Mars Finance Interview With Jack Lu
Galaxy Consensus, cross-chain, and blockchain 3.0
Adapted from the original Chinese text by Noah Maizels
On June 6th, 2019, Mars Finance Co-editor Meng Xiaoshe sat down with Wanchain founder and CEO Jack Lu for a wide ranging interview about Wanchain and the blockchain industry. In the interview Jack Lu explained that while Wanchain’s new Galaxy Consensus has no direct relationship with Ethereum 2.0, it does reflect the general trend of major public blockchains embracing PoS mechanisms. As the second largest public blockchain by market value, second only to Bitcoin, the ushering in of PoS on the Ethereum mainnet will have a profound impact on the entire industry’s approach to PoS.
In reference to this years’ hot cross-chain projects Cosmos and Polkadot, Jack Lu stated frankly that the difference between them and Wanchain is Wanchain’s focus on the secure cross-chain transfer of value between heterogenous chains with different consensus architectures. Wanchain has taken the lead in the actual implementation of such a cross-chain mechanism, having already realized cross-chain links with BTC, Ethereum, and ERC20 tokens in 2018. Going forward into the second half of 2019, a cross-chain link with EOS will soon be implemented, which will be followed by links with other major chains.
Main takeaways from the interview:
1. The move from PoW to PoS consensus mechanisms is an inevitable trend.
2. The two most critical elements of any PoS consensus mechanism are block producer selection and random number generation.
3. Wanchain’s robust delegation mechanism is one of it’s advantages compared to other PoS chains.
4. Ever since Blockstream proposed the concept of side chains, cross-chain technology has been one of the main areas of focus in the blockchain industry, however, there is still no universally recognized cross-chain mechanism.
5. Cross-chain technology will inevitably be an important part of blockchain 3.0.
6. There are three main points of competition for public chains: technology, ecosystem, and resources.
Full interview of Jack Lu with Mars Finance Co-Editor Meng Xiaoshe:
“The move from PoW to PoS is an inevitable trend in the development of consensus mechanisms…” — Jack Lu
Meng Xiaoshe: Since the early days of blockchain in China there’s been a small but steady group of early adopters, Jack Lu can count himself as one of these prescient few. As an early investor in Bitcoin and Ethereum, the founder of Factom, Wanglu Tech, and Wanchain, Jack Lu can truly count himself as a senior witness to and active participant in the blockchain industry from the earliest of days all the way until today. What’s your general view concerning the development of blockchain technology over the last few years and of Wanchain’s role in the industry moving forward?
Jack Lu: There are two ideas which best express my current approach for Wanchain, staying true to our initial vision, and moving relentlessly forward.
What is our initial vision? It is written clearly in the Wanchain white paper: Building a distributed financial infrastructure which connects with other chains through decentralized cross-chain technology. This vision is also reflected in our recently proposed Galaxy Consensus, which is the upgrade of our consensus mechanism from PoW to PoS. In the past year, our team has implemented cross-chain connections with ETH, ERC20 tokens, and BTC, and we plan to integrate EOS and other mainstream public chains later this year. Our Galaxy Consensus PoS mechanism will also be launched on the main network in the third quarter of this year. These are our established roadmap goals, they make up our initial vision, and we will continue to strive to reach all our goals.
Why do I say we need to move relentlessly forward? Because we are quite far from the establishment of the distributed financial digital asset infrastructure that we have outlined in our roadmap, the road ahead is full of thorns. Only by not forgetting our initial vision can our team accomplish what we have set out to do.
Wanchain’s role in the blockchain world is to set up a distributed financial infrastructure that enables universal interconnection. To be more specific, Wanchain connects different chains and makes value exchange between different distributed ledger possible in a decentralized manner, creating a universal cross-chain protocol and a distributed ledger for recording cross-chain transactions and intra-chain transactions. Wanchain’s cross-chain technology can be integrated with public chains, private chains, and consortium chains to allow for the decentralized cross-ledger exchange of assets. Wanchain also supports smart contracts as well as private transactions.
Through Wanchain’s infrastructure, any organization and individual will be able to open their own business portal to provide digital asset-based deposits and loans, payments, settlements and other financial services. Through the blockchain based infrastructure provided by Wanchain, more people will be able to enjoy richer digital asset based financial services. It will be a distributed super financial market based on blockchain.
Meng Xiaoshe: In April of this year, I noticed that Wanchain had released an announcement about their new Galaxy Consensus PoS mechanism, which would upgrade Wanchain’s consensus from PoW to PoS. It just so happens that the Ethereum 2.0 upgrade also includes a transition from PoW to PoS. So the question is: Why is Wanchain’s consensus mechanism shifting from PoW to PoS? Isc there any connection with Ethereum 2.0? What are the innovations in Galaxy Consensus compared to existing PoS mechanisms on the market?
Jack Lu: The move from PoW to PoS is an inevitable trend in the development of consensus mechanisms.
First, PoW relies on high energy consumption. With PoS consensus the security basis of the chain is not a hashing algorithm which requires an incredibly wasteful level of energy, rather it is based on purely economic incentives. The block production rights for PoS nodes are decided through a lottery based on the amount of stake held by each node instead of how much hashing power they have, which makes the entire process more clean and environmentally friendly.
Secondly, the upgrade of the consensus mechanism will greatly improve the scalability, TPS, and security performance of Wanchain’s network. From the beginning, Wanchain has clearly stated that we would switch our consensus mechanism from PoW to PoS at some point. The above two points are the main reason why Wanchain is upgrading from PoW to PoS.
The upgrade of Wanchain’s mechanism has no direct relationship with Ethereum 2.0, has no direct relationship with Ethereum 2.0, it does reflect the general trend of major public blockchains embracing PoS mechanisms. As the second largest public blockchain by market value, second only to Bitcoin, the ushering in of PoS on the Ethereum mainnet will have a profound impact on the entire industry.
Among all PoS consensus mechanisms, there are two elements which are of critical importance. One is the random number generation process, and the other is the block producer selection process. Compared with other PoS or projects on the market, Galaxy Consensus has made tremendous innovations on both of these two key elements.
First of all, we made several important innovations on the random number generation algorithm, and designed a safer and more efficient random beacon. Our algorithm guarantees that the generation of random numbers is decentralized, unpredictable, unbiased, evenly distributed, has guaranteed output delivery (GOD), and is publicly verifiable. These are the six major criteria for measuring the merits of random number algorithms.
(Editor’s note: to learn more about random number generation algorithms and Wanchain’s approach, check out Part 2 of our technical deep dive series)
Another innovation is our block producer selection algorithm. We have designed an innovative Unique Leader Selection (ULS) algorithm for block producer selection. This algorithm can guarantee that only one unique block producer is chosen, greatly reducing the probability of natural forks and shortening consensus time. The algorithm is fair, verifiable and anonymous.
(Editor’s note: to learn more about block producer selection algorithms and Wanchain’s approach, check out Part 3 of our technical deep dive series)
Wanchain has also designed a robust on chain delegation mechanism. Through this mechanism, WAN holders are able to delegate their WAN to validator nodes through a smart contract. The node then participates in consensus on their behalf and returns part of the consensus reward to the WAN holder. The entire process, including the delegation fees and reward dispersal are handled automatically by on chain smart contracts. This ensures that the stake of the delegator can be fully guaranteed, and there is no concern of bad behavior by the validator. This robust delegation mechanism is an advantage of Wanchain over other PoS projects.
(Editor’s note: to learn more about Wanchain’s approach to delegation, check out Part 4 of our technical deep dive series)
Meng Xiaoshe: According to my understanding, for any public chain, a change of consensus mechanism will have a profound effect on the entire ecosystem of the chain in question. How can you ensure the security of the entire system while also guaranteeing network performance? After the change of the consensus mechanism, what is the plan for further ecosystem development?
Jack Lu: Firstly, the upgrade from PoW to PoS will not have any disruptive effect on those DApps currently on Wanchain. Wanchain developers simply need to upgrade GWAN to the latest version when the new PoS mechanism goes live.
In the design of Galaxy Consensus, we have taken great care to balance performance and safety, and we have finally reach a reasonable compromise between the two concerns. First of all, security is the fundamental driver behind all our design choices. Without security, all other design choices are meaningless. Galaxy Consensus adopts its basic framework from Cardano’s Ouroboros, which innovated by introducing a provable secure blockchain protocol.
There are two roles in Galaxy Consensus, one is responsible for random number generation, and the other is responsible for block production. The logical layers are independent of each other, the data layers interact with each other, and the consensus results do not depend on any single role. This guarantees that the entire consensus process is highly secure.
While we emphasize security first and foremost, the usability of the system is of course also an important factor. The two core algorithms — the random number generation algorithm and the ULS algorithm — are quite efficient and suitable for real world usage.
At present, in each round of consensus, the system will select 75 validator nodes and assign them to the random number proposer group or the epoch leader group (block producer group) according to their stake ratio and random probability from all the validator nodes in the whole network. The specific parameters are based on calculations by Wanchain’s research and engineering teams, based on both theoretical safety as well as practical performance considerations, and are ultimately a trade-off between safety and performance.
Regarding ecosystem development, the switch from PoW to PoS will not have any negative effects. In 2017, when Wanchain was founded, we focused on the design, development and launch of the mainnet. In 2018, we focused on implementing cross-chain transactions between Bitcoin and Ethereum. This year, in addition to the upcoming Galaxy Consensus, Wanchain will shift its focus to community building and developer outreach.
With the implementation of the core functions of Wanchain and the continuous iteration of the tech, the next step is to truly connect with developers attract them to build their projects on the Wanchain platform. Wanchain will address the pain points of developers by continuously improving developer documentation, improving product experience, and improving development tools. Wanchain will actively participate in developer activities such as the hackathons and will actively expand our developer community. At the same time, we will cooperate with the world’s major developer communities to promote Wanchain’s cross-chain technology so that more developers can understand that the cross-chain function of Wanchain can be directly embedded into their DApps, even if they are based on third-party public chains. In other words, even if the DApp created by the developer is not on Wanchain, it can still take advantage of Wanchain’s cross-chain functionality.
In April of this year, we announced the official establishment of our developer community, WanDevs. WanDevs can help build applications with cross-chain capabilities based on Solidity, enabling applications to take advantage of resources on the Bitcoin and Ethereum networks. When the EOS cross-chain link is implemented, Wanchain based application will also be able to take advantage of EOS resources. The WanDevs community will receive long-term support from the Wanchain Foundation.
The Foundation will provide financial support to Wanchain community developers who build DApps and tools that benefit the community. We have established a Wanchain Gitter channel, which has attracted more than 120 developers from around the world. We hope to promote cross-chain technology and our cross-chain ecosytem through WanDevs, and provide cross-chain technical support and cross-chain education for the wider community.
Recently, we also established a partnership with Morpheus out of Singapore to integrate Wanchain’s technology into Morpheus Labs’ platform. Morpheus Labs provides DApp developers with convenient and practical development tools based on Wanchain. With the tools provided by the Morpheus Labs platform, developers will be able to quickly and easily deploy DApps on Wanchain. The platform will provide a complete cloud-based development environment and will be able to fully invoke Wanchain’s smart contract library and provide other tools that make development easier.
Regarding DApps on the Wanchain platform, our focus is on decentralized financial (DeFi) applications. Therefore, we will be more proactive in cooperating with projects which are focused on DeFi services.
In addition to developer community building and promoting DeFi projects in our ecosystem, we will continue with our frequent outreach to all of our users and cryptocurrency enthusiasts, including news, education and training, conferences, an update of the official website, community meetups, etc. In addition, we will continue to work with blockchain companies and companies in different industries to continuously improve the commercial application of cross-chain solutions.
Meng Xiaoshe: We know that different PoS chains, in order to improve the efficiency of consensus, will design their own mechanisms to optimize the number of nodes and the division of network responsibilities. What are the node specifications for Galaxy Consensus? What are the rights and obligations of different nodes? How is your progress in validator recruitment? How can ordinary users become nodes?
Jack Lu: Validator nodes and delegators are the two most critical roles in Galaxy Consensus. The validator nodes are divided into ordinary validator nodes and validator nodes which can receive delegations. Let me introduce these roles one by one.
All validator nodes can be selected to fill a role in the random number proposer group or the epoch leader group to participate in the consensus process, and propose, verify, and finally confirm blocks, thereby ensuring the safe and stable operation of the network. There are two types of validator nodes, ordinary validator nodes which cannot accept delegations and validator nodes which can accept delegations. Galaxy Consensus will select 75 nodes from all the validator nodes every two days into the random number generation group and the epoch leader group.
The minimum stake requirements to participate as an ordinary validator node is not high, only 10,000 WAN. However, ordinary validator nodes do not have the right to accept delegations. Except for this one distinction, ordinary validator nodes and the node which can receive delegations have the exact same rights and obligations in the process of Galaxy Consensus. If you want to be able to receive WAN token delegations, it is recommended that users choose their node type accordingly.
Delegation accepting validator nodes have a higher minimum stake requirement 50,000 WAN. Validators are limited in the amount of WAN they can receive as a delegation at a ratio of 1:5 self staked tokens to delegated tokens.
For example, if a delegate node stakes 200,000 WAN, that node can accept a delegation of up to 1,000,000 WAN. If the delegate node fills the 1,000,000 WAN delegation limit but still wants to accept more delegations, the node needs to increase its original stake by adding more WAN. The delegate node is free to set its own delegation fee.
WAN holders can delegate WAN token to any delegate node. The minimum delegation amount is 100 WAN.
Two points worth noting are one, that the validator nodes need to set up a server or lease a cloud server, but delegators do not have any hardware requirements. And two, in the case where the delegation amount is the same and the staking time is the same, the return for the node will be higher than that of the delegator.
In the two months since the release of Galaxy Consensus research paper we have seen a rapid rise in the number of organizations committing themselves to operating Wanchain Galaxy Consensus Proof of Stake nodes. The list of organizations who have officially announced their intention to operate nodes includes Wetez, HashQuark, Blocks.tech, Keystore, MatPool, Bitrue, Validator.online, SNZ, and BEPAL. These organizations are currently taking part in the alpha testing of Galaxy Consensus, and we will continue to announce new validators who are committed to joining through our official website. We welcome any interested organizations or communities to join. The beta version will be launching soon and we would love to have you on board!
Wanchain’s Galaxy Consensus nodes are open to everyone. Anyone who meets the minimum stake requirement of 10,000 WAN can get set up quickly with their own bare metal server or by renting a cloud based one. The Wanchain foundation will also be providing technical support.
It appears that some of our community nodes have also reached a cooperative relationship with some of the above-mentioned organizations in order to support each other for node operation. We are also very encouraging of this model.
Meng Xiaoshe: Cross-chain technology has long been considered one of the focuses of “blockchain 3.0.” As you have expressed, Wanchain hopes to use cross-chain technology to build bridges between the various chains to achieve universal interconnection. Two other cross-chain projects, Cosmos and Polkadot have been getting a lot of attention recently. They were recently mentioned by Bloomberg as some of the most anticipated projects in 2019. I believe that you are no stranger to these two projects. How does Wanchain distinguish itself from these other two cross-chain projects, what is the difference in your approach?
Jack Lu: Yes these projects have certainly received a lot of attention, and their recent developments have made the theme of “cross-chain” and interoperability very hot this year.
Wanchain differs from these two projects in our focus on heterogeneous cross-chain technology, our focus on privacy, and in our advances in the actual engineering implementation of our cross-chain technology. For the difference between homogenous and heterogeneous cross-chain, please refer to some of the our previous articles on cross-chain technology.
Compared with Cosmos and Polkadot, Wanchain has taken the lead in engineering implementation. We have already achieved cross-chain links with BTC, Ethereum, and ERC20 in 2018, and soon will be integrated with EOS and other public chains.
The means of implementation at the technical level are different. Polka’s system is based on a Relay chain / Parachain model, while Cosmos’s is based on the concept of hubs and zones. Wanchain’s cross-chain uses hash time locks to lock assets on the original chain, and a combination of secure multi-party computing (SMPC) and threshold secret sharing to ensure the security and decentralization in order to implement its BTC and ETH cross-chain links.
At present, various cross-chain projects and research teams have done a lot of exploration on how to implement the cross-chain technology, but most of are still in the theoretical planning and design stage, including projects that have already launched their mainnets. The cross-chain functionalities are often not yet implemented.
Meng Xiaoshe: Cross-chain technology is very hot, but its development is held back by many significant technical challenges. According to some reports, Cosmos originally planned to launch their mainnet by the end of 2017, but in the end it was postponed until March, 2019. As for Polkadot, their planned launch is in 2020. Their network to be launched in October this year is expected to be only a partial implementation. The complete implementation including the relay chains & parachains and rich interactions between them is quite far away. In your view, how far away is true cross-chain technology? What are the main difficulties in its development? How is Wanchain progressing in its cross-chain implementation?
Jack Lu: In fact, the nature of cross-chain is a set of clearing mechanisms between chains, and in essence a form of accounting. Cross-chain technology can greatly increase the liquidity of on chain assets, and liquidity is the foundation of value for all markets. Without proper liquidity, a more prosperous market will not emerge. So whether it’s Cosmos, Polkadot or Wanchain or any of the current cross-chain projects, the essence is to solve this problem.
Ever since Blockstream proposed the concept of side chains, cross-chain technology has been one of the main areas of focus in the blockchain industry, however, there is still no universally recognized cross-chain mechanism. The reason is that besides the fact that the demand is currently not so high, its implementation requires the solving of several serious technical problems.
There are two main difficulties which must be addressed in any cross-chain solution.
The first is how to verify the transaction status on the original chain in a decentralized manner. The transaction on the original chain must be relayed by an oracle to the other chain. Ensuring that this information is correctly relayed is one of the most fundamental problems of any cross-chain implementation. If you use decentralized oracle nodes to verify cross chain transactions, then the problem is how to ensure that none of the nodes are malicious, and to prevent problems such as double spending. This is similar to the problem of preventing malicious or ‘byzantine’ behavior one chain, however the problem becomes more complex when you must prevent this behavior across two chains.
The second difficulty which must be addressed is that cross-chain transactions must ensure that the total amount of tokens in the original chain will never decrease or increase. To ensure this, when the tokens are circulated between different chains, the tokens on the original chain must be locked, and these tokens can only be unlocked when the token is to be sent back to the original chain. Completing the locking and unlocking in a trustless manner is one of the keys to solving this problem. Any solution to this problem must also ensure the atomicity of the transaction, that is, that if at some point in the transaction the process fails, and the entire transaction will be revoked.
Wanchain implements cross-chain through its cross-chain Storeman’s nodes, and uses secure multi-party computing and threshold secret sharing to ensure the security of cross-chain transactions. This process is completed without changing any of the mechanisms on the crossed chain. Let’s take Ethereum cross-chain transfer for example. When a user on Ethereum initiates a cross-chain transaction, the transaction will be locked on the original chain with a HTLC (hash time locked contract). The Storeman node group (currently consisting of 21 nodes) responsible for managing cross chain transactions will then initiate a cross-chain contract transaction on Wanchain. This contract will then issue the wrapped ETH as WETH on Wanchain to be distributed to the user’s account on Wanchain, where it is available for the user to transact with as they wish. The Storeman group jointly manages the locked assets on Ethereum using secure multiparty computation and threshold secret sharing so that no one entity ever has access to control of the assets.
Meng Xiaoshe: Some in the industry have the opinion that cross-chain technology will help solve issues of on chain governance of DApps. By removing the two development bottlenecks of performance and governance, cross-chain technology is expected to release the potential of DApps, triggering a new wave of DApp development. What do you think of this view?
Jack Lu: Actually, regarding the classification of cross-chain technology, I have already mentioned the division of homogenous and heterogeneous cross-chain models. Projects such as Polkadot and Cosmos initial plans are not to connect with existing public chains, but rather to first support developers to develop their own new blockchains quickly and cheaply. These chains are expected to reach TPS of in the thousands.
In fact, this type of cross-chain model is essentially a homogenous cross-chain model. The performance of a homogenous cross-chain model depends largely on the TPS of the main chain itself.
However, Wanchain’s understanding of cross-chain refers to heterogeneous cross-chain, that is, BTC to Wanchain, or ETH to Wanchain. Currently, the TPS of BTC to Wanchain transactions depends not only on Wanchain itself, but also on the TPS of Bitcoin. In a heterogeneous cross-chains model such as ours it is difficult to remove performance bottlenecks. One solution could be constructing a second layer network (like a lightning network), and putting a large number of cross-chain transactions on this second layer for processing. However, this method is still in the very early stage in terms of decentralization and security.
In fact, it should be said that the consensus mechanism and on chain governance will be more important. Under a PoS mechanism, on chain governance will naturally be an issue of the consensus mechanism. The delegate nodes of Galaxy Consensus represent not only the individual’s validator’s rights, but also the rights of all the delegators. When voting for on chain proposals as a part of consensus these nodes can fully reflect the ideas and opinions of the whole community, and the ideals of decentralization which underly blockchain. In the future, any DApp developed on Wanchain or any third party chain based DApp which takes advantage of Wanchain’s cross-chain protocol can both take advantage of Wanchain’s on chain governance features.
Regarding Wanchain’s DApp ecosystem, Wanchain is now more inclined to build decentralized financial applications (DeFi). While this concept has recently received a lot of attention, it has always been our focus from the beginning of the Wanchain project. We aim for Wanchain to become the distributed financial infrastructure of the future, our ultimate goal is the rebuilding of finance as we know it.
For example, we have recently begun working with a project, “Decentralized Finance Protocol” (DFP), to build a DeFi application on top of Wanchain. DFP will be used to connect valuable assets, blockchains, users, and service providers. Its main goals are to meet the needs of investors in decentralized finance which are currently not being filled, that is, diversity of investments, convenience, and fundamental value.
Meng Xiaoshe: From the perspective of the whole industry, Bitcoin is blockchain 1.0. There is no doubt that Ethereum represents Blockchain 2.0. However, there are many different interpretations of Blockchain 3.0. Although there are many projects on the market that claim to be Blockhain 3.0, there still lacks a clear general consensus of what it is. In your view, what are the characteristics of Blockchain 3.0? How does cross-chain technology fit in?
Jack Lu: I think that rather than getting caught up in worrying about the precise definition of blockchain 3.0, we would do better to think about what should be the next focus for the blockchain industry? What are the bottlenecks which must be overcome? There are many areas we still need to address such as interoperability, scalability, and efficient consensus mechanisms, blockchain standards, managing on chain data, and so on. Any major breakthrough in these issues will a revolutionary change for Blockchain 2.0. Therefore, the cross-chain may not define all of the blockchain 3.0, but cross-chain must be an important component of blockchain 3.0.
I believe that in the future, blockchain technology will eventually combine the worlds of traditional and digital assets. From a technical point of view, whether it is a commercial consortium chain representing traditional assets, a stable currency, a virtual asset chain, or even a chain representing a national digital fiat currency, ultimately, use cases with greater commercial value and more innovative applications all will come to rely on cross chain-technology. I believe Wanchain will play a vital role in providing that underlying cross-chain foundation.
Meng Xiaoshe: The Wanchain team is has always been relatively low key and pragmatic, while actually, in fact, Wanchain also has been making some real strides in industry partnerships. For example, joining Hyperledger (an open source project promoting cross-industry application of blockchain) and EEA (Th Enterprise Ethereum Alliance). Can you introduce these two organizations and the role which will be played in them by Wanchain? In addition, will the team’s low-key pragmatism affect the performance of the project in the secondary market?
Jack Lu: Hyperledger is an open source project designed to promote cross-industry applications of blockchain. The Linux Foundation led the project in December 2015. Its members include finance, banking, IoT, supply chain, manufacturing and technology companies, and includes industry leaders such as IBM, Baidu, Accenture, Intel, Oracle, Deloitte and more. Wanchain’s team has been working with Hyperledger Quilt and Hyperledger Indy since September 2018.
Hyperledger Quilt aims to study interoperability between different blockchain systems through interoperability between the Interledger Protocol (ILP) distributed ledger platform and existing ledgers in financial institutions. ILP is the Hyperledger base protocol and is mainly used for payment. Wanchain engineers will be involved in research in this area to advance the Quilt project. We hope to link real economic financial assets with public chain digital assets through cross-chain technology.
Hyperledger Indy creates a digital identity authentication tool for the blockchain ecosystem, providing tools, libraries, and reusable components for providing digital identity based on blockchains or other distributed ledgers, allowing them to span administrative domains across applications, and other disparate systems.
The Enterprise Ethereum Alliance (EEA) was formed in February 2017 and its members include a number of large institutional companies involved in the banking, technology, energy and information industries, such as the Chicago Mercantile Exchange, Intel, ING, J.P. Morgan Chase and Microsoft, and some emerging Blockchain startups such as BlockApps, ConsenSys and String Labs. The EEA’s goal is to bring together global research institutions, users, start-ups, and large technology platforms to focus on developing enterprise-level open source platforms that focus on research and development of privacy, confidentiality, scalability, and security. In addition, the EEA is also investigating a hybrid architecture blending consortium chains (private chains) and the Ethereum public chain.
As a member of the EEA, Wanchain will work with the world’s best industry partners to provide best practices for enterprise-class blockchain applications, open standards and open source reference architectures. Through communication and cooperation with members of the EEA, the Wanchain Foundation is working to pave the way for wider adoption of Wanchain’s cross-chain infrastructure. At the same time, Dr. Zhang Weijia, vice president of engineering at Wanchain, is also serving as the general representative of China for the EEA, accelerating the EEA standards in the country.
Wanchain is an organization that attaches great importance to technology research and development. The team is low-key and restrained, but our low-key attitude should not be interpreted as slowness, our team is developing very rapidly. It’s true that the current brand awareness of Wanchain in China is not as good as that in the European and American markets, which is why many Chinese communities think that Wanchain is low-key. Therefore, this year we are gradually increasing our brand promotion in the domestic market. From domestic media exposure to community building to online and offline activities, we are actively promoting Wanchain.
Wanchain is building the fundamental infrastructure for a universal cross-chain protocol. Compared to blockchain application projects, our development path is longer, and there are many significant theoretical and engineering challenges which must be addressed.
We must remember to follow our initial vision and always keep moving forward. The Wanchain team will persevere in the construction of a distributed cross-chain financial infrastructure. We are confident that we have sown the seeds for our success, and will soon see our efforts bear fruit. Ultimately, we are confident that the market will give us the answer.
Meng Xiaoshe: The price of bitcoin has hit a new high for the year of 2019, and other mainstream currencies have also risen. At the same time, more and more mainstream institutions and funds are entering the market, and it seems market sentiment is beginning to turn bullish. What is your judgment of the market environment in 2019? In this new market environment, what areas are public chains competing on? What are Wanchain’s next steps?
Jack Lu: My judgment is that the winter is over and spring has arrived. The market is still volatile, but overall is positive.
I think there are three point of competition for public chains: tech, ecosystem and resources. These three are often also complementary. Technology is the core, and the technology is the most fascinating part of public chains. It will attract countless developers and enthusiasts as well as investors. Ecosystem supports the chain, and a prosperous ecosystem can make the public chain last forever, thus further promoting the progress of the public chain’s technology. Resources are guarantees. Resources determine whether your technology can finally be implemeneted, whether it can be promoted continuously and effectively. If two public chain technologies and ecosystem are similar, then the deciding factor is often resources.
In recent days the minimum threshold for launching a successful public chain is certainly much higher than it was several years ago, so public chains must work hard to constantly balance their focus on tech, ecosystem, and resources. There is fierce market competition now, and each chain must adjust accordingly. Wanchain will continue to focus on its strengths of cross-chain tech, ecosystem construction, and consensus mechanism.
Wanchain is the infrastructure connecting the decentralized financial world. Wanchain’s live cross-blockchain solution is EVM-based, includes optional private transactions, and provides a decentralized, permissionless, and secure approach for interoperability. Wanchain has employees globally with teams in Beijing (China), Austin (USA), London (UK), Kuala Lumpur (Malaysia), Paris (France), and Madrid (Spain).
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