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Natural Selection & Survival of the Fittest! Blockchain Finance and WaykiChain DeFi Advanced Evolution
submitted by official_waykichain to Wayki_Chain
On October 25, 2020, WaykiChain and 36Kr jointly held the 2020 DeFi Global Ecosystem Summit and WaykiChain Ecosystem Partner Conference in Shanghai. The hosts thank all the guests, partners, friendly media, users, and staff who were present.
The summit aimed to discuss the current development, future trends, and opportunities of blockchain DeFi. It also presented the comprehensive development overview of WaykiChain, including its public chain foundation and the DeFi ecosystem. Here is a brief review of the summit.
I. Does Blockchain Finance Involute or Evolve?Blockchain has been developing for over ten years now and is entering maturity. To this respect, in his opening speech at the conference, WaykiChain founder and CSO Wayki Sun expressed that the current blockchain development resembles the ideological and cultural development of the Chinese Spring and Autumn Period and the Western Renaissance. We can propose any consensus or concept anywhere in the world, evangelize any ideas and consensus with no nationality, culture, or region restrictions.
WaykiChain founder and CSO Wayki Sun
1. Finance Is the Most Successful Application Case of BlockchainActually, the current application area of blockchain is very wide. Among others, it covers medical care, social services, storage, government affairs, and gaming. Finance is by far the most successful field of blockchain integration. The guests agreed on this point.
Deputy Director of the Trusted Blockchain Bureau of China Academy of Information and Communications Technology (CAICT) Mr. He Tao clearly pointed out that during the past 10 years, finance has been the most successful blockchain case. Blockchain supply chain finance is the most mature and stable example of industry digitization and its industry development path is relatively clear.
Besides, Director of ShenZhen information service Blockchain Association Mr. Zheng Dingxiang stated that last year, the government commissioned him to inspect blockchain in Shenzhen and he confirmed that the best applications are in the financial industry. Abroad finance is mainly cryptocurrency, while in China it is mainly cross-border settlement.
2. DeFi Evolution vs. InvolutionDeFi is a typical example of the finance + blockchain combination. It emerged in 2018 as a USD 300M market. In 2019, the market increased to USD 600M. This year, DeFi experienced explosive growth and soared close to USD 12B.
Recently, DeFi development has eased, which has aroused debate among the industry participants. Does DeFi involute? (Reference: involution is a phenomenon in a society or culture that has reached a certain development stage and becomes stagnant or cannot transform into a more advanced state.)
During the round-table discussion, the guests expressed opposite views. For instance, World Blockchain Foundation and WaykiChain Consultant Zhou Zhaohui believe that DeFi involution is very serious. One of the typical manifestations is that many people tend to use centralized exchanges, while personal wallets are a necessary part to participate in DeFi. Users just don’t know how to use them.
DeFiGo co-founder Ji Pengheng believes that DeFi faces involution, but it is limited to liquidity mining. This does not deny the future of DeFi and DeFi still has much room for growth.
The opponents included Beekuaibao founder Dao Ge and Nuanse Culture founder Kelly who denied DeFi involution, saying that DeFi is gradually expanding out of the original circle, evolving and empowering various industries.
II. DeFi Is the Future Mainstream, Choose the Path That Suits YouVice President of the China Society for World Trade Organization Studies (CWTO) and former President of the Chinese Academy of International Trade and Economic Cooperation (CAITEC) of the Ministry of Commerce Mr. Huo Jianguo stated at the summit that blockchain technology should serve as the tool for economic development, financial systems, or other business models. This tool is of a positive effect on future development and economic growth. Blockchain has such broad prospects. So what will happen to future blockchain finance? The answers to the following three questions outline the perspective.
1. Will DeFi Replace Traditional Centralized Finance?According to BTC38 founder Mr. Tianwei Huang, the talk about replacing CeFi with DeFi is too early. The two coexist. In the future, as the DeFi infrastructure matures, new phenomena similar to synthetic assets will appear. DeFi and CeFi may merge, resulting in certain synergies and a competitive relationship.
Director of ShenZhen information service Blockchain Association Mr. Zheng Dingxiang expressed that decentralized cryptocurrency transactions are more of the spirit of blockchain decentralization and distribution than centralized ones.
Professor Zhang Zhaofeng of Shanghai Advanced Research Institute, Chinese Academy of Sciences, believes that DeFi is a better transaction method for individuals while CeFi suits B2B better.
Executive Director of Multcoin Capital Mable Jiang considers that DeFi and CeFi can take something from each other. DeFi provides ultra-low-cost financing, while CeFi can be a stronger player in customer acquisition and business traffic introduction.
2. What Is the Future of Blockchain Finance?WaykiChain founder and CSO Wayki Sun stated that the surge of cryptocurrencies like Bitcoin and Ethereum has created a strong wealth effect and attracted many top talents. Driven by huge profits and the continuous influx of professional talents, blockchain, and blockchain finance, in particular, will definitely create a significant output, improve the efficiency of social operations, promote social development, and have a revolutionary impact on society.
Former TRON co-founder and WaykiChain Consultant Liu Ming believes that DeFi governance has certain drawbacks, causing situations when someone is compatible with your product but your product is incompatible with that someone’s product. However, Mr. Liu believes that, as long as governance systems see continuous efforts, the development will definitely be great.
W Broker founder Kai Zhou expressed his optimism about cryptocurrency payments and a belief that cryptocurrency will play a vital role in the international trading system.
World Blockchain Foundation and WaykiChain Consultant Zhou Zhaohui pointed out that, while in the early years everyone emphasized Bitcoin, technicians preferred new trends and were optimistic about Ethereum. At the end that led to Ethereum taking its own direction different from Bitcoin and becoming mainstream. The current DeFi development is akin to the second-generation blockchain Ethereum. It looks like a small fork, but Mr. Zhou believes it will become the future mainstream.
3. What Are the Trends and Opportunities of the Second Half Time of DeFi?Beekuaibao founder Dao Ge thinks that if DeFi manages to bring everyone’s economic activities to blockchain, it will be very valuable.
DeFiGo co-founder Ji Pengheng expressed that the overall DeFi direction should be turning the “people trust people” concept into the “people trust code” one. Centralized finance is gigantic by itself. If in the future a small fraction of it turns to a trusted DeFi code, DeFi will gain a bigger market.
BTC38 founder Mr. Tianwei Huang expressed that every direction of CeFi, say NFT or futures contracts, will also have its rise in DeFi, but the development speed correlates with the infrastructure progress. Once it keeps up, the explosion will follow in a blink of an eye.
World Blockchain Foundation and WaykiChain Consultant Zhou Zhaohui think that DeFi has many ways to make money. The reason why most people only join liquidity mining is they don’t know of other ways to make money. So, if you want to make money, you must first understand how DeFi can help you make money and what the key strategy is. DeFi has many ways of participation. Tycoons and small-scale players both have space. Just choose the way that suits you.
III. The Road Is Long, but WaykiChain Moves ForwardThe development of public chains has passed the nascence and exploration. It is entering utilization now. This is not a smooth process. We’ve seen multiple ups and downs. This is also true for WaykiChain. After the mainnet launched in May 2018, WaykiChain has been knee-deep in public chain technology development, exploring commercial applications and expanding communities both at home and abroad, which got its fruits.
WaykiChain technology has gone through two iterations, Dragon and Fly. It is currently in the Tiger era with high-performance transaction processing (average 4,500+ TPS), an efficient consensus mechanism (DPoS + pBFT), and a powerful smart contract engine (Lua + WASM) among other features. WaykiChain co-founder and CTO Richard Chen stated that he would continue the research on multi-chain architecture, privacy technology, comprehensive modularity, and fork-less upgrades.
In terms of commercial application, WaykiChain has had four stages: payment, equity, quizzes, and games. In 2019, it entered the fifth stage, DeFi. Why WaykiChain chose to develop in DeFi? According to WaykiChain co-founder and CEO Gordon Gao, 1) DeFi can solve the financial needs of borrowing and making money; 2) it can transform blockchain from a zero-sum game to a win-win one; 3) DApps, quizzes, and other applications need stablecoins.
Since its start, WaykiChain has held not only various meetings and activities in major Chinese cities like Shanghai and Beijing, but also online and offline activities in the United States, South Korea, Singapore, and Vietnam. Local partners and volunteers join WaykiChain across different countries to promote the project and spread it all over the world.
Currently, whether it is a matter of an active or passive choice, blockchain + finance creates a great application case. WaykiChain chose DeFi and succeeded. However, success does not mean the project ends here. It is a starting point for new achievements.
Vice President of CWTO and former President of CAITEC of the Ministry of Commerce Mr. Huo Jianguo pointed out that blockchain technology needs to pay more attention to platform construction, basic services, and operations. By the way, over the past three years, WaykiChain’s efforts have been concentrated just in these areas. As the ancients said, there is a long way to go. WaykiChain needs to continue the expansion and root growing, forge ahead, and develop to a more advanced level!
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