Blockchain
The rise of blockchain has undoubtedly modified the trajectory of finance as improvements corresponding to decentralized finance (DeFi), opening a chance for everybody to take part within the system.
Whereas DeFi has been adopted by retailers en masse, many enterprises nonetheless stay locked out of the ecosystem. One platform, ParallelChain, goals to alter this through its high-performance non-public blockchain for constructing functions for enterprises.
We spoke with Ian Huang, Founder, CEO and Chief Architect of ParallelChain Lab, to get a larger perception into how ParallelChain works, its blockchain as a service, the present downfall of FTX, potential regulation within the DeFi and extra.
Welcome to Finance Magnates Mr Huang. Let’s begin off by briefly explaining to our readers the journey of ParallelChain to date.
Thanks for having us. ParallelChain offers an ecosystem bridging the hole between centralised and decentralised finance, via our innovated native coupling of the general public (ParallelChain Mainnet) and personal (ParallelChain Enterprise) blockchains, which empowers the sharing of utilities corresponding to good contracts, not merely messages or app-level knowledge.
Ian Huang, Founder, CEO and Chief Architect of ParallelChain Lab
We first developed ParallelChain Enterprise in late 2018, with the distinctiveness of unprecedented excessive transaction price, low latency, safety (through ‘Proof-of-Immutability’, patented), excessive scalability (through ‘Parallel Blockchain Processing’, patented) and compatibility with knowledge privateness requirements, together with EU GDPR (through ‘Means-to-Neglect’, patented).
We envisioned that Net 2 networks wouldn’t go away. Net 3 should turn into interoperable with Net 2 with the intention to achieve belief and reliance for everybody and each established organisation, therefore the need to have true interoperation between the private and non-private networks. The interoperation should not be restricted to passing messages and/or knowledge.
Moreover, this interoperation should be enabled natively with the intention to permit ease of upkeep/improve, utility sharing, and powerful safety with out decreasing efficiency, whereas making certain the complete ecosystem is more and more and sustainably worthwhile.
In consequence, we started to develop the ParallelChain Mainnet to enhance the 2 impartial methods whereas sustaining the augmentation of the 2 impartial environments via our Inter-ParallelChain-Communication (IPC) protocol. We additionally envisioned the necessity for the non-custodial pockets, which is factually a decentralised element.
We realised the challenges that include self-custody of personal keys, notably, the lack of belongings attributable to non-public keys being forgotten or compromised by malware. So, we enlist ourselves to use our own-invented biometric recognition expertise within the improvement of ParallelWallet, with the aims of offering end-users privateness, safety, and ease of use. We embrace and share the Net 3 worth that you need to be the only real proprietor of your individual knowledge.
No firm, together with ParallelChain, ought to retailer or use your knowledge. And we’ve stayed true to this mission by ensuring ParallelWallet doesn’t retailer any of the person’s biometric knowledge, each captured knowledge is instantly transformed into mathematical templates that can not be reconstructed, after which additional scrambled.
We’re presently growing extra choices and communities to allow the mutual leveraging of the Enterprise Blockchain and the Public Blockchain for our companions and customers, and we are able to’t wait to share them with our customers when they’re launched.We’re trying ahead to enhancing and quantum-leaping the present blockchain ecosystem with all events collectively.
I perceive there are two most important blockchain software program suites on ParallelChain: the ParallelChain Mainnet and the ParallelChain Personal. Please clarify to our readers what the 2 blockchain software program are all about.
ParallelChain Enterprise is a high-performance non-public blockchain for constructing functions corresponding to enterprise software program and networks. It powers the enterprise merchandise that we provide to fulfill knowledge privateness and compliance necessities, and it retains verified transactions non-public with our patented Proof-of-Immutability (PoIM) consensus mechanism.
Then again, ParallelChain Mainnet is a public Proof-of-Stake blockchain community that employs a multi-class validator design and is protected by the ParallelBFT consensus protocol. Our public chain is designed for quick transactions and low charges.
Companies can entry the decentralised area whereas having fun with safety through Inter-ParallelChain Communication (IPC). The function permits native interoperability between the non-public and public blockchain, and companies can faucet into the advantages of the decentralised net whereas preserving their knowledge privateness.
The mission gives blockchain-as-a-service to enterprises and clients to unleash the ability of DeFi and the metaverse. Might you clarify how ParallelChain expands the adoption of DeFi and Net 3 for its enterprise clients?
I discussed Inter-ParallelChain Communication (IPC) which permits interoperability between public and enterprise blockchains. The ParallelChain Mainnet offers a versatile good contract that helps Automated Market Maker (AMM) and order book-based protocols which are used within the improvement of decentralised exchanges.
IPC basically acts because the bridge that connects the enterprise chain to DeFi networks constructed on the ParallelChain Mainnet, and this permits decentralised functions (dApps) to work throughout each layers. By doing so, we create wider accessibility between communities which are historically remoted.
On to the present happenings within the cryptoverse, I’m certain you may have heard concerning the FTX alternate scandal. Do you may have any ideas on this unlucky occasion? How will the collapse of FTX have an effect on the broader crypto and blockchain universe?
It’s stunning that FTX, a good cryptocurrency alternate within the business, collapsed so all of the sudden and swiftly. But the explanation for its demise was clear when its new CEO John Ray III laid out his findings which highlighted a scarcity of transparency in funds administration and extreme oversight of system controls and regulatory compliance.
As an alternate that’s ranked the third largest by buying and selling quantity and second within the futures market, FTX’s collapse had far-reaching penalties that’s nonetheless reverberating throughout the cryptocurrency area even immediately.
The dearth of transparency and mismanagement by FTX has completely destroyed belief within the cryptocurrency business, and retail merchants might have second ideas earlier than buying cryptocurrency belongings whereas establishments might take a extra hesitant strategy to future enterprise investments.
What was abhorrent to those that trusted FTX was maybe the façade that its founder Sam-Bankman Fried had constructed. Its founder had indicated it was solvent through the collapse of Terra, and its protected finance practices had enabled it to remain afloat and even purchase different rivals through the Terra fallout.
Furthermore, the founding father of FTX was an outspoken proponent of the US Digital Commodities Client Safety Act (DCCPA) invoice which aimed to manage cryptocurrencies additional, and this drove VCs and retail customers alike to put religion within the FTX platform.
The findings laid out by FTX’s new CEO are a literal slap within the face to those that trusted FTX and its founder because it goes towards the whole lot they believed he stood for, from the blatant fraud carried out to the shortage of protected monetary regulation inside the firm. Entities that survive the fallout must work laborious in constructing the belief that has been misplaced
Following the collapse of FTX Change and Alameda Analysis, there was a number of discuss concerning the want for more durable regulation within the blockchain area. Is that this the precise step for the blockchain area?
Sure, I consider that such a high-profile collapse of the FTX alternate will undoubtedly invite extra scrutiny and laws from monetary authorities, and more durable guidelines are wanted to manage the blockchain area and create an ecosystem of belief.
Whereas critics say that more durable legal guidelines will stifle blockchain innovation, it’s important to defending retail merchants who’re most weak to market fallout. Prospects of centralised entities need larger transparency and reliable information earlier than depositing their belongings on these platforms, and having a stable regulatory framework creates larger safety and belief for these clients.
On the draw back, this will create larger boundaries to cryptocurrency entry and focus of energy with finance authorities that the cryptocurrency area wished to keep away from.
A silver lining of the FTX-Alameda collapse is the re-invention of the DeFi area as one thing that’s actually decentralised. As one of many main cryptocurrency exchanges with an aggressive funding arm, FTX has saved a number of promising DeFi protocols tethered to it with enterprise capital investments, affecting the protocol’s popularity as being actually decentralised. The collapse of FTX has damaged the chains tethering these protocols to a centralised alternate, and we may see a extra real DeFi ecosystem within the close to future.
Moreover, quite a few specialists are predicting potential regulation of proof-of-stake platforms corresponding to Ethereum and ParallelChain by the SEC. What potential influence may this have on the DeFi area generally?
As laws mount and cryptocurrency customers have a larger expectation of belief and transparency, we may properly see Know Your Buyer (KYC) and Anti-Cash Laundering (AML) processes being applied for DeFi platforms as regulators transfer to maintain laundered funds and blacklisted gamers off them.
Decentralised exchanges (DEXs) and protocols don’t handle the belongings of customers not like centralised exchanges, however with the growing variety of hacks within the DeFi area and a necessity for staff accountability after the doubtful backgrounds of key gamers like Do Kwon had been uncovered, we are able to anticipate protocol shoppers to demand verifiability when it comes to safety and staff background sooner or later.
At ParallelChain, we consider that larger transparency and self-declaration about our processes and practices will solely profit the cryptocurrency area as a complete, and we welcome laws that try for a similar beliefs. We constructed our enterprise choices with laws and compliance in thoughts to assist companies navigate a regulated DeFi future.
Might you clarify what precisely ParallelChain gives as its aggressive benefits over different Layer 1s like Ethereum and Solana?
Selecting the best blockchain to construct a mission on shouldn’t be the identical as selecting a pc with the most effective RAM and graphics card. Each blockchain is exclusive and seeks to unravel a selected downside, which implies every infrastructure is constructed in another way as properly.
Nonetheless, adapting and scaling a blockchain shouldn’t be the identical as upgrading our pc methods which might be performed with a easy Mac or Home windows working system improve.
As a substitute, Bitcoin and Ethereum undertake Layer-2 options corresponding to Lightning Community and Polygon to scale transactions and visitors on the chain. Like different blockchains, ParallelChain goals to unravel points that hinder Web3 mass adoption and create a vibrant ecosystem, however we go for a Layer-1 strategy as an alternative of adopting a Layer-1 – Layer 2 dependency.
Heterogenous blockchains are unable to inter-communicate meaningfully as a consequence of their distinction in structure and consensus mechanism. That is one thing that Layer 2 options out there can not obtain.
ParallelChain goes one step additional by reaching native chain communication between permissioned and permissionless chains for deep-level interoperability and permits enterprise customers to faucet into the decentralised area in a non-public, safe method.
Lastly, how do you see the blockchain ecosystem, particularly DeFi, evolving within the subsequent 5 years?
We are going to see blockchain methods including extra real-world makes use of because the expertise matures, and it’ll slowly however certainly change the centralised infrastructure supporting completely different industries in immediately’s economies.
Additionally, we are going to see one other wave of DeFi summer season within the subsequent bull market with protocols that may emerge stronger from the present bout of DeFi hacks, and they’ll have strong good contracts and controlled DeFi processes to guard customers who’re utilizing their platform.
With extra banks and establishments seeking to soar into the cryptocurrency area and faucet into the advantages of decentralised finance, we are going to possible see these protocols taking up the day by day centralised features of monetary establishments too.
Ian Huang is an infrastructure technologist and entrepreneur. After his journey at Westinghouse, Tektronix, Raytheon, DEC and Hughes Community Techniques, he based XNET Know-how (Silicon Valley) and introduced it to NASDAQ.
He’s additionally a giant contributor to the innovations of multi-tasked OS, semiconductor design, CPU design and community protocol in TekDOS, Precedence Sectoring Processor of USAF A-10 Attacker Cockpit, SCSI, UNIX, RISC, FDDI, ATM Change and Ethernet/VPN Change.
