LBank AMA Recap with Conflux
Q1：Introduction of Conflux
Conflux network is a public blockchain bridging the eastern and western communities and economies. Take the conflux protocol itself features a consensus protocol known as the tree graph to improve its scaling and capabilities related to existing networks like ethereum. We are compatible, allowing application layers to support smart contracts written within solidity. And other languages, we can get into that further. And conflux network, as mentioned, is headquartered in China, but we have expanded our operations to Toronto and Nigeria and other places as well.
It all started back in 2018, where our founder Fan Long presented his research paper at Tsinghua University on how to scale the economical consensus, how to improve the utilization rate, and how to make it more energy efficient. It gained a lot of recognition in the early of 2018. From then on conflux network was born. At the end of 2018, we close our fundraising rounds and we’ve raised around $35 million Led by sequoia China. From there on, early in 2019, we build our test net for everyone to participate. Last year in 2020, October 29th, we’ve launched our official mainnet called conflux thesis. I think right now we’re around have half a year, more than half a year into our mainnet launch. We’re really, really focusing on building up our ecosystem.
Q2: Okay, we say many Layer 1 protocol in blockchain world. In your opinion, what kind of technical advantages does conflux have?
Yes, I think Conflux’s network has many technical advantages. As mentioned we have developed a Tree-Graph algorithm to make it more simple. The Tree-Graph algorithm is a beef dubbed version of a POW mining consensus based on DAG. So we have conflux network. You need to develop the tree-graph algorithm, which is essentially a POW proof of work algorithm to secure the security of our network to be transparent and send out transactions.
Now, one of the biggest obstacles when it came to POW networks was that it was not scalable. If we look at the Ethereum, and more, or Bitcoin, which are also pow networks, they can all, they can only process, 4 to 7 transactions or 15 to 30 transactions per second.
Now, that’s enough for certain use cases that are not mass adopted and only used by a small amount of population in the world. But if you wanna take block technology vision to the next level and bring it to everyone in the world, the protocol needs to be comparable with something we use in our daily lives, something like Visa.
Visa is the the, one of the most useable payment method globally, right? Visa can reach a throughput of 3,000 transactions per second. We had conflux network. We make sure that using the tree graph algorithm that our network can process more than 3,000 transactions per second while maintaining for decentralization and high levels of security. I think that’s one of the technical advantages I can get into it a bit more. From a technical perspective, if you develop on top of conflux, we provide a lot of CDS and tools for all the developers. I think everyone in the crypto space would be familiar with these. For developers, it’s just easy to to get on Top of conflux and develop something and realize it. One aspect that’s very interesting that we have not encountered in the block chain space is something that we build the transaction sponsorship mechanism.
As you, if I was to send you one ethereum or a bitcoin, I would need bitcoin or Ethereum in my wallet. Now, without Etherum, you can also send erc.20 tokens. But in order to send you a erc.20 token, like usdt I need ethereum on my wallet as well to pay for the gas fees. But essentially, I would need to have two currencies or assets unable to send one to someone. At cocflux network, we have this transaction sponsorship mechanism, which enables third parties such as developers or sponsors, or for now cocflux network to pay for to sponsor the transaction fees. What this means is that everyone who’s new to the blockchain getting into crypto and decentralized finance, that they can send usdt or other tokens built on top of conflux without the need of having CFX as the protocol token to pay for the gas fees. Where we got that from or where the idea stems from is from the traditional Fintec space. So if you look at Alibaba or wechat pay, they all live on service. They’re all Free to be used. But they all live on servers now who pays for these servers. Um it’s, not the user. It’s the supply chain down the line of the whole of Alipay or wechat pay. So it might be China Mobile paying for their servers to host it. Or it could be Alibaba themselves paying for the service and able to process these transactions. We have taken it down and brought it into the blockchain world. Applications build on top of Conflux can be more scalable. Yes. For developers as well. Right now, there are different languages or virtual machines that can be used to deploy on. But the most common one is the evm ethereums virtual machine, on which you write and develop smart contracts using the language solidity. It’s from ethereum, it’s started off at ethereum. But conflux network embraces evm as well.
Everyone who has ever written a smart contract on the ethereum can easily deploy the same smart contract on top of conflux network as well. When talking about the languages, and IDEs, we have recently partner with reach, which is a very new smart contract development language and ide which is very suitable for traditional computer science background people. So if you’re from the traditional developing space and want to get into smart contract developing, right? You’ll have a hard time to get into solidity, to learn about the logic and reaches very similar to it. So, for example, reach because the design and the concept of it. And developers need can can write smart contacts, faster, they can develop them faster. They need fewer lines to develop a smart contract. And one example would be, I’m not sure for 3d there was a game that congested. I think it was Neil back in the days or EOS in order to develop a formal 3d using reach will take you 1 hour with solidity if you’re very, very smart, if you are very a theme with solidity, it might take you at least one day to 2 days, would reach it takes you 1 hour.
Yeah, so that’s some of the things we’re building for the developer community. Another thing that we have touched based on as well as the scalability of our network is a layer one protocol. I’m sure that you guys know about the height of the layer two solutions, like matrix, aka polygon, or pull in which come as a complimentary network or layer to the ethereum network. Because conflux is a layer one protocol. It means that there are two solutions can be also implemented on top of conflux network. In the future of, 3,000 TPS is not enough. And you can still scale it further down the line to increase the transaction throughput by another magnitude if you want. So that’s some of the longterm views that we have a conflux network as well, that we’re scalable. And here for the long term, for I would also like to share a couple of from our roadmap down the line, what we are building technically and we’re heading towards. We will be so conflux network as a layer one. In this multichain era, we will have different bridges through ecosystem project called shuttle flow to bridge assets between different chains.
Right now, it’s possible to trust chain bitcoin on top of conflux, to cross chain, all erc.20 tokens and ethereum on top of conflux. And to cross chain finance, dep 20 standard tokens on conflux. What this means is that tokens can freely flow between these different block chains. We’ll be adding new block chains into, as we will be adding new block chain bridges in the upcoming month. So conflicts can be connected with more public blockchains. And along the way, another upgrade would be that these different blockchains can also sing cross chain through conflux networks. So conflux network essentially works as a hub in the middle of the different blockchains to prostrate the assets. Because conflux network has by directional bridges between these block chains, they can also float seamlessly through conflux network from each other to each other.
One thing that’s very interesting that has never been heard of what we’re planning, or what we are developing right now is we are a pow consensus, right? But when you look at the POS base, it’s called finality for the block confirmation. We will also operate our consensus protocol to pow plus finality, what this means is it will eliminate the possibility of a, 51 % attack. Possible if we are only using the pow consensus. Yes. I think these are a couple of technical highlights and updates along the way that I like to mention. We can talk about it forever. But I think we might want to talk about some other aspects as well.
Q3: Many projects are built on the ethereum ecosystem. What is Conflux doing now in this regard?
Thanks. That’s a very good question. I think in the last 2 years when the crypto winter started, new protocols came out and to say that we can scale ethereum or the decentralized finance space more and more. In order to flourish as a protocol, you need transactions on top of it. You need the ecosystem to build, to be built on top of it. You need people to use your network. This is something that we’re building and heavily investing in at conflux network. Last year we started a, technical oversight committee, which is a funding committee for developers, which is organized and run by the community. Any project that wants to build on top of conflux would apply for a grant through the TOC and the community members that need to TOC what’s a yes or no or whether we should give these projects any allocation to further build on top of conflux.
Until now, from last year till now, we have around 20 completed projects build on our ecosystem that were funded by the TOC.
Another thing that we started is a grand program. Because a big portion of our premium tokens is to build and kick start, our community, our ecosystem. How the process works is people projects can apply for ecosystem brand. They’ll be invited by Jeff, who’s leading our efforts on the ecosystem brands, and invited through several rounds of screening and getting to know each other before deciding on whether or not to give this project along the line.
It’s not a you’re applied for it, we give you funding. It’s rather you hit the muscle would give you something for it in order for it to be more sustainable. Since last year until now, we have we have launched or not. We have many great ecosystem projects launched on top of conflux network. I would like to talk about them a bit more as well. One of them has recently hit some headlines across China, and in the west. It’s called flex protocol. That’s what we call it. Sorry. It’s a little bit that started up on conflux network. Users were able to deposit usdt or cfx as a collateral, and borrow other tokens from other money pools to do whatever they want, liquidity mining or hold it as an investment.
At the same time, there is the lending and borrowing mechanism that Interest rate is generated. So people lending supplying money into the money pools. They will get API on their tokens by providing it into the money pool instead of just holding it. So after a while flux was launched with the simple functions from lending and borrowing and liquidity. Liquidity mining started. So along with the liquidity mining, more and more assets came onto the platform to earn the governance token of flux. It was launched initially on conflux network. Since then, it has launched on BSC, on Heco and Okex chain. And at the the highest, flux protocol reached around 1 billion usdt TS of assets on the platform itself for lending and borrowing. It’s still ongoing. So feel Free to check it out.
Another project that I’d like to talk about, which actually started off the liquidity mining on top of conflux network is moonswap, a network started off last year on Italian. As a swap protocol, like uniswap or sushiswap with liquidity mining. After one a week of its launch on ethereum, what they did was to migrate all the assets from ethereum onto conflux through shuttle flow. Since then, it has always been running and, the community is getting bigger and bigger. And the liquidity mining programs keep innovative. They are still innovative. There are always new pools coming out for users to experience conflux network, to use conflux network, to know how it is to feel and experience how transacting without the need of having CFX tokens as the medium for transaction fees.
That’s something encourages everyone as conflux network to build it further, because once you talk with the moon’s web users, at some stage, if the asset isn’t available on top of conflux network, they might have to go to BSC or ethereum. They all come back with one thing. They all say using it on conflux network, they do not want to use it on any other network anymore. Because the experience is so smooth. It’s so fast. That’s one of the projects.
Another project that we are incubating is just launched its beta phase is called sacred. So what’s sacred is? Sacred is an privacy protocol for you to send assets or store assets. It’s similar to a tornado cast on the ethereum. Right. For example, if I Chris wanna send you Venus tokens, let’s say, 100 CSX normally what happens is you would send me your wallet address. Right? I will send you the cfx correct? That just, for example, for an example, right?
With tornado cash, what happens is I would deposit 100 cfx into the sacred and what finance gives out is something that’s similar to a seat phrase. It’s called a node, an array, a hash. Right? I will send you the hash in us. What the hash you would connect your wallet. Two sacred finance type in the house and the pool of assets would send you the 100 cfx right? This way. No one would know that I trust send you Venus, the 100 cfx it’s just to bring it’s to bring privacy back to the assets of the people. Along the line, they will launch soon. Right now they’re in their better face. They’ll learn soon. They’ll add more assets into it. They’ll have a liquidity mining program as well. Another project that I’d like to talk about is phantom network. Phantom finance. It’s a synthetic assets platform that also has nf TS.
So in the future, if you want to buy Tesla stocks, you can buy them on fence and network. Decentralized and fee for everyone to use. We’re also working closely and incubating a project called because it’s a blocking block chain bridge. Essentially, what decas does is it can bring bit coin from the bit coin network onto other block chains. Faster, more decentralized and with lower collateral. So that people that have a good . can use it in d Phi. Easier and more accessible um and. These are just a few projects that I like to talk about. And just to tell you that there’s much more coming out. Besides. So for now, if you’re developer and you’re interested in participating and building on Top of the conflux network. I would always recommend you to go to our forum and check out the conflux technical oversight committee and apply for your initial brand there to kick started.
And just to to to have some initial funding for your developers, your team, your marketing, your UI to build the initial MVP after that, these apply for a grand program. You can find the grand program on our website and apply for it. And there the brands are up to U.S.$50,000 worth of c of x we will help you guys along the way if you need UI and uiux help, or input. You can come to us. If you need some help in marketing or running your community, we can give you insights. And afterwards, when you’re fully committed to running this project in the long run, we as conflux network will also allocate more resources to you in order to make your project a success. Not only in the short term, but also in the long term.
Q4: Can you provide a ecosystem overview of Conflux Network?
Yes, absolutely. So besides the project that I just mentioned, we are pow based. I think I just checked the stats before this call. We are connected to over ten mining tools. I every minor probably knows the mining pools that we are connected to. Have to pull fish steak, hobby mining pool, and other tools as well. We also have, for example, 90 minor in Russia, if people in Russia want to connect. So that’s the mining aspect, the pow aspects. We also have communities worldwide. Although we started in China, we have a big community here. We also have a global community. Which targets the western audience. And everyone else who wants to grow with us in the English language? Besides that, we have a community in Vietnam, in South Korea, in Russia, in Turkey, in Africa, we’re expanding as well. In Africa. We started in Nigeria.
And right now we kick started our conflux African leadership program, where we are finding new ambassadors in different countries in Africa to help us grow locally and build a community there. It it’s from all aspects right now, we have found a very good ambassador and kenya who will help us with it. Developer, community building in Kenya as well. Yeah. That’s one of the things. From our community. We talk about numbers, our global community, world or world wide community is around 100,000 people. They reigned from traders to miners, to developers. It just in general crypto enthusiasts.
Q5: Besides China, Conflux Network also has a great great global presence, can you tell us more about all you communities world-wide?
Yeah, sure. I think we have more than 100,000 community members worldwide. And besides the countries that we’re in right now, which is China and the western world with this heavily North American based and European base. We have communities in Latin America. In Turkey, in Russia, in Vietnam, South Korea, Africa, and soon, we’ll have a community in Indonesia as well. We just found a good and bad, nice ambassador, who was working with us on the local expansion there. And we’re always looking for people, community members that want to help out and broken a conflux everywhere in the world. Block chain technology and conflux network is not limited to China. It’s limited to everyone. It’s sorry, it’s not limited, it’s open to everyone. We want people from all over the world to partake and grow with us to build the community together, and to get your opinions on where we can improve, what we can do better, because the community, you guys are the people who are using conflux network. Right? So your opinion is very dear to us. So if, you guys. Any community member, or everyone who is interested in conflicts can always join our communities, whether it’s the Chinese community or Vietnam community, and to reach out to us and talk with us.
Q6: What is Open Defi, what is Conflux Network’s relationship with it?
Open defy is an initiative that we started at conflux network. We notice that the the d five space in in Asia and in the west. It’s somehow separated, right? They’re not connected. So we started open d Phi as an initiative to bridge d five, projects, founders, and enthusiasts. Between the east and the, west. Right? To get them to discuss about potential collaborations to bring outside projects from the west into, for example, China and to bring Chinese projects, for example, into the west foot until North American users or western users, learn about them more.
And since then, it’s developing right now into a down. Right? A decentralized down that also has a launch PAD. So project, so d five projects can apply for the launch PAD and get help from advisory to connect be connected with investors or also partnerships from the open e five. Open d five actually launched one of the biggest hackers ONS on get coined recently. And the sponsors among conflux network where you need swap. Balancer. Pickle finance, for example, and within the open defect alliance, there are many big names within the g five space. I’m sure that everyone who checks it out knows immediately which projects are within this ecosystem. I’ll have you need Google anymore.
Q7: What are your plans to attract non-crypto investors into the space?
I think that’s always a hard question to ask. It starts everywhere. Right now in the bull market, everyone is looking at a trip of currency fried from dodge corn to Shiva corn. Slowly and slowly and slowly, they are getting into it. Actually, yesterday we were talking to a potential nft project. And when they communicated with their I here. Every one of them actually in your company, because the technology does transaction sponsorship. It’s very attractive to artists, not only artists, but anyone who’s using the block in space and their future users to get them on board as well. Um um. We have the woman initiative to teach people about large and technology and critical currencies. When we go to our talks on talk participate in panel discussions. Our community also. Organizers. Even that are run by the community for the community. Where are we from? conflux network? Don’t even have to or don’t even don’t worry anymore. Why do we love the world? But sometimes i don’t know what we want to be. Come in, which is kind of funny because we are also part of the community. But that’s one of the things.
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