Hotbit AMA🎉 HOTBIT Polkadot 2nd丨Slot Auction = New Opportunity for Defi?

AMA content review

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💗Host: Daisy Lee

💗Guest: Marvin Tong,Phala Network CEO

Daisy Lee: Hello, everyone, let’s welcome Marvin Tong, Phala Network CEO to introduce 【Slot Auction = New Opportunity for Defi?】to us in AMA. Could you introduce yourself to the community firstly, Marvin?

Marvin Tong: Hi guys! I am Marvin Tong, the co-founder & CEO of Phala Network. I am also a consultant of PAKA , a DAO venture who focusing on Polkadot startups. I was Senior Product Manager at Tencent & Didi. I used to lead the million-users-level trading strategy design with profound experience in strategy design, data-driven decision, and business model design.

Daisy Lee: Thanks for the introduction, Marvin Tong. Let’s start my questions. Can you briefly describe what is Phala Network?

Marvin Tong: Sure! Phala Network is a Substrate-based confidential smart contract blockchain on which you can develop confidentiality-preserving and privacy-first blockchain apps.

Phala will be a parachain of Polkadot, using the privacy computing power of more than thousands of CPUs to provide the confidentiality-preserving function for all blockchains.

The Phala-based application pLibra and Web3 Analytics have won the grant from web3 Foundation.� https://github.com/Phala-Network/plibra-experimental/blob/master/src/main.rs

We want to expand the concept of “privacy protection” to “confidential protection”. It’s not only related to the user’s transactions. The privacy should protect all the confidential data in smart contracts from being leaked.

With the current smart contract technology, all data must be disclosed entirely, and we hope that the “Confidential Smart Contract” can be the same as Ethereum’s Turing complete smart contract, which can perform general calculations without exposing confidential data.

Daisy Lee: How do you think the slot auction = a new opportunity for DeFi?

Marvin Tong: Totally agree with it. As we know,Layer 2 is indispensable when Ethereum DeFi involves acceleration, mass, and cross-chain. In addition, there are also problems such as poor sharing and safety confirmation time, which greatly affects the upper limit of DeFi. Another issue is STO. The ability of swapping is currently limited to smart contracts and ERC standards in the Ethereum world.

It’s obvious that interoperability is the advantage of Polkadot. We all know that the combination of DeFi and Privacy Layer 2 needs to be mutually confirmed through Ethereum, and a Layer 2 protocol cannot interoperate with another Layer 2 protocol, which makes it impossible for users to use the Loopring protocol to directly call Tornado Cash, or use Aragon to directly call Aztec.

But on Polkadot, the XCMP protocol allows parachains with strong customization capabilities to achieve convenient cross-chain interoperability with a very little workload. The composability achieved through XCMP allows developers to build rich application cases.

Besides,the most distinctive feature of Polkadot is complementary rather than competitive.For example, let’s assume that you are going to develop a DeFi contract within a privacy function, then I will suggest to you:

* Use Moonbeam/Acala as mainnet

* Call the protocol based on Bifrost/Stafi

* Develop the privacy function by Phala confidential contract

By this above, at a low-cost, you can achieve the innovation of application and have the composability that other ecosystems don’t have.

Except that, I think Polkadot slot auction will become a FOMO to the market too because this is an event with a scale of 4 billion dollars and an annual rate of 20%.

It will be crazy, why?read this: https://forum.phala.network/t/phala-ipo-strategy-on-polkadot-parachain-slots-auction/1083 And check this: http://parachain.live/ All big projects waiting on the list.

Daisy Lee: How’s your preparation for getting a Polkadot Parachain?

Marvin Tong: Phala’s preparations are comprehensive. First, the pre-mainnet and mainnet of Phala Network are ready for Kusama & Polkadot slot auction. It’s a huge expense and a big challenge. We have faith in our business ability, funds, market management, and auction strategy. Of course, it is also inseparable from the support and recognition of the Polkadot community.

the Rococo team already provided in the sign-up form, a rough estimate of going forward will be (in no certain order):

* Second batch: Kilt, Interlay (week of 18. January 2021)

* Third batch: Darwinia, Phala, Crust, HydraDX

* Fourth batch: Bifrost, Starks Network, Clover, Zenlink

Besides, we will distribute a part of PHA as a reward if we win a slot, which will be used to motivate investors who support Phala’s on the auction. We believe that Phala will be able to win the slot.

We already made a cross-chain use case with Acala Network together (https://medium.com/phala-network/phala-and-acala-unveil-the-first-ever-cross-chain-demo-on-the-rococo-testnet-12033d90b460), it already proofed that:

* Phala privacy values to all other parachains;

* Phala fit Rococo means that we are technically ready for parachain.

Daisy Lee: How does Phala compare to other privacy platforms?

Marvin Tong: Phala is a TEE-blockchain hybrid architecture based on Substrate. But so far, all the TEE protocols lack the foundation of composability-interoperability.

As we know, composability-interoperability is the most important precondition of the DeFi ecosystem in Ethereum, however, Phala, according to a creative design, completed the comparability-interoperability between contracts, even the blockchains.

Phala is not based on Byzantine, and the trustless is guaranteed by the trustless hardware, but the single hardware cannot achieve availability and state-consistency.

If you cut off the power, the hardware must be out of work; Multiple trusted computing nodes need to interact, and the unclear sequence of code execution will result in double-spending, which does not satisfy state consistency.

So, we need to solve these two problems with blockchain technology. That is to let everybody download data without permission by storing the status data on-chain. Beneath this consensus computing, each node can get the status with consistency.

Except above, we have another two advantages.

The first is contract-level parallelism. We do not need to complete the trustless with every node confirmation, so it is highly efficient.

The second is, we are born with the ability to cross-chain. The Phala contract is parallelism, and it should cooperate with the interoperability protocol between smart contracts to accomplish comparability, and we are Compatible with multiple cross-chain methods.

Daisy Lee: Sounds really impressive what you have done. How about PHA token and its utility?

Marvin Tong: PHA is used for paying the resources of private computing.

Trusted computing resources: The trusted computing power, on-chain state storage, and off-chain storage are all paid by PHA by BOTH staking ecosystem and gas fee.

Privacy service payments: Privacy applications service payment in the Phala ecosystem, such as Privacy transactions via XCMP with other Polkadot DeFi protocol, or using Web3 Analytics to make data collection and trading systems.

So, I think it’s quite solid to me, that’s an actual utility for the benefit of the ecosystem.

Daisy Lee: How do you differ from other privacy chains?

Marvin Tong: We have two advantages:

* The first is contract-level parallelism. We do not need to complete the trustless with every node confirmation, so it is highly efficient.

* The second is, we born with the ability to cross-chain. The Phala contract is parallelism, and it should cooperate with the interoperability protocol between smart contracts to accomplish comparability, and we are Compatible with multiple cross-chain methods.

Phala is a network combining with a mainnet and trustless hardware and aims to become a parallel chain of Polkadot in the future.

The contract is executed in parallel on trusted nodes, and developers deploy the bridges and Dapp in a contract form on the network. Among these, the mainnet provides the foundation of cross-chain and cross-contract, miners provide computing power, bridges make the communication to the outside blockchain come true.

In simple language — — Phala is the only one who can interface directly with other blockchains and providing contract-level service to other blockchains at a very low dev cost!

Daisy Lee: What’s the plan for Phala in 2021?

Marvin Tong: https://medium.com/phala-network/phala-roadmap-of-mainnet-and-parachain-auction-d85066306d60

According to this roadmap, we can see that there’s plenty of work this year. To be more specific, we are going to:

* Join Rococo testnet, launch Libra bridge, and prepare the pre-mainnet (Darth Vader) launching.

* Prepare parachain slots auction on Kusama and Polkadot

* Launch parachain mainnet.

After this, we will:

* try to run WASM in Phala TEE.

* Launch a general confidential smart contract, Web3 Analytics, and complete the decentralized governance.

* Build tools for TEE workers, we hope to cooperate with five mining pools to get at least 10000 TEE workers mining for Phala

* Launch Darkpool on Kusama.

* Develop over 50 active developers.

Finally:

*We plan to launch our most POWERFUL weapon: Launch Privacy Cloud Platform.

I believe privacy cloud will replace Amazon and Google cloud as someone in tech who has used those platforms — they are antiquated.

Daisy Lee: Quite detailed explanation. Thanks for the introduction, Marvin Tong. I believe our members know more about Phala Network now. But they may have many questions. Now, let’s proceed to the next session public Q&A.

@jessekerluke: If any project or company want to patner with Phala Network how it possible or how it process?

Marvin Tong: Phala already partnership with Zenlink, Bluezelle, Bondly, Reef, Plasm , Acala….And it quite easy to corporate with them: because all parachains can transfer between, so Phala is easily protecting assets privacy for Defi project, and Defi devs can easily use Phala to enable Defi privacy.

@Shuvoapon4: Do you have any Coin Burn / BuyBack systems or any $Token Burn plans to increase the value of Token & attract Investors to invest?

Marvin Tong: PHA is used for paying the resources of privacy computing.

- Trusted computing resources: The trusted computing power, on-chain state storage, and off-chain storage are all paid by PHA by BOTH staking ecosystem and gas fee.

- Privacy service payments: Privacy applications service payment in the Phala ecosystem, such as Privacy transactions via XCMP with other Polkadot Defi protocol, or using Web3 Analytics to make data collection and trading systems.

So… I think it’s quite solid to me,thats actual utility for the benefit of the ecosystem.

@IntelligentDetective: Protecting users/member data and privacy has become a problem that many companies/projects must face in their development. So can you explain a bit about PHALA Security?

Marvin Tong: Privacy protection is a gradual development process. Starting from the legislative and compliance level, if we have more advanced technical means, these technical means will lead to a less friction, more efficient and more thorough privacy protection solution.

I think there are four directions of “freedom” that need to be solved:

- Financial privacy rights.

- Data privacy rights.

- Speech privacy rights.

- The right not to be monitored in the physical world.

Orchid can solve the fourth, Monero aims to 1. We focus on data privacy rights.

Dasiy Lee: Thanks, Marvin. If you want to know more about Phala Network or have more questions about Phala Network, please check:

Phala Network’s website and community links can be found here.

Website: https://phala.network/en

Telegram: https://t.me/phalanetwork

Twitter: https://twitter.com/PhalaNetwork

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