DJ Qian’s Answers to AMA, Hosted by ICO Drops on 7 Sept. 2020
- What’s the next big milestone for FUSION?
I am going to address this question later but in short, the next big milestone for Fusion is that we will build a cross-chain router between three networks, Fusion, Ethereum, Binance Smart Chain. The release of this router is targeted for October and when it is released, tokens and coins on these three networks will be able move freely between one another.
- I’d hate to bring this up, but to restore trust in team. Is there an update on the hack? Only a handful of people had access to the private key, does fusion know who had stolen the funds?
After we reported it to the police, it is now the police’s job to catch the thief. I want to emphasize, it was a crime.
I am DJ Qian, CEO of Fusion, Founder of BitSE which created QTUM and VeChain, Co-Founder of WeDeFi and Anyswap.
I came into this industry in mid 2013, I started by developing ASIC chips for Bitcoin mining and I built the first mining farm in China as well but I’m not doing that any more.
- Q1. DJ, more than 2 years have passed since Fusion’s ICO. Can you shortly remind our community what Fusion is?
If any of you were here two and half years ago, you might still remember the Fusion whitepaper released in late 2017, in which we elaborated on the concept of “cryptofinance”. We envisioned a world powered by decentralized finance which could exchange value across different time, chains, systems and organizations. This was our first attemp at an implementation of “DeFi”.
Here is the link to the whitepaper:
During these two years, our vision have always remained the same. Luckily, DeFi (Decentralized Finance) is heating up these days and although most people are only referring to yield farming and hyping up tokens when they are talking about “DeFi”, Fusion has solidly been working on our strategic points listed below:
1. Extract time value like financial instruments with technologically enforced Time-Lock.
2. Break data and system silos via blockchain interoperability.
3. Automate finance through data-driven smart contracts.
In short, Fusion serves as the infrastructure of decentralized finance.
- Q2. As I remember Fusion was the first blockchain which aimed at finance applications. Why did you think blockchain could significantly improve the financial system? Only after 2 years we recognised this transformation.
You are right. So far, Fusion is the only public blockchain which specifically targets the finance sector.
It‘s funny, the first time the word “cryptofinance” came into my mind, it did because I was asking myself why we had only heard about “cryptocurrency” while nobody was talking about “cryptofinance”. This is especially strange given how closely related “currency” and “finance” are. I came to the conclusion that there has to be a market for “cryptofinance”! If not today, then tomorrow.
Let’s imagine that if we use blockchain technologies (including smart contracts, decentralized asset custody, etc.) to replace all “intermediaries” with code, this enables us to maximize the efficiency of financial services and minimize costs.
Every major technological revolution in human society has brought about a significant increase in production efficiency and a reduction in cost (of production, labor, etc.). During the industrial revolution, machines replaced human labor, during the information revolution, e-mail replaced postal services and in the upcoming blockchain revolution, smart contracts will replace loan officers.
I have an article on the subject that I wrote and would like to share with you.
- Q3. The key element of Fusion blockchain is DCRM which allows it to be interoperable with others blockchain. How does it work and why does it matter? Afaik. it can be used for another use case.
I am glad you brought DCRM up and yes, DCRM is one of Fusion’s key elements and patented technology. We are very proud of it.
DCRM stands for Distributed Control Rights Management. It was built to address cross-chain interoperability through a decentralized custodian model. It uses the latest cryptography technologies in Threshold Signature Scheme (TSS) for Elliptic Curve Digital Signature Algorithm (ECDSA) to provide a distributed key generation and transaction signing algorithm. This technology was developed for over a year, with the feedback of 4 leading cryptographers such as Rosario Gennaro and Dr. Pascal Paillier.
DCRM is a true interoperability solution that:
1) operates at the encryption level
2) creates token portability and exchange across chains
3) retains cross-chain encumbrance allowing for multi-token smart contracts to be created with IFTTT (If This Then That) participation in other networks.
Basically, DCRM allows a group of decentralized nodes to manage all of your private keys of different chains/systems in a secure way. The nodes will only keep private key shards and only follow your instructions.
I have an article about DCRM to share with all of you aswell:
Regarding the uses case. Yes, DCRM could be used in many different scenarios, such as an interoperable framework, next generation digital custody, multi-party protection of sensitive data and bank level key recovery system.
DCRM has been following open source strategy since 2018. Our first version of DCRM was released on Steptember 2018 and it kept on evolving during these past two years. As you might already know, anyswap.exchange is currently using DCRM and working as the first live cross-chain DEX (Decentralized Exchange).
- Q4. Earlier I was familiar only with cross chain use cases, ofc for yeild farming purposes. You show that there’re a lot of more applications. Who are your most successful competitors? How can you compare your solution with theirs?
That’s a tricky question, there have been hundreds of new projects that came into the “DeFi” sector and even existing projects that started to claim that they were transforming into “DeFi” projects.
To some extent, Fusion does have rivals, in the decentralized custody area for example there is REN. They started with a black pool idea but now claim they are doing decentralized custody by wrapping BTC to RenBTC and other coins to be RenXXX on Ethereum.
However, in my opinion, they are opportunistic because:
1. As we all know, decentralized finance means users trust code instead of a person or institution. So a project that claims to be decentralized has to be fully open sourced and REN is not. They started with a black box and under community pressure, they only open sourced very little non-core code.
2. Even their CTO admitted that the real BTC is in centralized custody of their team. In contrast, DCRM is a fully open sourced decentralized custody technology. There is a saying: When the tide is low, you know who’s swimming naked.
As a decentralized finance infrastructure, Fusion also has other extraordinary features, such as Time-Lock which could be used to extract time value, Quantum Swap which could be used to exchange value without counterparty risks and Universal Short Account Number which could be used to transfer any type of assets using a short and easy to remember address. So far, Fusion does not have any rivals in these areas.
- Q5. You have partnership with a recent of our guests (Waves ecosystem). Could you elaborate to our listeners what’s DCRM Alliance and how partners add value to Fusion ecosystem?
I’m happy to share more about this and I am glad you noticed all of these partnerships.
At the end of 2019, simultaneously as Fusion announced the release and consequent open-sourcing of DCRM 5.0, the DCRM Alliance was announced: a group of DeFi players and protocols, Fintech companies, enterprises, government and academia that will join forces to further accelerate the development of next generation decentralized finance and custody solutions using DCRM.
In short, DCRM allows a bunch of nodes to operate on different chains on your behalf. These nodes are keeping your assets in custody and managing them in a decentralized way which means you will never have to rely on one person or institution again.
The more members that are in the DCRM Alliance the more trustworthy it is and there will be more.
- Q6. Anyswap on Fusion has started in July. After 2 month how do you rate it success?
To be honest, I believe Anyswap is a remarkable milestone. Not only for Fusion, but also for the entire blockchain and DeFi industry. It is the first live, real decentralized exchange in the world. Anyswap has been a huge success, running smoothly singe launch.
Over the first 30 days they had:
- 169M USD Volume.
- 598K Swaps
This already meant Anyswap reached top 10–15 among DEXs in the world and that they also surpassed many CEXs in terms of trading volume. Keep in mind that Anyswap only has 3 pairs so far and as more pairs are being added, the numbers might grow very fast. There are already plans to add mainstream coins like BTC, ADA, XRP and all ERC20 aswell as privacy coins…
- Q7. Recently in your twitter you noticed that there were about 372k transactions on Fusion and Fusion is usually in the top 20. Have you analyzed for which purposes do people use Fusion blockchain?
I am pretty sure you got this data from coinstats.network, it is a very good KPI to reveal the adoption of a public blockchain.
If we compare the number transactions on Fusion today with the number 6 months ago, we see that applications like WeDeFi and Anyswap brought a lot of users to Fusion. Our number of unique addresses grew up to 140.57K and total number of transactions over a 7-day period have stablized around 200K-300K.
Users are using the Fusion network more than most other public blockchains, this is long term fundamentals instead of short term hype. They are generating USAN, sending assets, swapping using Anyswap, joining safebet on WeDeFi, slicing up assets sections of time using Time-Lock and doing OTC deals using Quantum Swap. Meanwhile, we are seeing more smart contracts being deployed on fusion as well.
- Q8. Speaking about sustainability. The key component of a successful ecosystem is the support of developers. Tell us please how are you working with them and how can they be funded?
This is the golden rule in an open source community. Fusion started activating the developer community in late 2019, beginning the transformation to a full open source project.
So far, we have accumulated over 500+ individual FOSC (fusion open source community) members to support Fusion, including developers, designers, translators.
Fusion has a dynamic reward plan for contributors, 2.5M Time-Locked FSN for marketing, and another 2.5M Time-Locked FSN for developers who are building on Fusion. That’s why we are seeing more apps and continuous exposure of Fusion.
I believe that when “DeFi” is getting into a deeper phase, Fusion is going to play a more and more important role in the blockchain industry.
- Q9. WeDefi (similar to PoolTogether) and Anyswap (Uniswap) are the most popular DeFi apps in Fusion ecosystem. What other applications do you wait personally?
There are quite a few apps developed by different teams simultaneously.
Besides WeDeFi and Anyswap which has already launched, I am expecting another “DeFi” project on Fusion. The project’s name is Chainge Finance and I know their slogan is Chainge Finance changes finance. They are going to provide massive finance services to massive amounts of users in a decentralized way. There is not much I can reveal at the moment, let’s wait for their announcement.
- Q10. To sum up, What upcoming changes, announcements can we expect in the Fusion ecosystem?
Fusion is getting into the real adoption phase while coming out of the building phase, there are a lot of exciting things ahead. Fusion keeps enhancing DCRM and is building a cross-chain router to enable coins and tokens on different chains to seamlessly be routed through the different chains. We will start with integrating Fusion, Ethereum and Binance Smart Chain and is currently in testing period and will be launched in October.
After launch, ERC20 tokens could be routed to Fusion/Binance Smart Chain with the click of a button. Similarly, tokens on Fusion could be routed to Ethereum/Binance Smart Chain aswell. Tokens, assets and value are no longer siloed on one chain.
In addition, you probably have heard about the partnership between Fusion and Chainlink. Fusion is integrating Chainlink and building a facility for multi-trigger smart contracts, this is under development.
Decentralized custody is still a key focus of Fusion, we will keep getting more reliable institutions on board as well.
- Extra Q1. What’s your solution to provide more liquidity on ANYSWAP?
More CEXs are going to provide it.
- Extra Q2. A project’s Technical development may not always be reflected on the price of it’s token. What is Fusion doing specifically to increase price of its token?
Usage and adoption.
- Extra Q3. Two Defi projects are currently on Fusion platform- WeDeFi and Anyswap. Can you tell us about these projects and what they solve?
Anyswap is cross chain DEX, WeDeFi is a portal for digital finance.
- Extra Q4. I am an ETHICAL HACKER AND EXPERIENCED DEVELOPER, do you have plans for HACKATHON or BUG BOUNTY so as to check the security of your ecosytem periodically
We will arrange it.
- Extra Q5. What’s the easiest way to stake FSN?
Easiest way is to join a pool. Send time-locked FSN to them.
- Extra Q6. The biggest barrier for DeFi is that of interoperability, providing cross chain interactions and multiple blockchains, how does your Unique solution solve this
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- Extra Q7. What are the next blockchains you want to integrate? What about IOTA, TRX?