Oct. 15 Live Review: “The trend is starting, the centralized exchange giant Bithumb is launching effort to build a decentralized exchange”
On the evening of Oct. 15, Tony Sun, the Chairman of ONEROOT Foundation, was invited to participate in the TokenClub live broadcast, with the theme “The trend is starting, the centralized exchange giant Bithumb is launching effort to build a decentralized exchange”
1.What is DEX?
At present, although the decentralized exchanges in the market have already adopted the decentralized technology, they are only exchanges depending on their own traffic and trading depth. DDEX refers that multiple exchanges access a same protocol to share transaction traffic and depth to form a distributed decentralized exchange alliance.
2. What is R1 protocol?
R1 protocol is an Ethereum-based efficient decentralized protocol for token exchange, and 99% of tokens on the market are issued based on Ethereum. Compared with other decentralized transaction protocols, R1 has the function that Relay conducts matching off the line, which effectively improves transaction efficiency and provides users with a better trading experience.
3. Will DEX take the place of CEX?
Still dominated by centralized exchanges, Ethereum has limited performance. In the future, the proportion of DEX will continue to increase with the improvement of public chain performance.
Decentralized exchanges can meet the trading needs of tokens that are not circulating in CEX under different scenarios. Centralized exchanges are lack of transparency and easy to arise questions, but they can play a role in cross-chain transactions.
Exchanges are currently the best commercial application for the blockchain industry, and DEX is the future trend. Nevertheless, the first thing we need to do is to improve the industry infrastructure.
4. Why not cooperate with China’s exchanges instead of Bithumb?
We had contact with the domestic exchanges before, but failed to reach cooperation for two reasons: 1. The other party was also doing the same thing and had a competitive relationship with us; 2. They did not agree with the sharing and win-win concept of ONEROOT.
Because of the business relationship with Bithumb, which shares the same concept with us and identifies our technology, we build cooperation with it. As for Bithumb, a relative open exchange, it makes a bold attempt. At present, we are in contact with the leading exchanges in the United States and Japan, and then more exchange giants may access R1 in the future.
R1 is open source and can be used for free. Bithumb DEX and exchanges that access in the future are operated independently, for ONEROOT is a technology provider. With regard to the fee, R1 only fixedly charged 0.01% , which is roughly equal to zero. We hope that all exchanges will compete for operation rather than fees.
There’s no preconditions to access R1 protocol, which means it’s totally free and open source. Our purpose is to build the infrastructure of the industry and promote freedom of trade.
5. Since the blockchain economy is going down, can it develop an independent market?
As there’s a strong global call for currency restructuring, great changes will take place in the future. As far as I am concerned, the cryptocurrency market is not optimistic, and the bull market that everyone is convinced of will never come again. Now the market is in its winter, and next is the trend of going to zero. Mainstream cryptocurrencies will develop their independent markets. As an emerging market, STO is promising. The platform coins of Huobi and Binance are relatively reliable, which may have chance to grow in the future. Be cautious about projects that neither hold traffic nor come into service.
Currently in its infancy, blockchain still has lots of chance to develop, of which the technology needs 3–5 years to be mature. There will be new markets for security tokens and stable coins. Pay more attention to the technology. Investment needs to be based on certain understanding of the industry and the industry trend. All investment decisions should be considered carefully.
6. What do you think of stable coins?
Gusd is an iconic event that the digital US dollar has led to stable coins in other countries under regulation. I’m optimistic about the stable coins which 1:1 anchor fiat currencies, but they will not last long without regulation. ONEROOT has prepared a digital foreign exchange trading platform and will launch it when the time is appropriate.
7. At present, blockchain enterprises are lack of profitability and have few application scenarios . Since exchange is a mature profit point in the industry, what’s your opinion and plan in this regard?
At present, the infrastructure in the blockchain field is not perfect, and 99% of existing projects cannot be implemented.
Currently, the best application which has coming into service is exchange, and only the leading exchanges can make money.
Will exchanges use the blockchain technology? Centralized exchanges are still mainstream, while decentralized exchanges are becoming the trend. There is no such thing as who will eliminate the other, and the two will coexist for a long time, each playing an important role, but the application of decentralized exchanges will be broader. Whether making investment or developing technologies, it is more likely to survive closer to the transaction.
8. The Blockchain itself is global. On Sept. 12, ONEROOT announced Rocket Plan to enter the global market. On Sept. 14, RNT was listed on Bithumb, the first exchange in Korea, and you two develop deep cooperation. What’s your next action and plans?
ONEROOT has devoted a lot of energy into the development of technology , especially the development of the distributed decentralized protocol. After the technology is established, it can be considered to be put into use. As a technology provider, we are targeting global users. In the beginning, we will focus on operators who hold large volume of traffic, not just exchanges. Asia, South America, Europe, etc. will gradually access. There will be some more cooperation plans announced to you within one to two months.
9. Ordinary investors may be more concerned about the price of cryptocurrency, which is also a positive reflection of the development of the company. As the cryptocurrency is on bear market, could you talk about your views on market value management?
Not only me, but also my team members, are relatively annoyed with the phrase market value management. Whether or not there is regulation, price manipulation will always leave traces. The real market value management is to make the best products and the best community. The team’s practical work is the only way out and we must have a goal and idea. The first stage is that Bitcoin symbolizes the era of asset freedom. In the second stage, Ethereum has achieved freedom of asset issuance. The third stage is bound to realize trading freedom. Centralized exchanges have done a good job, providing platforms for asset trading. But with the iteration and update of technology, the lacking in transparency of centralized exchanges will cause some troubles, and limit users’ freedom of asset trading to a certain extent.
10. Technological innovation has always been the driving force for the development of enterprises. In addition to R1 protocol, what’s your current direction for research and development?
In fact, R1 protocol is a small part of ONROOT ecosystem, while the focus should be on the RNC public chain, which can be called version 4.0 of the public chain. TPS can reach about 5,000 with good performance. However, more than two iterations are needed to get into a large-scale mature application, which may take 3–5 years.
Actually, there is a big probability that Google may develop a public chain or Apple may launch a wallet. Then what should we do? I would like to ask all friends in this industry, what will you do if the above two situations occur.
