Song Xiaodong, CEO of Oasis Labs: DeFi is an inevitable trend of future development

Rhythm BlockBeats news, on October 27th, Song Xiaodong, founder and CEO of Oasis Labs, delivered a speech at the 6th Blockchain Global Summit, the full text is as follows:

Thank you everyone! I'm Xiaodong Song, I teach at Berkeley University and I'm also the CEO of Oasis Labs.

Jennifer told you what distributed finance brings and the challenges it brings. Today I just talk about the challenges and new opportunities brought about by this topic in more depth.

I teach in the United States all year round, and my speeches are usually in English. Today it is more convenient for everyone to listen to Chinese in China. I will try my best to speak in Chinese, but sometimes Chinese and English are mixed, because some technical terms are still clearer in English.

You have heard that decentralized finance is DeFi, and DeFi is also the hottest practical application of the blockchain. But there are many bottlenecks in 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 in DeFi? DeFi is mainly on Ethereum. According to the bottleneck of Ethereum on scalability and throughput, there are very big challenges today, and the gas fee is very high.

Ethereum blockchain infrastructure has no privacy protection, but privacy protection is necessary and very important when financial applications go wider.

The core of DeFi applications is assets, more traditional assets. When open finance expands, it is necessary to There are more, better and more valuable assets.

Taking Oasis as an example today, how to solve the challenges and problems? And in the case of solving challenges, what kind of new applications will it bring to you?

First, how to solve the challenge?

Oasis platform has uniqueness and breakthroughs in technology, creating a new blockchain platform to better solve The three challenges mentioned earlier.

(1) The blockchain must have very good scalability.

Oasis platform has a new unique scalability architecture. The blockchain needs to implement three functions: consensus, calculation, and storage. But today's blockchain mixes all three functions together, and each node needs to perform the same three functions, which will bring a big scalability bottleneck to the overall blockchain.

Oasis was the first to propose the concept of separating computation 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, and integrate new technologies at the ParaTime layer level The combination of innovation and uniqueness of the company can better solve the three problems I raised earlier.

(1) DeFi that can support scalability and privacy protection.

(2) It can support new data assets.

In the case of combining blockchain and secure computing, data rights can be confirmed, and at the same time Apply data under the condition of privacy protection, obtain value from it, and generate new data assets.

Let me tell you a little more about it.

Scalable and privacy-preserving decentralized finance.

The Oasis platform has better scalability, which can better solve the scalability bottleneck of DeFi, allowing DeFi applications have a larger scale.

All information in DeFi today is public, but many DeFi applications have a lot of very 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 make lending more widely used. Today’s DeFi is usually super-collateralized lending, because there is no other information. Under the condition of pursuing privacy-protected information, users can provide sensitive data, such as financial data and other behavioral data, and the data is used to calculate user credit. When privacy computing capabilities are applied, the user's privacy information is thus protected. The calculated credit can be used to provide low-value loans to users.

In the case of privacy protection, it can better protect users from being attacked by attackers. Today, all information on the DeFi platform is public. Everyone can see what users want to do, and attackers can also see it. There are many attackers who see that users will operate, and attackers will make higher transactions and profit from it. In the case of privacy protection, the user's transaction information is protected, so attackers cannot see it, thereby better protecting user transactions and preventing them from being attacked or arbitraged by attackers.

Oasis adheres to ParaTime, which is fully compatible with Ethereum and EVE, and also supports smart contract operation. Applications on Ethereum are easily migrated to the Oasis platform.

Many people have heard of Uniswap, and now Uniswap runs on Oasis, and Oasis’ ParaTime helps Uniswap migrate to Oasis on. The user experience will be better with better scalability, faster and shorter experience.

We also did a hackathon recently, in which thousands of developers participated in the hackathon, and more than 3000 A Smart Contract has been migrated, and there are hundreds of DApps.

There is a better ecological environment for the development of DeFi on Oasis, and there is a new Joint-Grant with Balancer. Balancer is changed to the Oasis platform, so that Balancer can run on the Oasis platform, and a privacy-protected Balancer will also be developed. Balancer is a Non-custodial profile manager. DeFi with scalability and privacy protection can be achieved under the ability of scalability and privacy protection.

Let’s talk about emerging applications and how to capitalize data.

The main focus of DeFi today is still 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, higher than that of traditional financial assets.

Data has also faced many challenges recently, especially in terms of data rights verification and privacy protection. How to better solve this problem, and use blockchain and privacy computing to provide a new and better infrastructure for the data economy. The technology being developed by Oasis hopes to build a better infrastructure for the future data economy, and hopes to apply the infrastructure to create an emerging data economy—a reliable and responsible data economy.

Many people today are irresponsible when using data, leaking users’ private information, buying and selling casually, There is no protection for user privacy, so that users cannot get value.

I hope to use emerging technologies to combine blockchain privacy computing together to create and support the emerging data economy—— Reliable and responsible data economy.

Data tokenization, the establishment of data assets, while allowing users to have better control over their own data assets, At the same time, a better incentive mechanism can be set up to allow users to better share data.

The Oasis platform has a very unique ability to combine blockchain and privacy computing. Next, it can support emerging applications - data certification, 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 immutable records of data ownership and application rights.

Privacy computing ensures that data privacy cannot be leaked when data is applied. Together, the two can support an emerging asset - the data asset. Help users to confirm the rights of data, and at the same time support the application of data with privacy protection. Although the data is applied, users still have the right to protect the data. In the case of data capitalization, it helps users get better benefits from it.

How can users better benefit from it? Everyone understands liquidity mining very well. Users with similar data assets can borrow data assets, and data users can use data while providing fees under the condition of privacy protection, and data providers (users) can get Data Reward rewards and compensations from them.

Data DAO is a decentralized self-organization of data, which can put medical data in Data DAO and update Good help medical research development.

Recently, Beta Launch has been done on the fund data, using technology to help users confirm the rights of genetic data, and at the same time be able to Allow 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 on it. 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 establish emerging data assets and create a reliable and responsible data economy.

Thank you everyone!

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