Blockchain protocol OS1 is launched: asset digitization is no longer a dream

Chain, a Silicon Valley-based blockchain technology startup, announced the release of OS1 (Open Standards One), an open source blockchain protocol.

Over the past 18 months, Chain has partnered with a number of financial institutions (including Visa, Nasdaq, Citi, Fidelity, and Capital One) to raise a total of 4500万美金. Its goal is to convert existing assets (such as loans or US dollars) into blockchain records, digital assets, and digital bearer instruments that cannot be double-spent and are easily convertible.

The technology was tested in advance at the Chain Partner Conference last month, where 100 executives witnessed the conversion of U.S. dollars into digital currency. Now the technology is available to the public.

Collaboration with international financial institutions

Jim McCarthy, Executive Vice President of Innovation and Strategic Partnerships at Visa, said that the smooth launch of OS1 should be attributed to the close cooperation of many international financial institutions. Adam Ludwin, CEO of Chain, said:

OS1 is a blockchain protocol designed specifically for large-scale financial markets. It is not suitable for everyone, nor is it suitable for solving any problem. Instead, it is designed to solve大规模金融市场，以及资产数字化的问题.

OS1 uses a simplified Byzantine Generals Problem (SBFT) ^[1] system and can process tens of thousands of transactions per second.

Zero-knowledge proof

Zero-knowledge proof ensures the privacy of transactions. The transaction amount is invisible to others except the transaction participants. At the same time, the entire network also has the function of verifying the authenticity of the transaction.

Through smart contracts running in virtual machines (which support contract execution and Turing-complete programs), ownership is established by encrypting the original data in an asset-programmable environment.

Debby Hopkins, Chief Innovation Officer and CEO of Citibank, said they have already started using this technology:

Chain has created opportunities for Citigroup to explore blockchain applications, giving us the opportunity to provide better services to our customers in terms of currency, payment methods, etc.

Brad Peterson, Nasdaq executive vice president and chief information officer, said Nasdaq is involved in further development of OS1 and intends to use it for free market securities, proxy voting, bill clearing and remittance settlement.

Hu Liang, Director of State Street Bank’s Emerging Technology Center, said:

OS1 helps us solve many complex problems.

Combining Fiat Currency and Blockchain

OS1 clearly shows us how a private blockchain can work. First, through a Chain core node, authorized institutions can access the blockchain network to verify or issue assets. It does not require the creation of a new currency (such as Bitcoin) or asset, and existing US dollars or other assets (such as loans) can be transferred to the blockchain.

Media reports said that OS1 shortens the transaction process to less than 1 second, which brings many benefits to financial institutions, such as reducing costs and improving efficiency.

This could very well be a turning point, just as when Microsoft brought computers to every household, it sparked a debate about open source and proprietary software. Similarly, with the emergence of blockchain, the debate about public and private chains has already begun, and it will only become more intense in the next few months or years.