Day 2: Loi Luu (Kyber Network)

Transcript

[Music] now going to put my emceeing hat on now as we move into our first block of the day of three speakers and they're going to be talking about smart contract security first up we have Loy Lew who is the CEO of crypto currency exchange khyber Network Loy good morning everyone my name is Lulu I'm a CEO and co-founder of Kaiba network so my talk was supposed to be a smart contract security but the

organizer was kind enough to allow me to talk about you know cryptocurrency decentralized change which is a topic that I am you know more involved in the last one year with Kaiba Network so in this talk I'm going to talk about you know explain you know how the centralized chains work and you know what's going on with the existing decentralized changes and the approach that we are using at Kaiba network so since the beginning of our cryptocurrency industry we all know that cryptocurrency a change is the main target of hacking and internal fraud so the main event happened back in you know 2014 in which Mohawks couldn't under you

no answer what happened to more than 800,000 Bitcoin and don't try to you know convert it to a fiat is a huge sum of money now and you know later on more and more hacking incidents happen from various major agendas and this man alone in Korea we have two major exchanges you know getting hack including midterm and Koryo so this is due to the nature of these you know centralized changes because at the end of the day there's still one single entity that keeps and stores you know all the coins and a set of users and when the incident happened you know they user get affected regulators you know they paid more

attention on how to protect their energies so this gives the rise to the central our trading platforms including ETA Delta zero ideally act Khyber omus ago and I swap so to you know the mainstream users these descent rocky and this they are roughly similar and it's very hard for them to differentiate you know the difference between all these platforms so before going to explain you know how these each of these exchange this work it was to go of the central changes to you guys it is a place for you know traders go there and do a lot of trade

and our money like you know what's happening on central are changes many people have different ideas and a tribal we also think that the central I James suit facilitates only meaningful generation in the ecosystem so it's not a place for people to you know earn money but it's a place for people to convert and you know buy and sell via tokens easily and securely now let's take a look at all these essential changes how do we be one right so we need to consider whether they on what the user onboarding process do they require the users to read to register do they keep the fun of their users and if

so where do they keep it what happened to the operation of the exchange whether the order matching happen on chain or option you know when the order happened where the settlement happens is it on chain and option is it like on the some someone else over and we also need to consider the liquidity source and also the the target users as well now let's take a look at ID IX so most people consider IDE access one of the decentralized changes but we think idea is partially decentralized change because the only thing that they decentralized is a user onboarding in

which they allows the users to you know trade from different wallets including you know their private key leisure or you know different Hardware wallets and the rest including you know funds fund custody or a matching settlement everything happens within their service and they are really good at you know listing new tokens so that's why it's a you know it's more popular than other decentralized changes but you know mainstream users they it's really hard for them to differentiate you know what's the difference between idx and and many other decentralized changes in the in the second you know class of the

centrality in this were 0x + ET Ryota so this so this again is they they belong to the class of hybrid the central I changes in a sense that you know there's no fun custody you know there's no user registration no kyc in most of the you know platforms but the order book is store within the you know layers of website server and the settlement happens on chains so this is good for the users because even when the hiking happens the user fund do not get affected but they still you know some trade-off here because you know they're matching and you know they're you know showing the orders to the users still

happen within someone's you know server and it's what hoping that you know 0h is actually a protocol in which they allow different people to build their own exchange on top of that protocol and to name a few major ones we have further relay paradox EDX and it Phoenix the next class is as well this is interesting because they operate as a hybrid p2p essentially change so there's no order book in s WAP there's no fund Kasturi just similar to Xerox and ETA Delta but there's you know the users what they see is you know they

only see the rate of the token that they want to buy so basically as swap is a great aggravating order you know orders from different people in the network and show the best price to the users and they consider it as a TTP model you know and different indexer they kind of sell connect to all the of these traders in the network and serve the users now at Cobo network our mission and our motivation for the centralized chain is a little bit different so what we what we are trying to do at Carbon network is to facilitate the value flow in the ecosystem so it's more than just you

know facilitating meaningful generation allowing people to buy buy and sell tokens the problem that we are following is the ecosystem complexity problem we are amazed by the incredible amount of innovation happening in this face and every month we are seeing thousands of new tokens being created you know people suing their own apps using the old protocol but this innovation created a side effect so the side effect here is you know there's a deep fragmentation happening in this space because it's impossible for different people to work with different people because there are just so many and among these you know thousands of new tokens even the valuable tokens are

unable to be accepted or recognized you know universally so in in Asia we have a few for example right we have popular tokens like silica like you know a sentinel protocol but how many of you have heard of these two pens right so not not not so many so this is the main problem right because even even the most popular token in some area are not recognized outside this area so their token holders of these token they cannot spend or use that you can outside their region and if we do not solve this problem then there's no unified eco

system and only isolated took an eco system now let me just give you a few more example so most of the vendors here they only accept major tokens not the others so if you host some non major tokens right geo tokens are not as used as a major depends because you cannot spend at the popular vendors when you travel for example and similarly different apps they require different native tokens to be used in their platform so this is bad both for the Deaf and also for the token holders for the Deaf it creates you know 1hs step for their users for you know other users to start using their platform and for

the end users for the token holders their tokens cannot be spent or use in different deaf so it can only be used in within their own ecosystem so if you know the purpose of creating thousand or you know millions of new tokens so that these stuff cannot only use within the isolated ecosystem and attendees then I think we should not we should not you know create this you know cryptocurrency and and and blockchain ecosystem so with Kaiba what we want to solve is to allow the tokens to be easily and seamlessly use and span in different ecosystem including the central a changes the apps

wallets you know decentralized fund management platform portfolios and payment system so the way we do it is to be a decentralized liquidity network in which we allow different people to contribute the liquidity for their own tokens that they prefer to khyber network and at the same time we allow different players in the ecosystem to leverage the liquidity pool that we aggregated from different people and everything happens on chain so let me just give you a few example of what people can use with this liquidity network so people can easily implement their own - can swap service and offer

it to their users just by plugging into our smart contract and the vendors are the merchants they can accept different cryptocurrency without even knowing it so here the merchants they accept only eater IAM but they're you know the users they can descend whatever token that they have here we have the OMG - pen holder he can just send oh em gee token via Kaiba and the conversion will be done instantly and the merchants who receive Anita we can also help make you know dat payment seamless so everything happens in one single generation the

users can send whatever token that they have to to Kaiba network and we can forward the you know corresponding token to the to the dap and it can happens multiple terms according across multiple apps another example that I want to show is the integration with other a financial application on the on the blockchain like melon power is building a decentralized fund management platform so they can also leverage the liquidity pou that cable offers to liquidate or rebalance their portfolio on chain and at the same time they can also be you know the liquidity provider for this

liquidity network so this can happens seamlessly without the user even knowing about it so in general Kaiba Kaiba network can power the decentralized liquidity for various you know parties and players in this ecosystem for wallets we can allow them to you know offer the instant you can swap to their users for the vendors they can accept multiple tokens without even knowing about it for other dubs they can liquidate rebalance their portfolio you know for decentralized fund management they can we kind of so help market make another decentralize in this and for the token teams they can enable

more uses for their tokens just by plugging in you know Kaiba a liquidity network and we have got a strong ecosystem traction with multiple integration with other platforms in the ecosystem for wallets we are lucky to have mighty wallet and our token these are the two most popular in you know in interim and so in China apart from that we also have trust fully and Toshi they will it back by coin basis integrated with Khyber for financial deaths we also have a few index fund like Olympus lab Toto a landing protocol it learn and betoken at

the central iPhones as well I have integrated with Khyber so we can do all these things because of you know making important design choices first of all we run everything on chain so it means you know for for deaf they can easily integrate with us but I just talking to the smart contract there's no trust on you know third party server there's there's no you know wrapper to bring option order book to you know smart contract and we can also offer full transparency you can inspect and verify whatever is going on in in cable network and the liquidity is guaranteed by

design so what that means is you know whenever you do you need liquidity you have it because we allow different people to contribute liquidity in a platform and these design choices offer three important properties first of all everything on chain is instant so that means if your smart contracts and a connection to our smart contract everything will be executed immediately you don't have to wait and there's no challenge no risk because you can you can see it before you execute everything and you can verify it as well everything is going to by the smart contract and we also offer central liquidity to diverse tokens by allowing different parties

different you know token teams different token holders to contribute to the reserve and with that we think that it creates the first token in this space and eatery 'm allows that to concretion to be seamless and easy and with khyber network we want to make the token more is useful thank you is there a Q&A or is the sleeve I think we can do Q&A any question please

Oh where's the token use in our platform where it's our own token right so okay so the token is used to first of all incentivize people to integrate with fibre network and leverage the the liquidity pool that we aggregate and secondly is used by the reserve to to you know pay for the right to you know provide liquidity in our platform yeah I thought Kaiba right we allow different

people to different interface to integrate with our liquid pool and to offer the token swap service to their end users so the KYC and AML requirement is enforced by this party yeah so different people may have different opinion on kyc and AML so we just live it you know open to them how about the double spend on a platform right so here this is some some property guarantee by

the smart contract right if your generation is accepted now and later on is reverted then everything is riveted as well so there's no double spending rich here I think we can because this applying yeah it's this is pretty simple that I I don't know how to explain it yet yeah okay I guess thank you everyone yeah I Bureau