GAINS Associates
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GAINS Associates

EdenChain — Telegram AMA — March 13

On Friday, March 13, we had the pleasure to welcome to our Telegram chat:

James Ahn, CEO and

Esther Oh, Business Manager from EdenChain.

We asked them questions about the development of EdenChain, currently ranked 869 on Coinmarketcap.

Some sentences have been slightly edited for readability, but the meaning has been conserved.

Summary

In this AMA, James Ahn and Esther Oh from EdenChain joined the GAINS community to tell us about their upcoming platform for asset management and more specifically their crypto fund for which they will only accept EDN. They also discuss plans for EdenChain’s future, especially with respect to DeFi more broadly. Watch out for the launch of MoA 2.0, EdenChain’s DeFi service, which will include asset classes like stocks and bonds. James also explains why and how EdenChain will focus on security. With a stable and proven model, this will pave the way for EdenChain to offer ETFs.

Introduction

Q — Alexandre R from GAINS: James and Esther, can you tell us what you did before crypto, how you got into crypto and if you’ve had any other venture in crypto previous to being involved with EdenChain?

A — James Ahn from EdenChain: Before jumping into the blockchain industry, I was running a machine learning company dedicated to machine trading. Nowadays, that field is quite common in the financial sector. I cannot name an institution without it. Machine trading is a sort of algorithm trading, building on an AI-based model that analyzes numerical data to generate long/short signals. The funny thing is that in the beginning it was an ordinary AI company.

Do you know the biggest problem for an AI company? It is the data. Financial data is easy to get and is well cleaned, as well as free of charge, so it was a natural step for me to use the financial data. I published an algorithmic trading book in Korea. I teach algorithm trading in several financial companies in Korea, and I submitted an article to a financial engineering journal in Korea.

Q — Alexandre R from GAINS: Wow, quite impressive. I guess the question on everyone’s mind is: what were the returns of the Algos?

A — James Ahn from EdenChain: It was two figures, not such a bad performance. :)

But as you may know, the performance of any trading model is very dependent on market conditions. When I was doing machine trading, market conditions were relatively good. So I would say that I was lucky at that time, besides my trading model.

Q — Alexandre R from GAINS: Can you tell us what your role is at EdenChain and what the project is about in a few simple sentences?

A — James Ahn from EdenChain: I am the founder and CEO of EdenChain. Nowadays, I have devoted myself to developing trading models optimized for crypto assets.

Q — Alexandre R from GAINS: Nice, that’s quite simple. And what is EdenChain in a simple way?

A — James Ahn from EdenChain: OK. Let me put it this way. EdenChain is a blockchain platform specialized in the DeFi sector where enterprises and people can do asset management.

Product

Q — Telegram user Pramod: What are your views about DeFi? Are you interested in it? Do you have any future plans to work in DeFi with the EdenChain ecosystem?

A — James Ahn from EdenChain: I think blockchain and DeFi are a good fit. Actually, blockchain technology was born for it.

The finance sector did not show any innovation for more than hundreds of years from the customer’s viewpoint. Furthermore, the financial industry has been losing its trust. According to a recent survey, 80% of Korean do not trust banks, so I can see huge opportunities in it.

After proving the performance of the model, we have a good plan for business expansions. The first step would be an ETF, we will accept only EDN for the ETF. Of course, the ETF should be attractive to people. :) Then demand for EDN will be getting bigger and bigger. One of the good things for that is that EDN will be locked for some time. Since the current market cap of EDN is not that big, $ 2–3M fund size is good enough to raise demand for EDN. :) After that, we will let investors leverage the locked funds by integrating to existing DeFi protocols.

If we take responsibility for risk management, it could be done easily since DeFi protocols are programmed. No need to have human interaction. Everything could be automated. When we show the ETF’s performance, there will be competitors with ETF kinds of things. When you look at the traditional financial market, ETF kinds of products dominate the market. It has around 56% of the market share.

MoA (Mobile Asset Manager) will be a marketplace for ETF things, a passive investment product market. Once the model works, there are so many ways to expand the business.

Q — Twitter user wheeinpurple: The crypto world is becoming overcrowded with blockchain projects and tokens. What makes EDN different from other projects?

A — Esther Oh from EdenChain: We believe that while there are countless projects and tokens, eventually only the ones with proven technological superiority with solid use cases will survive. At EdenChain, we distinguish our projects from others by building a superior service that is well-aligned with the market condition.

Since the beginning of our company, our focus was to build a world-class service. At our core is our MainNet launched in 2019: a permissioned platform that is scalable, flexible, reliable, and secure. Beyond that we built Pegasus, which is a back-end solution that provides instant currency swaps. It runs on the EdenChain mainnet. This means each time someone uses Pegasus, they’re using EdenChain, even though they may not know it or see it. We’ve ensured that all the products we build are aligned with EDN holders’ interests and are providing additional utility and value. This is no exception.

One such product which Pegasus is heavily featured in is our digital asset manager, MoA. MoA v1 was recently released and showcases our intention to build an advanced DeFi offering that addresses pain points in the market. It allows people to hold a range of assets, including EDN, ETH, OMG, with more assets on the way. Additionally, users can seamlessly rebalance their portfolio using Pegasus thanks to the instant currency swaps.

In future updates such as MoA v2, we will focus on DeFi. With that, we are planning to incorporate in MoA v2 support for assets like Bitcoin, as well as add in world-firsts such as Crypto ETFs and indexes. Think of them like funds and investment tools which can be used all within a single interface to help crypto investors earn passive income or improve their trading. We believe that this new direction is well aligned with the growing desire for crypto portfolio management.

Our goal with MoA 1.0 was to achieve a seamless user experience, which will play as a solid foundation for the next phase of MoA v2, which is portfolio management and integration with other DeFi protocols.

Security

Q — Telegram user Pham Tan: What critical problems do you see occurring in the blockchain industry nowadays? How does EdenChain aim to solve these problems?

A — James Ahn from EdenChain: Besides government issues, security will be the biggest hurdle especially in DeFi. Because most DeFi protocols may not be matured, I expect a series of hacking cases in DeFi. Once people lose trust in it, it is likely to jeopardize the entire DeFi ecosystem as well as the blockchain space. Developers do their best to secure the system, but they are just humans, so nothing is perfect. Only time can cure the security issues.

So, we have been developing a sandboxed transaction processing system. Even though a hacker can successfully hack the system, the hacker cannot decrypt the message nor sign it. I cannot say that it is 100% secure, but the possibility of being hacked will be decreased very much. If a hacker wants to do hacking, he is supposed to find a system but that system is hard to find. As you know, most hacking comes from insiders, so the sandboxed transaction processing system is going to be applied to all developers no exception!!!

In short, a Sandboxed transaction processing system can be secured from inside and outside.

Technology

Q — Telegram user Sena: What are the algorithms which are used by EdenChain for fast and scalable transactions?

A — James Ahn from EdenChain: Parallel processing is the key technology for the fast and scalable blockchain platform. Basically, to increase performance and scalability, parallel processing is the only answer. In our case, we group transactions according to their type, then do processing by batch. So we can do parallel processing. To implement that we have the main blockchain and a side blockchain. The side blockchain is for handling transactions, the main blockchain for anchoring, preventing cheating or manipulation. If there is more processing power needed, then we can add a side blockchain. So scalability could be achieved.

Business Development

Q — Twitter user MamaDoubleOne: Can you tell the community about the expected launch date of MoA, its scalability, and comment on a potential plan for diversification of DeFi services?

A — Esther Oh from EdenChain: We are aiming to launch our DeFi service sometime in Q2 (2020). Our solution is designed to expand to include other asset classes, such as physical assets like stocks and bonds. However, we will only handle crypto assets in the initial phase, as no licensing is needed for us, EdenChain, to run funds when assets are limited to crypto assets. The service will start as an index fund. That means participation opportunities can be limited in the beginning. We believe that the performance of our model would first need to be proven by its data before going completely public. Once the performance is proven, then we can then start offering an ETF, which is simply an index fund modified for easy buy and sell. All these are in line with our goal of making our passive investing solution the best of its kind. Therefore, we currently do not have any plan to diversify the types of DeFi services we’d provide, as we’d rather focus and specialize.

Q — Twitter user Bie: Can you briefly explain the top three milestones your team aims to accomplish by 2021? Who do you see your greatest rivals in this space?

A — James Ahn from EdenChain:

  1. Building a solid and profitable model for portfolio management: We are going to start a fund with the model in Q2 to verify and prove the performance of the model.
  2. Secure EdenChain’s mainnet: Since we are going to provide DeFi services, strong security comes first as there are so many hacking cases in this crypto world.
  3. Starting ETF: After proving the performance and stability of the model, we want to expand our business partnership with others. ETF can be a good start for that. At this moment, Greyscale seems to be a big rival as it has Bitcoin’s trust. Fortunately, there are very few competitors in this field, and I have not found a direct competitor yet.

A — Esther Oh from EdenChain: We will offer an ETF once we prove the performance of our model. EDN will be the only form of payment we will receive when investors want to buy the ETF.

James and Esther, thank you for coming in today. It was nice to learn more about EdenChain and how people will be able to manage their assets and make passive returns on the platform, as well as bring demand for the token EDN! I’m happy you’re taking security so seriously, I’m sure this will bring more trust and therefore more people to the ecosystem. Is there anything else you’d like to say? Where can we go to follow EdenChain’s news? — Alexandre R from GAINS

As the crypto market grows in size, so will the pool of wealth it generates. We are developing a technology that can cut the pie in slices fair for people in the crypto world. It was a pleasant time to talk with you… :) Thanks. — James Ahn from EdenChain

That’s right. We are going to also start an event related to our free crypto portfolio analyzer. The event will be announced at a later point. :) It was wonderful being here! Thank you so much for having us. Please subscribe to our MoA newsletter for new and exciting updates on our DeFi endeavor. Thank you guys for wonderful questions and participation! Thank you GAINS Associates for the awesome facilitation! — Esther Oh from EdenChain

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