In a live interview held on 3.13 ,on the theme of “Staking Business Grows 200%, the Motivation and Significance of Huobi Pool Joining MDUKEY Validator”, Ding Yuan, head of Staking business in Huobi Pool , Ryan Han, Founder & CEO of MDUKEY ,started a conversation with the host.
The two guests respectively given their own opinions on the topic related to Staking community governance, MDUKEY economic model and data privacy in the live broadcast.
Host: I don’t know if everyone has paid attention to it. Huobi Pool released the “Huobi Pool 2019 Development Report” on March 2nd, can you give a brief introduction today，Mr Ding?
Ding: Huobi Pool did deliver good performance last year. In 2019, income of Huobi Pool reached to 2.278 billion RMB, an increase of 549.27% over last year. Profits have also increased accordingly. Last year, our profits increased by 218% to 44.19 million RMB.
In terms of PoW, the computing power of bitcoin in Huobi Pool increased from 1988ph / s to 4479ph / s. In terms of staking, our project increased from 4 at the beginning of the year to 25 at the end of the year, and the number of locking positions also increased significantly. This year, we also urge to search more high-quality projects for our customers,which means we will deeply participate in the blockchain community construction and maintenance .
Host: The Huobi Pool has been deeply involved in the PoW and Staking f. The Staking business accounted for a small proportion of the revenue, but it has contributed the most profit to the Huobi Pool. Next Mr. Ding will introduce the PoS projects in which Huob Pool participates in 2019?
Ding: 2019 is a year in which the Staking business has made rapid progress. In addition to the previously mentioned, our locking projects have increased significantly, and our advantages in node operation and maintenance have also been reflected.
So far, we have 14 project nodes ranked in the top 3 of the entire network; 9 of them ranked first in Asia. Including many star projects, such as EOS, IOST, IRIS, etc.
This year we will also carry out more activities to increase user participation while providing users with more project choices and higher Staking revenue. As a new cooperation project of Huobi Pool in 2020, we are still very confident about MDUKEY.
Host: Why did Huobi Pool campain for a validator of MDUKEY? After the successful campain,what is Huobi Pool responsible for?
Ding: As a new technology, blockchain has always lacked a practical and effective scenario. Huobi Pool has been looking for high-quality projects that can achieve the implementation of blockchain technology. MDUKEY is committed to integrating blockchain technology with user data privacy protection, which coincides with our original intention,so we prepared a lot to become a validator of MDUKEY MainNet
As a validator, Huobi Pool will undertake the maintenance of MainNet security on the one hand, and will deeply participate in the construction of the community on the other hand. We will cooperate with MDUKEY much to develop a new kind of digital economy.
Host: What kind of role does a validator play on MDUKEY MainNet, besides Huobi Pool, is there any other mining pools participating ?
Han: In order to build a trusted data transaction protocol, we need to run this transaction protocol on a blockchain network that is sufficiently decentralized, resistant to attacks, and has performance that is commercially available.
In order to maintain the security of the blockchain network and confirm the validity of the transaction, more than one node of a separate network is required to process the transaction order. At the same time, the transaction must be broadcast to the network through the node. This is how validator runs on MDUKEY MainNet.
In addition, all nodes provide the same services, such as routing, blockchain database, staking, and wallet services. The underlying blockchain needs to provide stable commercial services to the outside world. More stable nodes are needed. In addition,user assets can be more secure.
Besides Huobi Pool, there are nearly 20 other world’s top large node service providers, mining pools, and wallets that have joined the network of MDUKEY, such as: OKExPool, HelloPool, Cobo Wallet, InfStones, etc.
Host: Back to the users, what benefits does the MDUKEY application chain have for ordinary users? In addition, there are quite a few companies doing data privacy and services, such as GXChain. What are the advantages of MDUKEY?
Han: MDUKEY is a data monetization platform for individual users, and a very cheap drainage platform for enterprises.
For ordinary users, only the data needs to be hosted to MDUKEY, and the data can be sold to the enterprises connected to MDUKEY through MDUKEY. The data hosting and data transmission are encrypted, and secondary data leakage will not occur.
At the same time, our transaction protocols and data pricing centers are placed on the blockchain, which can avoid counterparty risks and differentiated pricing issues in data transactions.
We are completely different from other traditional data companies or GXChain. Traditional data companies upload data to the data company’s database when you use the services of the data company. User data is not controlled by the user himself. The company sells the data or analyzes and sells the data model after the data is desensitized, but the data company will not share the money earned to users.
MDUKEY differs from them in that we do an intermediary for data transactions. Enterprises have a need for drainage and users have a need to monetize data. Our profit comes from the intermediary fees received during the data transaction process.
In addition, the data hosted by the user in MDUKEY will only be sold after the user has authorized it. There is no need to worry about the company selling the data to sell money. The ownership and profit of the data are in the hands of the user.
Host: At present, many projects do not have a stable economic model, which will lead to severe inflation in the later period and the currency price will fall. So Mr. Han will briefly introduce the economic model of MDUKEY and the measures to prevent inflation.
Han: Many of the discussions I have seen on economic models are mostly limited to the destruction and issuance of tokens, which is actually not the case.
The economic model of token needs to be linked to the actual business. If the actual business cannot support the value of the token, it is meaningless to issue or destroy it. It is even worse if there is a certain percentage of additional issuance each year.
The economic model of MDUKEY is linked to the actual scenario. First of all, the total MDU is constant in the overall design. We take 10% of the MDU as the node incentive, and would gradually decrease it in 6 years.
MDUKEY is a high-frequency scenario for data transactions. In the future, the reward of the validator will be supported by the business fee. Even if there is no inflation, the node revenue of the entire blockchain network can be guaranteed.
In addition, for enterprises to access MDUKEY, a certain number of MDU need to be placed in the wallet address of the enterprise to pay for the acquired user data, but for the secondary market, each enterprise access is equivalent to an additional secondary market The large locked-up customers, that is, the more enterprises connected, the fewer MDU are circulated in the market.
Host: Last question, how do you think about the future of the staking economy? Any suggestions for user participation in mortgage?
Ding: Of course, I am optimistic about the Staking economy. Because compared to PoW, PoS has lower user participation threshold and better experience.
This will greatly benefit community construction and on-chain governance. This is one of the reasons why new projects have adopted PoS-like mechanisms, including cross-chain popular projects Cosmos and Polkadot. Even Ethereum is planning to transform from PoW to PoS now.
Regarding the suggestions suggestions for user participation in mortgage, I think it depends on your own demands. If you want to experience the decentralized governance of the blockchain, wait for a voter comes to exercise your voting power, then support your favorite node.
If you want to pursue higher Staking returns, you can compare the difference related to returns among different nodes. Finally you should choose high and stable nodes, but also pay attention to the price of the currency. The opportunity cost of the digital currency market is very high.
Han: At present, the Staking industry has begun to take shape. Capital institutions, exchanges, mining pools, wallets and other industry organizations have actively deployed the Staking field. At present, it seems that only PoS projects can support commercial applications. With the continuous increase of PoS projects, the scale of the Staking field will continue to grow in the next few years.