and mortgage. Right. I think the most popular is the mortgage. It is all fixed terms fixed rate product and it is easier for people to predict the future cash flow. So for Defender we help under developing our fixed rate and fixed term product make it very easy for user to use and we'll be the first one to provide this kind of, you know, debt issuing platform for companies like mining companies, even for project or ql, you know and anything can be used as collateral. And also, you know once that's launched it's easier for the small medium sized business like mining companies to plan their cash flow and they don't need to worry about you know today the interest is 1%. After one month interest is 20%. So the right now the long term loan floating rate I think is suitable for the trading. You know you can deploy your trading strategy and borrow very short term but I don't think it's good for the long term. Also it's not good for the defi to serve the real business. In order to serve the real business you need to have a fixed term loans and then people can plan in the round. Also you can access the risk score and get the most popular rate. So I think that's the next coming product under development for Defender. So for Defender in this ecosystem we will be the most secured decentralized lending, borrowing and payment network and to serve everyone within the blockchain cryptocurrency digital asset ecosystem. So that's how we position our definer. Okay Jason, thanks for staying with me and we will have more to catch up later. Okay, thank you very much. Thank you. And yeah, it's my great pleasure to be here and you know I believe we will have a very great events over Shenzhen. Yeah, very looking forward to that. Yeah. Welcome to our cointelegraph China Summit interview. So today it is our honor to invite Neo Wang to be our guest to share his interesting point about cwe. So Hi Neowang, welcome. So the first question is, as we know data is becoming one of our most valuable assets. Cloud storage seems to be the future. A lot about the current industry and the main point please. Okay. The cloud computing was the promise of the feature. It was our call to get ride of the hard drivers. We didn't need to worry about how much data we were storing or worry about even losing. It turns out the cloud was actually just a marketing talk from these big companies. One of the leaders in the cloud is of course Amazon. What you have to know is Amazon didn't set out to change mankind with cloud computing. They simply wanted to make use of the extra service by renting out the infrastructure. Fortunately for them, the marketing was just too good and everyone believed the hype and turned to the cloud, which was actually just extra space they didn't need for themselves. Unfortunately for us, our data is simply not safe when it's controlled by centralized companies. We can see the problems already. Data leakage, service limitations, technical errors, or if they go out of business Due to Amazon's mismanagement of our data. Several incidents occurred last year that caused service interruptions and missing data to clients. It turned out that this was due to really simple errors such as optical cable damage, power fails or device malfunctions. It may seem terrible, but these were catastrophic events for the data owners. What if this was your data? What if you stored your life's work on aws? What if you stored your family pictures? What if the programming code for you startup was all on somebody else's cloud? This is why centralized data storage, the fake clouds don't work. This is why we need a truly decentralized cloud. Next question is, I heard that CW2 could be a solution to the system after its upgrade. Can you tell us more about the solution? Okay. By now, hopefully the public knows the benefits of transparency and security. Governments and banks are now turning to blockchain to power their transactions. Transparency and security are obviously a bigger benefit for anyone who has a lot of data to process and store. So it's really isn't a debate to move from a centralized cloud to a decentralized cloud. Everyone will agree this is the feature. But the current standards in blockchain such as ERC20 are simply not efficient enough. The more powerful blockchain gets, the more the current blockchain will get stressed and overload. Let me give you a simple sample. Imagine that you are on a one line highway. Your data is the car. The more data you have, the more cars you have. The more cars you have, the slower your data will move. Eventually, all the major blockchains are overloaded. What the current public blockchains are trying to do to solve these problems is to make the cars go faster artificially. The problem is the speed of the car isn't unlimited. It's not a matter of if there were problems, it's a matter of when the problem will occur. What are the current public blockchains are trying to do? To solve these problems is to make the cars go fast artificially. The problem is the speed of the car isn't unlimited. It's not a matter of if there were problems, it's a matter of when the problem will occur. The car will eventually crash when it surpassed searching speed. That's where CW 2.0 comes in. We see the problem clearly and we have the solution. We have been working on the xpresses for several years now to actually add a line to the highway. We have a collective web vision to make a blockchain safer and more efficient. Technically speaking, CW2.0 has achieved instant block generation with stack higher at about 50 million blocks TPS or CTPS higher than 50,000. It can also support supernodes at ammo of over 100. The new 2.0 mainnet of CWV has adapted a VRF post and a multi layer consensus structure with transaction block confirmations of less than 1 second to create underlying storage framework with high scalability, performance and stability shared by users that will be the world's best and next question is how could CWE2 realize its value as infrastructure? We are now at a tipping point. Blockchain is ready for mass adoption, but we need to less ICOs and more easy to use real tools for the general public. We talked about making data storage more secure and convenient with CWV 2.0 as you infrastructure you don't need to worry about data loss due to wars, natural disasters, human error, human attacks or localized technical fails. CWV will help you store your valuable data permanently for source. In the blockchain industry we want to empower you to use our mentioned to build your dapps. We will provide you the support to forget the technical limitations of current distributor storage. You will be able to reimage the way data is stored on the blockchain with cwv. Not only that, we will bring down storage and bandwidth clusters. Traditional centralized storage relies on massive IDC engine room which makes charger and bandwidth unnecessarily expensive. CWV2.0 distributor storage will be much cheaper by increasing resource utilization from the public. So the next question is now everyone in the industry is talking about infrastructure. CW2 also aims to be the infrastructure of new public chain. How do you plan for that to happen? Please? Certainly we have competitors and certainly we have borrowed some good ideas from others. The difference as a newcomer as a new chain is we are able to see the world with a different perspective. We are not limited by existing technical weakness. We are able to take the best of the best technologies and leave the bad parts behind. For example, to build a storage mansion. Filecoin adopted post storage capacity consensus algorithm. But its adaptation makes it almost impossible to realize the ideal integration in smart contracts and virtual machines. We were able to learn from their limitations and skip past their difficulties. So my last question is anything else you want to share with our audience at the end of our interview? Please. Thank you all for having me here. Thank you all for your time to listen to me. I'd like to end my speech sharing one sentence. Encourage me along my journey pursuing future. No matter how difficult the road ahead seems to be. Dreams can only come true when you date to dreams. Thank you. Thank you. Thank you for your interesting sharing and hope to cooperate in the future soon. Thank you. Thank you. Hey Ome. Thanks for joining Cointelegraph Channel. This is Tracy from Cointegra China. I'm in charge of Cointegrity Rapids development. So. So before our conversation, please do a short intro of yourself. Hi, I'm Omer Osden. I'm CEO of Rocktree Capital in Beijing and New York. Great to see you, Tracy. Great to have you here. Thanks for your time. I appreciate it. So we've collected two questions from my side. I would like to have your voices. So my first question is the wave of blockchain has been constantly impacting research, traditional industries. More and more people have began to enter the field of blockchain. And how can ordinary people catch up with the development of science and technology under the general trend of blockchain? From your side, what's your point of view? We'd love to have your voice. Yeah, absolutely. That's a great question and probably the most important question in blockchain today. We can compare it to the Internet. In 1995, 96, there were 50 million users of Internet. And then that scaled up over the next five years to 500 million. And so today with blockchain crypto specifically, we have approximately 50 million users globally. And really the next milestone is 500 million million. And how do we get there? So I think one area that's really important is traditional finance. Wall Street 2.0. How do we get to Wall Street 2.0 where people in traditional finance are using it? In a couple of weeks, we're going to be ipoing a traditional finance company that is blockchain for trade finance. And we'll be ipoing that on the NASDAQ under the ticker symbol nfin. And that's an example of a company that took blockchain technology and used traditional finance. And their revenues are actually very, very high in the billions of each year for transactions. So that's an example, taking traditional finance and putting it on the blockchain. I think another thing is that we need more help from governments. Governments have been a big friction in terms of the uptake. Traditional people need to get confidence that the rules are there and the government supporting blockchain. We've seen that in Singapore, but we haven't seen it in a lot of other countries. For example, last year we were at the Libra hearings in July and also October, and we had multiple conversations with congressional members. And some of the congressional members supported blockchain and crypto, but some didn't. And we could see how Libra, which is something that was going to bring this scale of moving crypto from 50 million to 500 million, had a lot of blocks from the US government. And today. Yeah, exactly. And today we see that LIBRA is being changed considerably from what it was before, and it still had many delays. So we really need the governments to support it. One good thing that's happened to blockchain, I think, is actually the trade war, because, you know, the trade war has impacted a lot of industries. But you see the Libra hearings around October 23, US government showed that they were against Libra, most of them. But then on October 24, Chairman Xi announced that China is going to be the leader in blockchain. And bitcoin went from down like this, then up like this. And so that's a good thing. Governments will compete for technology, for crypto, and for. Wrong woman da hungyai faja. It'll help our industry grow fast. I think these are some things that we need for blockchain to grow. You know, I think that this is. These are the two main points. And of course blockchain needs. Crypto needs to be really simple to use. We all know that we need use cases. It's right now it's really the domain for geeks, speculators, and everybody kind of fills in between. But we need more normal guys in there as well. Yeah, yeah, agree with you. Yeah. And I mean your, your points are really different. And happy to, to have you have your voices here. My next question is, as you just mentioned, so I mean, government support the blockchain, but in a way, blockchain is still far from maturity, aftermarket, and the whole industry still needs to be fully tested repeatedly in the future. The largest scale for real blockchain technology adoption will certainly be the biggest problem for the public. So what do you think is the key to the blockchain scalability and implementation? Okay, so something that's really critical are the Rails are the blockchains themselves. And I think that there's still room for layer one projects. And that's really important because we see Ethereum is the second greatest blockchain project ever, the greatest altcoin ever. Yet we're seeing the limitations of the technology currently with Defi. Defi is presented with a glass ceiling right now in terms of fees, in terms of scalability, in terms of speed. And so that needs to be upgraded. That's really important. And so we've seen a lot of projects come out this year. Ava, Casper Labs, Solana. So there's still room for layer one projects I think in this space. And that's also important in the theme that I mentioned, Huaragi Erdiating, which is Wall Street 2.0. The investors need to have confidence that the Rails are secure, not hackable. They need to be able to have transactions for hyper frequency trading and they need to be reliable as well. So I think this is the first thing. The second thing is confidence on the legal side. It's really important for blockchain and we've seen this over the past three, four years to mature from being sort of this outlaw industry to being in law and working with regulators. And we've seen that transition over the past three, four years very well. And you know, certain exchanges have spent a lot of money paying, getting their licenses, paying attention to compliance. And you'll see, for example, Coinbase will be the leader in that. You'll eventually see a Coinbase IPO and that's going to bring in a lot of scalability into the business. A lot more users, a lot more attraction. Why? Because they paid attention to the laws, they got their licenses and that means more big money can come in for the licensed group. So there will still be room for a lot of exchanges that don't have licenses or have licenses in smaller jurisdictions. But I think you want to get the scalability, you want to get the billions and tens of billions of dollars in. You want to get more new users. It's going to be licensing and regulatory that will be important. Okay. You know, I think something we know in China is for any industry, We need that, we need new users to come in all the time. And the frontier for blockchain is traditional, we need more traditional users to come in. Okay. So in a way, still regulators, we need regulators. The market still needs to be regulated in A way to have big scale, large scale in the future and adhere to regulation too. Correct. Thank you very much Omar for the interview and I really appreciate your time and hope. Hopefully we can catch up soon in China. And your Chinese is awesome by the way. Tracy. Thank you. Thank you. Okay, talk soon. Bye bye. Thank you. First of all, very, very happy to have you on board, Adam. I'm Tracy from Cointegra China and please do a short intro of yourself. Yes, thank you. And it was great for me to join with you today, Tracy. I appreciate that. So my name is Adam Kai, currently based out of Toronto, Canada and I have been in the industry since 2016, used to be a full time professional in the financial markets and started to follow the cryptocurrencies and blockchain since 2016. I know this Virgo X is a pretty ambitious project. Could you tell us more about what Virgo X is? Sure. Virgo X is still a relatively new cryptocurrency exchange. So the vision that we have is we want to really help to promote the ecosystem of the stablecoins. So we actually position ourselves as the world stablecoin trading center. So the idea around that is we will not only enable multiple types of stablecoin trading pairs. Right now we already have 15, we actually adding one stablecoin almost every single week and we're really working with Stable coin projects around the globe to help them to have more users and more application cases. But other than the trading itself, we also help stablecoin projects to find other adoptions such as staking and trying to generate yields for their crypto holders as well as we have the contract markets for certain cryptocurrency pairs to really trying to replicate the synthetic foreign exchange markets and giving people the opportunities to exploit the movements for the traditional FX pairs. Interesting. Seems the stablecoin world is very active and many different activities happening globally. Absolutely, absolutely. So third question is that I have heard like Virgo X also co founded stablecoin World Stablecoin association with many major stablecoin projects in Switzerland. And you mentioned that Virgo X is aiming to establish a world stablecoin trading center. So what inspired you on those? Yeah, sure. Actually I think the main organization that really intrigued me to do such things is actually from Facebook Libra project. So Libra is obviously a huge project globally and they united lots of international organizations trying to create a token that is used internally by the systems and to ap be able to make international financial payments much easier. But from what I think is the stablecoin world, if we look at blockchains. I don't think it should be only dominated by large organizations. And more importantly, I think I should give the rights back to the people, to the product teams that can come from many, many countries. And they can be small firms, they can be medium firms, they can be large firms. But as long as they think the stablecoin network they created can create values for the ecosystem, I think actually gives them a way to express their opinions and attract some attention. And I think for that type of needs right now is pretty strong. And I do see a pretty, I would say, separated segmented markets currently for stablecoins there are a lot of small stablecoin projects, which is less than $10 million market cap. But they're really eager trying to grow their market cap, try to work with other people, find ideas to serve their domestic markets. However, there are not enough associations which is truly independent, not affected by certain organizations or by certain groups of interest. I think we're missing that type of organization for the stablecoin world right now. And that's why we set up the associations based out of Sweden, Geneva, with a couple of my peers. There are investors, crypto medias and lots of crypto stablecoin projects. And we were actually reported by cointelegraph a few days ago and also COIN speakers, most leading crypto media and traditional media all follow this news. And it caused a lot of actually reactions and we were actually exploited by inquiries from all over the world, people trying to work with us to help their stablecoin projects, help with their stablecoin education research and also regulatory research involved. So there's a lot of piece we have to put together in order to advocate the development of the industry as a whole. Yeah. So my first question is here we know now there are thousands of crypto exchanges worldwide. So what do you think of the future of crypto exchange? This is question one. And then what do you see this space moving forward and how Virgo acts, position itself in this market? Sure. Actually that's a very important question to ask, but also a quite difficult, I think question for most peers in the industry. I think in general speaking, the crypto exchanges have been seeing very stiff, very strong competitions in the past two years simply because there are just not enough values being created by most exchanges. And we have seen a lot of similar products being offered and we have seen very vicious competitions a lot of times across globe. And we also have seen a lot of security issues. Right. Sometimes the cryptocurrency trend got stolen for their crypto assets. There are some security concerns, things like that. So I think in the future, in order to really survive and also to really succeed in such industries for one is you really have to understand what's the core value propositions you're providing to the users and whether actually they need it. So for us we have been really focusing on relatively niche market at this point, which is stablecoins. Stablecoin in terms of total market cap is right now only about $13 billion. It's so much smaller than the traditional crypto markets. So not many exchanges right now actually paying attention to this. So we are really trying to help, really to help a lot of different stablecoin projects to incubate them, to give them places to trade, to give them places to design their products at a very early stage. So we are very, I would say we are very actually friendly with early stage stablecore products. We're trying to help them as they are helping us to grow our global audience. So that's one thing we really focus a lot, but also is we have to understand in terms of the exchange part, right trading is only one thing, but we do also see a more comprehensive services now actually being provided by the cryptocurrency exchanges. So you have to able to provide staking financial products in terms of saving accounts, 10 deposits and you also have to be able to do OTC properly. You also have to be able to provide a contract trading. So we are actually having all different types of products within our exchanges, but with a relatively strong focus on two areas. One is stablecoin, another is DeFi. And we also focus a lot trying to bridge the communications between decentralized exchanges, decentralized finance and centralized exchanges. We're trying to provide values into that. Okay, thank you very much. And I have my last question here. So what is Virgo X go to market plan in the future? Tell us a little bit of your ambitions. Yeah, sure, no problem. I think for our strategies we want to be a little bit different than a lot of my peers. A lot of my peers really focus on North America such as us all focus on China, Korea, Japan, those very popular nations for people to hold massive crypto holdings. But for us, we really want to also go to those relatively underdeveloped nations. So by this I mean South America. So right now we already actually have two South America Brazilian real max stablecoins and we're working very closely with a lot of Brazilian associations in Brazil and we also have Labor Presidency, Peru in Argentina as well. As well as we also focus a lot on in Southeast Asia. So relatively less about those really immensely dense, extraneous nations such as China and Korea. We focus a lot now on Philippines, Indonesia and even India. There's a huge population right now in India who trades crypto. So because we actually have the understanding of how this extreme, what values we want to provide to these nations, so we really go to those relative left countries and trying to become one of the first batch of international exchanges that can help them to grow. And there's a lot of education we have to do. But I think once we actually enter those markets properly and have enough base for us, then we can truly become more competitive on a global stage with our more innovative products and our strong vision on stablecoins. And I think everything will just come together because it's truly a global initiative. It's not only focused on one country or other countries, it's a truly international initiative. Awesome. Thank you very much, Adam, for the interview today. Thank you so much. First of all, a short intro. Very nice to have you and appreciate your time. I'm Tracy and currently I'm taking the role as cointegra of China cbdo. And very happy to have you on board. Nice meeting. Nice to meet you too. And I'm happy to be here as well. Maybe I'll ask at the beginning. You do a short intro of yourself and a little bit background of Deribit. Okay. Well, Deribit is founded by me and my brother in 2014. We heard about first about Bitcoin and we were totally hooked about it, totally, totally crazy and started investing and trading ourselves. And my brother John, who was an options trader on the Amsterdam Stock Exchange in the late 90s, had the idea to build an options exchange. And bitcoin came. And so this was the perfect chance to do something like that. And two years later, we launched a platform in 2016 and we were the first ones with options. And it took a while before options began to pick up, especially because options are more. It's not a retail product, so to say, of course there are retail traders on our platform trading options, but it's more an institutional product. And that's what you're seeing right now as well. Institutional demand is picking up and. Well, we will talk about it later. But it took a while actually before it really started picking up. But this year is very promising. Thank you. So here's my first question which is collected from the communities. So they are very much interested in knowing more about Darabin. So the first question is, as a first bitcoin option exchange, what's your personal view on Bitcoin, Bitcoin's future and in general and in terms of bitcoin adoption and usage? Well, when I first started playing with Bitcoin I did see it as a medium of exchange, as a substitute of the current financial system which is driven by the euro and the dollar and the yen and so on. And we inflation is a thing and of course we all know the bank crisis. So that's what really triggered me in the beginning into Bitcoin. Like there is that we can transfer money without the agreement of a third party and the third party are the banks nowadays. And I think that really to attract mass adoption we would need like a platform where we can all use. Everybody could use Bitcoin to send from A to B. Currently Bitcoin is in a state that it's not possible yet. But there are many parties working on solutions like Lightning Network and there are also other coins who think can do it on a different way. So I think in the end there will be a coin who can do it, who can do everything, who can do it all. And I think that will drive it finally to mass adoption. Currently the current space, I see that more institutional money is flowing into Bitcoin and I think that is also what the price is driving up. And as of today, I think the most the biggest use of crypto is to be honest, is store of value or speculation. So to say thank you. So here the second question with potential crypto bull run in the near future, are there more institutional investors looking into investing in crypto market or how is Jarabita preparing for the possibility? Yeah, well definitely I already said something about that, right that more and more institutional parties are entering the space and we as an exchange can, can see that. Right. Of course I cannot give names of institutions that are connecting to us, but it's quite obvious that's what's happening right now. And I think that is also the thing that is pushing the options this year is for us it feels like it's the year of the options. You can see the volumes of the options trading is going through the roof. And this is a threat, especially because of the institutional parties that are seeing bitcoin and also options as a way to invest in Bitcoin. And of course we expect that this growth will continue. And especially the options trading, if you compare the options trading with futures in the bitcoin space, it's relatively small, although it's growing right now, but it's relatively small. If you compare this in the equity markets it's different. The futures volumes and options volumes I think are almost the same. This is what we expect to happen in the next couple of years, but we need more institutional parties for that. In the beginning, Bitcoin was really only retail thing. The first people who are using Bitcoin or retail traders or investors, everybody knows the pizza guy, right? Sending thousands of bitcoin for pizza. And the space is changing and it's going rapidly. Lately more and more investors are coming on board. I can confirm that. Let's move on our next question. So countries globally are looking into how to regulate crypto market. Do you think more clear framework on the space would affect Bitcoin becoming less volatile? And how would that affect the future trading or cryptocurrencies? Well, I think adoption, more adoption will make Bitcoin less volatile. Bitcoin is still relatively new. If, if you compare Bitcoin, for example, to oil, when oil was first traded, the prices flew up and down, up and down all the time. The more people were getting into oil or more companies getting into oil, it stabilizes well, the same thing you see in bitcoin right now. So every year the volatility is getting lower. And you can actually see right now in the equity markets because of the corona crisis, what volatility in these markets also can do. So I think that regulation can help in a way that it is clear for people what the rules are. So there is no uncertainty anymore. And this can really help adoption as well. And for example, what we did read a couple of days ago is that banks in the United States can now take Bitcoin into custody. I think this is a big thing. This gives really, this gives Bitcoin some credit, right? So if you would think about that for five, six years ago, you would say like, no, no, that's very far away. But these things are happening right now. So yes, we're in a good time, I think, for bitcoin. So next question, like South Korea has recently announced like 20% tax, incoming tax for crypto trading. So how is it like in Europe in general? I mean, first question is what should the people pay attention to when it comes to trading bitcoin futures, especially feeding taxes in certain regions. You have any recommendations? Yeah, well, I'm not, I'm not an accountant, so. And Europe is a, is a region in the world with many different countries, right? With many different rules. So I cannot give any recommendations there. I do know that there are some people, traders, bitcoin traders, who are trading on their private accounts. They move to the Netherlands because there is no tax on your trading here. So you only have to pay I think 1.6, so 1.2% of what you own. And for example, if you make 100% profit in a year, then you don't have to pay a certain amount of that, just 1.6% over what you had at the beginning of the year. This is as it is today here in the Netherlands. And I don't know exactly how it is in other countries. I know for example, that in the United States you have to pay income tax over your profits. That's not the case in, in the Netherlands, but I don't know exactly how it is in the rest of Europe. I don't know, to be honest. But just it's interesting like this government start to take tax for crypto trading. So I think something more will happen for government to put more regulations or rules to as people pay tax from this part. Yeah, governments are starting to see now as well that Bitcoin is here to stay. It's not going away. And so they make rules for that. And governments like to tax people and you'll find ways to tax them. Here comes the last question, Joel, as Defi is getting so hot in the world market right now, so we see lots of Defi projects quite big and also. Got lots of attention from the market. So how would Defi affect the Bitcoin option trading from your point of view? Well, I think in general that is if Defi is getting more attention and then more money will flow into Bitcoin and Ethereum and other projects. So in general that is good for options trading. So that is a good thing. I think the more development and the more things can be done on the blockchain is good and will lead to more investors and also more usage of the blockchains. So this is in general good because it will, I expect it's that it will bring the price up and if the price goes up, there is more trading. So that's good for us and good for options trading in general. On the other hand, I think there are also projects starting with decentralized options exchanges and stuff like that. I'm not a big fan of that personally. Maybe I'm a little bit biased because we have a centralized exchange. But it's if I see in what kind of how difficult it is to make like a real robust system and that really needs to be centrally organized or the architecture needs to be centralized, I think it's going to be very difficult. But I'm happy to be proven wrong. But we will see in the next couple of years what will happen. I think these things are still in the early stage but of course could be interesting. But I'm not a big fan personally. Okay, thank you. So last but not the least, you have anything want to share with your, I mean Chinese fans or to Chinese community since we are at the big event right now. So what you want to talk with? Well, what I would like to say is that it is very cool to to see that there are some big Chinese traders on Deribit and maybe you can be proud of that. There are some really big traders making good profit with buying options. Especially if I look at our top 20 clients for example, then I always see some Chinese email addresses between them. So yeah, and that is really cool and I think you and it's kind of special. Right. Because we are not Chinese exchange, we are like more western focused. But of course we have a Chinese translated website. But I was kind of surprised and proud as well that so many Chinese traders are trading on Dairybids and especially they are trading the options. So yeah. Okay, great. So that's all for today's interview. Thank you very much. Thank you. Thank you. Hello. Hey Tracy, how are you? I'm all good, thanks for your time. I really appreciate to have the interview with us and do a short intro of Casper Labs and yourself. Absolutely. Hi everyone, I'm Renald Manoher. I'm one of the co founders of Casper Labs. Want to really thank the Cointelegraph China team for putting together a wonderful event. I want to thank you to Tracy for interviewing me. Hopefully we'll go over some interesting questions that will help people understand more about what we're doing here at Casper Labs. Absolutely. We've collected a few questions and hopefully we can have your voices. So my first question here is what's a main challenge for the real business to adopt a blockchain? And how is Casper Labs addressing this? I think really the main challenge that businesses have had adopting blockchain comes down to two things. First, there aren't blockchains out there that scale without sacrifice. And what I mean is they don't. While they scale, they tend to sacrifice decentralization and or security. So permission systems, limited number of nodes, some form of delegation on the decentralization side and then on the security side things like random sampling and sample based algorithms like PPOs et cetera. I think overall for a lot of value to actually go onto a blockchain, you need to retain both the decentralization and security levels that Proof of work gives you. While proof of work is slow, it actually does give you great decentralization and a great amount of security. And Casper Lab solves this by having a provably live and secure version of the CBC Casper protocol, which really gives you scalability, primarily due to engineering efficiency rather than any sacrifice to these two things. So for anyone to put value, they need that to happen. And the second thing really is the kind of tools and languages that are present on today's blockchain look very, very different from the tools and languages that businesses are used to. So I can give you one example before we go to other questions. But on the programming language side, people developers don't want to learn new programming languages. Many of them are already familiar with a certain ide, a certain set of tools and languages that they use all the time. And we think you should make a blockchain for all the 26 million developers out there, rather than the 10 to 20,000 blockchain developers we have. And that's been a major impediment to businesses because the tech stack will looks very unfamiliar to them and sounds interesting. So my second question is like, as you just mentioned, Casper Labs is a POS smart contract platform that skills real world business and simplifies experiences for developers and end users. Could you share with us the details of specific features and how businesses can benefit from these features? Yeah, I'll go over a few. There's really a lot. So the first one I mentioned was, you know, we have a build that supports any programming language over time will support Rust, Assembly, Script and even Solidity right out the gate. And when I say we support Solidity, I mean we don't support the evm. We actually support Solidity as a language that can use all the features that we have on our own virtual machine. But in addition to that, if I were to point to three things, the first thing is we enable continuous integration and continuous deployment. What this means is when you update your code or you change your code, you want to be able to make sure that you can test it and verify that it works in the way you want it to work. Toward that end, the way we've architected our system, you can actually run an instance of your node within your own development environment. So your ability to test things before you deploy them to the blockchain exists. This is very, very important for enterprises and businesses and we haven't really seen that done in the blockchain space. You have solutions like Infura, etc. That help bridge the gap A bit. But the ability to do this with software development tools is very, very important. The second couple of features I'll go over are we have a Turing complete flexible payment model and we think this is really important because the way people talk can institute payments really affects the end user experience. And by having a Turing complete model, we're able to ensure really good user experience. And then finally we've taken the idea of multi signature and a control to somewhat of an extreme where we have weighted key management so you can do really, really interesting things and set very specific thresholds for certain actions to occur. I think the combination of all these features and embracing open programming standards makes it much easier for the standard developer to embrace the underlying technology. So my third question is, as we all know recently, defi just is like a new fashion, right? People talking about defi, defi different defi projects. And also I probably heard the word defi about 40,000 times in the last three weeks. I mean, still solid defi projects on the way, I think maybe. So how could Defi benefits from Casper Labs? In a way I'm wondering. Yeah, so first I'd say nothing I'm going to talk about is new. You know, all the features I'm going to talk about we've actually been building for the past 18 months. But I actually believe Casper Labs is the Most DeFi friendly layer one protocol primarily because, I mean, I already covered the fact that we don't sacrifice security or decentralization. If you think about defi and the reason why so many of them, at least for large transactions and where you have to keep money in reserve, all of them use Ethereum. The reason is those two things, a decentralization and security. And so not sacrificing those two things in a distributed system is very, very important. But then there's very specific features that we have that really are tailor made. Actually they're not tailor made for defi. They can be used for anything but really, really benefit defi. So let me go over a couple of those. So I already mentioned flexible payment code. Let me talk about how that actually makes a lot of sense for defi. So the problem in today's blockchains is the sender always pays for the transaction. So you know, Tracy, if you want to send me some eth, you always pay for the transaction. There's no way you can say, hey, I want to send you some eth. But you know, whatever the gas price is, I need you to pay. And this has made people kind of work around the protocol rather than create the user experience they want. In our system, you could write your smart contract in a way that the sender pays for the transaction, that the receiver pays for the transaction, or that the owner of the DAPP actually fronts the cost to pay for gas on a transaction. And this allows you to create any sort of UX experience you need, including, for example, say you had a great rewards program but you wanted, you know, the receiver of the rewards to pay for the underlying gas fee or you wanted the DAPP to to handle it themselves. You can do all of these decentralized finance applications with any sort of payment scheme you want. Say you wanted to create a loan system and when the interest is coming in, the receiver of the interest is happy fronting the underlying transaction cost because they don't want to make getting paid interest difficult. So that's one thing we've done there and we think that's really important for the end user experience. And then one more feature I'd love to talk about is weighted key management. So we can take account access control and contract access control to a whole new level where we can actually have weighted keys. Meaning tomorrow, if you wanted to do a shareholder proxy vote on chain, we could actually set up a contract which mirrors each person's weight is according to how many shares they own. And you can basically do fully transparent, fully governed shareholder proxy votes on chain that are immutable and registerable and you can even set certain privacy levels where only the aggregate amount could be reported. But basically governance is a huge issue in Defi. And with weighted key management, we allow these DEFI products to be governed in any way that the users or the creators of the system wish them to be. And we find that pretty exciting. I think Defi will be a really, really interesting space. I think it's just developing and we're really looking forward to helping people create the kind of applications that would be really useful to end users. It's great to hear. Also, Casper Labs have a lot for Defi projects. So those coming out Defi project can come to Casper Labs and find out the best solution. Maybe. Hopefully. Yeah, we'd love to have them, please. Glad to help you. And plus, I think we have a lot of features that could really help you create the kind of application you've always wanted to. Awesome. So talking about data, I also have a following question. People care about data security or data incentives. So is data sharing essential for blockchain adoption for real businesses? This is my first question. And then how can technology like yours, I mean Casper Labs to solve Problems with data sharing, security and incentives. People who are sharing their own data, people like me, I share my data. So do you mind if I answer this to include data and contracts? Because I think they're kind of related, right? Almost like. Yeah, I'll address both because I think there's a common thing in how we treat both. So, first, I'd say we view blockchain as part of a larger IT stack. So how you actually interact with our blockchain, you can keep as much as you want private and as much broadcast to the chain as you choose. So, like, for example, if you're a company selling mortgages, you could keep the deed on the blockchain, ensure that the mortgage you know is there on the blockchain. You can make the smart contract to pay interest, etc. But if you want to hide, you know, the person's name, you could. And the way our system works is you can choose what level of data you want it deployed to the blockchain and what you don't, and where you want the actual economic activity. I think choice is what's really, really important. Another thing we've done at Casper Labs is we've created unprecedented levels of contract control. Meaning as the author of a smart contract, you can choose to make them completely open, permissionless and callable by anyone. You can choose to give them a certain level of privacy and only certain parts can be called and by certain users. And we think this is very, very important. I think overall, people are incented to share their data when it solves a bigger problem. But not setting control levels is what makes it difficult. So I'll give you an example. The problem in blockchain is it's all or nothing. We're thinking of it more like when you're using a website, you can choose to accept cookies or not accept cookies. If you choose to accept cookies on a website you trust, you might get a better user experience because they know what you typically look at. But if you choose not to share your data at all, you can choose not to. And I think that's kind of the way we view it. We want to make sure that the access control is in the user and the app developer's hand. The actual underlying blockchain we've created is fully open and permissionless. However, my last but not least questions. So what's your vision of blockchain in the near future and how do you think this transition will happen? Overall, my vision for the industry, I mean, obviously, as someone who's been participating in it for eight Years, Yeah, it was eight years ago when I bought my first bitcoin. I'm a believer. I think long term this will be a very important part of the IT stack. I don't know if I'd go as far as some people saying that it will replace every single bank in the world and the world as we know it will completely be changed. I think it will be similar to what the Internet did. Maybe bigger than the Internet, but similar to what the Internet did. It will revolutionize a lot of fields and it will be hugely augmentative to the technical experience. I strongly believe that. That being said, I think it'll take a little longer for deep penetration to happen relative to what people think because the industry is under penetrated right now. It's, you know, 1% of developers, 2% worldwide if that have ever interacted directly or built a blockchain product. And so that's it's, it's still at its very nascent stage. It's kind of when, you know, the early 90s of the Internet, when you know, 1% of the population, if that had access to it, and now everyone does. The way I see the transition happening though is the way the transitions happened for a lot of big technical movements towards more open systems. We started with box software in the 70s and 80s. Now we have open app exchanges and open app stores. We started with intranets and lans and then eventually moved with a full public Internet. We started with private cloud instances and now everyone uses aws, Azure and Google Cloud. And while those systems are slightly different, I recognize given that they're company controlled, this trend towards more open systems is definitely something that has happened several times before. I anticipate that will happen very much in the blockchain space as well. I think companies like they experimented with private cloud, will experiment a bit with private blockchain implementations and then as they see the power of it, move on to public blockchain or a hybrid solution where you know, they solve some of their more private issues with a private blockchain and then submit things to the public blockchain more as a trust ledger, you know, prove that this transaction actually happened and put it somewhere immutable. In any case, you know, our view at Casper Labs and the Casper Protocol is to ensure that either modality is possible. Like either, you know, we're all about the public instance of our blockchain. That's our bread and butter, it's the main thing. But a private instance of the blockchain can easily be crafted out of our VM and what we have and it would be a seamless connection to our public instance because we know that this transition from private to public is not an automatic one and it needs help along the way. But overall, that's how I think the transition will happen, you know, in a few years. Let's, let's do an interview again and see what I got wrong and right. But overall, you know, I'm fairly optimistic about the industry and think that's the direction that we which it's going to add. Okay, awesome. Thank you very much for sharing with us about Casper Labs development and looking forward to have more talks with you on Casper Labs and your project, how to revolutionize the industry. Okay, thank you so much Tracy, and thanks everyone who watched this interview. Hope it was helpful and feel free to reach out to us with any questions you can find us at CasperLabs IO or at our Casper Labs telegram channel. Cheers, Tracy. Hello everyone. So now very happy we have the CMO of femex Cecilia with us in this meeting room. So before our questions, please do a short intro of yourself and about Femex. Okay, Please. Hello everyone. I'm Cecilia from femex. I'm the CMO of Femex and it's my honor to be here today in Shenzhen and attend this International Blockchain Week. FEMEX was as a new established trading platform. We were just founded last year but now we are already ranking the top 10 directives trading platform right now. So yeah, that's us. Okay, so we'll collect a few questions here for you. So I really first question, I'm curious, what made you get into this crypto market and how did you get started with this crypto exchange journey? Please. Okay. So I think back in 2017 actually some of my friends already approached me because they already start their own business in cryptocurrency industry. And at that moment they asked me are you willing to join us to be like marketing specialists or in charge of marketing? And back to that time I felt like from my perspective at that moment, I feel they're so many bubbles at the moment and everyone is was just so crazy about bitcoin price and also the ICO in 2017. So then I said no. Then I stepped back to my traditional industry in consulting and stayed there. But during the past two years I also always keep an eye on blockchain on bitcoin. And last year when Jack, our CEO and co founder and one of another our co founder approached me and said they're going to build a new directives exchange at that moment I feel it's the right thing to do because I know Jack and the other founder, they're extremely smart people and they have so much experience in algo trading in built up exchanges and also they know exactly what they're doing and they even have experience in building a successful crypto currency exchange before. So then I said yes, let's do it. So that's why I'm here. Okay, pretty interesting. So I think a second question I really want to, to ask a question is about why you, you just jump into derivative crypto exchange, I mean rather than other like. Yeah, yeah. I think at the first beginning it's just about curiosity. So when you check, I think one or two years ago, when you check on CoinMarketCap and you see the list, the ranking of all exchanges, you will see that so many exchanges, they have so many trading pairs of course with very high trading volume. But for bitmax they only have one trading pair but still with very high trading volume. So at them moment we just feel curious about directives trading, why it can create so tremendous trading volume just with one Bitcoin with one trading pair. But the more we dig into the derivatives trading, the more we know about the market. We know that, we feel that actually users, they had no choice because there was not so many directives trading exchanges. So the only thing they can do is to choose the only one exchange. Even during the past two years there was so many new directives trading platform enter the market. But still we see the problem, the latency, the downtime, it happens all the time. So for us, because our background is from Wall street, is from Morgan Stanley, so we know we have this ability to, to build 24, 7 exchange without any downtime with much professional technology. So that's why we enter the directives market. Great team. Thank you. Thank you. Yeah. My next question is, I mean you've been in crypto for a while, right? I mean you heard, I believe you heard bitcoin since a very, very long time ago and then jump into crypto and now start your own journey with, with this FEMAX chain, right? So share a little bit of your vision on how you see crypto industry. For me, from my perspective, crypto industry is definitely the future. You know, the traditional financial system and traditional banking system hasn't really been changed or overthrown during the past several hundreds of years. So there will be problems and people even don't have control of their own money. So the government can take away their money at any time. And also it's very Difficult to trade or to transact. Like not everyone can do it so easily. So that's why the cryptocurrency is here. Right. And for like the blockchain technology actually it reduced the transaction fee, the, the trading fee with a great amount. And for people around the world, it's so easy for them to trade, to transact. And also the smart contract technology actually cuts the cost of legal, of, of accounting, of compliance cost a lot. So I think the cryptocurrency is changing the traditional financial system tremendously. It's conquering its original territory and it's extremely thriving industry, actually. Awesome. So we are here to revolutionize the traditional industry. Yeah, we are still, still, I think we are still the pilots for the whole blockchain world and that's why we feel more responsible for the industry. Yeah, that sounds like very much, I mean the true voice from your heart. Right? So femax can be a very trustful and safe trading platform for people. Okay, so my next question, question but not least. So I really would like to ask what say challenges you've been facing in this, I mean for derivatives exchanges? I mean challenges and any suggestions to traders to, I mean to cope with those fluctuations sort of things? Well, I think the most challenging stuff in derivatives trading is the, I think it's the mindset of people and also the risk management. So when people first enter into derivatives trading, they feel fascinating because they start to do so much research about the trading strategies and they open thousands of charts, they open thousands of indexes and they copy trades a lot. And once they make profits, they're addicted to that. But it's very dangerous actually. So directives trading is not only about your guts, it's about knowledge, it's about your experience. And also you need to have a very peaceful mindset. So if you say, do I have any suggestions for directives traders? I think first of all you need to choose a very trustworthy trading platform like Finex. Yeah. And then do your risk management plan in advance properly about your own portfolio. Use a lower leverage, not a very high one. And then you just, I mean, education also important, right? Yeah, of course. So if people with zero knowledge with this. So it could be very risky. Yeah, it's very risky to enter derived trading and then last but not least, to keep patient. Okay. So it definitely is not a place for me. So you are not patient. Right. Okay. So okay, at the end I really would like to, to ask what's a next big step or plan for femex? So FEMEX is always trying to be very innovative. So before, we always listen to not before, but still now, we always listen to our community. So once they give us any suggestions, our product team will record all of these suggestions and make it to, like, always update immediately. So the next step for Femex will be also relevant to the current trending. Maybe it's about Defy. Maybe it's like Dex. I'm not sure yet, and I cannot really review that at the moment. But definitely we will keep on the pace of the whole. Okay, so people are hearing here about Defy or Dex. So following up, stay tuned. Okay, thank you. Thank you very much, Cecilia. Thank you. Thank you. Bye.