Li Chen, HashQuarkCEO, has been engaged in the technology and financial industry before, and entered the blockchain industry in 2016.
Lost twice with Bitcoin
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One day in 2012, the webpage suddenly popped up to download software to dig Bitcoin's ads, Li Chen installed, and let the software run for a while. But he is increasingly thinking that this software is rogue software, just want to encroach on the resources of the notebook, it is uninstalled.
This is Li Chen's first contact with BTC, or blockchain. Since then, he has had no contact with the industry.
Until the end of 2014, some friends talked about Bitcoin, so Li Chen, who was born in technology, went to the Bitcoin white paper. After reading the Bitcoin white paper, many people are eager to worship, and Li Chen has nothing to worry about after reading.
"The signature technology, P 2 P network, distributed ledger in the text, these technologies have been there for decades, there is no novelty. Moreover, constantly digging bitcoin, the annual production will be reduced, and the price is relatively low. And bitcoin is very slow, 7 transactions in 1 second. So my first reaction is: Will anyone use it? The second reaction is: What is the value of this? So I didn't care too much about it, so far I I feel that this is a very pity thing." Li Chen said.
What Li Chen learned before was computer science. He started his business after graduating from school. In 2005, I started the intelligent dialogue robot. Because I didn't find a good application scenario, I ended the entrepreneurial project in less than two years.
"When I graduated, I was bold, I didn't see the world, I didn't eat too much, and I was easily brainwashed. I was excited when I saw the Silicon Valley entrepreneurial story, I wanted to put it all in. But the business is always on the top. The second is very exciting, I feel very powerful, and suddenly I feel that I am stupid and powerless in the next second. There is no smooth transition in the middle, and the two sides of the emotion are too undulating. Because I can’t stand this kind of thrilling torture. , I stopped my business and chose to go to work."
I asked Li Chen if he still had the mentality of "the newborn calf is not afraid of the tiger". He returned to me like this:
"There is still this rush, but it was not. At first, because after the failure of the business, I went to work and smoothed the edges and corners. There is no idea. But when it comes to today's theme, it is the blockchain, which makes me seem I found some passions of the year. But unlike the year, people are mature, they will calmly and rationally think about problems, but the passion is still there!"
After Li Chen entered Tonglian, he was responsible for data finance cloud and smart investment research.
“The business model of data finance is to let AI do data collection and data storage. Smart investment research is an AI product – APP Radish Investment Research is to let robots write investment research reports based on the analysis of data. The products we made at that time were data. The processing and analysis of the data, this is very good and very valuable. But there are two big problems. First, the data is a parallel world and a virtual world compared to our traditional physical world. Second, Data can be copied at zero cost. In this case, the data does not have good trading characteristics, which has a particularly large impact on the upper industry. This is a big drawback."
It is based on such work experience that Li Chen, at a friend's point, realized the value of the blockchain and determined to join the industry.
“Although I didn’t “get into the pit” twice, I still pay attention to the price of Bitcoin. In 2016, the price of Bitcoin began to rise slowly. At that time, I thought, I think there is no value, why its price will rise. At that time, a person in the circle now inadvertently also dialed me. He said that "digital currency allows you to truly control your own assets." I understand this as: private property is inviolable, as long as the private key is in you. No one can move your Token in your hand."
“The first two rounds of education didn’t educate me, but at that moment, I realized that I suddenly felt that this thing was very valuable. The blockchain really made the numbers a tradable asset, although it’s not possible yet. Completely realized, but this must be a direction. So I invested in the blockchain industry. From that time on, I basically counted a blockchain believer." Li Chen added.
In 2016, he entered the blockchain industry and is now the CEO of the HashQuark Mine Pool.
Ethereum will make PoS prosper
In this issue of "8 Questions", Li Chen is mainly talking about the hot Staking.
“Staking's simple understanding is actually the pledge of the currency. This concept has recently become very hot under the superposition of the three main factors.”
First, because there is a star public chain using the PoS mechanism, such as Cosmos. As a star project, the market is very hot, and many people are paying attention to its tokens. Paying attention to tokens will pay attention to its PoS mechanism.
Second, Ethereum, the world's second-largest digital currency by market capitalization, announced that it will be completely converted into PoS. No matter whether it is due to research or development or technical problems, there will be time lag, but it will definitely turn and affect this matter. Very powerful.
Third, before the market was sluggish, the trading volume was small, and ordinary users would have a profit demand. Staking is like the Alipay Zhongbao, which is in line with the user's demands.
Cosmos, Ethereum have been or are turning to the PoS mechanism, PoS seems to be more and more mainstream, will PoW disappear in the future?
“I have always felt that PoW and PoS coexist, and PoW and PoS are two different consensus foundations,” Li Chen said.
First, PoW is a technology-based trust. Its foundation lies in computing power, and revenue is determined by computing power. It is such a difficult question. Everyone counts, whoever calculates it first, who gets the bookkeeping right, and gains the bookkeeping right.
Second, the POW dug out the token is not sticky. PoW has no relationship with the token it produces, and there is no time to rely on it. Digging out BTC can be sold immediately without affecting future earnings.
These two points are different from PoS. PoS is time-based. The longer it takes to pledge the token, the higher the gain. The proceeds you receive will be pledged again, and you will be able to get compound interest. PoS has a tired feature. From this perspective, the benefits of PoS are determined by people.
So what are the problems with PoS at the moment?
Li Chen did the following analysis:
First, from the development history of human beings for thousands of years, no system is perfect, although we are always looking for a perfect system that is fair, efficient, and transparent. PoS as a whole is a decision made by people, so overall PoS has a big worry. This may be a bit confusing, but I still have to talk about it in the "8 Questions" program. This is very important.
Second, PoS mining forks have almost no cost, and it is also a very fast forgery transaction, and even can be forged from the founding block and has been forged to the current block.
Third, in the Staking economy, there is currently a big confusion about the cost of its liquidity. For example, if you pledge a lot of Tokens on the public chain, the pledge time is stipulated. But the digital currency market is changing rapidly, the volatility is too fast, and it is a 7×24 hour, 21-day pledge time seems to be a long time, so this is a big “disadvantage”.
So, is it now the boom of PoS?
"It has only just begun. The public chain that used the PoS mechanism has been relatively small and has encountered little challenges. Starting this year, with the star project of Cosmos as the representative, the larger the range of the Pos mechanism, the greater the challenge. The person who uses it is equivalent to testing it, and the more frequently it finds the problem. Ethereum has the most developers in the world, and it has the most ecological application. So when Ethereum completely turns to PoS, the people who use it will More. At the moment, the prosperity of PoS will be in Ethereum. What will happen later? It is difficult to predict."
In the PoS mechanism, will there be a giant in the end, who is the winner?
First, like the original values of the blockchain, there is cooperation and competition, and synergy can make the ecology better. PoW everyone is competing for mining, and each mining machine is competing for computing power. The mining machine between PoW is a competitive relationship. But if there are fewer players, the last POW mine will be less, and there will be a 51% risk of attack, then the entire Token will have no value.
PoS is exactly the same, and everyone is now plagued with PoS centralization. People who hold a large percentage of Tokens can just fork. But the market will react: the market value of the entire Token will decline. The eyes of the masses are sharp, and this is also a benefit of the blockchain. Whoever holds the tokens cannot be tampered with and is transparent. So of course he wants his value to be valued or even added, so he will support decentralization through some mechanisms, because only decentralization is valuable.
The second point, PoW spelling power, hard core. PoS is based on the trust of the system, and there are more places to compete. The node is better at community governance and I believe everyone will vote for him. Technically better, the node has not had security problems, everyone is willing to put the token system on you. There is also a kind of ecologically better, there are many applications on this public chain, who can find a killer app like WeChat, then this public chain must prosper.
PoS is more important than soft power. Once it is soft power, it is diverse. A good node should be more comprehensive, and there is a lot of room for collaboration. For example, a team with security features can assign security capabilities to other nodes, and other nodes can also empower each other. There is a cooperative relationship, but there are also competitive components in nature, so the future will It is a situation in which cooperation and competition coexist.
Everyone can do nodes
HashQuark officially launched the cut-in node service product on December 5, 2018. At present, it has cooperated with EOS, Cosmos, IRIS, Quantum, VET and other six nodes. So what are the advantages of HashQuark compared to other PoS node services?
Li Chen replied:
First, in some public chains, our efficiency will be higher than other nodes, and the same amount of tokens will be stored. Our income will be relatively high. With the increase of the public chain, our cost will basically stabilize at a value and will not linearly expand. Our income is basically based on how much revenue is given in this chain. IRISnet and Cosmos are all 10% of the revenue, that is, the user receives 10% of all the income nodes generated above, and the remaining 90% Is for the user.
Second, security, we especially don't want to see the Slash incident happen. In cooperation with PlatON, we have a product called KeyShard, which is based on MPC threshold signature technology. As long as the signature private key will appear completely, there is a possibility of loss as long as it appears completely. Using the MPC threshold signature technique, the private key is cut into several pieces.
The process of signing is also in the MPC environment, so in theory any time, anywhere, any space, the private key has never been completely present. But it can complete the signature, which is safe multi-party computing. This can fundamentally and theoretically reduce many security risks. At present, this technology is still in the testing phase, and it will take some time for the real application.
On May 17, 2019, HashQuark released a product called Open Staking Platform, referred to as OSP, which is the open Staking platform.
"We want to do one thing – to solve the problem of centralization, so that everyone can become a node. I hope that everyone can be integrated into each other, let everyone become a super node, more nodes will solve Centralization problem. We will not be a platform for any node, fair and transparent, and encourage mutual competition between nodes. So we have a slogan: Everyone can do nodes."
Having said that, there are three hidden costs to becoming a SuperNode for PoS.
First, the funds, there are funds to have access mechanisms, can become a node out of the block. The second is technology. Building nodes must ensure the security of the node and be able to operate efficiently for a long time. The hardest part is the third point, the influence is to attract users to vote for you. There are many influences, such as doing activities, doing governance, and applications on the public chain. Most of the teams are not doing very well in these three areas, so it is justified that everyone is now sick and PoS centralized.