Source: OKX

Yulong Feng is an Assistant Professor at the University of California, Santa Barbara. In 2018, he obtained his Ph.D. in Computer Science from The University of Texas at Austin (UT Austin). His research covers blockchain security, programming languages, and formal verification. Currently, he serves as the founder and CEO of Nubit.

Since 2011, Yulong has been engaged in formal verification research, focusing on the security of various software systems, ranging from browsers to mobile applications. During his Ph.D. studies, he delved into distributed systems and security protocols, gradually realizing the tremendous potential of blockchain technology in building secure and decentralized systems. Due to the frequent targeting of virtual currency asset management by hackers, he made the decision to immerse himself in the Web3 field. He is committed to advancing the security and efficient development of the blockchain ecosystem through academic research and practical applications.

We aim to interview entrepreneurs with global university backgrounds to observe the development of the Web3 industry from their perspectives. We also seek to explore their experiences in the Web3 industry to provide insights for university students seeking careers or entrepreneurship in the Web3 space. In this issue, we are honored to have Professor Yulong Feng as the guest speaker of the "OKX University Interview."

The "OKX University Interview" series is a special column produced by OKX and hosted by OKX's official community ambassador Mercy (@Mercy_okx). It aims to uncover the industry perspectives of global university individuals to provide insights for friends venturing into Web3 entrepreneurship or seeking employment.

1. First, please briefly introduce yourself.

I am Yulong Feng, an Assistant Professor at the University of California, Santa Barbara. In 2018, I obtained my Ph.D. in Computer Science from The University of Texas at Austin (UT Austin). My research focuses on blockchain security, programming languages, and formal verification. I also serve as the founder and CEO of Nubit.

Since 2011, I have been involved in formal verification research, emphasizing the security of various software systems, from web browsers to mobile applications. During my Ph.D. studies, I delved into distributed systems and security protocols, gradually recognizing the enormous potential of blockchain technology in constructing secure and decentralized systems. However, with the flourishing development of the blockchain field, virtual currency asset management has made it a frequent target for hackers. It is for this reason that I decided to dive into the Web3 field, aiming to promote the security and efficient development of the blockchain ecosystem through academic research and practical applications.

I vividly remember when I joined UCSB in 2018, the price of Ethereum was only $80. The department chair kindly reminded me, "Xiaofeng, Ethereum is about to go to zero, why are you still researching this?" One thing I really appreciate about the American academic environment is that I can maintain my own judgment against the advice of department chairs and deans (although it is not advisable to be stubborn). At that time, I was passionate about the technology but had no concept of the coin price, and I didn't even have an account on any trading platform.

Over the next three years, the Ph.D. students in our lab and I made some progress in the areas of blockchain smart contracts and zero-knowledge proof security. In 2022, through the introduction of a former colleague, Shumo (Co-founder of Manta), I met Luke from Polychain. At that time, Luke mentioned, "The DeFi Summer was indeed exciting, but the subsequent frequent hacking incidents gave investors a headache. Why don't you start a startup instead?" I replied at the time, "I don't know the process of starting a company, and I don't have the funds..." However, he said, "We support you!" And so, I founded Veridise, officially embarking on the entrepreneurial journey of Web3.

During the early days of the startup, friends from the crypto community provided me with great support, allowing me to move forward step by step. At the same time, with the support of the Ethereum Foundation and 0xparc, we conducted several research projects and product developments in zero-knowledge circuit security, and audited several leading ZK projects. However, contrary to expectations, due to differing management philosophies, I decided to leave Veridise at the beginning of this year. At that moment, my feelings were conflicted, as if I had given up a child I had raised and failed to protect properly. Especially regrettable was watching the company miss opportunities, not achieving my ideal vision, and letting down those investors who unconditionally trusted me.

After a few weeks of adjustment, the Ph.D. students and I co-founded Nubit, aiming to develop the data and execution layers of the Bitcoin ecosystem's infrastructure, combining our expertise in security. What surprised and touched me was that almost all the investors from Veridise, upon learning about my new Nubit project, voluntarily expressed their support. Even though I did not fulfill my initial promises at Veridise, they still trusted my character, and this trust became a significant driving force for Nubit's rapid growth. With the full support of old friends like Tekin from dao5 and Luke from Polychain, Nubit rapidly developed in just five months, completing three rounds of funding and becoming a new force in the Bitcoin ecosystem.

2. What is your view of the current state of the Web3 industry? What will be the driving force for the industry's future development?

I believe that the current Web3 industry faces both challenges and opportunities. Despite experiencing multiple rounds of cyclical fluctuations in the market, the infrastructure and ecosystem continue to mature. However, there has been an increase in recent criticism of infrastructure projects, especially within the Ethereum ecosystem. To some extent, indeed, the entire Web3 industry has invested a significant amount of human and financial resources into infrastructure development over the past few years. In this round of the cycle, from infrastructure projects to the entire industry, there has been a bottleneck in large-scale adoption—lack of users. However, public opinion seems to be leaning towards another extreme, questioning the role of technology and instead hyping phenomena such as meme culture. Of course, some project teams have indeed raised the banner of technology high but failed to deliver substantive results, leading investors and users to stay away from overvalued infrastructure projects.

At this moment, I believe we need to maintain a clear understanding. As the saying goes, "Taking history as a mirror, one can discern the rise and fall of events." I remember more than 20 years ago, when the humble abode in my family was first connected to the internet via dial-up, the browser opened to a window filled with ads. Clicking on the ads would generate numerous pop-ups, eventually leading to a forceful shutdown. Back then, the internet infrastructure was already in place, but its potential impact on ordinary life was uncertain. Today, the traditional internet has profoundly transformed our lives. What I want to express is that we need to approach the development of this industry with an open, inclusive, and dialectical mindset, giving entrepreneurs more time. Perhaps, in a few years, the Google, Facebook, Twitter of Web3 will emerge.

Of course, I am not trying to deflect from the current issues in the industry. The Web3 sector does face some urgent challenges, such as security, scalability, and user experience. Security is particularly crucial, as vulnerabilities in blockchain systems and smart contracts can lead to severe economic losses. Some OGs believe that the current decrease in hack incidents is due to auditing companies' efforts. However, the reality is that in the previous cycle, hack incidents were rampant precisely because of the blossoming of DeFi during DeFi Summer, where innovation coexisted with vulnerabilities. In this cycle, many projects are only engaged in simple operations like staking, making it difficult for hackers to exploit vulnerabilities (although incidents like the bedrock hack still occur). This is why I continue to focus on blockchain security and formal verification, striving to enhance the overall ecosystem's security and reliability.

Looking ahead, I believe the industry's development is primarily driven by the following:

· Technological Innovation: In academia, AI technology has penetrated various fields in just a few years, and AI + blockchain has become a hot topic in this cycle. However, a killer application of AI and blockchain has yet to appear, with some projects using AI as a mere facade for memes. Nevertheless, I believe that applications of AI + blockchain will eventually materialize.

· Security Measures: Enhancing system security and reliability through smart contract auditing and formal verification.

· User Experience: By simplifying the architecture of blockchain applications, lowering the barriers to entry for users and developers, and driving true large-scale adoption.

· Regulatory Compliance: Clear regulatory frameworks help enhance industry trust and promote its healthy development.

· Cross-Chain Interoperability: Achieving interoperability between different blockchains, breaking down data silos, and enhancing the ecosystem's synergies.

3. What is the percentage of university students entering the Web3 industry? How do you view the current talent landscape in the Web3 industry?

Regarding the global trend, even the overall trend in North American universities, I dare not make a definitive judgment (most likely it is also an upward trend). However, based on my observations at the University of California, Santa Barbara (UCSB), the number of students choosing to enter the Web3 industry is gradually increasing. Although I do not have specific statistical data, I can clearly sense the rising interest among students in blockchain technology and decentralized applications, a trend that echoes the surge in Bitcoin's price.

For a few simple examples, the UCSB Computer Science department hosts one of the top security labs in the United States, led by two security industry icons, Chris and Giovanni, of the Shellphish team, which consistently ranks at the top in global and U.S. military CTF competitions. Interestingly, when I first joined, these two professors were not optimistic about blockchain, viewing it as infrastructure for money laundering and drug transactions and not necessary to focus on its security issues. At that time, I quoted an ancient Chinese saying to them, "Water can carry a boat, but it can also overturn it." Now, in their labs, over 50% of doctoral students are engaged in blockchain security research. I believe that when faced with new things and technologies, one must maintain an open and inclusive academic attitude. Technology itself is a double-edged sword, neither good nor evil.

Regarding the current talent landscape in the Web3 industry, I believe that this field is in a rapid development stage, with a high demand for professional talent. However, due to the relative newness of blockchain and Web3 technologies, talent with deep knowledge and practical experience is still relatively scarce, leading to a shortage of talent in the industry. To address this situation, we are working hard to provide relevant courses and research opportunities to meet students' needs. For example, in 2019, I launched the first blockchain course at UCSB, initially with only 15 students. After several years of investment in blockchain and Web3 technology research and teaching at the school and department levels, the student enrollment for each course is now stable at over 100 students. Although this growth rate is not as dramatic as the volatility of cryptocurrency, it is still a good start.

Overall, as mentioned earlier, the entire Web3 industry is developing rapidly, and the infrastructure and talent pool (both in management and technical development) are still relatively weak compared to the traditional Web2 industry. This presents a significant challenge for Web3 projects. For example, at Nubit, we prefer to recruit engineers and managers with higher professional qualities but lacking a blockchain background from traditional Web2 giants (such as Google, ByteDance, Alibaba, Tencent) rather than short-term Web3 practitioners. After all, in any industry, the essence remains unchanged.

To address this issue, we need to continue starting from education and training. On one hand, universities and research institutions should increase their investment in the research and teaching of blockchain and Web3 technologies to cultivate more professionals. On the other hand, companies can also help newcomers adapt to industry requirements more quickly through internships and training programs. Overall, as the Web3 industry continues to mature, the demand for talent will continue to grow. I am confident in the future and firmly believe that through the collective efforts of all parties, the talent shortage issue will gradually be alleviated, thus driving the healthy development of the entire industry.

4. For the younger generation who are about to enter the Web3 industry, do you have any advice for them to consider for learning?

Based on my experiences in research and entrepreneurship over the years, I would like to offer some advice for your reference:

a. Build a Solid Technical Foundation: While the short-term thrill of making money through cryptocurrency trading is very stimulating, for young entrepreneurs, especially technical developers, having a solid grasp of core computer science knowledge is essential, particularly in-depth understanding of blockchain technology, distributed systems, and cryptography. Maintain sharp awareness of the industry's latest developments, regularly read relevant academic papers, technical blogs, and news reports, participate in industry conferences, seminars, and hackathon events—all of which can help you keep up with cutting-edge technology and trends. Emphasize Practice: While theory is important, practical experience is equally crucial. Engaging in open-source projects, developing decentralized applications (DApps), or deploying smart contracts on testnets are effective ways to enhance practical skills.

b. Strengthen Security Awareness: Security issues in the Web3 field are particularly prominent. Learning secure coding practices, understanding common vulnerabilities and mitigation measures can help you avoid major errors during the development process. Through my experience of over a decade in security research and founding a Web3 auditing company, I deeply understand that the majority of hackers are not necessarily smarter than the average person; rather, many security incidents result from industry practitioners' negligence of basic security mechanisms. Therefore, raising the security level of Web3 relies not only on developing more robust security tools but also on promoting security awareness across the industry.

c. Entrepreneurship is Like Being a Person: Startups in the Web3 space generally face higher risks than traditional fields, with many investments ultimately ending in disappointment. Therefore, as a young founder, when you receive venture capital, it is essential to stay clear-minded because what you are actually overcommitting is the investor's trust in you. In times of power, do not be complacent, as industry changes and risks often hang by a thread; in times of decline, there is no need for unwarranted self-deprecation. Two years ago, those hot projects also started unknown like you, seeking investments everywhere. Respect your peers, partners, and every hardworking employee who contributes to your work; do not sacrifice long-term vision for short-term gains.

d. Maintain Hunger and Innovation Spirit: Web3 technology is advancing rapidly, and maintaining a passion for learning and adaptability is crucial. It is not about blindly chasing new technology but about always having a hunger for any new thing or technology, which can help you react quickly when your project faces challenges. What I love most about Web3 is that it is a field full of opportunities that encourages innovation and entrepreneurship. No matter how unconventional a technology may sound, there is always an application for it in this industry. If you have a unique idea, try to implement it, as it might bring unexpected rewards.

e. Focus on User Experience: Compared to Web2, Web3 projects still have a significant gap in user experience and adoption. When people turn off their phones or computers, they can completely disengage from Web3, but leaving traditional Web2 services like Uber, WeChat, or Amazon would impact their lives. Young entrepreneurs developing technical solutions should not overlook user experience in favor of technological prowess. A successful product not only requires robust technical support but also needs to be user-friendly and meet user needs. Step out of the office, engage with potential customers, accelerate product iteration, and promptly find the product-market fit.

f. Adhere to Ethics and Regulations: Understand and comply with relevant laws, regulations, and ethical standards to ensure that your work contributes to the industry's healthy development.

Lastly, it is essential to maintain passion and curiosity for this field.

5. What are the likely major changes in the Web3 sector in the next 5-10 years?

I believe that in the next five to ten years, the Web3 sector may undergo the following significant changes:

1. Mass Adoption and Mainstreaming: As technology matures and user experience improves, Web3 applications are expected to be accepted by a broader user base. Decentralized Finance (DeFi), stablecoins, and other areas will transition from niche to mainstream, expanding their influence to more industries. Additionally, traditional Web2 applications will gradually move towards decentralization, blurring the boundaries between Web2 and Web3, eventually leading to integration.

2. Cross-Chain Interoperability and Chain Abstraction: Interconnection between different blockchains will gradually be realized as cross-chain technology develops. The development of cross-chain technology will break the isolated nature of individual chains, allowing assets and data to freely flow across various networks, enhancing the ecosystem's synergies. Similar to the ecosystem of WeChat mini-programs, the abstraction layer of blockchain infrastructure will be further improved, enabling traditional Web2 developers to more quickly develop complex decentralized applications.

3. AI Penetration and Security Standardization: Artificial Intelligence will gradually penetrate the technological field of the blockchain industry, enhancing system performance, security, and application layer diversity. At the same time, Web3 security will transition from the current 'shotgun approach' phase towards standardization, regulating security mechanisms in various subfields to enhance user trust in Web3 applications and drive their broader adoption.

4. Establishment of Regulatory and Compliance Frameworks: Governments and international organizations may enact clearer regulatory policies to provide legal protection for the Web3 industry. This will help eliminate uncertainties, attract more institutional investors and traditional enterprises to enter the field. Looking back at the history of Internet development, two decades ago, people were reluctant to easily provide their credit card information to online services; whereas today, even the older generation cannot do without online payment methods like WeChat Pay.

5. Key Role of University Talent and Entrepreneurial Teams: Just as Harvard nurtured Facebook, Stanford nurtured Google, and Berkeley incubated OpenAI, North American universities played crucial roles in the Web2 era. Looking ahead, university talent and entrepreneurial teams in the blockchain field will also play vital roles in the transformation of Web3. Reflecting on over a decade of blockchain development history, I divide it into three stages:

· From the Birth of Bitcoin in 2009 to 2021: This stage was the 'grassroots era' of blockchain entrepreneurial teams. Whether it was rug pullers or teams working on projects earnestly, everyone was racing against time to establish themselves, while the infrastructure was relatively weak. In 2017, when I began researching smart contract security, I had a conversation with the Solidity development lead, mentioning issues with the language design and suggesting they introduce an Intermediate Representation (IR) layer at compile time to optimize the generated EVM bytecode. His response at the time was, 'That's a genius idea! We will do that in the next version' (which is now YUL). This made me realize how significant oversights in fundamental design could be.

· From the DeFi Summer of 2021 to 2023: This stage was a period of great innovation, with various innovations emerging. Concurrently, professors and research teams from North American universities gradually entered the scene, with many of my peers in programming languages and formal verification establishing their own blockchain companies.

· From 2023 to Present: The industry is gradually stabilizing, and among the emerging blockchain startups in North America, those without a university background as founders or advisors have almost no chance of attracting investors' attention.

While entrepreneurial teams with an academic background sometimes face issues such as lack of market adaptability and poor execution, integrity being the foundation of Western countries, teams with an academic background often provide the Web3 field with the two most scarce elements: integrity and innovation. Integrity is not difficult to understand; these teams are subject to strict supervision by schools and governments, and any violation may face severe consequences. As for innovation, it is a strong suit of North American universities. Not because professors and students are more capable, but because the academic environment is relatively pure, free from complex power dynamics or external interference, allowing a focus on research and innovation, creating a research atmosphere of working day and night without fearing challenges.

Overall, academic talent and entrepreneurial teams will play the roles of innovation engines and practical promoters in the future Web3 revolution. Their research and practices will help overcome current technological and application barriers, accelerate the adoption and maturation of Web3, and drive the entire industry towards a more open, decentralized, and trustworthy future.

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