secondary title
Staking is not a storage rate
Ma Haobo said at the Staking Ecological Conference that Staking is not a storage rate, but a process in which token holders share system profits. Different from traditional bank deposits, staking is a careful selection process, and you also need to face risks. The return on investment is directly proportional to the return you get. In the process of staking, there will be many new ways of playing and new models emerging. For users and investors, this means risks and opportunities. If you don’t understand the model or don’t really understand it, Then investors will face huge risks.
At the same time, he also said that AELF is designing the public chain, and as far as the blockchain is concerned, the public chain needs to have two parts that need attention. First of all, we must solve technical problems, and we must solve the supporting system above. For example, how high is the TPS and how quickly the consensus is reached. Secondly, there are governance issues, such as how the public chain can make profits after being on-chain, and how to divide the profits. If everyone disagrees with the current distribution method, how to vote to resolve differences, and how to carry out political activities. All of the above should be included in the category of Staking.
Definition of high-quality staking
Then Ma Haobo said how the AELF team defined Staking. He believes that an excellent Staking model needs to have the following characteristics:
For high-quality staking, the economic system can function well without system rewards;
Returns should coexist with risks, and risk-free arbitrage is not reliable and needs to be avoided;
High-quality staking parameters and rules should be able to be adjusted passively according to the environment.
The core of the blockchain is to greatly reduce the cost of credit
The essence of blockchain is to disintermediate and de-platform. According to AELF Ma Haobo's point of view, the core of the blockchain is to greatly reduce the cost of credit. The original three-party participation can be changed to two-party participation, and users no longer need third-party trust. It can be said that the blockchain has replaced a large number of intermediaries and platforms. The major profits obtained by the original centralized platform can now be relatively fairly distributed to all participants in the system through the blockchain and Stkaing.
The blockchain is not recreating a world, but an encrypted implementation of the real world.
Ma Haobo, founder of AELF, believes that many things in the blockchain world still need to be connected with the real world. The project team will think about the rights and interests of ELF holders. First, holders can participate in governance. The AELF team hopes that users will perform governance actions on the chain. If it is just staking, users may only have a basic benefit, but after participating in ELF online governance, participants may gain even greater benefits.
The following is the full text of Ma Haobo’s speech edited by Odaily and BlockBeats:
Hello everyone, I am very happy to share with you the thoughts of our aelf team on Staking at the StakingCon conference jointly organized by Odaily and BlockBeats. .
You may think that the word Staking is very simple, it is PoS, and we will generate coins when we put the coins there. Everyone has a very direct understanding of this. Many friends think that this thing is like depositing money in the bank. I don’t care if I put the money there, but we have a deeper understanding of Staking. We think that if you want to get a better return, then You still need to make a lot of choices and decisions, and you will also face some risks. The return on investment is directly proportional to the return you get. Moreover, there may be some new models of staking, and you will face huge risks before you understand the new models. For example, the "Dutch auction" model was relatively popular a while ago, but after careful study of this model, you will find that In fact, there are still many risks.
Also, the aelf team is designing a public chain. As far as the blockchain is concerned, the public chain has two parts. First, you need to solve the technical problems and solve the supporting system. How high is your TPS and how fast is the consensus reached? How can your public chain make profits on the chain, and then how to divide the profits? If everyone disagrees with the current distribution method, how do we need to conduct some votes and carry out some political activities. I think this is all included in the category of Staking.
Let's take a look at what our team thinks is a good Staking?
We know that in the process of our mining, this system will make some rewards out of thin air. Bitcoin is a model, and its increment rate is gradually reduced. Ethereum is more casual. Let’s set a number first. There is a consensus that we will reduce the mining rewards in the future. At the beginning, it was five, and then it was three. In the middle, everyone needs to vote to reduce the mining rewards.
When we think about how to design a reward mechanism, the system can still operate normally when the mining reward drops low enough.
What do we think this mining reward is? It is a subsidy similar to Didi Taxi and Meituan Waimai. The price of your taxi is very low, because all the money is subsidized by VC (venture capital), and you need to promote your product a lot during the promotion period.
A listed company can continue to issue additional shares, and market users will not be affected by the additional issuance. The things you add are valuable, and this method keeps attracting everyone to participate.
Just like the matter of POW, there is a huge risk, and it is never a matter of making a profit without losing money. When you buy a mining machine and how much risk your mining machine puts there, this is very important.
You have to take risks in the participation process, and the same is true for POS.
How long will your lock-up period be? During the lock-up period, the price may skyrocket or plummet. You may not have this opportunity to operate, and you will lose some opportunities for liquidity. But you get a stable income from Staking.
Therefore, we believe that benefits and risks must coexist. In this model, we must avoid a particularly risk-free arbitrage behavior. The problem aelf is facing today is that there are many private equity arbitrages without risk, and the market has sold the direct secondary market that was auctioned in the Netherlands. For private equity, this is a risk-free arbitrage behavior, which we should avoid.
Another thing is the rules of the whole system. Staking is the process in which everyone earns money after your system earns money. Our public chain has a certain operating ability during the operation process, and after the profit is made, it will be distributed to those who take risks in the system.
POW is a socialist society, a communist society, whoever does more work gets you more, and you can get more bitcoins if you work more; POS is capitalism, you buy it if you have money, and you use this as a mining machine.
Basically, it’s all the same idea: you need to have a certain amount of capital to buy production tools and earn more profits through production tools, but we hope that your economic rules can be better defined through governance, rather than a set of The system remains unchanged.
In fact, the entire chain is developing, and the rules of a public chain application cannot remain unchanged, and this chain must not belong to a certain team or company, because once your chain is running, it belongs to the producer.
Why is the blockchain platform profitable?
In my opinion a blockchain platform can be useful, not just purely commodity things like precious metals. Like gold, you can't let gold be in China in one second and in the United States in the next second, but Bitcoin has such capabilities, it is a network that can replace banks and payment companies to a certain extent, such a network is of great value .
The core of the blockchain is to reduce a lot of trust costs. What used to involve three parties can now be done by two parties.
Before we bought things, we might have to have a platform like Alipay, but if we don’t need it after the blockchain comes out, the two of us can participate in the transaction.
In the past, two accounts were opened in the bank for transfer, A and B each opened an account and then transferred to each other, but with the blockchain, there is no need for it, we only need to use USBT on a blockchain platform to transfer directly between two people, no There needs to be a third-party trust.
There are also some contract executions. In the past, our contract execution required a third party to supervise, or A and B did not trust each other, so they sent the money to a third party and waited for the third party to execute it after the results came out. We have to face The risk of third parties running away.
P2P companies, why are there so many P2P explosions, all behind the scenes are black-box things, and the blockchain does not have this situation. The blockchain has given technicians great capabilities. In the past, individuals could not open stock exchanges. You could not let listed companies transfer stocks to your personal account, let many users transfer stocks to your personal account, and then your personal Matching of transactions. But as a blockchain developer, you can now write (by programming) a decentralized exchange. The contract of this exchange is here. His contract defines that funds can only be matched, and third parties cannot withdraw funds. Merchants cannot embezzle funds, and it replaces a large number of intermediary platforms to do these things.
The New York Stock Exchange, Taobao, and Didi are all intermediary platforms. These platforms generate huge profits. If this agreement is replaced by blockchain, the question of how to divide the huge profits behind this is the meaning of Staking.
There is another point of view, I think the blockchain is not creating a world.
All kinds of governance in the real world, you can completely move the governance method of a listed company to the blockchain, and you are an authority on the blockchain, because after all, the people who participate in this network are people, no matter what you say, but You still have to solve it through a hard fork in the end. Bitcoin forks, Ethereum forks, and finally people participate in the forks, or people vote.
We think that you still have to connect many things in the blockchain world with the real society. We are thinking about what rights and interests ELF holders have?
First, your ELF holders participate in governance. A system has many parts, such as the part of the exchange, each part has independent application capabilities.
Its independent capabilities are different, including resource distribution and transaction modules, and holders of these ELFs on the chain can make separate investments in it. We want users to do this behavior directly on the chain. If you are just staking, then you may only have a basic income, if you participate in ELF online governance, then you may have a greater income.
We have successfully completed an enterprise version of the system defined in the white paper in the second quarter. This system has been supported by AWS. You can start our system with one click.
However, we are still in a more cautious process for the public chain. We agree with this model. We have launched a version before, allowing corporate and individual developers to develop on this platform. The core thing to do is the upper-level economic system and politics. System construction issues, this thing requires a lot of testing. We plan to switch the mainnet from the third to the fourth quarter, but it will be done in stages, because the assets on the chain are essentially money.
How can we support a good upper-level economic system and political system?
We have super high operating capabilities. The data we make depends on the code, because I know that many companies really can't come up with a line of code.
We optimize efficiency, do addition, subtraction, multiplication and division and do one million cycles. Our operating efficiency is 100 times that of EVM. Our programmers are more naughty to make a better-looking number. Empty cycles are meaningless.
AVM is not a very efficient fast machine operating environment. It is all 356 bytes, because your CPU processor is 46V, and its efficiency is very low. We optimize the parallel efficiency within a block, which can reach 15,000 TPS. We measure the rhythm of a main chain multi-level chain. If one pipe is full, the efficiency of running multiple pipes will be higher.
Everyone thinks that we don't promote it, but we are still working hard. Looking at a relatively long cycle, I entered this industry in 2013. I have seen many industries disappear. A good product needs long-term expansion, because what we are building is a next-generation public chain. Instead of taking the code of Ethereum and changing the consensus, we claimed to have made some innovations, and created a brand new public chain, which has no value.
The blockchain is in a very early stage. I hope that although we have relatively good industry resources, we must seriously make a good product instead of following the trend. We believe that our long-term efforts It must be able to exchange for a more perfect product.
