CyberVein & Poloniex Greater China AMA: “CyberVein: Data Analytics & Valuation Engine” (Part 2)
— — Valuable news from a live broadcast of Poloniex Greater China
5. Expandability, security, and decentralization are the Penrose triangle of public chains. How does CVT balance the relationship between them?
Answer: It is undeniable that decentralization is bringing about a new social change, changing the evolution of the Internet from “efficiency” to “fair”, but weighing the relationship between the above three is not a simple matter. We believe that security is the most important and also the most basic requirement for the operation of the public chain. Without security, no matter how strong the expandability is, no traffic will be there. At the same time, I think that low throughput must be a bad existence, which is actually a characteristic of the blockchain ideology, requiring nodes to verify.
Meanwhile, I don’t think that any attempt to either improve TPS (transactions per second) or pursue TPS blindly is the right direction, which will sacrifice security. Some “best” solutions have been proposed in the industry, such as DAG to solve the problem of low throughput of the blockchain, generating consensus much faster than blockchain. Because of this, it can maintain a very high level of operation in large-scale operations, which is exactly what blockchain cannot achieve. However, the implementation of DAG or the large-scale commercialization process is far lower than that of BTC. With the improvement of technology and the development of society, solutions similar to DAG will inevitably emerge.
Taking ETH 2.0, Cosmos, Polkadot and CyberVein as examples, they are all seeking balance in these three areas, rather than blindly pursuing the extremes of two areas. We think that absolute decentralization is like the pottery exile method of the ancient Greek city-state Athens with beautiful ideals, but it will cause many disadvantages in use. Relative decentralization and high-efficiency network operation is our way to find a balance.
6. What role does CVT token play in the CVT public chain ecology?
Answer: As a practical token, CVT is used as a necessary payment method and circulation medium in the CyberVein network and its smart city ecosystem. The main usage scenarios are storage payment, crypto payment, computing power payment and big data service payment, with practical applications value and strong liquidity.
In the CyberVein smart city ecology, data realizes its value on DAVE and its monetization on the CROSS platform. In the whole process, CVT is to bear big data transaction costs, exchange credit points and incentives, etc., which is mainly reflected in the PISR database, while CVT is used as a medium for issuing and trading NFTs to realize data capitalization on CROSS.
Since blockchain has reshaped lots of business models and redefines people’s concept of wealth — common value recognition, asset liquidity, and scarcity. But don’t limit your attention to the trading value of token at the exchange; the actual value of circulation in the future is the measurement standard.
7. DeFi has risen before the rise of NFT, followed by storage in the entire market, while the public chain sector has not yet seen any major changes. Is there still hope in the public chain sector?
Answer: Compared with NFT and storage, the public chain has a greater vision, higher technical requirements, broader ecological layout, and a larger market volume. DeFi relies on ETH, but the cost is now extremely high currently. NFTs are all using their own chains, which is like playing single-player games with themselves. That’s why the development of public chains is the ultimate way out.
In fact, I think that the heated attention on DeFi and NFT is similar to the various gameplay in the bull market in 2017. There are indeed plenty of good projects, but under various banners, many of them are only designed for profits and when their aims are achieved, they disappear. This is so-called “the bull market prospers and so do they”. When the tide of the bull market subsides, you will know who is swimming naked. The most popular application of DeFi is linked to ETH, and Layer 2 is currently not compatible with AMM; as a result, the ETH 2.0 solution is imminent. Most of the projects in the NFT sector are like playing with themselves, using their own chain but lacking a unicorn. Therefore, we still have to return to the public chain.
If there is no public chain to build the infrastructure, NFT and storage will not go further. The public chain is still in a very early stage of development, similar to the earliest Internet. At present, the industry’s technical bubble is still large, with needs to be reorganized and reshuffled to a qualitative leap. This is also the inevitable curve of the development of things.
8. Ethereum is the dominant one on the current public chain track, showing the Matthew effect. Facing this reality, what development strategy does CVT have?
Answer: The development strategy is simple but also time-consuming; that is, strong alliances with better data services. We have never pursued a dominance. If we want to go on the track for a long time, we must combine the strong and the resources to complement each other.
We had many partners in traditional fields previously, while in the past six months, we have added many new partners in the industry to jointly develop big data solutions with technology. We launched the DAVE Alliance Smart City Ecological Alliance, which is not only a technology alliance, an industry alliance, but an ecological alliance. Each partner injects fuel into the ecology in their own areas of expertise, such as storage, algorithms, computing power, hardware or metadata, etc., to exert the cluster effect and promote the value of data and data capitalization.
Strong alliance is just one aspect, while it is also important to have long-term and effective “top-level design” thinking and plans. Data capitalization is what CyberVein has always emphasized. Up to now, 90% of blockchain is still presenting in the form of digital assets; however, this is not part of data capitalization. What CyberVein is doing is to put data intelligently and formatted on the chain from the traditional Internet side to promote more effective data interaction and truly generate more effective value. This is the key to digital capitalization. After the realization of value, these data should return to the ecology of the data itself: such a closed loop is a complete one.
We believe that the management of a truly smart city lies in how to use data efficiently so as to form a cost-reducing and efficiency-increasing solution. In this process, we have discovered that the current city has many hardware deficiencies, such as infrastructure and technology R&D capabilities, etc. Therefore, we have developed DAVE and CROSS, which are our focus and strategies for long-term development in the future.
9. Now that we are in a bull market, what expansion plans does the CVT public chain have? Are there any plans for the next bear market?
Answer: Classifying CyberVein as a pure currency project, in my opinion, is not accurate enough since blockchain is only one of our technical solutions. Whether it is a bear market or a bull market, as long as there is an opportunity, we are willing to seize it. CyberVein has an extensive layout with DAVE and CROSS which are gradually launched on several large supply chains in the world, though there is no way to quickly solve the “data island”. However, CyberVein can provide “trusted data” products for all mainstream chains, as at least a little contribution that CyberVein can make.
80% of CyberVein’s energy is devoted to data provision. As long as more companies are willing to share data in the CyberVein ecosystem, CyberVein can process more data accordingly, which will bring more high-quality data demanders, forming a closed loop of a virtuous circle. CyberVein will also attract more industry talents to join since “data credibility” needs to be realized by the world’s top talents. From the overall perspective, we hope that data security and credibility can benefit every city, every company, and every person.