Senior practitioners from projects such as PlatON, Manta Network, Octopus, Arbitrum, Celer, Polygon, Loopring, etc. discussed topics such as privacy computing, Web 3.0, and Layer 2.
At 19:00 on September 26, 2021, Winkrypto and ChainNews jointly produced the “King of Tribal City-2021 Blockchain Live Show”. The second unit of “Ecological Puzzle-Privacy and the Rise of Layer 2” will be broadcast on the video account of ChainNews. Interface news is broadcast simultaneously.
PlatON CTO Qu Junjie, Manta Network co-founder Victor, Octopus founder Liu Yi, Arbitrum China head Nina Rong, Celer China head Qi Chao, Polygon China head Charlie, Loopring CTO Steve Guo around privacy and Layer 2 In-depth discussions on topics will bring you 3 keynote speeches and 1 round table dialogue.
This article is a collection of live broadcast highlights, and the content has been edited.
Keynote Speech | Under the “Data Security Law”: PlatON’s road to building a “data citizen”
Speaker: Qu Junjie, CTO of PlatON
PlatON’s Slogan is Lets Computel, which is to calculate. We are now rapidly entering an era of all-digitalization. There are so many devices that capture your various data, and these data have rights. Digital rights are calculated, and rights protection is protected through calculations. This is why this Computel is needed.
At the core of Computel, we think there are two: the first is privacy protection, and the second is AI. It’s like driving a car: I step on the accelerator equivalent to using A to calculate I to create more data value. Stepping on the brake is to protect the privacy of these data values. Only with the brake ecology can we develop safely and healthily.
The Web2.0 digital world is like an iceberg. The most surface applications include Facebook, Wechat, Tiktok, etc., through which we can receive a lot of information; the middle layer below the surface layer hides a huge data treasure to be discovered; the bottom layer is also There is the dark web, where there are more things we can’t even imagine.
Analyzing Web 3.0 from the bottom, we need effective digital identities and KYC to oppose evil and make the digital world develop for the better.
We need to further mine valuable data, but we must protect it while mining, which requires privacy computing. Privacy computing should emphasize verifiability, and it is best to use mathematically verifiable algorithms to truly achieve privacy protection.
Today’s AI has developed to be able to manipulate your thinking, guide your judgment, etc. PlatON has been exploring data silos, guiding data reasonable and compliant to create value, and helping us live a more dignified life in the digital world.
The roadmap of PlatON Privacy Computing 2.0 is also divided into three layers: the bottom layer is a complete privacy AI framework’s basic cryptographic algorithm library. In this algorithm library, there are familiar Zk-SNARKs, which are zero-knowledge proofs, and zero-knowledge can be said. It is a complete and very successful privacy algorithm in the blockchain and even the digital world.
The middle layer is the privacy computing protocol layer. This protocol has privacy payments, privacy transactions, and privacy storage. The core functions of this protocol will be reduced to infrastructure, such as support for the compilation of zero-knowledge proofs and support for zero-knowledge proofs to verify Virtual machine, etc.
The upper layer is the privacy computing service layer. We hope to create an open source community around the world. We have been advocating that developers first, because developers are ecological builders, and we hope that developers can like our service layer.
Let me share with you the privacy AI aspect. Privacy AI is first based on the blockchain, because the blockchain is the bottom layer of light settlement. On top of this, a decentralized privacy computing network is built, and data, Algorithms and computing power are connected to protect data privacy, create data revenue, and reduce data acquisition costs, forming a synergistic artificial intelligence network.
Keynote Speech | The last link missing from DeFi, what is PriFi (Privacy Finance) in the Web3.0 era?
Speaker: Victor, co-founder of Manta Network
Privacy finance is a neglected point in the DeFi field. The important reason for this phenomenon is that many users choose to sacrifice security when facing the high returns of DeFi. But blockchain privacy is an increasingly serious issue. Manta interviewed more than 400 industry practitioners last year. Among them: 73% of the respondents would avoid decentralized transactions due to privacy issues; 84% of the respondents were worried about the link between the wallet address on the chain and the real identity; 90% of the respondents Spy on the digital assets and transaction records of other people’s wallet addresses. With the emergence of more data tracking tools on the chain, the transaction experience will be affected, and privacy will become an indispensable part of the encrypted world.
But the privacy finance track did not catch on. Investigating the reason, we divided the development of privacy finance/PriFi into three stages:
Phase 1: A privacy coin similar to Zcash appeared in the early stage of 2014-2015. This process is more dependent on centralized nodes or centralized exchanges. As a public chain island, Zcash cannot apply value to other scenarios to generate extra income.
Phase 2: With the rise of industry development DeFi projects such as Secret Network have been developed, exploring the basis of private transactions, but there are also performance and composability issues, and Secret Netwrok TEE solutions will still rely on centralized nodes problem.
Phase 3: Manta solutions are more inclined to truly user-friendly projects, and higher performance can also be achieved through Polkadot or Layer 2 with better interoperability and composability.
Manta chose to develop on Polkadot for three reasons:
- Faster operating environment Run-Time
- Faster consensus protocol Consensus
- Sufficiently customized
At the same time, Manta products have several directions to achieve true privacy DeFi/Privacy Finance:
- The first step: MantaPay, to make the assets of the parachain become private.
- Step 2: MantaSwap, to realize decentralized and private transactions.
- Step 3: Support privacy EVM based on scenarios of transactions and private assets, and promote Manta to become a plug-and-play composable DeFi network.
Manta will participate in the auction of the Polkadot mainnet in the next quarter and will steadily promote product launches and audits. It is expected to launch MantaSwap and smart contract platforms next year to ensure composability.
Keynote Speech | How Web3.0 Takes Off with DeFi
Speaker: Liu Yi, the founder of Octopus
Does DeFi belong to Web3.0? I think the answer is yes. Web3.0 is the Internet era with decentralized encryption protocols as the protagonist. The encryption protocols will replace the Web2.0 platform and traditional middlemen, and connect people and people, people and organizations in a more open, fair and safe way. Transactions and interactions. DeFi is the Internet finance in the Web3.0 era, and other parts of Web3.0, including chain games, decentralized social networks, DAOs, etc., may be called decentralized digital economy.
The relationship between DeFi and Web3.0 should be the relationship between the engine and the car. The engine runs to drive the car, but if you only build the engine and not the car, then the engine will not create any value.
If DeFi funds cannot flow to the decentralized digital economy, then DeFi cannot continue to develop. On the other hand, the decentralized digital economy should seize the convenient transaction infrastructure and abundant capital brought by DeFi to quickly promote the implementation of Web3.0 in the non-financial field.
How can Web3.0 take advantage of the great situation created by DeFi to take off? I don’t think that Web3.0 applications and DeFi should be built on the same public chain. Because the processing power of the public chain is always limited, transactions on the chain will prosper to a certain extent, and it is bound to face congestion and rising costs. Whether it is a chain game or a decentralized social network, the unit economic value of the transaction is far lower than that of DeFi-type financial transactions, so these applications cannot compete with DeFi.
It is even more difficult to find an unpopular public chain without DeFi dedicated to Web3.0 applications. Because all Web3.0 applications need to use tokens to coordinate the interests of protocol participants, DeFi has inherent advantages in this regard. So the best thing about Web3.0 and DeFi is: don’t get together, but don’t get too far apart.
In the field of blockchain, the corresponding technical solution is to build a blockchain that specifically supports applications and link it to a public chain with a highly developed DeFi system through a cross-chain bridge to form a star-shaped or spoke-shaped multi-chain network. At present, the three main multi-chain networks Cosmos in the public chain field, Polkadot and Octopus, are all spoke-type expansions. But in these three multi-chain networks, the relationship between DeFi and Web3.0 is quite different.
Both Polkadot and Cosmos pursue hub minimalism, which means that in addition to coordination and interoperability and shared security, the hub of a multi-chain network should have as few functions as possible. Obviously, this hub minimalism is influenced by the end-to-end principle of the Internet, but the blockchain Internet is just a metaphor. Whether the multi-chain network architecture should be designed in accordance with the Internet is not supported by reliable arguments and logic.
Octopus Networks believes that Web3.0 should rely on DeFi to take off in an all-round way. The cross-chain hub of Octopus Network is NEAR, which is a full-featured public chain with a DeFi ecosystem that has been built and is developing rapidly. All Octopus network’s Web3.0 application chains can use Skyward and other agreements to do IDO financing; the assets issued by the application chains can be traded on Ref.finance and other DEX, and participate in various DeFi and derivative agreements .
Not only that, through NEAR Rainbow Bridge, the assets of the application chain can enter the Ethereum, and the application chain can also use the assets issued on the Ethereum, so that the application chain is connected with the public chain world, the largest and richest DeFi network. There is no need to wait for these supports, and the application chain can obtain these capabilities as long as the Octopus network goes online.
In addition, I think that Ethereum Layer 2 is not the home of DeFi. Because the cost of Layer 2 is still too high for Web3.0 applications, and the customization and upgradeability are insufficient. Only by shifting DeFi to a new public chain with better performance and better user experience, and establishing a Web3.0 application chain network around the new public chain, can DeFi and Web3.0 promote each other and coordinate their development.
Roundtable Dialogue: Ecological Rise-Who is the ultimate winner of Layer 2
host:
- Pan Zhixiong, Research Director of Lianwen
Guests:
- Nina Rong, Head of Arbitrum China
- Qi Chao, Head of Celer China
- Charlie, Head of Polygon China
- Loopring CTO Steve Guo
Pan Zhixiong (Moderator): As we all know, with the rapid development of DeFi and NFT, Ethereum is overwhelmed, and Layer 2 has become an integral part of Ethereum in the future. So today we invited four members of the most important Layer 2 network at home and abroad to talk to us about the recent progress of the Ethereum network and what they are up to.
Nina Rong: Recently, Arbitrum has two milestones, one is the mainnet launch, and the second is the recent completion of the B round of financing, which has raised 120 million US dollars. It is jointly invested by Lightspeed, Pantera, and IOSG.
Charlie: Polygon is also constantly expanding the technical development direction of our Layer 2 network. Polygon SDK was launched in May. Recently we have also completed the support of ZK-rollup. In the future, it will develop to the acquisition of the technical team of zk-EVM. There are more than 600 application projects in the overall application, and the data on the chain exceeds 10 million in a single day. We have also established Polygon Studio, focusing on the next-generation development in the field of games and NFT, and hope to use our Layer 2 technology to promote more applications. Land on it.
Qi Chao: We have made two new products this year. The first is called Layer2.finance, which uses Optimistic Rollup’s DeFi expansion solution. It is mainly for everyone to use a team-building approach, so that retail investors can use DeFi. . At the same time, we have made a cBridge cross-chain bridge for the current multi-chain and multi-layer architecture today, which can quickly realize the fast transfer between Layer1, Layer1 and Layer2. In addition, we are also intensively developing a development aimed at increasing the total amount and transfer of liquidity, so that more users can use such a product of cBridge.
Steve Guo: We have found that there are certain problems with the in and out of funds. On the one hand, the cost of the first and second layers of funds in and out is obviously high. On the other hand, the waiting time for ZK-rollup is also tens of minutes. For this scenario, we developed a scenario called quick withdrawal at the time. , But found that the capital utilization rate is still not good, so we launched a model called dynamic AMM, this curve will dynamically increase the leverage based on some parameters to try to achieve higher liquidity with the smallest capital.
In addition, starting from May of this year, we have worked with a relatively large partner to make a two-layer dedicated NFT solution. This entire main network protocol has been launched. Mint does not need to spend money, and transfer transactions can basically be regarded as procedures. The fee is very low. A fee is about 0.3 dollars or less than 0.4 dollars. If more people are used, I guess it can be controlled within 0.1 dollars.
Pan Zhixiong (Moderator): Layer 2 may be a new type of expansion solution that can carry NFTs. Recently, we have seen a relatively large dedicated NFT solution that is StarkNet, which is provided by StarkWare. They have just started Public offerings are doing some preliminary things, and at the same time, their network should be partially online. They can mint or trade NFT at a very low cost. I would like to ask if you have any specifics about the NFT piece. The layout or consideration? Is it possible that this kind of NFT dedicated chain will have a more obvious advantage for NFT scenarios, and is it more suitable for ordinary Layer 2 or general Layer 2 to do some financial types?
Steve Guo: I didn’t expect the development of NFT to be so exaggerated. Last night I experienced the Mint NFT on the first floor. The cost is one or two thousand dollars. I think this is too exaggerated. For games that can be played in, the second floor is an option to lower the cost. The second layer is inherently able to inherit the security of the first layer, and at the same time, it can greatly reduce the cost. Just like the StarkWare mentioned just now, this method is a bit similar to our Loopring’s current architecture. Both are ZK-rollup systems. It is almost zero cost to be able to achieve Mint on the second floor. I think it may eventually be a form of a dedicated NFT chain.
Qi Chao: NFT’s dedicated chain can definitely reduce the cost, but there is a problem that will reduce the composability of NFT. At this time, it depends on the situation. For example, a financial NFT like UniSwap V3 positions is because It needs strong composability, so it is still more suitable for operations on various EVM-compatible chains and others. It is not particularly suitable for NFT dedicated chains. For gaming applications, it is very suitable for NFT dedicated chains. Because it needs to be low cost.
Charlie: From the end of last year to this year, our specific main technical deployment is Polygon SDK. We support various ecological game projects to do one-click distribution and let him build his own side chain. This side chain network is seamless with Polygon. Compatible, I think as an ecosystem with very low handling fees, we have expanded the entire chain from the side chain to the present, and the data in the past few months is also good.
There may be a wave of Gaming Summer this year. We believe that this Gaming is not just a game, it is a process of entering the game that embraces the traditional world in the future. Polygon Studio was established to promote better new game projects, combined with NFT attributes to participate Technical attributes are involved in the development of Web 3.0 Game applications.
We believe that NFT still has many broad forms, including what everyone talks about, such as financial derivatives positions, financial papers, etc. The emphasis is on some combination with DeFi protocols, which is composability, so that it is not only focused on a dedicated chain Above, so Polygon has always been walking on two legs. Our DeFi department and NFT department are developing at the same time, and they are compatible with each other.
Nina Rong: NFT is a technology, and the specific application scenarios are diverse. Arbitrum is now paying more attention to the DeFi track. There are already a lot of DeFi protocols in our ecology that are actively proposing to introduce new NFT gameplay. , I think Arbitrum is trying to do in the future in this regard. As for the obvious advantages of special chains like NFT, I think the market will continue to be segmented in the future. There will be some projects to do things that general-purpose Layer 2 will not do, to meet the needs of some more niche people, I think they just need to The needs of the market segments they serve are tapped to meet them, and this is their greatest advantage.
Pan Zhixiong (Moderator): I think Layer 2 is increasing at a very fast rate in both networks and projects. Have you seen any better practices for multi-chain deployment?
Nina Rong: I think it’s DODO. They first voted, and finally migrated 5 million of liquidity to Arbitrum for pure incentives. This is a good practice. Since this matter is determined by the community, they are equivalent to saying that they have adopted this practice. Within four days of going online, 25 million of funds have been locked, so it can be regarded as a relatively successful liquid mining case in our low-key online process.
Charlie: As a Layer 2 strong financial ecosystem, a large number of our ecological projects are migrated from Ethereum, and basically 90% of the multi-chain deployment of Ethereum’s DeFi project has been completed. We also see the business brought by the technology of multi-chain deployment. As a growth point, I think multi-chain deployment is inevitable. We also expect many multi-chain deployment projects to attract users through short-term incentives for liquidity mining on the new chain. You can really see that cross-chain is not just a concept, but has actually been implemented.
Qi Chao: I can provide some suggestions. For example, AC once wrote an article called “Best Practices for Multi-chain Applications”, which I think is a very valuable article. At the same time, we mentioned earlier about the liquidity migration after multi-chain deployment. Our cBridge is a very good way. We are also talking with some very good project parties who are doing multi-chain deployment. He may go back to the ether master first. Net, and then from the Ethernet main net to Arbitrum, in fact, one can be completed directly through cBridge in one step, and it can be migrated from any chain. This is a convenience we provide for multi-chain deployment.
Steve Guo: Loopring is currently a ZK-rollup for a specific application, but we still have a smart wallet business. The biggest problem that smart wallets face is high cost and difficulty in promotion, so we are also looking for solutions that support general Layer 2 on the market. plan. When we choose, the first choice is to judge security. In my opinion, the Layer 2 network has a broad sense and a narrow sense. The broad sense includes lateral solutions such as Polygon. The narrow Layer 2 network is at least guaranteed by the Ethernet main network in terms of security. , This is a two-tier solution with a relatively high level of absolute security.
In addition, we will choose projects that have been launched on the mainnet to be deployed first, and then compare them in various dimensions, such as the cost of deployment, the degree of support from your developers, and our integration How difficult it is, these will be a factor in our choice.
Pan Zhixiong (Moderator): Polygon made an acquisition and acquired a team that was originally Layer 2 safe and technologically advanced. Do you think it is possible that the number of Layer 2 in the future may be reduced through mergers and acquisitions, making the entire ecosystem become More composable?
Steve Guo: I think the future must be a multi-chain and multi-layer overall distribution, but it is very likely that different applications on each chain or each layer will run on different chains. If homogenized competition, it must be a two-eight effect. Yes, as for the victory of Layer 2 at the end, I think it’s difficult to judge this, but I personally prefer ZK-EVM. If there is a general ZK-EVM, everyone will not lose security and the final certainty time It is short and composable. I am more optimistic about this track.
Qi Chao: I also think that in the future, multiple chains and multiple solutions will coexist, but I think it is unlikely that there will be a dominant situation in the future. With the growth of users, it is impossible for a Layer 2 to meet all user needs. It must be a state of coexistence. In addition, because it is much more efficient to use a dedicated Rollup to solve certain specific scenarios than a general purpose, there must be a dedicated Rollup.
Regarding the issue of composability, we think that there are generally two types, one is synchronous composability, the other is asynchronous composability, and synchronous composability is like lightning loan, which can simultaneously operate multiple protocols on one chain. The composability of, as well as asynchronous composability like cross-chain transfer. With a multi-chain and multi-layer situation, asynchronous composability will have a considerable development, but there will also be many problems in this development process, such as the situation where you know that Poly Network was hacked some time ago , Because of the vulnerability of the whole line of improvement caused by asynchronous composability, there should be many solutions to improve asynchronous composability, such as various cross-chain bridges. We think that synchronous composability will be subject to some restrictions, but asynchronous Composability will have a considerable development.
Nina Rong: In the future, the market will eventually have a variety of solutions. We will also judge what needs to be met based on market dynamics, and let the market choose what they want to do in what kind of solution. The other is that both ZK and OP are presented in one form, including cooperation with cBridge, including cooperation with privacy wallets. Different Layer 2 solutions have been combined in different forms. This is the future. More optimistic about the direction.
We will not be associated with ZK in the short term, because EVM is compatible with various development protocols and is very friendly to developers. Many protocols may be deployed. In the medium term, we still have ETH2.0, so ZK can say that it is not right now. Need to make a decision, but we will be very concerned.
Steve guo: The research capabilities and engineer level of the Hermez team are very forward-looking, which is an important reason for our choice of acquisition. Just now Qi Chao talked about the composability of different purchases. The Poly Network incident did show us the problem of heterogeneity, and we already have more than 20 solutions.
In the past few months, what our CTO has been pushing is that we have already released our technical direction, which is the solution to our data viable chain. We also believe that Rollup has its limitations, so the solution to the data feasibility problem is actually It is very important to promote this data feasibility chain under the Rollup framework and the multi-chain cross-chain network around the main main and side chains of Ethereum to be promoted, and the shared security chain is our main development goal this year. Next, the ecological demand may be even greater, so I believe that the EVM in the ZK direction is a very effective solution.
The acquisition of Hermez can be regarded as a strong alliance for Polygon. We have absorbed the research capabilities of the Hermez team, the influence in the Ethereum circle, and the development experience in Europe and India. The joining of the Hermez team is also a part of ZK technology. A big supplement, we also look forward to such a federation in the future for our two-layer network composability solution to achieve leapfrog development, we are also very optimistic about the future of ZK.
To sum up, the future will definitely be a multi-layer network and multi-chain deployment world. Whether it is ZK, Optimism or other technical expansions, it is very important. Depending on the needs of the business, different ones may be used. Technical results program.
Pan Zhixiong (host): Everyone thinks that the rise of Layer 2 will have some long-term impact on high-performance companies such as BSC?
Steve Guo: Layer2 is a weapon for Ethereum to PK with other high-speed chains like BSC and Solana. The reason why emerging public chains can develop rapidly in the near future is because they can solve the needs of users, but the real consideration of security is to deploy in Ethereum. So I think the two directions will coexist in the future. In the long run, everyone will find their target users. In the short term, Layer 2 is safer.
Qi Chao: Ethereum has no way to meet all the needs, so new public chains and Layer2 will appear. In the future, it may be a state of one super power, one super power is Ethereum, no matter how strong it is a general solution like Arbitrum , There is also a new public chain like Solana, their existence is to carry the overflow demand. So I still think that in the end, everyone will cooperate with each other to meet the needs of overflow.
Charlie: We still think that Ethereum will be a very important infrastructure for long-term development, similar to the new public chain developed by the exchange. The advantage is that it is supported by a natural user group and platform of the exchange. From this perspective The accumulation of its early users is a relatively seamless connection, and its limitation is that there will be compliance issues to a certain extent, including the ecological architecture is relatively centralized. For some users of the Ethereum ecosystem, this structure contradicts their values.
We believe that under the premise that the network effect of Layer 2 and the historical status and importance of Ethereum, as well as relative decentralization and security are still more important, the development of other third-party public chains, I think it is still necessary to differentiate competition. I think this is also a purpose of our Polygon, we still go to promote the application, and use the demand of the application to reverse the development of technology. A very important premise is to empower the expansion of Ethereum.
Nina Rong: I think everyone has two consensuses: One is that the security of Ethereum includes decentralization. The leading position is unshakable in the short and medium term and the other is that the future will definitely be a multi-layer The ecology of the chain. Everyone here is doing things that no one else has done. This is a breakthrough in the technological boundary, which is a good thing for the development of the public chain.
Concluding remarks
At 19:00 on September 27, 2021, Winkrypto and ChainNews jointly produced the third live broadcast of “The King of Tribal City-2021 Blockchain Live Show” “Vientiane Update-The Way of DeFi Innovation” will be on the video account of ChainNews. Simultaneously broadcast with interface news.
In a blockchain tribal city with hundreds of chains, are Layer 2, oracles, and derivatives the next blue ocean in the DeFi market? What is the worldview of the underlying system of the blockchain in the future? How will we view the integration of traditional finance and DeFi? More exciting, see or leave!
