Hydax X Tezos Live AMA — Tezos in a New Era, Standing Out Amongst Public Chains in a Fierce Competitive Landscape
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During the Spring Festival this year, because of the coronavirus outbreaks, we organized the blockchain non-profit organization to help Hubei province. Here I would like to give special thanks to Sandy and Asher for their active participation and kindly donation in our donation activities.
Today we are greatly honored to have a representative from a top ten project on Coinmarketcap to join our AMA session. As Hydax is about to list Tezos, we invited our friend Sandy, the head of Tezos China, to share more details with us about Tezos, so that our community can learn more about the project and Tezos foundation.
1.I heard that Tezos competitiveness lies on its three pillars: Staking, Governance and STO. We can talk about them one by one so that everyone can get a better understanding of Tezos.
1 (1). In terms of Staking: In particular, we know that Tezos used PoS consensus, and the staking rate has always been very high, even exceeding 70%. Is there anything you can share in this regard?
President of Tezos China Sandy Peng: Significant exchanges, wallets, mining pools, etc. considers Tezos as a high-quality Staking asset. Secondly, Tezos’s Staking is supported by many mainstream exchanges, such as Coinbase, Okex, Binance, etc. What is relatively special is that the holders of Tezos are very loyal, so they are generally interested in Staking services.
Hydax Exchange COO Jay Chen: Hope Hydax can become one of the nodes for Tezos in the future!
1(2). In terms of Governance: We all know that many public chains have experienced hard forks, and such forks have a huge impact on a public chain. It is said that Tezos is a public chain that will not have a hard fork. What is the governance structure of Tezos?
President of Tezos China Sandy Peng: Unlike other blockchains, Tezos chooses ‘on-chain governance.’ On-chain governance is a way to explicitly allow token holders to vote on protocol upgrades or Tezos core protocol function upgrades. All projects have some form of governance, but usually, the governance processes are not transparent, and rarely has broad participation as the Tezos model, which is ‘one token one vote’ essentially. However, Tezos token holders delegate their voting rights to ‘bakers’ normally, which makes Tezos very difficult to create a hard fork with this wide participation.
Hydax Exchange COO Jay Chen: This is really a very meaningful setting. It seems that very few public chains have such a setting now. I feel that this kind of governance method will become a widely accepted method in the future. After all, consensus is a really important topic for blockchain.
1(3). For STO: Many public chain projects are seeking breakthroughs in Defi and games, but Tezos choose another way. We want to know how you made this decision?
President of Tezos China Sandy Peng: Actually, we didn’t choose STO as a direction per se, it's just that Tezos is naturally more suited to it. Security tokens represent the physical assets recorded on the blockchain, most of which are real estate. The total amount of assets issued by an STO’s real estate project may be higher than the total market value of Tezos. At this time, as a financial instrument for recording transactions and asset rights, Tezos’ security and stability of governance are particularly important.
Compared with other high-value blockchain protocols, three significant advantages which make performing STO on Tezos a very competitive option.
A. Institution-level smart contracts. One of Tezos’ core innovations is ‘formal verification’. Formal verification is widely used in the development process of essential systems such as the aerospace industry and investment banks, using mathematical methods to verify the correctness of the system to reduce the cost of correcting errors and increase productivity. The core code of Tezos is written in OCaml language developed by INRIA, the French National Institute of Information and Automation, which is very conducive to formal verification. Utilizing Tezos can construct smart contracts of formal verification.
B. Secure custody. Tezos client software includes a formally verified multi-signature contract, which allows cold storage deployment and management of smart contracts for the highest level of security. When aiming to be a highly complex, high-value blockchain, security is critical to a large amount of capital stored and deployed on the blockchain.
C. Upgradability. The mechanism of the Tezos protocol is that network participants can migrate any latest functions/techniques that appear to the Tezos protocol through on-chain governance. This feature will enable Tezos to be long-lasting and able to adapt to evolving and changing times.
Besides, one of the reasons why people are attracted to issuing security tokens on Tezos is that Tezos is very focused on the tools and infrastructure of securities tokens, making it easy to become a platform for security tokens.
Hydax Exchange COO Jay Chen: I do believe there will be many enterprises interested in STO cooperation. And this will lead us to the next question.
2. What is the current progress of the Tezos STO development status?
President of Tezos China Sandy Peng: At present, there have been announcements related to utilizing the Tezos blockchain for STOs worth $ 2.642 billion.
Elevated Returns and Securitize are planning to implement and deploy up to $ 1 billion in real estate STOs under the Tezos protocol. Elevated Returns has previously tokenized the St. Regis Aspen Resort in Colorado on Ethereum blockchain. Shortly after, Aspencoin transitioned to the Tezos blockchain after realizing the benefits of making use of Tezos blockchain for STO.
BTG Pactual and Dalma Capital are planning to use the Tezos blockchain for STOs worth $ 1 billion. BTG Pactual is Brazil’s largest independent investment bank, having conducted ReitBZ STO transactions on the Ethereum blockchain previously, and then announced that they plan to host STOs worth $ 1 billion under the Tezos protocol.
tZERO and Alliance Investments have announced to conduct a first STO worth a total of $ 642 million on Tezos through River Plaza in the United Kingdom.
Fundament Group has announced a strategic partnership with the Tezos Foundation to develop a digital securities infrastructure. The Bauwens Group is one of the strategic investors of Fundament Group, and its investment in real estate development projects under management is about $ 7.4 billion. Besides, there are several ongoing transactions and several new strategic partnerships, which will be announced shortly. You can stay tuned to our official website or WeChat subscription, or enter our official group to learn about the latest progress.
Hydax Exchange COO Jay Chen: Yeah, STO do have a huge market, these cases do sound really exciting. I hope these cases’ tokens can be available to the public soon.
3. So except for STO, what are the other use cases for Tezos? Can you give us more examples?
President of Tezos China Sandy Peng: Since the launch of the test net, Tezos has always supported the value exchange between users. In addition to STO, we also have many exciting applications in payment, games, Defi, and so on.
Payment: To indeed allow it to develop for critical uses, the community is developing stable coin (such as USDtz and ex.rs) trading solutions and better optimizing payment wallets. The recently completed FA1.2 and FA2 token standards help people bring these solutions to the market.
Games and digital collectibles: This is an exciting application case for Tezos. There is currently a great community project called Coase, which is building a digital collectible card game (and platform) on Tezos.
DeFi: In addition to the above stable coin projects, there is also a “packaged BTC” project, TZBTC; StakerDAO will use a Tezos’ baking model to create new assets, as well as other forms of financial experiments and innovations.
Tezos is a decentralized blockchain. We welcome developers to join Tezos to develop the applications they want.
Hydax Exchange COO Jay Chen: These applications sound very interesting. I hope that these cases can be shared with our community later so that everyone can take a look. I think some people in our community will be very interested to participate.
4.I took a look at the market value trend of Tezos on Coinmarketcap. Since the end of October last year (2019), the transaction volume of Tezos has greatly increased and has risen several times. So since the second half of 2019, did Tezos do anything special?
President of Tezos China Sandy Peng: From my perspective, Tezos has kept developing steadily. Carthage is a minor upgrade, debugging some of the features launched before. There will be many more upgrades in the future. But the success of Carthage shows Tezos’ success in self-governance, and stability. Tezos has been improving to achieve more stability and more compliance. It has announced commercial cooperation with many government agencies and enterprises, like STO, which has made great progress. It shows the possibility that Tezos will be largely applied in facilitating transactions in real estate and finance..Finally, I would like to say that after the blockchain bubbles in 2017 and 2018, the truly valuable public chains began to slowly manifest themselves, and Tezos is undoubtedly one of the most interesting public chains among them.
Hydax Exchange COO Jay Chen: Keep shipping, Keep delivering things and meet the expectation, this is what a great public chain should do. Tezos did a good job of this respect.
5. I have heard about the Tezos Foundation for a long time. Can you introduce more Tezos Foundation and especially Tezos China Foundation?
President of Tezos China Sandy Peng: Tezos Foundation is a Swiss (Zug) foundation with the purpose of advancing the Tezos protocol and fostering adoption throughout the ecosystem. The Foundation is focused on three grant categories: Research, Education & Core Development Grants ；Ecosystem — Tools & Applications Grants and Community Grants. Since the first Biannual Update, the Tezos Foundation has committed funds to 78 new projects across 26 countries for a total amount of USD 37.6 M. For more about Tezos Foundation, please read the latest the Biannual Update. Tezos China is a part of this larger ecosystem, predominantly responsible for all matters Tezos related in the Chinese speaking regions and communities.
Hydax Exchange COO Jay Chen: Well great! I hope that in our community if you are interested in developing projects or other methods on Tezos, you can try to apply for a project support fund from Tezos China Foundation.
6: What are the plans for Tezos China Foundation this year? Are there any planned or ongoing projects in cooperation with the government and financial institutions?
President of Tezos China Sandy Peng: Firstly, Tezos China will pay close attention to the policy in relation to STO in Hong Kong and Beijing and actively participate in it.
We are also actively negotiating and discussing with local governments on blockchain collaboration. We hope to build a blockchain platform for the government using Tezos, and blockchain can play an important role in government affairs, medical care, real estate registration, citizen privacy and so on.
Hydax Exchange COO Jay Chen: Hope we can hear more information about these processes, and welcome to share the updated information in our community.
Next, let’s come back to Tezos project a bit.
7.So what’s the unique point compared to other blockchain projects? What vision do you have for Tezos and Tezos China Foundation?
President of Tezos China Sandy Peng: Our Mission has always been to further engage with local communities, educate and promote Tezos technology, and develop institutional use cases to service the local community. We are hoping to do more online AMAs, receive and review more grant applications, connect deeper with industry partners in the region, all the while managing our communication with Chinese community members. In the coming years, you will see us engaging with larger organizations, and delivering more ambitious projects is arguably the largest crypto market in the world.
What makes Tezos unique is its decentralization. There’s no “Tezos Master Plan”, and individual are entities may have their own roadmap. The diversification is the uniqueness of the Tezos community and the thriving Tezos community.
Hydax Exchange COO Jay Chen: I like this point, you guys really have the spirit of blockchain.
8. You just said that the Tezos China Foundation hopes to establish a deeper relationship with industry partners. So how can developers and companies in this industry contact Tezos China Foundation and build connections? What kind of help can the Tezos China Foundation provide?
President of Tezos China Sandy Peng: For developers, I would like to say that Tezos has great technical flexibility. We very much welcome them to use Tezos to develop more interesting and useful applications and make more suggestions on technology and applications. More participating in the voting and discussion of each upgrade agreement, and participating in the application of blockchain technology. You can get in touch by joining our wechat groups? We have a very active developer community globally that helps each other.
For companies, institutions, and governments, Tezos is currently the most suitable blockchain for institutional applications. Some characteristics of the blockchain, such as immutable data and decentralization, can help companies greatly improve operational efficiency and save operating costs in many ways. The French military and several of Europe’s largest automotive companies have already developed special applications using Tezos. We very much welcome the leaders of various industries to put forward their demands, and we will endeavor to solve them.
In the end, I have to say that the blockchain has a long way to go to achieve universal value. Tezos is a very decentralized organization. We respect and care for every need, and we can also provide financial, technical and personnel assistance. Tezos’ vision is to build a strong decentralized alliance, and we welcome everyone to join in.
Hydax Exchange COO Jay Chen: Great conversation! Because our time has reached, our AMA will end here. Thank you so much for Sandy’s sharing. I believe through this kind of communication, we will have a better understanding of Tezos and Tezos Chinese Foundation.
Tezos will be launched on Hydax soon, I hope you all can continue your attention and support for this project and we will keep you all updated on the news from Tezos.
Q&A Session during Live AMA：
Q1: We have corporate resources, they are also considering using Blockchain to improve their business. May I know what kind of industry Tezos China likes to build partnerships with? Are there some regulatory issues for STO?
President of Tezos China Sandy Peng: As I mentioned earlier, our mission has always been to further engage with local communities, educate and promote Tezos technology, and develop institutional use cases to service the local community.
We would like corporate with institutions that are committed to using blockchain technology, such as universities and educational institutions that provide blockchain training, media that popularize blockchain knowledge, and government agencies and fintech companies that use blockchain technology to promote innovation.
At present, STO has relatively complete laws and regulations in many countries, such as the United States, South Korea, and Japan. Hong Kong is also promoting the construction of STO regulations. In fact, STO is revolutionary for regulation. It integrates laws and regulations and
the securities themselves, and the data cannot be tampered with. We believe once the regulators fully understand the STO, they will definitely adopt and promote the application of this technology.
Q2: May I know the roadmap of Tezos, did you face any difficulties? Since the blockchain industry moves really fast, will you change the roadmap by time?
President of Tezos China Sandy Peng: Tezos is a blockchain that adopts community governance. Over time, new technologies and new changes will emerge. Whether or not the roadmap for Tezos changes will depend on its ability to adapt to the development of technology and the opinions of the community. But using Tezos to promote global innovation will always be Tezos’ mission, and this will not change.
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