The rise of blockchain has undoubtedly modified the trajectory of finance as improvements similar to decentralized finance (DeFi), opening a possibility 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 by way of its high-performance personal blockchain for constructing functions for enterprises.
We spoke with Ian Huang, Founder, CEO and Chief Architect of ParallelChain Lab, to get a higher perception into how ParallelChain works, its blockchain as a service, the present downfall of FTX, doable 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 up to now.
Thanks for having us. ParallelChain gives an ecosystem bridging the hole between centralised and decentralised finance, by means of our innovated native coupling of the general public (ParallelChain Mainnet) and personal (ParallelChain Enterprise) blockchains, which empowers the sharing of utilities similar to sensible 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 individuality of unprecedented excessive transaction price, low latency, safety (by way of ‘Proof-of-Immutability’, patented), excessive scalability (by way of ‘Parallel Blockchain Processing’, patented) and compatibility with knowledge privateness requirements, together with EU GDPR (by way of ‘Potential-to-Neglect’, patented).
We envisioned that Internet 2 networks wouldn’t go away. Internet 3 should turn out to be interoperable with Internet 2 as a way to acquire 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 have to be enabled natively as a way to permit ease of upkeep/improve, utility sharing, and powerful safety with out decreasing efficiency, whereas guaranteeing the complete ecosystem is more and more and sustainably worthwhile.
Because of this, we started to develop the ParallelChain Mainnet to enrich the 2 unbiased methods whereas sustaining the augmentation of the 2 unbiased environments by means of our Inter-ParallelChain-Communication (IPC) protocol. We additionally envisioned the necessity for the non-custodial pockets, which is factually a decentralised part.
We realised the challenges that include self-custody of personal keys, notably, the lack of belongings brought on by personal 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 Internet 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 consumer’s biometric knowledge, each captured knowledge is straight away transformed into mathematical templates that can’t be reconstructed, after which additional scrambled.
We’re at present 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 wanting ahead to enhancing and quantum-leaping the present blockchain ecosystem with all events collectively.
I perceive there are two fundamental blockchain software program suites on ParallelChain: the ParallelChain Mainnet and the ParallelChain Non-public. Please clarify to our readers what the 2 blockchain software program are all about.
ParallelChain Enterprise is a high-performance personal blockchain for constructing functions similar 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 personal with our patented Proof-of-Immutability (PoIM) consensus mechanism.
However, 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 house whereas having fun with safety by way of Inter-ParallelChain Communication (IPC). The characteristic permits native interoperability between the personal and public blockchain, and companies can faucet into the advantages of the decentralised net whereas preserving their knowledge privateness.
The mission presents 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 Internet 3 for its enterprise clients?
I discussed Inter-ParallelChain Communication (IPC) which permits interoperability between public and enterprise blockchains. The ParallelChain Mainnet gives a versatile sensible contract that helps Automated Market Maker (AMM) and order book-based protocols which might be used within the improvement of decentralised exchanges.
IPC primarily 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 might be historically remoted.
On to the present happenings within the cryptoverse, I’m certain you will have heard concerning the FTX trade scandal. Do you will 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 trade within the business, collapsed so out of the blue and swiftly. But the rationale for its demise was clear when its new CEO John Ray III laid out his findings which highlighted an absence of transparency in funds administration and extreme oversight of system controls and regulatory compliance.
As an trade 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 house even right now.
The dearth of transparency and mismanagement by FTX has totally destroyed belief within the cryptocurrency business, and retail merchants could have second ideas earlier than buying cryptocurrency belongings whereas establishments could 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 throughout the collapse of Terra, and its secure finance practices had enabled it to remain afloat and even purchase different rivals throughout 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 position 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 all the things they believed he stood for, from the blatant fraud performed to the dearth of secure monetary regulation throughout the firm. Entities that survive the fallout must work arduous in constructing the belief that has been misplaced
Following the collapse of FTX Change and Alameda Analysis, there was loads of speak concerning the want for harder regulation within the blockchain house. Is that this the proper step for the blockchain house?
Sure, I consider that such a high-profile collapse of the FTX trade will undoubtedly invite extra scrutiny and laws from monetary authorities, and harder guidelines are wanted to manage the blockchain house and create an ecosystem of belief.
Whereas critics say that harder 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 higher transparency and reliable data earlier than depositing their belongings on these platforms, and having a stable regulatory framework creates higher safety and belief for these clients.
On the draw back, this may occasionally create higher boundaries to cryptocurrency entry and focus of energy with finance authorities that the cryptocurrency house needed to keep away from.
A silver lining of the FTX-Alameda collapse is the re-invention of the DeFi house as one thing that’s really 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 repute as being really decentralised. The collapse of FTX has damaged the chains tethering these protocols to a centralised trade, and we may see a extra real DeFi ecosystem within the close to future.
Moreover, quite a few specialists are predicting doable regulation of proof-of-stake platforms similar to Ethereum and ParallelChain by the SEC. What doable impression may this have on the DeFi house usually?
As rules mount and cryptocurrency customers have a higher 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 rising variety of hacks within the DeFi house and a necessity for crew accountability after the doubtful backgrounds of key gamers like Do Kwon have been uncovered, we are able to count on protocol customers to demand verifiability by way of safety and crew background sooner or later.
At ParallelChain, we consider that higher transparency and self-declaration about our processes and practices will solely profit the cryptocurrency house as an entire, and we welcome rules that try for a similar beliefs. We constructed our enterprise choices with rules and compliance in thoughts to assist companies navigate a regulated DeFi future.
Might you clarify what precisely ParallelChain presents as its aggressive benefits over different Layer 1s like Ethereum and Solana?
Choosing the proper blockchain to construct a mission on is just not the identical as selecting a pc with the perfect RAM and graphics card. Each blockchain is exclusive and seeks to resolve a specific downside, which implies every infrastructure is constructed in a different way as properly.
Nevertheless, adapting and scaling a blockchain is just not the identical as upgrading our pc methods which might be accomplished with a easy Mac or Home windows working system improve.
As an alternative, Bitcoin and Ethereum undertake Layer-2 options similar to Lightning Community and Polygon to scale transactions and site visitors on the chain. Like different blockchains, ParallelChain goals to resolve points that hinder Web3 mass adoption and create a vibrant ecosystem, however we go for a Layer-1 strategy as a substitute of adopting a Layer-1 – Layer 2 dependency.
Heterogenous blockchains are unable to inter-communicate meaningfully attributable to their distinction in structure and consensus mechanism. That is one thing that Layer 2 options available in the market can’t obtain.
ParallelChain goes one step additional by attaining native chain communication between permissioned and permissionless chains for deep-level interoperability and permits enterprise customers to faucet into the decentralised house in a personal, safe method.
Lastly, how do you see the blockchain ecosystem, particularly DeFi, evolving within the subsequent 5 years?
We’ll see blockchain methods including extra real-world makes use of because the expertise matures, and it’ll slowly however certainly exchange the centralised infrastructure supporting totally different industries in right now’s economies.
Additionally, we’ll see one other wave of DeFi summer time within the subsequent bull market with protocols that may emerge stronger from the present bout of DeFi hacks, and they’ll have sturdy sensible contracts and controlled DeFi processes to guard customers who’re utilizing their platform.
With extra banks and establishments trying to soar into the cryptocurrency house and faucet into the advantages of decentralised finance, we’ll doubtless see these protocols taking up the every day centralised capabilities of economic establishments too.
Ian Huang is an infrastructure technologist and entrepreneur. After his journey at Westinghouse, Tektronix, Raytheon, DEC and Hughes Community Programs, he based XNET Expertise (Silicon Valley) and introduced it to NASDAQ.
He’s additionally an enormous 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.