Building A Compliance Ready Blockchain - Da Hongfei @ TOKEN2049

[Music] thank you thank you for the introduction yeah we just figure out what's happening in Japan I guess maybe now it's what's happening in China my my my speech today well the title is building a compliance ready blockhead that's we will look at the history as a today's status and the future of new so before I start by a speech I would like to show you a old picture the quote it's quite old in this industry so I guess this picture is taken in 2013 or 2014 that's the first time vitalik visited China and back to back then I we are doing a community organization called bit angels Club and we're doing myth hubs conference in in China in Shanghai and then we spin off their project called NGOs and later on it is rebranded to new so this is the early days of Neill we started in 2014 it's about a run at the same time that asura me started and we announced the project in the first-ever Bitcoin conference in China it's in Beijing and then we three months later in July we finished our seed funding that's only about 90 thousand US dollars very small amount of money but those seat funders they got very well rewarded 10 percent of all the new tokens are rewarded to those seed funders and then we started our first line of code one year after we took a lot of time to think about our design philosophies ago we're really going after and how to design the whole architecture and then we do with it - I SEOs respectively in 2015 and the 2016 and we rest raised a little over four million US dollars it's that the amount of money is not bad at that time but comparing today's I see you that raised like hundreds of million US dollars it's just a peanuts a last year we did did a rebranding we renamed our black Chevron and shares because there are some brand conflicts conflicts I rename it to nil and the rebranding is quite successful we caught attention from the Western community especially the developers community they checked our github and they found out that we have been developing the project for almost two years and a lot of technical features are very original and the architecture is very original so they just like converted all their Bitcoin and a serum are the token holdings into new tokens and we saw the price of new just went up very quickly and two months ago we did our first ever developer for developers conference in San Francisco and about six hundred developers joined our conference and lot of projects shared their experience with new so here is a picture from the Developers Conference it's it's it's it's quite successful okay so what is Neal you can tell from the logo that Neal says the logo says new smart economy I've been asked by during a lot of interviews that what is a smart economy it's it's quite difficult to define things but I can I want to explain smart economy in three aspects the first aspect that I we believe the future economy will be a digitized economy so everything will be digitized will have its digital form it could be currencies it could be assets it could even be identities or even IOT devices so everything will have its digital form probably what we won't see those paperwork's anymore and then we have the the another aspect is as long as order as since the currencies are in digital forms we can use programming language to to administrate those digital assets so it's is also a programmable economy we can manipulate things with smart smart contract or even with legacy systems and then it's a trust list economy because today we pay a lot of price we pay a very high cost for trust we are paying we're paying lawyers we're paying editors we're paying regulators we're paying even please to building trust to enforce contracts but with blockchain technology we probably will reduce the price of trust tremendously and I believe when the price of trust reduced tremendously tremendously we will see a lot of new business new business models come up there is a very controversy rating recently it's called we straighting do you guys heard of it they categorized different crypto currencies into five categories there are a B C D and E a stands for the best one and E stands a most poor poorest one and there's only one crypto currency had ever achieved a class rating and that is not Bitcoin that's not a serum and if it's new and then we saw eight crypto currencies ranked as B and several rank that C fair and some with D and even a few with E so ways rating is based on four factors it's the risk it's the reward and the technology behind it and is a fundamentals so according through wastes according to those four factors neo is one of the best performer in crypto currencies and this is the new is very a special project we started very early we have no endorsement from those big-name investors of big names we saw we relied a lot on communities we are building a very international and very developer oriented in community the first developed community emerged is called city of Zion they started I think if the funder is lives in Boston and there most of them are english-speaking and there are dozens of developers inside of city of Zion and now we have also have a Chinese speaking developer they are based in Shanghai and recently last I think it's last week when I was speaking in a meet-up in Melbourne there is two guys - - professor from Brazil they formed a new Brazil community it's called new research and we also work with white hat hackers read for second is the white hack hacker group they found some critical issues or bugs in the new a blockchain protocol and they informed us and we decided to work with them we worked they did a full audit security audit for us and because new is started new started from China so originally most of the documentation is written in Chinese it's a big pen - translating those documentation into different languages and the community is helping us a lot so today all the documentation has been translated into more than different languages more than 10 different languages and we are also very active on social media we have over 80,000 subscribers on separated on our reddit we have Facebook Twitter followers and besides of online community we also do a lot of offline maps that this this is this month we did meetups in Singapore Tokyo Taipei malbim standing and so and this are the decentralized applications or apps that is building on top of new huh now we come to price that's the screenshot I took I think it's last week the price is is it I think it's a higher than today's price so we've seen a kind of crash in the previous few days and III checked it before I went to a stage and it recovered a little bit Carmellini is ranked at 6 market with market cap wise 6 is not very bad but we're not we're not satisfied with where we are today we have declared our goal our vision for the at the DEF CON which is to make new the number one blockchain by 2020 so we want to be the best best public blockchain in two to three years I said number one it doesn't mean we have to be to have the highest price or to have the biggest market cap but we are aiming to become the preferred or most popular platform to build decentralized application on top of it by providing the most the best performance the device devise defy the diversifies ecosystem and a compliance ready solutions the killer app of application I think there are two key lap of a blockchain so far which is the first one is the centralized gold which is basically Bitcoin and the second key lap in answer what do you think is i0 yes it's ICO and I see you brought a serum become the second largest cryptocurrency in the world but there is something missing in between without this I see you and decentralized goat won't be successful as today what is that that's exchanges lots of people are buying Bitcoin not just because they believe in Bitcoin the philosophy they are trying to buy it at lower price and sell it at a higher price a lot of people participated in ICO just trying to to sell those token later at a higher price but all this relies on exchanges but I saw lots of problem with centralized exchanges man Cox used to be the biggest one but they claimed that they got hacked and they are bankrupt and there are other big exchanges they used to be the biggest one and then suddenly all of a sudden they their business just going down or they got cracked like BTC BTC either seized by FBI so I think in the future decentralized exchange is probably a new trend and centralized the change will will share the market with decentralized exchange this is a boat very bold statement eventually centralized exchange will die but it takes time it could be ten years or even longer because there are lots of reasons with lots of issues with centralized exchange they have to be very secured they have to up compliant with regulations and it's a very high cost so I think the next key lap of blockchain will be decentralized exchange we need a perfect decentralized exchange a perfect decentralized exchange needs there are five factors which is it needs to have very high transaction per second it needs to have perfect finality that means you don't need to wait six confirmations one confirmation should be final and it needs interoperability that means other tokens can be traded on this platform it means Bitcoin or a serum or other tokens can move to the platform and also you will need digital identity because eventually decentralized exchange will be regulated also will be regulated and then we need a stable coin to to be the one end of the trading pair a neo is a perfect platform to build a decentralized exchange on top of it because we have quite high performance transaction per second we can handle 1000 transaction per second today and also we have perfect finality because we use the consensus mechanism called DB F T you only need to wait want confirmation and we have a interoperability protocol across chain protocol called new X so tokens on other block chains can be moved on to Neil and then we have digital identity modules and there are several stable current projects are we are working on top of new I just said we can handle 1000 transaction per second but for exchange for a perfect decentralized exchange 1000 transaction is not enough so we are we have we did some research and we will we have after the research we believe we can achieve 100,000 transaction per second in two to three years time and with this is without shouting we don't need to divide the transactions into different shards or into different resumes so for the next two or three years its we will see lots of competition between public block chains and we believe there are three dimension of those competitions the first one is definitely technology but technology is not a very high barrier because everything is open sourced so if there is some new technology with other blockchain so we can learn it if we have some new technology other block chains can learn learn from it so the second dimension will be ecosystem it's quite it's a barrier for a new public block chance to enter this industry today the serum has the biggest ecosystem but I think a neo comes just after he theorem we have the second-biggest ecosystem but the most important factor I would like to emphasize on is governance and compliance I do believe the governance model of the block and the compliant solution over the blockchain will be the third dimension that future block chains will be competing on so why compliance is so important because it eliminates our certainties of regulations we've seen the crackdown of exchanges in China that affects the price of tokens a lot we've seen the ban of ICU in China and it also reduces frauds Ponzi schemes and other market manipulations and you will bring mainstream financial institutions on board onto this industry and all those comes down to that - the goal of neo is to serve for the real business to do real business on blockchain and one need what is needed to be compliant the first thing is not technology we believe the first thing we needed is a non-article community mindset the mindset of neo community is quite different from Bitcoin community or other watches from the first version of our whitepaper we've said very clearly that we want to be compliant we want to breach the real world a very real business with blockchain so I do believe the new community has a very open mindset and the second thing we need is a identity module the digital identities like the bridge between the REO economy and the blockchain and then the third is a tech stack technical stack that is compliance ready and the most critical part is the consensus mechanism if you are still using proof of work mechanism its consensus mechanism it will be very very difficult to be compliant the consensus mechanism used by new is called D PFT are delegated presenting for tolerance as there are three kinds of types of transactions our new first one is transfer the second one is to invoke a small contract and the third one is the most interesting one it's a voting transaction you can do govern you can you can govern the neo blockchain with voting if you are holding a new token so the neo token is like the the ownership the stake the the governing power of the neo block chains and then you can select those consensus nodes and after those consensus nodes get voted in there were reached consensus in presenting for tolerant algorithm this are the advantages of DB ft it's very fast its final and it scales to infinite who knows and it's eco-friendly you don't need to do mining with DB of T and also because those consensus nodes are identifiable so it is very if you if you discover a issue a bug in the protocol in the network you can appropriate very efficiently but it also means those consensus is the government can find those consensus they can pressure those consensus nodes so what's the solution the solution will be we we are in a process to decentralize those consensus nodes into different jurisdictions so the implication will be in the future if all the consensus nodes are located and controlled by different entities in different jurisdictions so no single jurisdiction or government can sabotage sabotage the neo network and only if all the the international community the groups of regulators they decide that they reach a consensus so they can in they can implement some kind of regulation on onto the new block em and with that kind of Inc regulation because it is every thing is on Chen so it is very transparent and is auditable you cannot do backstage things so this is decentralized plan we want to execute starting this year we will put up a campaign website so those concerns and notes will register there and they will campaign to be selected and there are many major organizations they're willing to be to running one of the consensus notes including a city of Zion kpn the biggest Dutch telecommunication company and also one of the top cap blockchain capital called fumble fumble capital from China with new as there is a organization called new council it's behind the new we can do technical support we will do marketing support and we will also invest in the new ecosystem and the investment arm is called a new global capital it's a registered fund in Singapore and one of the projects we invested in is called ontology and besides of the investment we also do a research grant to academic like professors students and it's through a foundation we registered in United States it's called open blockchain foundation we will donate 10 to 15 million u.s. dollars to the foundation and this is how we gonna use those reserved tokens we reserve the 50% of the tokens the 10% will be used to to incentive the team the internal team and 10% were used to incentive the community especially the developers and 15% will invest in the ecosystem and another 15% is flexible so before I finish my speech I would like to share you with some pictures this is this this is taken from the first meetup a blockchain bit about Bitcoin meetup in China that's 2013 I took a picture with Roger Vere and then this is I'm speaking at a conference and this conference is actually held in Hong Kong that's the first time I give a public speech in in Hong Kong and the topic I'm talking is crowdfunding DAC DAC is the same has the same meaning with Dao a decentralized autonomous organization so at that time I mean I'm introducing neo to Hong Kong audience back to 2014 and this is Jean Paul he is speaking at one of our John Campbell is a CEO of Finance and is speaking at one of the MIT hubs back to 2014 in Shanghai and this is Eric John he is one of the two founders of mu so we worked at two I worked with him together in this office and this is where Neil the project started its in Shanghai and now things are getting better that's the first time me and Eric John attended the consensus conference it's out in New York by coin desk and this is me interviewed by Bloomberg a few months ago so the industry is growing and we are growing thank you very much this is my speech [Applause] [Music]