On November 8th, at the “2019 World Blockchain Conference·Wuzhen” Sub-forum, “Technology Changes the World: Block Bottom Infrastructure” hosted by Babbitt, Cdot Network Founder/Random Capital Partner Liu Yi, IRISnet Founder Cao Heng, the original chain CTO James, Marlin business development leader Nilotpal Mukherjee round-table dialogue around "The germination and rise of Web3.0", the chairman of the Digital Renaissance Foundation Cao Yu as the host.
(From left to right: Cao Yu, Liu Yi, Cao Heng, James, Nilotpal Mukherjee)
The dialogue is centered around the three core points of Web 3.0 concept, promotion and profit model. The following is the content of the dialogue, Babbitt finishing:
- Wuzhen·Jia Nanzhi Zhi Kong Jianping: China has never had a “bitcoin illegal” policy, and the global blockchain development trend is compliance, innovation, and landing.
- Sergey Nazarov, founder of Wuzhen·Chainlink: Smart Contract 3.0 is a fully integrated smart contract
- Wuzhen·Yang Haipo: Token is the core application scenario of the blockchain, and DEX is the infrastructure of the future blockchain.
- Wuzhen·JRR Dimitar Dinev: DeFi is more than just MakerDAO, more open finance
- Sun Lilin, founder of Wuzhen·PlatON: Thoughts on Blockchain Governance in the Age of Privacy Computing
- Wu Zhen·imToken founder He Bin: A Bitcoin DeFi Tour
Cao Wei: Web3.0 is actually a very hot concept in the blockchain industry. The introduction of Web3.0 has made the blockchain industry have a very big transition especially in the application direction. In August of this year, a special Web3.0 conference was held in Berlin, and many well-known international blockchain projects were invited, including the Cdot CTO of our teacher Liu Yi today. The important speech, Snowden also gave a remote lecture on Web3.0. So I am very fortunate to be able to host such a round table today, with four experts to discuss what Web 3.0 is, and what Web 3.0 companies should do in the current environment.
Next, we invite four participants to introduce ourselves. We started with Teacher Liu.
Liu Yi: Hello everyone! I am Liu Yi, founder of Cdot. Cdot is a cross-chain hub project.
Cao Heng: Hello everyone, I am Cao Heng of IRISnet. IRISnet provides cross-chain hub services for distributed business applications. We hope to build a credible bridge between the real economy and the digital economy. In addition, our team is also the Chinese developer of Cosmos, a world-renowned cross-chain project.
James: My project is more than the original chain. We should be the first public link in the blockchain industry to support Turing's smart contract on the UTXO model. After the main online line in April 2018, we docked. A lot of government services and commercial projects. In response to the pain points used by the blockchain, we launched the blockchain main platform-ByStack based on the main sidechain architecture in 2019.
Nilotpal Mukherjee : Hello everyone, this is my first time in China. I am very happy to see the meeting so smoothly . I used to work in a bank. I am currently working at Marlin to expand our business globally. We want to build the infrastructure more reliably and transparently, and make the network and processing and computing faster. This is our Web3.0. The pillar, I am very happy to attend this meeting to share our progress with you.
What is web3.0
Cao Yu: Next, we will discuss the concept of Web3.0. Web3.0 has many explanations. For example, Web3.0 is the next generation Internet industry, and machines will replace people and interoperability between machines. Today, I am fortunate to ask four experts to introduce what you think is Web 3.0. If you can, I hope that each expert can give a keyword.
Liu Yi: There are many different versions of Web 3.0. Everyone can agree that Web 3.0 is the next generation of the Internet.
Web 3.0 is a peer-to-peer encryption protocol that enables producers and consumers of services to trade directly. Correspondingly, it can break the monopoly of the platform and build a new global digital economy.
We are now living in the 2.0 era of the Internet. We are using Web2.0 to provide us with very good services every day. For example, we use the drip to call the car, and we eat it as a US group takeaway. But everyone thinks that the drop does not actually operate a taxi, and the US group does not cook for us. These platforms are for the producers and consumers.
In fact, all Internet giants are platforms that create value by facilitating transactional interactions between different user groups or users. The platform gives us a lot of convenience, and we can't live without the platform every day. But because they are too big, they have monopolized this market, and other platforms have no chance to compete with them. For our users, when it is large enough, it has not cared for individual users. It can expand profits to both the service providers and those of us.
Therefore, we now see that the most profitable companies in the world are platforms. Eight of the top 10 companies with the highest profit in China in 2018 are platforms. It can be said that the whole society is working for the platform. This includes banks, which are platforms, because this money is not itss, it is deposited by our depositors, and it is loaned out through this platform.
The user's data is the moat of the platform, but our users are not divided into the value of the platform, and this is the problem that Web3.0 can solve. We need to use the decentralized encryption protocol to design the user and interact with the user. The value created in the process is returned to users and participants, which is the economic significance of Web3.0. Although we are now looking at the encryption protocol because it is not easy to use due to technical reasons, but from the economic principle, a company can never give your profits to the user, but the encryption protocol can. So in this sense, once the technology maturity reaches a certain level, the encryption protocol will constitute a dimension reduction strike on the existing platform. It is not economically feasible, but a phenomenon that will inevitably occur.
Cao Heng: Teacher Liu is particularly good at speaking. It is particularly clear about Web3.0 from the development of concepts and problems to be solved. I will simply summarize them in three sentences. In our opinion, in fact, Web3.0 solves the problem faced by Web2.0. Let us first talk about how Web1.0, Web2.0, and Web3.0 develop. Web1.0 is represented by portals and search. We look at this information and absorb it in a single direction. At Web 2.0, the label that everyone gives is an interactive web, which means that the product has Weibo, Vibrato, etc. We can participate in the process of generating information, but the biggest problem is that everyone has generated valuable content and information. But there is no way to get direct feedback on value. And if Web 3.0 wants to solve Web 2.0, what is the next stage of the Web? That is the value of the Internet. So in our opinion, a very important issue to be solved by Web 3.0 is how to achieve fair value distribution through algorithms and open and transparent mechanisms. What label do we use for Web 3.0? I think it is the distribution of value.
James: Just what Mr. Cao said is very good. I completely said what I want to say. It seems that everyone knows the same about technology. Web1.0 is read-only in my opinion, it is equivalent to a newspaper, you can go to the server to see a photo or the next article. What is 2.0? Use servers to connect people, such as WeChat, Vibrato, and Weibo. In fact, you interact through the server, and all your data is stored on the server. 3.0, first say a word – decentralization. What to do 3.0? That is to say, the centralized server disappears. Your data is actually distributed among N multi-nodes on the Internet. The operation is also running between N computers on the entire network. This is 1.0, 2.0 and 3.0 that I understand.
Nilotpal Mukherjee: This is a very interesting phenomenon. Everyone can see every form of the web. Just now, all the guests mentioned a very important point. This is also a global consensus. In fact, for the next generation of the Web, we are talking about more interaction, and also our mutual cooperation and mutual support, which are very important. At the same time, when we start to establish communication and connection with other people, the so-called decentralized service has already started to operate, which means that all the data brought after your actions will be the same. Time to interconnect. So for us, in the next generation of the web, we look at more than just readable sections, we may see a more intelligent version, we can also use machine learning, or for other big data. Analyze to better operate. We have just said about the protection of privacy, and we also said that the concept of blockchain has emerged in 2009, and we all realize that the so-called privacy protection is very important. At the same time, because these data are visible to everyone, when we talk about the next generation of blockchain or web, we must talk about the decentralization of anonymity, that is, the protection of privacy. That's about understanding different versions. We know that this data is generated by different people, but we also need to pay attention to the connection to the data islands and how to solve the better security when the data island connection problem is solved. The problem.
How to promote Web3.0
Cao Yu: Let me ask the experts about the professional issues. Teacher Liu Yi has long been concerned about the interoperability of the blockchain. He believes that this is the driving factor for the next generation of Web 3.0. The Cdot that Mr. Liu is doing now is committed to providing interoperability for parallel chains and providing related slots. Please introduce Mr. Liu to introduce the original intention and vision of the Cdot project and recent progress.
Liu Yi: Ok. Let's talk about the vision. We just said that we will use a decentralized encryption protocol to replace the platform to implement the next generation of the Internet. How do we implement a decentralized encryption protocol?
Looking at it now, there are two ideas: one idea, to do smart contracts on a large general public chain; another idea, to be an independent chain, to implement their own encryption protocol.
After the Ethereum, most of the encryption protocol innovations went to the smart contract side, but in fact, before Ethereum, if you want to do the encryption protocol, they are all doing an independent chain. The cost of smart contracts is very low, because as long as it is developed, one person can deploy it. No need for any expenses, everyone can use it, it is really very good. But in fact, many smart teams have invested a lot of teams, and they have gradually felt the limitations of this. For example, a famous originator team in Ethereum recently chose to develop its own chain with Cosmos. Why? Because they have done more than 600 smart contracts, there is a contract change in the Ethereum upgrade. As a result, more than 300 smart contracts can't be used, which is very hard. And on this platform, everyone is sharing bandwidth, we all know that when the Ethereum encryption cat is popular, everyone's gas costs are raised. So now these teams will choose an independent chain development, this independent chain can be a complete layer of chain, or a chain of two. They all involve cross-chaining, and we do cross-chain hubs to provide cross-chain services to the layers of a layer. Polkadot provides services for a layer of chains, and also provides a shared security pool. That is to say, after an application link to Polkadot, it does not need its own set of facilities, and can get a resource from the secure pool. . Because the security pool itself has limited resources, and every security service has to pay for the issuance of dot certificates, so entering a chain is equivalent to giving you a piece of resources. This is called the concept of slots.
Our Cdot, there is no security pool so far, you just get Cdot to get interoperability, but we don't provide you with security services. The advantage is that access has almost no cost. If you open a home here, you can receive interoperability on the Cdot chain. These costs are for the user and do not require the project to lock a large pass to obtain secure resources. Our design philosophy is to include cross-chain agreements, and we have basically completed the overall architecture design. The biggest feeling is that this thing is really difficult across the chain, more complicated than we thought it was half a year ago, because it can produce a wide range of interoperability in the chain, and when there is no root chain as a Supreme Court, it will produce a The series of security issues, credit issues, these issues must be resolved in a decentralized environment. We can only say that we have such a blueprint now, and we are now developing.
Cao Yu : IRISnet is an excellent cross-chain project. In March of this year, the main network and the above line also achieved a series of good results. Recently, the new version of the main network v.0.15 supports multi-asset management and opened the IRIS Hub. DeFi application development support. So I would like to ask Mr. Cao, in the context of the current large-scale cross-chain project, the significance of cross-chaining to DeFi? What kind of ecological role does DeFi play in the future Web3.0 ecosystem?
Cao Heng : DeFi is not only a cross-chain ecology, but also the closest to landing and the most valuable application for blockchain landing.
DeFi can have an impact on everyone's life and can really solve the huge cost problems we bring in traditional finance. As for whether DeFi is a breakthrough in cross-chain, I think that one of the most important problems to be solved in Web3.0 is to do value distribution, and decentralized finance or open finance is really solving such problems and can really make Our values are supported in an open, transparent and fair manner.
What is the meaning of cross-chaining? Some of the cross-chains we talk about here, in fact, some people sometimes have some misunderstandings, they will say that the cross-chain problem is so difficult? So many exchanges we have seen are not already cross-linking, are we not completing the exchange of assets? But the cross-chain supported by the real blockchain we are talking about now, such as IBC, is a cross-chain communication protocol similar to the Internet TCP/IP layer. The problem it wants to solve is to use the protocol to support decentralized asset transfer. The biggest difference with a centralized exchange is that it gives us the ultimate, safest, most credible asset transfer without an intermediary. With such a technical foundation, many of the DeFi applications can now be solved. For example, the mortgage we are seeing now, the assets it can operate on are the assets that Ethereum can support. But when IBC matures, these assets can flow and interact under decentralized hosting.
Cao Yu : James, who was one of the earliest teams engaged in the public chain in China, has been focusing on the asset field. He has launched the “One-to-Many” BaaS platform, Bystack, and the next-generation de-centered cross-chain Layer 2 value exchange protocol MOV. . At the Wuzhen Conference, a cross-chain test network was released than the original chain to promote cross-chain DeFi. Can James introduce the layout of the original chain in terms of Web 3.0?
James: In fact, Web3.0 has a feature that is decentralized. All your storage and all applications go to thousands of computers on the Internet. I have encountered a problem here. As an ordinary user, why should I contribute my CPU, memory and bandwidth to the application of Web3.0? There is definitely a value certificate here. If I contribute some of my hardware resources, then I will definitely receive something similar to the certificate. What is this certificate? If I want to run some commands on Web 3.0 or app, I have to pay some pass. What happens when there is an application on Web 3.0? It is thousands of certificates. In fact, we are a decentralized asset exchange protocol, of course, we also have an open gateway protocol to do cross-chain. On Web 3.0, if the assets are all valuable, we can completely cross the side chain of the original chain, and the value can be exchanged on the side chain. The easiest thing is that on my Weibo application, I contribute my bandwidth, or I send a good article on Weibo and get a lot of GaS rewards. For example, I want to use vibrato now, but the two are not feasible, but if there is a decentralized market transaction agreement, in fact, it can quickly exchange the two types of certificates, which is equivalent to the value of the certificate on Weibo. Can be used in vibrato scenes.
Cao Yu: Thank you. I also talked about the blockchain and the scalability of the first and second layers of the blockchain. For the expandability you just mentioned, can you tell us about the expandability of the company’s products? Solutions, and how can we better build the Web 3.0 ecosystem under such a scalable environment?
At present, the expansion schemes for blockchain are mostly concentrated on Layer1 and Layer2. Can you introduce us to the scalability solution of Marlin Protocol and how to better construct the ecology of Web3.0 under such a framework? ?
Nilotpal Mukherjee: I just mentioned the ecology of the blockchain . First, let's look at how the ecology of the blockchain works. On this basis, we can see the evolution or evolution of the future. In fact, it is a distributed system, and it also has a distributed network all over the world, which is very important for communication and communication between us.
When we talk about Web1.0 and Web2.0, we are talking about a centralized communication. When we talk about the blockchain in the next stage, we are talking about decentralization, and we say To Web 3.0, we also talked about seamless connections, and the flexibility has become very high, especially for users. At the same time, when you want to send users' information on our blockchain protocol or on our platform, its entire application can have a range of extensions. At the same time, this scalability is also available.
Again, our current data is in the state of data silos, so we have to solve this problem. At the same time, for our solutions, especially for the next generation of blockchain ecological solutions, the biggest challenge we face: one is about expenses, we also know that for different agreements, we have to consider us. The whole cost, because we also know that the entire network does not have this flexibility. There is another problem with the current network layer, which is relatively optimized, with many nodes, and the actual nodes determine the performance of our overall operations. There are currently delays in the entire network, so we hope to solve them. In fact, no matter what it is, if the nodes with low quality are added to the network, it will affect the efficiency of the entire network. We now bring another incentive through the network. We use innovative technology to improve the speed of the entire network, delays and quality issues between nodes can be solved, and the entire network can be optimized. In fact, we also think of an updated incentive mechanism, and many Web 2.0 technologies can still be used and optimized.
How to profit from Web3.0
Cao Yu: Finally, I asked the guests a question, what is the profit model of the project in the Web3.0 business ecosystem? Because everyone is a project developer, give you a hint based on your project development experience.
Liu Yi: Just said that Web 3.0 is a cryptographic protocol. The decentralization of cryptographic protocol means that it cannot be controlled by individuals or a few people. It should be a community created by stakeholders. The promoters in the community are the project development team. The role played by the project development team in this community is actually very important in the whole industry. It is a problem that everyone discusses. In terms of incentives, I think that the development team itself, like other members of the community, should get their own parts in the entire pass. On the one hand, there must be a sufficient continuous incentive for developers to truly devote themselves to doing this, and to tie the agreement or the success of the community to the success of their own business. In this regard, some early projects have had some lessons. But it can't over-control, intercept the proceeds, and finally become a big one. So our entire project is the same. We as a developer get a reasonable amount in the distribution of the certificate, and it is a long-term relationship between the interests of the agreement and the success of the agreement.
Cao Heng: Actually, we have discussed this issue just below. This problem is very difficult. Just now, Mr. Liu also said that there must be a certain fair incentive for the development team. Through the Token and a certain pass, the development team will be motivated to make the development of the agreement truly generate value and generate more practical scenarios. As the value of the certificate increases, I can get a corresponding return. I think this is a very good statement.
However, I am very frank here, at this moment, in the blockchain technology is not fully mature, we have not seen the large-scale application landing, in fact, I think that profitability is a luxury. So now, we may consider more about how we can live well, live for three or five years, and if there is a longer winter, we can live to truly apply large-scale landing, and then the value can be reflected That day. In the process, I want to share what our own team does. In addition to the certifying incentives that our own team has, we are more eager to seek self-healing. For example, our team not only supports the underlying protocol development of the public chain, but we also complete the alliance chain project with customers in the application field. This business model will be more similar to the traditional software development business model, mainly through the consulting service model. Of course, such a model can give the technical team a certain ability to self-hematopoietic, and it can help us to verify the grounding and practicality of these technologies more quickly.
James: When it comes to profit model, we are divided into two projects than the original foundation: first, the public chain. We use the non-profit model to operate it, but we are pursuing more people to join the consensus. Second, we have to make breakthroughs in technology, whether it is cryptography, distributed networks or consensus algorithms. I hope that our domestic public chain projects can have some advantages in the field of blockchain technology.
The second point is our BaaS platform. In fact, there are many commonalities between the public chain and the alliance chain. The only difference is that the algorithm is different. So when we get a better technical breakthrough in the public chain, we can easily move to the alliance chain. What is the main purpose of our alliance chain? Our aim is to solve the problem of the difficulty of landing the blockchain. If our entire service architecture can solve the pain points for the entity, we can provide service fees from the perspective of the technical service provider.
Cao Yu: I am very grateful to all the teachers for their wonderful interpretation of Web3.0. I believe that Web 3.0 as an important development direction must have a very good future. However, Web 3.0, including the CIS economy, is at a very early stage. It is too early to say that the profit model and business model are too early for Web 3.0. In fact, we now see some effective applications in DeFi, but there is no killer application. So I believe that like DeFi, the native community and project ecology that has now been born can be expanded or replicated in other industries in the future, like distributed games, decentralized games, decentralized socialization, and more. Therefore, for Web3.0, we must hold the most patience, and at the same time hold the most positive expectation, contribute to the development of Web3.0, and jointly build the Internet that truly belongs to the next generation. I am very grateful to the audience and the four experts for sharing these wonderful ideas. Today, this section is here first, thank you!