Is the information on the blockchain safe? | Honglian Finance

On August 25, Mr. Gu Qianfeng, the head of XX Network Asia Pacific, brought XX Network, the data security engine of the Web3.0 era, to be a guest on the Honglian Finance [Blockchain Project Express] column. The following is a summary of the live broadcast sharing content for readers:

Question 1

Honglian Finance host Dabao: First of all, welcome Mr. Gu Qianfeng to Honglian Finance [Blockchain Project Express] with the XXnetwork project. Please introduce yourself and briefly introduce the XXnetwork project and the project background.

Hello everyone, I am Gu Qianfeng, very happy to come to Honglian Finance! It has been a while since I shared on Honglian Finance. I am old friends with Honglian Finance founder Zimu and Honglian Finance partner Xiaohong. They have also learned about XXnetwork and are very optimistic about it. Some friends in the group said that they had some knowledge of XXnetwork before, but in fact, it should be two weeks ago, almost no one had heard of XXnetwork. Recently, XXnetwork launched a wave of publicity offensive in China. With the help and joint efforts of many friends, XXnetwork has now been known by more and more people.

There are many old friends and new friends in the group. Let me introduce myself first. I am the head of xx network in the Asia-Pacific region. In addition, I am also involved in the Web3.0 track as a technical investment consultant, such as IPFS, FILCoin, DeFi, etc.

Next, let me introduce David Chaum to you. In fact, if we talk about all the things David Chaum has done, it would be enough to write a biography. David Chaum talked about hybrid networks in his graduate thesis as early as 1979. It has been more than 40 years since he founded hybrid networks. In fact, the idea of ​​decentralization, the value network that everyone is talking about now, the blind signature technology, and the world's highest cryptography conference "International Cryptography Association Research Institute", the American Cryptography Association, the European Cryptography Association, and the Asian Cryptography Association were all created by him.

David Chaum is also the chief cryptographer of the Swiss National Bank's digital currency. He has a very high status in the field of encryption, including the familiar cypherpunks. Everyone regards him as the godfather of cryptocurrency and respectfully calls him the "Godfather of Cryptocurrency". Many people who are suspected to be Satoshi Nakamoto have some intersections with him, some of whom are his students, some are his employees, and some are his partners.

David Chaum is currently fully committed to the xx network, a project that many people may not have heard of. He published a mixed network paper on cMix in 2016. You can find a large number of videos he released between 2016 and 2021 on Youtube, all about the xx network. So far, mixed network technology is the best privacy protection technology.

For hybrid networks, we can divide them into two generations.

The first generation of hybrid network, in the cryptocurrency circle, the most important contribution is that this technology protects Satoshi Nakamoto. So far, no one knows who Satoshi Nakamoto is, because the cypherpunks, including Satoshi Nakamoto, use David's hybrid network underlying technology. In the email exchanges between those cypherpunks, unless everyone already knows each other offline, as long as no one declares, it is impossible to track who is behind the email through technical means. Therefore, Satoshi Nakamoto can often speak at length in his mailing list. Their exchanges have been compiled into a book called "Satoshi Book" (Satoshi Nakamoto's Letters), which is about 300 to 400 pages and can be purchased on Amazon. The book records a lot of his remarks on the cypherpunk mailing list and Bitcointalk.

The 1.0 version of the hybrid network has a fatal flaw, which is its slow speed. Especially after a large amount of multimedia such as video, audio, and images appeared on the Internet, the 1.0 version of the hybrid network was overwhelmed. Until 2016, David Chaum found a better solution, which is the hybrid network 2.0 version we mentioned above: cMix. Of course, before that, it also had some other names, such as elixxir, etc., but now it is collectively called xx network.

The above is a brief introduction to the history of the xx network. Among the early investors and team of xx, there are students of David Chaum and old employees of the previous company. As early as 1990, David Chaum founded a company called DigiCash, and its product was called eCash. Many friends may answer Bitcoin when asked what the first digital currency was, but in fact, eCcash was the first digital currency. This can be found on Wikipedia, and the entire digital currency industry and the old people in the financial industry still know it. Interestingly, Satoshi Nakamoto even created a word for eCash called Chaumcoin.

Currently, the team has 25 people, and most of them have technical backgrounds. You can go to Discord to see them. Among my many Discord discussion groups, this channel is quite popular.

Early investors include Chris Larsen, founder and CEO of Ripple, Roger Ver (Bitcoin Jesus), founder of Bitcoin.com, and Peter Vessenes, founder of the Bitcoin Foundation, an industry veteran who has been active in the cryptocurrency investment field.

In general, these early investments have a common feature, that is, they are all relatively "old-school", and some are even from the old-school Internet and communications industry circles. The attributes and positioning of xx network are very clear, which is to solve the communication security problem in the web3.0 era.

Supplementary information: https://mp.weixin.qq.com/s/ZrNhYnUAyhFtnkbvvxzpjQ

Question 2

Honglian Finance host Dabao: Okay, thank you Mr. Gu for introducing this project in such detail. Mr. Gu is an industry veteran, and he has always been very keen and accurate in grasping the pulse and trends of the industry. The current popularity of IPFS cannot be separated from early evangelists like you. So what was the opportunity that made you learn about xx network and get involved in it, promoting and preaching it with all your strength?

Well, I have been associated with xx network for three years. In July 2018, I attended the Distributed 2018 conference in San Francisco, which was held by BTC Media in the United States. At this conference, I first learned that David Chaum was working on a privacy protection project. At that time, I didn’t know what it was. In September 2018, Wanxiang held the Wanxiang Blockchain Conference in Shanghai. Privacy protection was one of the focuses of the entire conference. I suddenly realized that all the top blockchain circles in the world are paying attention to the privacy protection of information on this chain. So, I spent some time to study it and found that all the information of smart contracts and DAPPs, including parameter input and result return, are all transparent, which makes it impossible to write many applications. This is very troublesome.

So I thought at that time that privacy protection would likely become one of the most popular topics in the blockchain industry.

Then, in 2018, 2019, and 2020, I never heard of David Chaum and his project again in the Chinese blockchain industry. Until the beginning of this year, by chance, I got in touch with David Chaum's team again, and suddenly found that they had launched the test network as early as 2020, that is, in the middle of last year, and the number of test nodes in the entire network was more than 400 at the beginning of this year, and more than 600 nodes in the first two months.

But at the same time, we also found that there was no node in China. In Asia, Taiwan, Japan, South Korea, Vietnam, etc. all have a node, but not in China. I felt very strange, how could this project miss such a large market like China? So our team spent nearly a month doing a very careful due diligence on the project.

After learning more about it, I found that this project may be a large international project that many people dream of, but has not yet been introduced to China. When I first learned about Ethereum in 2015 or 2016, I didn’t understand it at first, but I felt very excited after I understood it. xx Network has a similar feeling to me.

Later, through further communication, during the Labor Day on May 3 this year, I received the official written appointment from xx network and became the head of xx network's Asia-Pacific region.

Why did you join the game? I wrote a long article about Web3.0 in 2018, which was more than 20,000 words and was reprinted by many media. My own positioning is very clear, which is the Web3.0 track. At that time, it was mainly IPFS. At that time, I worked with Brother Long to do the Force Zone because IPFS is an important sub-track of Web3.0. It is understood that xx network is a very important sub-track of the web3.0 track: a trusted network for secure communication.

So far, no other technology can achieve a trusted network from the two important perspectives of privacy security and quantum security like xx network. Its importance to Web3.0 secure communication is no less important than IPFS to Web3.0 storage, and may even be higher. xx is equivalent to roads, and IPFS is equivalent to warehouses. To make an analogy that may not be appropriate, which is larger in terms of the construction volume of national road infrastructure or warehouse construction? There is no doubt that it is road infrastructure construction.

Based on the above judgment, the market value of xxnetwork may be 5-10 times that of Filecoin in the future, because IPFS is a warehouse and xxnetwork is a road. They are both very important but different tracks in Web3.0.

Question 3

Honglian Finance host - Dabao: Thank you, Mr. Gu. Next question: We all know that David Chaum can be said to be a godfather in the field of cryptocurrency. What problems and pain points does David Chaum's XX network solve? What potential application types are suitable for running on XX network?

The pain point that XX network solves is to provide a secure communication network.

Because in the era of web3.0, the Internet is full of all kinds of valuable information, such as Bitcoin private keys, digital currency private keys, passwords, bank card passwords, online banking passwords, etc., as well as some important business data. In addition, in the next five to ten years, quantum computers will achieve a qualitative leap in development, and we will find that network security issues are imminent. Because when some information on the network is very valuable, hackers will have a stronger motivation to eavesdrop on these encrypted information. With the development of quantum computers, cracking will become very easy, so we urgently need a credible value transmission network that can not only resist the future quantum computer's cracking of encrypted information, but also prevent all kinds of eavesdropping. This is what XX network wants to do and the pain points to be solved.

XX network has a wide range of applications. I once said that "XX network has no enemies, only partners". Why do I say that? Strictly speaking, XX network is not a blockchain. It is a tool that uses blockchain to keep accounts, incentivize and punish the decentralized nodes that make up this tool, in order to maintain the normal operation of the entire node network. It mainly provides services for other blockchain projects and Internet projects, such as video, communication, enterprise-level services, etc. In this regard, XX network is similar to IPFS, both of which are distributed tools (one is storage, the other is transmission) and use blockchain for accounting.

I have written an article before that specifically discusses this issue. In order to save everyone’s time, I will share that article with you.

Supplementary information: https://mp.weixin.qq.com/s/N6qES7yUOg2VXPydWjkcKQ

In this article, I have listed seven application scenarios, which are just a starting point. I believe there will be more application scenarios in the future. Recently, as more and more people know about XX network, many people have contacted us and asked me how to use this network to provide some compliant services for their user data. Most of them are traditional enterprises that are not blockchain. In addition, judging from the registration of the [META Security] conference we held in Shanghai on August 28, more people are from traditional industries rather than blockchain industries. So, everyone is looking for a technology to solve the problem of data privacy protection and personal privacy information protection, and this technology is now here: XX network.

Question 4

Honglian Finance host - Dabao: Mr. Gu, you just mentioned that XX network is against quantum. So how does XX network achieve quantum resistance? What do you think of the current industry background? (How do you view the issue of quantum computing and privacy protection)

The quantum resistance of XX network is a bit complicated to explain. I will share an article with you later.

Regarding how to view the current industry background, I actually shared an article in the group just now, called "Two Big Mountains in the Web3.0 Era". The first of these two mountains is quantum security, and the second is data security, or privacy security. Privacy security and quantum security are currently also a major topic in the Internet industry, or the network communication industry. I also mentioned in the article that David Chaum is the Yugong of the contemporary encryption circle, because he spent more than five years quietly leading the team to solve these two problems and carved a path on these two mountains.

In the past five years, the cryptocurrency industry has actually experienced two rounds of bull markets, with ICO fever, DeFi fever, and various projects coming and going. In the face of all this noise, David Chaum and his team are still working silently, and I admire this spirit. This is why after due diligence, I also joined in. Whoever can solve these two mountains may be the most valuable project in the future. This is also one of the reasons why I am optimistic about XX network. It solves a big pain point not only for the blockchain industry, but also for the entire Internet industry.

This picture should be able to fully express the current industry background. It describes what web1.0, web2.0, and web3.0 are respectively? Web1.0 is an information flow, mainly the platform publishes content and readers read the content. In the web2.0 era, readers can also become authors, and authors can also become readers. The two sides have an interactive relationship, but it is still mainly an information flow. But in the web3.0 era, it is an information and value network, that is, all information and value can be interactive, data and information can be read and written, and value can be circulated and interacted. Just like digital currency, it can be paid and received on the blockchain. So you can see that the biggest difference between web3.0 and web2.0 is the increase in value, or the increase in digital assets. And these valuable things face unprecedented security risks, especially the two mountains we mentioned above.

Regarding quantum resistance, XX network has implemented a stateful hash-based quantum resistance algorithm on a decentralized network for the first time. There is a professional term called stateful here. In fact, there are already many excellent centralized quantum resistance algorithms, and they have begun to be deployed, but so far no quantum resistance algorithm has been successfully deployed on a decentralized network. This is very difficult.

I think XX network is actually making a great attempt for the future of the entire blockchain, and has made a huge contribution to the future security of the entire blockchain, whether it is privacy security or quantum security.

So far, because the xx mainnet has not been launched, no one can be sure that it will be successful, but we are getting closer and closer to success, because after all, the testnet has been running stably for one year and two months.

Question 5

Honglian Finance Host-Dabao: Thank you Mr. Gu for sharing. The next question is, what are the technical highlights and advantages of XXnetwork compared with other privacy computing networks?

First of all, XX networks is not just about privacy computing. It can even be said that privacy computing only accounts for 5% of the value of XX networks. Privacy computing is a popular and very important technology, especially in the field of blockchain and the Internet. It is based on how to calculate the data provided by each other between some subjects who do not trust each other, but no one can get the original data. Among the current ways to implement it, except for trusted hardware and secure computing environment, most solutions are difficult to commercialize.

At present, performance issues are very troublesome in decentralized solutions, such as dynamic encryption and zero-knowledge proof, but these technologies are not mature at present, and there has been no breakthrough in cryptographic theory. Of course, I believe there will be breakthroughs in the future, but at least there are still certain limitations at present. So this leads to a question, how to realize the commercialization of privacy computing? XX network provides a brand new solution. For example, the existing privacy computing is equivalent to exchanging information in broad daylight. In order to protect the privacy of multiple parties, technologies are adopted. The solution of xx network is to provide a black box environment. The data owner and data calculation are carried out in this dark environment. No one can see the original data exchanged and calculated, but only the calculation results. As the founder of multi-party computing MPC, David Chaum observed the development bottleneck of this technology, so he proposed the above-mentioned secure computing solution based on xx network, namely: xxMPC. This will have a very important impact on the privacy computing industry. XX network may be the only feasible and commercial privacy computing solution in the next five or six years, except for hardware solutions.

Here I would also like to share with you a little knowledge point, which is MPC multi-party computing. I believe everyone knows about China's Academician Yao Qizhi, and Tsinghua's Yao Class is also the top class in China's top university. Academician Yao Qizhi has made outstanding contributions to the development of MPC. Internationally, the originator of MPC is David Chuam, who named MPC. For this reason, he recently won the "Best Persistent Paper in Theoretical Computer Science for 30 Years" award.

Friends who are familiar with blockchain technology know that most blockchains have no privacy protection. Recently, several cross-chain projects have had many major security incidents, mainly due to the security of the private keys of the escrow accounts. Once XX network is launched, security issues such as DeFi and cross-chain can be solved. At present, XX network has several application teams moving forward in parallel. One of the teams is working on a decentralized cross-chain exchange - Liquifinity. After it goes online, we will assist in promotion and strive to enter the first-line SWAP ranks of Uniswap and sushiswap.

Question 6

Honglian Finance host - Dabao: We know that on July 23, the project party released the final economic model of XXnetwork. Can Mr. Gu explain the economic model of XXnetwork to everyone?

Regarding the economic model of XX network, it adopts the NPoS mechanism of Polkadot, but it is different. Just this Monday, CTO William was a guest on the Golden Shopkeeper Investigation Bureau interview program and also talked about the economic model of XX network in great detail. I will share it with you later. Here I will add what are the differences or characteristics of the economic model of XX network compared with the standard NPoS.

The first characteristic: the project party helps with staking, but does not share dividends. As we all know, in the economic model of XX, the team accounts for 25% and mining accounts for 47%. This will encounter a problem. At the beginning, the miners mined very few coins, and a large number of coins released in 3 years are in the hands of the project party. The locked coins can be pledged. In this way, the proportion of the project party's pledged coins in the node will be very high, resulting in the project party taking away most of the benefits generated by the node. In this way, the entire mining is very unfair, which is equivalent to the node working for the project party. In this way, the node may be withdrawn and no longer played, and the project party may have to operate the node by itself, and eventually it will become a centralized network. XX network has made some improvements in this regard, that is, the project party only pledges but does not participate in dividends, and puts the project party's pledge output income into the node operator or the treasury.

Another feature is that XX network currently has the largest number of nodes among all new NPOS projects. This is closely related to the long-term testing of XX network over the past year and the international influence of the project. About 60% of its nodes are in Europe, 30% in America, and the rest are distributed in other parts of the world. Two weeks ago, when XX network started the test network and switched to the transition network ProtoNet, the test network had more than 600 nodes. These mass bases determine that XX network has the largest number of nodes and is the most decentralized one in the NPOS model so far.

Supplementary information: https://mp.weixin.qq.com/s/YGMw8s3n8kPzNz_X78Vfqg

Supplementary information: https://mp.weixin.qq.com/s/jTQbYa3PDZ-6dsU28SqE-w

Question 7

Honglian Finance host-Dabao: Okay, thank you Mr. Gu for sharing the above. What is the consensus mechanism adopted by our XXnetwork? What is the innovation of this consensus mechanism?

Here I will explain to you why XX network uses NPOS instead of POW, POS, DPOS and other consensus mechanisms.

That is because XX network is different from distributed storage network, Bitcoin and other computing power networks. Its main problem is to provide secure network communication. There is no obvious positive proportional relationship between network performance and the number and performance of nodes, while the scale of storage network is strictly positively correlated with the scale of nodes. For example, if I have a computing power of 1P, I am definitely not as good as someone with 10P computing power, so it is not a POW mechanism.

So why not use DPOS? Because DPOS has a feature that if a node fails, such as a node goes offline, the DPOS staker will not suffer any loss. For example, if I have coins and I stake them to a certain node, if it fails, I will not suffer any loss. But NPOS is not like that. If a node fails, I will also be punished.

Why do we have to use NPoS? Why does Polkadot use NPOS? Why doesn't Polkadot use DPOS, which was very mature at that time? Because Polkadot is a cross-chain, it must ensure the stable operation of the entire cross-chain. When we were mining Bitcoin and Ethereum, suddenly the country issued a decree that all Chinese nodes must be disconnected. If this happened to Polkadot, Polkadot would be in trouble, and a large number of nodes and staked coins would be punished. The same is true for XX network, because we need fairly stable nodes to ensure the normal operation of the business.

In addition, we can also look at the other way around. Why is Polkadot's ecosystem so robust? That's because Polkadot's nodes are relatively stable. Among those early participating nodes, several have already earned more than 1 billion. These nodes no longer need to work on other projects, but will continue to invest part of their profits in Polkadot's ecosystem projects. In this way, they are more closely tied to the ecosystem, which is actually one of the benefits of NPoS.

Question 8

Honglian Finance host - Dabao: We all know that XXnetwork is composed of multiple modules. The core is the Elixxir privacy network module based on cMix technology, and the blockchain module praxxis that performs consensus accounting, value transfer and incentives for nodes. Can you introduce these two modules in detail?

Let me correct and standardize here. XX network consists of three modules, one is the cMix privacy protection network, one is the xx chain, and one is xxMPC, which is privacy computing and privacy smart contracts. The founder William explained this very clearly in a program, which you can refer to.

Supplementary information: https://mp.weixin.qq.com/s/euAh1bu5VIMvTbRFGBs5Bw

Supplementary material: https://mp.weixin.qq.com/s/2zRLQnBlYWTmf4kBGMYceA

Question 9

Honglian Finance host-Dabao: Thank you Mr. Gu for sharing. When will our XXnetwork mainnet be launched? How can the public participate in XXnetwork? What is the participation mechanism?

The XX network mainnet was launched in early October and has now entered the stage of transferring testnet nodes to the transitional network ProtoNet. After a year and a half of testing, more than 600 nodes have been running on it. Before the mainnet is launched, 275 test nodes will be transferred to the mainnet, and the other 275 nodes will be developed by the community itself.

There are four ways to participate:

The first is to participate in the public offering in mid-to-late September. Of course, this may have certain restrictions for Chinese users.

The second way is to participate in node construction, which is mining.

I hope that China can have more nodes, which will make it more dispersed and decentralized. From a project perspective, this is also true. I hope that there will be more friends who mine in China. However, considering that many friends in China did not participate in the early private placement, the cost of staking may be very high after the mainnet is launched on the exchange, so we have formulated a node joint mining plan. Those who are interested can find us for details.

The third way is to participate in liquidity mining.

When the mainnet is launched, the project will start a liquidity mining pool, which may be on Uniswap. There are 5% of coins as rewards, and liquidity staking rewards can be obtained by staking. This is different from mining and staking for node services. I believe that friends who have played DEFI can easily understand it.

The fourth one, which is also the point we value most, is to participate in ecological construction. A total of 15% of the entire project is given to the foundation, most of which is used as ecological rewards. What is ecological reward? It is to support the team that develops applications. The application can be an out-of-circle project, not only limited to blockchain-related projects, but also can be used in government and enterprises. If they want to access it and use the privacy protection function of xx network, the project will provide support.

I would also like to make a statement here. Currently, XX network no longer has any private placement. If there are any private placements on the market, they must be scammers.

Question 10

Honglian Finance host Dabao: As far as I know, 50% of the tokens of the XX Network project are generated through staking mining, which can be said to be a mining project. However, in the first half of this year, several "king-level" mining projects were finally ridiculed as "death-level" projects. What do you think? And how can XX Network avoid repeating the same mistakes?

This question is actually quite interesting. I think: if everyone is mining the first mine, the result may be that everyone is rushing to mine the first seven mines.

Among the several "death-level" projects you mentioned, Chia may be one. But I personally am very optimistic about Chia, because it is the first to change the programming paradigm of blockchain applications, that is, from "account-oriented" contract programming represented by Ethereum to "coin-oriented" programming. This value is equivalent to the upgrade from process-oriented programming paradigm to object-oriented programming paradigm in our software industry. This is a big topic, so I won't go into details here. In addition, the "death-level" projects you mentioned may also include BZZ, but I don't know about this and I haven't studied it.

In short, many projects may be very good projects, but they are too popular and too hot in China. We are heavily involved in Chia, and I was invited to be a judge for the Chia hackathon in China. I am very optimistic about this project.

How does XX Network avoid the risk of "mine collapse"? I think there are three points:

First, XX Network mining is similar to Polkadot. Its number is limited, and the number of validator nodes is 550. In the early stage, it is first come first served. More than 300 nodes will share these early mines. Later, you need to pledge coins to enter the market. At this time, the price of pledged coins on the market may rise, and the threshold will become higher. As a result, the entry process of XX Network will be delayed. You need to buy coins to enter the market later, which ensures that this XX Network will not be like other coins.

In this way, the computing power of the entire network and the income of miners will not be diluted quickly, which is very interesting. Of course, it is not an innovation, its originator is the Polkadot network that has created countless wealthy people.

Second, I would like to make an analogy. What is Chia similar to? It is similar to our Chinese examination system, which is 100 points, 90 points, 80 points, 70 points... The levels are ranked from high to low, and the higher the score, the more rewards you will get. Another mechanism is to only divide it into two levels, one is passing and the other is failing. Those who pass can share all the rewards equally, and those who fail will not get any rewards. Then there will be many people at the passing line.

Let me give you an example, for example, if there are 10 nodes and 10,000 nodes are divided, then each node has 1,000 nodes. At this time, the most economical way for me to pledge one of the ten nodes is to pledge one. If someone pledges ten nodes at this time, he will find that he only gets 1,000 nodes after pledging ten nodes, so he will divide these 10 nodes into other nodes.

Eventually, the minimum number of staked coins will gradually increase, and those who join early will benefit a lot. This is the second feature. As long as you enter the verification node and run it stably, you can evenly distribute the block rewards. As a result, the more nodes you stake, the lower the yield of a single staked coin. In the end, the staked coins of each node will be relatively even. This avoids operational distortions due to malicious competition between nodes for staked coins, such as maliciously reducing the node commission rate, or canvassing for votes and bribery.

Third, in order to steadily advance the construction of the main network nodes, the 275 nodes that migrated from the test network to the main network were carried out in three stages, and the project party would help with nomination and staking. However, in order to prevent these early nodes from producing too much mining output (because there are few nodes participating in the distribution), the node commission rate is stipulated not to exceed 10%. The remaining 90% will not be distributed by the project party, but will be distributed by those who participated in the staking in the early stage. This method gives huge dividends to those who have pledged coins and participated in the staking in the early stage, stimulating more people to pledge.

Except for nodes that are transferred from the testnet to the mainnet, there is no limit on the maximum commission rate for other nodes that are free to join, so as to encourage nodes to join after the mainnet is launched, without worrying that early nodes will not dare to participate due to too much profit and too many chips. This steady progress balances the interests of testnet nodes and newly added nodes after the mainnet is launched. While ensuring the interests of "old friends", it also encourages "new friends". Allowing more nodes to participate in the node consensus is of great significance to the stability and decentralization of the network. Only with enough node participation can a decentralized trust foundation be established, which is especially important for a network that protects user privacy data. Only in this way can users be finally attracted to use applications on this network. Only in this way can the value of the network continue to increase.

The economic model of xx network effectively solves the strange phenomenon in the current industry that "dig when it's hot, and collapse when digging", and will become a new example of an economic model.

Question 11

Honglian Finance host-Dabao: Okay, thank you, Mr. Gu. We all know that XX Network will host a large conference in Shanghai on August 28. The theme of the conference is "Metaverse and Data Security". Can you share in advance what is the connection between XX Network and Metaverse? What is the connection point?

Yes, this Saturday we have a [META Security] conference at the Renaissance Shanghai Zhongshan Park Hotel, hosted by xx network. The conference has attracted attention from all sides. Of course, the topics we chose are quite popular, one is data security, and the other is the metaverse. Nearly 200 people signed up yesterday, but we only prepared more than 100 seats.

Regarding your question, I will share with you in detail at the conference. Let me briefly explain here that the Metaverse is an integration of multiple technologies. Compared with most existing games, it adds three most important elements. The first is self-creation. You can create this world by yourself. It provides you with a variety of raw materials. The second is virtual assets. Most games have virtual assets before, but those virtual assets are issued by the game publisher and can be issued at will. The third is virtual identity.

In our view, the Metaverse is an important component of the Internet: trusted virtual assets and trusted virtual identities. These two elements are exactly what blockchain technology can achieve. It can decentralize the props, identities, and assets controlled by centralized institutions, so that these assets and identities cannot be stolen from you by others.

So this is why we put the Metaverse and data security together at this conference. The Metaverse is not only a topic of concern to the blockchain industry, but also a topic of concern to the entire Internet. Tencent is the largest Metaverse company in China, and the largest Metaverse company in the world is Facebook. I will have a sharing session on the 28th, and everyone is welcome to sign up.

Question 12

Honglian Finance host - Dabao: Teacher Gu, thank you for your hard work. The last question of tonight's AMA is: How is the current progress of the XXnetwork project? What stage is it in? What are the future development plans?

The current project progress stage is the process of migrating from the test network to the main network, with a total of 275 nodes. The migration process will be completed in late September or early October. At the same time, the code audit is still being done, and after the code audit, it can be put on the main network.

So what are the plans for future development? CTO William’s statement on the development plan is more precise.

Phase 1, which has already begun, focuses on using the xx Developer Toolkit, also known as xxDK, to provide tools not only to DApp developers, but also to existing platforms. xxDK currently supports cMix functionality, and will support transactions on the xx chain on the mainnet. This will allow you to build DApps or interfaces that utilize our payment and private messaging technology. One of the goals of Phase 1 is to encourage developers to create unique DApps. To help incentivize this development, we have incubated a number of DApps that showcase the capabilities of the xx network.

The first is xx messenger (instant chat tool), a powerful peer-to-peer messaging application with its entire infrastructure running on the xx network. Another is a fact-reading platform called evidently.online, which creates a decentralized market for supporting and adjudicating fact-reading in social media. This requires the privacy of the network to ensure the security of users who submit evidence of fake news. We are also working with an independent company that is building an interesting new approach to provide common atomic exchanges for non-Ethereum cryptocurrencies, i.e., universal cross-chain decentralized exchanges. Therefore, in the early stages of the network, there will be many promises of actual landing applications. Currently, DApps are also being developed for off-chain application scenarios such as privacy database solutions for tracking incentives and reputations, which can be conveniently reused in other markets and application scenarios.

Another focus of the first phase is to work with existing platforms and blockchains to integrate and provide our privacy services to their users. For example, we are envisioning some powerful synergy ways to work with FileCoin and cryptocurrency wallets so that users can add metadata protection to their transactions on these platforms. This in turn helps the xx network, increasing privacy for all transactions in our network, while creating additional demand for xx coins throughout the first phase, we plan to host hackathons, hosting local parties and other events to raise awareness of the project.

The second phase of our ecological development will focus on the use of David Chaum to develop protocols for multi-party computing and privacy smart contracts. We hope to release more information on this aspect soon, but in short, we will promote the introduction of privacy computing and efficient privacy smart contracts into the mainstream market. Now it’s just beginning, welcome to follow the discord channel of xx network, which is very lively, with a lot of information and high timeliness.

Conclusion

Host Dabao: Thank you Teacher Gu for your wonderful sharing! Teacher Gu shared an hour and a half of practical information for us, which gave us a very comprehensive understanding of XXnetwork. I believe that everyone will gain a lot and are full of expectations for XXnetwork. I also remind you again on Teacher Gu that you should not "airdrop" the event on August 28, and you must register! Our [Blockchain Express] AMA will end here today, thank you again for your sharing with us Teacher Gu Qianfeng!