Wu Jian, founder and CEO of Wuzhen • Coin, Bluehelix: Private key, blockchain asset, is the foundation of the next generation exchange

On November 8th, the “2019 World Blockchain Conference • Wuzhen” hosted by Babbitt was officially opened. The conference gathered more than 100 global blockchains, digital assets, AI, 5G experts and scholars, and technical geeks. Opinion leaders and founders of popular projects, with the theme of “application unbounded”, explored the application of blockchain, technology frontiers, industry trends and hot issues, and promoted blockchain technology and industrial innovation.

Key points:

1. The private key means blockchain assets and is the foundation of the next generation of exchanges.
2. With regard to blockchain exchange technology, it is essential to address trading needs, including various derivatives.
3. The next generation must be decentralized, and exchanges built through the new fully decentralized model can help the entire industry rebuild trust.

The founder and CEO of the currency, Ju Jianhua, delivered a keynote speech on "Technology Development Trends of Blockchain Asset Exchanges".

Ju Jianhua first talked about the current status of the blockchain asset exchange technology. He believes that a very important part of the blockchain technology is the technology involved in the value circulation, centralized and decentralized exchanges. A very important role. However, both types of exchanges currently face various problems, such as the insecure funds of users in centralized exchanges, the inflated project assets of exchanges, and the poor experience of decentralized exchanges. The private key means that the blockchain asset is the basis of the next-generation exchange, so he proposed a solution to these problems by solving the unsafe and opaque funds of the centralized exchange through decentralized three-party custody. The problem that the user does not trust. Finally, Ju Jianhua concluded that although the centralized exchanges currently dominate the market, the next generation must be decentralized.

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The following is the full text of the speech, Babbitt finishing:

Hello everyone, I am very happy to be able to gather with you in such a beautiful place in Wuzhen. Let me share some information about the exchange technology.

The reason why I share this is because: On the one hand, the state is promoting blockchain technology. A very important part of blockchain technology is value-related, and the flow of value often needs to be done through both decentralized and centralized exchanges. In the value circulation, the technical characteristics of the centralization and decentralized exchanges, and what we do in this area, how to help the entire industry to complete encrypted assets and blocks better, safer and more credible The circulation of chain assets has a very important impact.

First make a simple self introduction. I personally served as CEO of Firecoin Network for three consecutive years in 2014 and 2017. After leaving the company, I went to a financial technology company. Currently, the company has been listed on the NYSE, and then I came out to create the current currency. I have been in the industry for six or seven years, and the first thing I did was to make evidence and e-commerce systems, from traditional financial systems to encryption, including centralized exchanges, and the decentralized exchange technology we are doing. And SaaS cloud technology, I hope to bring you some different perspectives.

Our company has three businesses, one is the SaaS cloud exchange system, which is currently a core business of our company, which serves more than 130 exchanges. I have not listed too many cases because of the confidentiality agreement. Almost all of the new head machine-built exchanges use our underlying platform. Not only do we provide exchange technology directly to these customers, but we also provide underlying managed clearing and intermediate technologies to many software developers, allowing them to develop more exchange systems using our underlying technology. For example, BHEX is more representative, and the PaaS platform is used. The second is an exchange that we operate as a developer. This is a platform for obtaining first-hand demand and verification, and it has achieved relatively good growth. The third is the public chain that is currently being worked. It takes two years and a very good team is developing. Now it has applied for a public chain patent globally, and can manage the private key through decentralization. The private key means blockchain assets, which we believe are the basis of next-generation exchanges.

The current status of blockchain asset exchange technology

Let's take a look back at the current state of the art of blockchain exchanges. Almost all exchanges currently rely on these businesses for their money, for example, through legal currency deposits at home or abroad. In the future, the blockchain industry will become more popular and even become well known, so the exchange has solved the demand for mass trading. With regard to blockchain exchange technology, it is essential to address trading needs, including various derivatives. Currently in the centralized exchange system, the indicators for evaluating a trading system usually include stability, efficiency, and security, including various delays available, delivery and liquidation time.

Whether the decentralization or centralization of the entire transaction process must be faced with a very important point, it must involve the exchange of user assets. There are different ways in the exchange process, such as matching transactions, peer-to-peer direct transactions, or derivatives trading through some financial rules, each of which is different, but essentially the completion of the quotation process. Any trading system, whether decentralized or centralized, is doing this kind of work. Of course, when millions of users go together to match transactions, the challenge to the entire system will have a big impact. We can now achieve the world's leading delays in the equipment room, and our next-generation systems can achieve very low latency.

How to look at the technical competitiveness of an exchange, for example, whether it will be down during the transaction, whether it will be stuck, in fact, you can know from the open APIs announced by these exchanges. If the API is relatively flexible and loose on the speed limit, it means that the exchange has at least a big confidence in the trading system. Because in China, I listed the domestic exchange. Like the currency, the security is similar. The centralization of daily trading is based on the entire technical strength. Compared with many traditional financial trading systems, exchanges such as foreign exchange are still very weak and completely uncompetitive.

At the same time, we also see, for this kind of exchange, what is its core business model, in the centralized exchange system, each person buys the bitcoin they bought, or the bitcoin dug out by mining Into the exchange, this becomes the exchange to add an account to an account, this number is essentially a borrowing, the exchange borrowed money from you, and everyone trades with each other. There is a big problem in this process. You don't even know if the exchange has these bitcoins, Ethereum or various encryption assets. This is one aspect. On the other hand, the exchange is not responsible for its own reasons, such as the process of trading, or the loss of the underlying assets, which often results in loss of user funds. In addition, we saw several guests on the stage today to discuss the consensus, talk about PoW, PoS. We know that blockchain projects now face a big problem. It needs to design an effective economic model. This economic model is very precise and precise. When there is a little accident outside the economic model, the whole The economic model will collapse.

If you go to a centralized exchange and your assets and economic models are designed to be perfect, then place the project tokens on the exchange. If the exchange falsifies 10% of the project and 20% of the circulating tokens, you will find that the perfect economic model designed by the exchange will collapse in an instant. Once a blockchain project, especially a pass-through incentive project, has collapsed after the economic model or currency price collapse, virtually all users and applications have no chance to develop. Users will abandon you, and the objects you motivate will not be motivated. This centralized trading system poses a significant risk to innovative blockchain trading projects because a project that has been destroyed by an economic model cannot be developed in nature. We see that decentralized exchanges have grown, and many people are doing different decentralized trading systems, but so far there has not been a decentralized transaction that has been very successful. There are many reasons for this. We can see that most of the reasons are in the category of technology and user experience.

Exchange solution

For us, if you are a practitioner in this industry, you should pay attention to what state the industry is at this stage: at this stage it is still the center of the central exchange. How do we solve the problem of centralized exchanges and solve this problem through decentralized three-party custody, such as separating the exchange operators from those who open the exchange business, so that there is no way for the exchange business to do business and market There is no way to manipulate the virtual assets, so that the centralized exchanges can be effectively managed like traditional financial markets.

At the same time, we also continue to expand decentralization technology. In essence, whether it is a centralized or decentralized exchange, it will face the problem of trust. Now imagine that we are all saying that it is safer to mention the money in the exchange wallet on the wallet of your mobile phone, or to find a wallet software that feels safer. If the wallet software developer on the phone has a line of code built in the back, send your private key directly to the network and copy it. When 3 million and 5 million people are using this wallet, this person started this line of code, and all your assets are still gone, although not on the central exchange, although on the so-called wallet. For a long time to come, we always have a trust object. Whether you trust the developer of the wallet or trust the boss of the exchange is a problem. Centralized exchanges do not mean that no trust is needed, and such trust is still indispensable. Although there are some security mechanisms, such as signatures, software signatures, including auditing, there is no way to guarantee these developers at all times, and the people who write the programs do not do evil. This is almost no solution for a long time now or even in the future. of.

On the basis of this, of course, there is a benefit, at least we can know where the problem is, such as knowing that the software has gone wrong, or people have problems, and eventually can catch up with the responsibility. At the same time, in the trading experience, decentralized exchanges are very poor. If you have used the mainstream decentralized trading agreement, you will find that you don't want to use it for the second time. Maybe the first transaction takes two days and three days, or even one week. But a decentralized exchange has a particularly good advantage when you need to do some KYC, decentralized trading all natural advantages, but the problem is not well regulated. If the state or local governments have introduced some policies, you may face policy risks when you go to such exchanges. The good thing about it is that no one can control your assets, it can allow you to hold your own assets for a long time.

Under such technology trends, the exchange is a good income business. According to current market statistics, an exchange that is active for one thousand users per day has an income of 20,000-50,000 yuan per day. This is very impressive data, which is why a large number of people go to open exchanges. It is not particularly easy to open a trading exchange at the same time. In the past we saw successful exchanges, and none of the founders of every trading platform were technically born. Including overseas mainstream exchanges, so non-technical people who want to be exchanges are almost impossible in the early days of the industry.

Next Generation Decentralized Blockchain Asset Trading Technology

What can we do now? Since we launched the cloud service in December last year, 60% of the customers we serve so far are still alive, and most of them are still able to make money or make a profit. Because we build completely through ourselves, from the depth of the transaction to the experience of the trading system, to the security of the transaction, including the cost, after a series of factors, let them open the exchange and have the ability to compete with the first-line exchange. Every time a customer is found, the revenue generated by this customer will remain, and the user will not lose, which is the value we now provide for the entire industry.

Our trading system mainly refers to the traditional financial industry, through the underlying hosting and clearing technology, supports the PaaS platform, and builds a transaction matching and brokerage system. This is the same as the relationship between the traditional financial industry SSE and securities companies. Through such a system, we have made our centralized exchanges more credible and more flexible in terms of different business entities. We serve more than 130 customers worldwide.

This is the overall system structure. It can be seen that each exchange no longer touches the user's assets and does not touch the user's information. Each exchange can develop multiple brokers, and the exchange can have its own owner. Camp brokers, then go to business. The source code of the brokerage part is completely open and customized, and the user data of the brokerage company can be completely stored on the server managed by itself. All open exchanges can share depth. If you open the exchange to see, we will find our trading spreads. The spreads and depth of mainstream currency trading are much higher than many exchanges, including first-tier exchanges, which makes our customers very competitive. force.

The next generation must be decentralized. Exchanges built through the new fully decentralized model can help the entire industry rebuild trust and help blockchain projects no longer worry about the problem of inflated economic models. Our globally patented decentralized Key generation and signature technology, through the blockchain constructed by such technology, can solve the most difficult cross-chain and atomic exchange problems facing the entire industry. Blockchain technology can be used to build a new financial system, a new decentralized financial system, and then help exchanges, help DEX (decentralized exchanges) development, including hosting, lending, improve the entire industry, help the industry Obtaining users makes it safer and more convenient to complete the asset redemption process. But when it comes to the circulation of assets and value, we will help such blockchains to improve asset circulation.

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