Song Xiaodong, founder of Oasis Labs, believes that only by combining blockchain functions with secure and private computing can we build a better scalable and privacy-protected DeFi.
Extended reading: ” DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play? 》
Speech: Song Xiaodong, founder of Oasis Labs
On October 27th, the 6th Blockchain Global Summit hosted by Wanxiang Blockchain Lab opened in Shanghai. Song Xiaodong, professor at the University of California, Berkeley and founder and CEO of Oasis Labs, shared the challenges and opportunities faced by the development of open finance (DeFi).
The full text of the following speech:
Song Xiaodong, Professor, University of California, Berkeley & Founder and CEO of Oasis Labs
thank you all! My name is Xiaodong Song, I teach at Berkeley University and I am also the CEO of Oasis Labs.
Earlier, Jennifer told everyone what distributed finance brings and challenges. Today, I just talked about the challenges and new opportunities in this area in more depth.
I teach in the United States all the year round, and I usually speak in English. It is more convenient for everyone in China to listen to Chinese today. I will try my best to speak in Chinese, but sometimes it will be mixed in Chinese and English, because some scientific and technological terms are better in English.
Everyone heard that decentralized finance is DeFi, and DeFi is also the hottest practical application of blockchain. However, there are many bottlenecks facing DeFi now. How to solve the bottlenecks better and truly achieve the potential and ultimate goal of open finance?
What are the main challenges and bottlenecks of DeFi?
- DeFi is mainly on Ethereum. According to Ethereum’s bottleneck on scalability and throughput, today there are very big challenges, and the gas fee is very high.
- The Ethereum blockchain infrastructure does not have privacy protection, but privacy protection is necessary and very important as financial applications go wider.
- The core of DeFi applications is assets, and more are traditional assets. As open finance expands, there must be more, better, and more valuable assets.
Today, I will use Oasis as an example to describe how to solve the challenges and problems? And what kind of new applications will it bring to everyone while solving the challenges?
First, how to solve the challenge? Oasis platform has technical uniqueness and breakthroughs, creating a new blockchain platform to better solve the three challenges mentioned above.
The blockchain must have very good scalability. The Oasis platform has a new and unique scalability architecture. The blockchain needs to implement three functions: consensus, calculation, and storage. But today’s blockchain mixes three functions together, and each node needs to perform the same three functions, which will bring a big scalability bottleneck to the blockchain as a whole.
Oasis was the first to propose the concept of separating computing and consensus in the blockchain platform. The bottom layer of the Oasis platform architecture is the consensus layer, and the upper layer is the ParaTime parallel computing layer. After separation, the parallel computing layer can have better parallel computing capabilities, and many ParaTimes can run at the same time.
Oasis is the first to combine distributed accounting and secure computing, combining the innovation and uniqueness of new technologies at the ParaTime layer level, thereby better solving the three problems I raised earlier.
(1) DeFi with scalability and privacy protection can be supported.
(2) It can support brand new data assets.
In the case of combining blockchain and secure computing, data can be confirmed, and data can be used with privacy protection to obtain value from it, thereby generating new data assets.
Let me tell you a little more specifically. Scalable and privacy-protected decentralized finance.
The Oasis platform has better scalability, can better solve the DeFi scalability bottleneck problem, and allow DeFi applications to have a larger scale.
Today all DeFi information is public, but many DeFi applications have a lot of sensitive information. Oasis has the ability to protect privacy, helping different DeFi applications protect different private information. Last year, a privacy-protected lending application was made to improve the privacy guarantee of lending users.
Privacy protection can allow lending to be more widely used. Today’s DeFi is usually over-collateralized lending because there is no other information. Under the condition of pursuing privacy protection information, users can provide sensitive data, such as financial data and other behavioral data. The data is used to calculate user credit, and privacy computing capabilities are applied to protect users’ private information. The calculated credit can be used to provide users with low-value loans.
In the case of privacy protection, users can be better protected from being attacked by attackers. Today, all information on the DeFi platform is public, and everyone can see what the user wants to do, and the attacker can also see it. There are many attackers who see that users will operate, and the attackers will profit from higher transactions. With privacy protection, the user’s transaction information is protected so that the attacker cannot see it, thus better protecting the user’s transaction from being attacked or arbitraged by the attacker.
Oasis insists on ParaTime, which is fully compatible with Ethereum and EVE, and also supports smart contract operation. Applications on Ethereum are easy to migrate to the Oasis platform.
Many people have heard of Uniswap, and now Uniswap runs on Oasis. It is Oasis’ ParaTime who helps Uniswap migrate to Oasis. With better scalability, faster and shorter experience, users will feel better.
Recently we also did a hackathon. Thousands of developers participated in the hackathon. More than 3,000 Smart Contracts were migrated, and there were hundreds of DApps.
There is a better development of the DeFi ecological environment on Oasis, and a new Joint-Grant with Balancer. The Balancer is changed to the Oasis platform, so that the Balancer can run on the Oasis platform, and a privacy-protected Balancer will also be developed. Balancer is Non-custodial porfolio manager. With scalability and privacy protection, DeFi with scalability and privacy protection can be achieved.
Let me tell you about emerging applications and how to capitalize data.
Today, DeFi mainly focuses on Foucx or traditional financial assets, but data is the core pillar and core production element of the modern economy. Moreover, the data economy is growing exponentially. According to statistics, the magnitude of the global digital economy is very high, even higher than traditional financial assets.
Data has also faced many challenges recently, especially in terms of data right confirmation and privacy protection. How to better solve this problem, and use the combination of blockchain and private computing to provide a new and better infrastructure for the data economy. The technology that Oasis is developing, hopes to create a better infrastructure for the future data economy, and hopes to use the infrastructure to create a new data economy-a reliable and responsible data economy.
Today, many people are not responsible when they use data. They leak and buy or sell users’ private information, which does not protect user privacy and makes users lose value.
Hope to use emerging technologies to combine blockchain privacy computing to create and support the emerging data economy-a reliable and responsible data economy.
Tokenization of data, the establishment of data assets, while allowing users to have better control over their own data assets, and at the same time, it can set up better incentive mechanisms to allow users to better share data.
The Oasis platform has a unique ability to combine blockchain and private computing. In this case, it can support emerging applications-data tokenization, and establish emerging data assets.
What is the role of blockchain here? Blockchain can provide a ledger that cannot be tampered with. Blockchain can provide users with an immutable record of data ownership and application rights.
Privacy calculation ensures that data privacy cannot be leaked when data is in use. The combination of the two can support emerging assets-data assets. It helps users to confirm the rights of data, and at the same time supports data to be used with privacy protection. Although the data is used, users can still protect their rights. In the case of data assetization, it helps users to better get benefits from it.
How can users better profit from it? Everyone knows about liquid mining. Users with similar data assets can borrow data assets, and data users can use the data while providing fees while protecting privacy, and data providers (users) can get Data Reward rewards and compensation from them.
Data DAO is a self-organization of data decentralization, which can put medical data in Data DAO, and at the same time better help medical research and development.
Recently, Beta Launch was finally made in Fund Data, which uses technology to help users confirm the rights of genetic data, and at the same time allows fund data to be used with privacy protection.
Open finance is an inevitable trend in the future, but the current blockchain platform has a big bottleneck. To solve the current challenges, it is necessary to create a scalable and privacy-protected blockchain platform. It is necessary to combine blockchain functions with secure and private computing. In this case, build a better scalable and privacy-protected DeFi At the same time, it can build up new data assets and create a reliable and responsible data economy.
thank you all!
