State Channels Changing The Crypto Space | Louis Bellet @ DSCVR show
The Yellow Network CEO, Louis Bellet, had the pleasure of speaking with Natalia Sokolova at the DSCVR show, a 30-minute one-on-one interview-style television series highlighting thought leaders actively involved in bringing cutting-edge technical innovations to life. It is produced by DigitalInnovators.tv and sponsored by the TkyoLabs.com group of companies (StrongNode.io, Original Gamer Life/OGL.gg, etc.).
The conversation evolved around the problems that the current blockchain space is facing as well as the solutions to them provided by Yellow Network.
Read the highlights of the conversation and learn more about Tkyolabs and The Digital Innovators television series below.
Question by Natalia Sokolova: Hello, Louis. Thanks for coming here. Can you please introduce yourself to the audience and your company?
Answer by Louis Bellet: Thank you. Nice to meet you. So yes, my name is Louis Bellet, I’m the CEO and founder of a company called Yellow, which currently has 120 employees around the world. We’re a Web 3 company specializing in FinTech.
Q: How did you get into the crypto space? Can you tell us a little bit about your personal background?
A: So I’m a career engineer and entrepreneur, and I have always been on the tech side in startups. In our companies, we were always on the edge of new coming technologies. There was a time for cloud computing — we were in it, there was a time for big data — we were in it as well, and now I would say it’s the age of crypto. I would say that in the IT business, we sell innovation, so we have to stay on top of things and always jump on the first innovation that comes in.
Q: Can you tell us a little bit about what Yellow is and what problem you’re here to solve?
A: Historically, Yellow was built as a market maker back in 2013. The way it operates now is a result of its merger with a French company called Openware which is building FinTech products and technologies. The merger of those companies has a specific purpose, which is to modernize the entire practice of crypto trading.
Trading, as people may incorrectly think, is very immature in Crypto; it’s not well protected, not well structured and in terms of IT infrastructure, it’s also very weak compared to the state of global markets in traditional finance. With Yellow Network, we are launching a decentralized economy that has the role of a clearing house with its own token. We bring in the practice from traditional finance and innovate upon that. We call this a smart clearing house because it’s not a company, it’s a smart contract. And so this way we are able to connect every market maker, trading films around the globe exchanges, and start building brokers, which do not exist in the Crypto trading business today.
Q: So you’re actually helping both businesses and consumers, protecting both sides. We’ve seen that you’re very focused on KYC and making sure there are no bad actors in the space and things are done according to the regulations. So the subject that comes up a lot right now is actually regulated. Given the current situation of crypto and where we are right now, what do you think needs to be done from a regulator’s perspective?
A: Crypto is an innovative technology and as for regulation, nothing has to be done. It’s already been there for many years. The crypto industry has to realize that they are the little ones and they will have to comply with the regulation, not the other way around.
The architecture of the current exchanges is just wrong. Regulating DeFi is impossible, it’s never going to happen. So there is an unregulated space, which is fine, but it must be kept B2B. This is useful for example, for financial infrastructure and for the professionals of crypto, you can think of DeFi as the backbone of the internet of finance. And it will be used by ISPs or brokers that will give you access to the consumer. You can control and regulate the endpoint and that’s already how the law works. The legal framework already exists. So I think this is great as it is. We have to stop clashing with each other and just work with it.
At the center of the issue, there is mainstream market access and there consumer protection. If you’re asking me where crypto is today, it’s more immature than what people think it is. A lot of people in crypto already think it’s established. From a technical perspective, it is very early technology. The ecosystem of blockchain is really struggling in terms of research and development. I would even go as far as to say that there’s lots of money being invested but the result is lackluster in terms of technological breakthroughs. Since Bitcoin and Ethereum, we haven’t had many technological breakthroughs. That’s already a 10-year period.
It took a while for the cloud to be adopted and mainstream, Crypto needs more time and needs investment into technological breakthroughs. We need universities and researchers to combine forces, but unfortunately, every project is diluting the effort by making copies of each other without adding any real value. There is a lot of work to do here.
With Yellow, we really built something completely new, which is not a blockchain, but it’s a decentralized trading network. And I think, it’s a way to show that it’s possible and we don’t have to be obsessed, you know, with this layer one smart contract and bridge that are way overrated today.
Q: Thank you for the explanation. We’re at Consensus 2022, the first in-person event for Consensus and one of the few in-person events in crypto. Being here at the conference, what are your main goals, and what is the main message to the audience?
A: For myself, it is my first time visiting a crypto event as a visitor. I wanted to have an idea and meet people in the industry and the exhibitors as well. Exchange visit cards because we don’t have competitors at this stage. We have only friends and partners, our only competitors are the non-crypto world, so we need to work together, exchanging ideas in a way that we can take the leap forward, and bring legacy systems to the blockchain as fast as we can. It’s very nice to finally be all concentrated because the last few years since I’ve been in crypto, it’s been all about remote life and online calls. You don’t really have the opportunity to exchange ideas and get to the bottom of it.
That was the initial idea. I’d like to do more from a business perspective, but networking has been pretty efficient.
Q: Can you please tell the audience where they can find more information about you?
A: Yellow is a large company with over 20 subsidiaries, but you can find our project’s website by heading over to yellow.org. We also have yellow.com, which is an exchange showcase, and openware.com, which operates a crypto exchange foundry.
You can watch the full version of the interview on YouTube or on DigitalInnovators.TV.
Learn more about Tkyolabs and The Digital Innovators television series
TKYOLABS Inc. creates and incubates new technology solutions that leverage web 3.0 and blockchain technologies designed to improve users' and customers’ lives.
For more details, visit: https://tkyolabs.com/
Follow Tkyolabs on social media:
Telegram: https://t.me/tkyolabs
Twitter: https://twitter.com/TkyoLabs
YouTube: https://www.youtube.com/channel/UCzoVfHajmjklRiRmhtbDWTg
LinkedIn: https://www.linkedin.com/company/tkyolabs/
The Digital Innovators television series is created by The Soho Loft Productions under The Soho Loft Media Group. Digital Innovators TV is a 30-minute one-on-one interview-style television series highlighting leading thought leaders actively involved in bringing cutting-edge technical innovations to life.
For more information on Digital Innovators, visit: https://digitalinnovators.tv
Follow Digital Innovators.TV on social media:
Twitter: https://twitter.com/D_Innovators
YouTube: https://www.youtube.com/channel/UC4HWVazZzxrGgv43hR2zQlw
LinkedIn: https://www.linkedin.com/company/digitalinnovatorstv/
StrongNode:
Twitter: https://twitter.com/StrongNodeEdge
Telegram: https://t.me/strongnodechat
YouTube: https://www.youtube.com/c/StrongNode
LinkedIn: https://www.linkedin.com/company/strongnode-io
Follow Original Gamer Life on social media:
Telegram: https://t.me/OGLifeOGL
Twitter: https://twitter.com/OGLifeOGL
YouTube: https://www.youtube.com/c/OriginalGamerLife
