Brady Luo, skeptical on the development direction of Ethereum and EOS' ecosystemBy Mar 29, 2019 5 Min Read
Are decentralized applications the real solution to every problem in our daily life? Brady Luo, the CEO and Co-Founder of everiToken, expressed his skeptics on the development direction on Ethereum and EOS’ ecosystem. He shared with us the importance of coexistence of both centralized and decentralized applications, as well as how public blockchain can enhance transparency in charity applications.
What is the consensus algorithm of everiToken and how does voting work?
We have the block producers, so we're using PBFT and DPOS consensus as well. Every everiToken (EVT) holder must elect block producers and each EVT has one vote. We can vote for the block producers who maintain the whole network. On our platform, we're trying to promote the real business users to be their block producers, because they have the best interests on the blockchain.
What is the competitive positioning of everiToken against major smart contract platform such as Ethereum and EOS?
Ethereum and EOS are trying to convert the traditional, like centralized applications to decentralized completely. There are three limitations on such actions. Firstly, the centralized company benefit most from a centralized application system. For example, users cannot access to their own data in Facebook directly as these data are owned by Facebook. This is not user-friendly, right? Secondly, for some applications that require high performance, such as operating the exchange, decentralized applications are not the effective tools in doing it at the moment. And thirdly, the use of decentralized applications is not optimal in some real-life applications. Take shooting game as an example. I talked with many application developers in the past. No one wants to do an entire game on blockchain, for example, this is nonsense for them to put the shooting process on blockchain because blockchain is filled with value and not information. For example, when you kill someone in the game, you've got the coins, then it should be tokenized. That's the only thing you need to record on the blockchain.
What do we see in the future is that even from now, the centralized applications and decentralized application will be coexisting as they are good at different things, they're not killing each other. We just deal with different functions.
So everiToken in summary is that we are the first public chain focusing on token customization. Currently we have 20 live applications, such as STOs in property sector, smart home security, supply chain of wines and even stablecoin issuance. The key point is that token on our blockchain is only for a specific application, whereas 99% of tokens in other smart contract platform are for general purposes. We're helping developers to launch their applications and token functions very quickly. We are good at applications like payment because it's a standardized money transfer process which requires high transaction per second (TPS) and security. Standardization is very important, in the past people think you can do anything freely on the smart contract, which is very important, but that’s not the actual case. Our target is to have 100 live applications in 2019.
What is the revenue model of everiToken?
I believe every public blockchain itself is not for profit, including everiToken. We build the blockchain and the core team own 15% of all EVT. If EVT is used in promising applications, the price of EVT will appreciate so that's how the core team could benefit. Users need to pay the EVT as a gas fee in using the everiToken blockchain. The gas fees will go to the elected block producers, instead of the core team.
Recently Facebook revealed their plan in issuing Facebook coin. If Facebook coin gains widespread adoption in the market, will you see Facebook as a competitor and how you cooperate or integrate with this new business model?
That's a very good question. The Facebook coin is used in the Facebook ecosystem and other online systems. But for the offline ecosystems, retailers won’t care about Facebook coin as there are many shopping malls already. Facebook coin may bring some extra traffic, yet the key point is retailers don’t have the needs to use Facebook coin. They would rather issue the coin themselves. everiToken allows you to issue your own token, for example, the IFC mall can issue IFC coin and facilitate payments in our everiToken public blockchain. We do not promote our own coin and there is no direct competition against the retailers. Facebook coin of course can be used in their own system, but I don’t think competitors and offline retailers are going to use it. Retailers want to develop their own ecosystem and this can be done via the everiToken public blockchain. I didn't see any direct competitor.
Take JPMorgan (JPM) coin as another example. I would have thought the direct competitor is Ripple, as they are trying to replace the market share of SWIFT. The issue with JPM coin is that the coin will integrate into their own ecosystem only. Citi Group, HSBC and literally anybody can issue their own coins, and they are not going to use each other's coin. These banks are direct competitors, so in this case Ripple are in a more favorable position that they can collect all the neutral banks just like they did in the past. I chatted with some banking professionals and they said Ripple is not a director competitor to them, but JPM coin is. The situation of everiToken is somehow similar to Ripple.
The charity is another great use case here, so we're working with the largest charity platform in China. They are also a software-as-a-service (SAAS) provider, connecting almost half a million charity organizations in China using Dell SAAS services. In the past, they already issued the charity coin, when you contribute one hour of charity work, you get one charity coin. You can use that one charity coin to purchase a bottle of water. The charity coin can be used in vending machines as well and even in car sharing in the future. In the past the issuance process of charity coin was centralized. Now they want the process to be more transparent and be able to use it in real-life.
Zhiyuan Hui is headquartered in Hangzhou and that’s the only place the charity coin can be used. If you save this charity coin, you can exchange it for other services. If you purchased good, it is only available in Hangzhou, but if you want to exchange for other services, it is nationwide, because they are connected to all the charity organizations. For example, today I contribute one hour to X charity organization. I got one charity coin, tomorrow I want to receive one hour service from Y organization and you can do it. That's how they connect all this together. The charity has almost 75 million registered users and that Daily Active Users (DAU) is about 2-3 million. In terms of DAU, they are among the top 100 apps of all the applications in China.
How everiToken can help charities in achieving their goals?
Transparency is very crucial for charity. Traceability is where and when do you get the coin, and how do you use it. This is the key, if they launch their token on everiToken public blockchain, they can exchange this charity coin not only in China, but to charity organizations in other countries as well, so you can use it to exchange other country’s charity coin. For example, I donate blood in China, I can get a one blood donation in Australia. The key is the whole process must be transparent. For example, if you do a certain amount of charity work, you get a certain charity coin. And later you can get extra points when you apply for university. And if you cheat on their system like three or five times, you're not allowed to take the chance. There is a punishment system as well. A lot of charity platforms are interested in using everiToken in their charity applications. In the context of blockchain application, charities need to publish their certificates on blockchain. Volunteers will then receive their certified membership recorded on the blockchain. This will be a long term goal for charities, as they need to perform KYC procedures and provide training to volunteers and the staff, before the whole certification process can be done via blockchain.