HashQuark CEO Li Chen: Staking economy faces centralization risks, PoW+PoS is the mainstream

What is the model of Staking economy? Why is it fire? How to participate? What is the income? What kind of risks are hidden behind the tens of billions of blue seas?

On May 9th, Li Chen, CEO of HashQuark, who is positioned as Staking Ecology, conducted deep AMA interactions with members of the community at ChainNode (ChainNode) . The following is a wonderful Q&A for the community:


Staking market rivals, how does HashQuark stand?

Xinjiekou: Can you tell us about the team?

Li Chen:

I personally engaged in smart investment and investment products before entering the blockchain industry, preferring traditional finance, but also an alternative to traditional finance – simply to use robots to write research reports, to buy and sell stocks, to obtain relatively stable returns.

The other members are divided into three groups:

The first group is a strong team of code farmers, most of whom are senior technicians from large Internet companies and foreign companies;

The second group of members is the extreme believer of the blockchain and is mainly responsible for node research. For example, how to become a node is not only a technical issue, but also an ecological issue and an exploration of the Staking economic model;

The third group is the operation team. Leader has worked in Tencent and Shanda and has extensive experience in operating Internet products. Xinjiekou: What is the relationship between HashQuark and HashKeyHub? What is the background of the parent company HashKeyGroup?

Li Chen:

HashKey Group is a Hong Kong-based financial technology group dedicated to providing solutions for AI, big data, blockchain, digital assets and other related technologies, including HashKey Hub, HashQuark, HashKey Pro and other products. Among them, HashKey Hub is the entrance of HashKey Group financial ecological service, presented in the form of mobile app. HashQuark's staking service runs through the Fortune section of HashKey Hub.

Dunkirk retreat: Many wallets and exchanges are currently cutting into the Staking business. What is the biggest advantage of HashQuark compared to them?

Li Chen:

Different products have their own advantages on the Staking runway. The main advantages of HQ are the following:

1. HashKey Group, which relies on abundant capital and broad ecological layout, has outstanding ecological advantages compared to other products;

Second, we have cooperated with Slow Mist Technology and PlatON to build a four-layer core defense system and further protect user asset security through Key Management Service (KeyShard). At the same time, HashQuark also has an experienced team. All-weather security.

Third, HashQuark is one of the earliest staking mines in China, and deeply involved in the early ecological construction of many public chains. For example, we are an important early supporter of Cosmos, participating in the Cosmos test network test and GOS (Game of Stake); we have also organized hackathon and other activities around the world; in addition, we also translated some free Technical articles, got a good reading.

Fourth, we developed a set of algorithm models to ensure the high profitability of users by calculating the highest stake efficiency in a certain ratio. Taking Qtum as an example, the annualized revenue we provide exceeds the average of the entire network.

5. Our products are very easy to use, supporting both centralization and decentralization. Angel Road BB: Hashquark claims that the deposit is mining, then which currency does Hashquark currently support mining?

Li Chen:

HashQuark currently supports Staking in more than a dozen currencies such as QTUM, VET, EOS, and ATOM.

Run: HashQuark as a staking technical service platform, what kind of service is also provided?

Li Chen:

First of all, HashQuark provides ordinary users with the service of depositing coins. The user obtains the staking income by means of depositing money, which is the purchase and sale of the pen insurance; the proceeds obtained through the HashQuark mining pool do not involve transactions, compliance and security.

In addition, HashQuark provides technical advice and services to individuals (teams) interested in becoming public domain nodes such as PoS and DPoS.

How to protect user asset security?

Currency circle He brother: hashkey hub deposit is mine, after all, belongs to the registration mechanism centralized wallet, how can we guarantee the security of deposit assets?

Li Chen:

We have partnered with Slow Mist Technology and Platon to build a four-tiered core defense system and to further maintain user asset security through Key Management Services (KeyShard). HashQuark also has an experienced team that provides round-the-clock support. Security.

Cncoin: Does the project party consider using multi-signing to ensure the security of user assets?

Li Chen:

In addition to multi-signing, we are still exploring the MPC solution to fundamentally solve the problem of key management. You can follow HashQuark's collaboration with KeyShard.

Qiu Xiangyu: It is understood that HashQuark is conducting key management service verification in Keyshard's Cosmos test network. What is the significance of this work? How is the progress now?

Li Chen:

Cosmos is a public chain that uses the Slash mechanism for evil POS nodes. This is a good attempt. Unlike the previous public chain, if the node can't guarantee security, in addition to not getting the benefits, it will also be punished. The HashQuark team is responsible for the security of user assets, and has conducted in-depth research. We believe that in the end, the core of node security is the security of the key.

Platon KeyShard uses MPC technology for key management. MPC technology is very difficult, but the effect is obvious. Simply put, the key will be fragmented, and the key is also fragmented when the key is signed. This means that the complete key never appeared in any space and time. This approach theoretically solves the security problem of key signature, which is a fundamental solution.

So this is why we do this work.

Staking economy faces centralization risks, PoW+PoS is the mainstream

Ai Haoqi: Recently, Staking is very hot. Can you use the meaning of Staking in a language that is easy to understand?

Li Chen:

I will talk about this problem by comparing staking with bitcoin mining. In short, bitcoin mining relies on computing power to maintain blockchain books: miners provide computing power and gain. Staking is to maintain the blockchain book by token pledge, which can also get the benefit; Staking's threshold is lower for ordinary users, but I think the threshold is higher than mine.

Wanshi Fuhua: How do ordinary users play staking?

Li Chen:

Compared to mining, staking has a lower threshold and is more suitable for ordinary users to participate. The user can get the proceeds by voting the token held by the user to the corresponding node. A simpler way to participate is to get revenue directly by using products like HashQuark.

Chicken's coming and going: How did Staking's reward come from? Is it created through inflation? Will the rights of Non-stakers be damaged? For example, ownership is diluted.

Li Chen:

Technically, the reward is obtained by Staking to obtain the accounting rights of the blockchain account. From the performance point of view, in some scenarios, it can be understood as inflation. Inflation exists in most public chains, whether it is POS or POW. At the same time, Staker wants to accept the cost of Token's inability to transfer when Staking. Therefore, it cannot be said that the rights of Non-stakers will be damaged.

Blockchain enthusiasts: How to choose a node? What specific indicators should be considered?

Li Chen:

In addition to the technical strength, the Staking node team needs to build a reputation advantage. This is also the difference between staking and mining. Specific indicators include team background, node financial strength, security assurance capabilities, community influence, and product usability.

24749dbdf635: To dig through the staking, the masternode needs to remain online. In this case, there is a potential safety hazard. Not to mention that mining as a staking pool will expose the assets in the entire pool to risk. Will Hashquark? What are the security measures taken?

Li Chen:

The POS mechanism does require the node to stay online online. But I don't agree that this represents asset online. Generally, the node is only responsible for the block, and the assets plucked on the node can be saved on the cold wallet, and the gains obtained by the node can also be set to be automatically saved to the cold wallet. So the risk of node is more than just a risk. At the same time, Online can also provide protection through FullNode.

Liu Yuchuan: The Staking tool is divided into a centralized model and a decentralized model. What are the advantages of the two?

Li Chen:

The advantage of the centralized mode is that the operation is more convenient. The operations of voting and receiving income are all completed by the product. The disadvantage is that the user needs to transfer the ownership of the asset to the product and needs to completely trust the product.

The advantage of the decentralization model is that the user always retains the ownership of the asset. The disadvantage is that the operation of voting and receiving the income is completed by the user himself, and the threshold is relatively high. 阑珊灯火: How do you view the problem of a large proportion of large-capital households and “node miners” in the PoS mechanism? Will the rich get richer and richer, and because of the excessive concentration of the currency, it will affect the degree of decentralization and even the safety of the chain.

Li Chen:

Whether it is POW or POS, there will be centralization problems. The difference is that POW can be regarded as the centralization of computing power and POS is the centralization of tokens.

As mentioned before, centralization is not necessarily a bad thing at certain moments. I personally think that the better result is a centralized and decentralized equilibrium.

As for the question of the large proportion of the large-capital households and the "node miners" that you said, I have the following two views.

1. Because large-capital households hold more assets and start from their own interests, they also hope that their assets will be preserved. Therefore, he has no motive for evil and can alleviate security problems to a certain extent.

2. From a technical point of view, many POS mechanisms will not use the amount of currency as the sole criterion for obtaining the billing rights, and to some extent solve the problem of centralization. Simplicity is not the pledge of tokens, the more the income will be higher.

In addition, HashQuark is also concerned about this issue. We will launch a new model to try to solve this problem . We will officially launch it during the 2019 Global Blockchain (Hangzhou) Summit Forum hosted by Babbitt on May 17 . Dafei 1319: The Staking economy seems to be quite hot recently. Will there be a big institution or mine pool like Bitumin under the PoS or DPoS consensus mechanism?

Li Chen:

POW also has the concern of centralization, I think PoS and DPoS are also possible. But everyone is aware of this problem, and this problem needs to be solved together by the industry.

Fried coins: How do you view the future pattern of PoW and PoS?

Li Chen:

I don't think that the two will be opposite each other. On the contrary, they can coexist. The PoW mechanism is more about the cost of technology, while the PoS is more about the cost of the system. I think the mainstream of the future may be PoW+PoS, a consensus mechanism for technology and institutional equilibrium.

On May 17, Li Chen will also participate in the 2019 Blockchain (Hangzhou) Summit Forum. You are welcome to come and listen to him. Countdown to 7 days, now place an order, reduce 200. At present, there are only a small number of remaining tickets, and you want to buy as soon as possible. Click to buy tickets: https://www.huodongxing.com/event/4484913596500