Numerous projects are launched now to tokenize shares, bonds, debts, and futures. With Fusion, all values across different financial ecosystems become interconnected, it is a unique project. Our Chief Editor talks to John Liu, Fusion Chief Product Officer.
Q) In your news this week, you announced that several luminary cryptographers are now teaming with Fusion to solve specific aspects of interoperability and custody. Can you elaborate?
Sure. The financial industry is overdue to embrace the forces of change that blockchain offers. We announced the news that we are partnering with world-class cryptographers to build superior blockchain interoperability and a distributed custodial solution.
The work of these cryptographers forms the basis of virtually all cross-chain solutions in the industry today, so their knowledge will go a long way to making Fusion the best-in-class technology at a critical time as the industry seeks solutions to the digital asset custody quandary.
As regulatory questions surrounding such things as digital asset custody are addressed, we expect to see more and more firms embracing technologies such as our open source protocol to bring vastly improved connectivity, accountability and process fluidity to the financial markets.
Q) How different is Fusion Foundation from other blockchain developers?
Fusion Foundation is a collaborative innovator of an open source cryptofinance operating system. We are working with the best and brightest minds to create a blockchain-based global financial ecosystem that is fully interoperable, accessible, and decentralized. By providing the foundation that enables different cryptocurrency tokens, digital assets, off-chain values, and data-sources to be created and exchanged between the Fusion blockchain, other blockchains and off-chain financial systems, Fusion is moving ever closer to a globally accessible system for the free exchange of values.
One breakthrough aspect of our protocol is the ability for anyone to create and swap their own assets and financial derivatives, such as futures, and issue debt on their assets.
Typically, it takes a skilled developer many hours of back- and front-end programming to create an asset on a blockchain, making it cost-prohibitive to create a digitized asset. With our groundbreaking protocol, unlike with traditional financial technology providers, advanced and non-technical users can create their own assets by simply filling in a few human-readable fields. We are also distinct in our approach to interoperability.
Our focus on interoperability allows users to trade in a connected marketplace across different assets and data, truly unlocking the power of a digital economy.
Q) Can you elaborate on how your protocol handles interoperability, and the benefits of this approach?
We offer both centralized and decentralized solutions because we believe that adoption of blockchain will occur across a spectrum of centralization and decentralization. In both approaches, a mirror of the external asset is created on a 1:1 basis on our chain in a process known as “lock-in”.
Once the assets are on our chain, assets can benefit from rich exchange and transaction tools available with Fusion.
For the decentralized approach, our groundbreaking DCRM (Distributed Control Rights Mechanism) technology allows assets to interact across blockchains with unparalleled security because the custody of assets is not controlled by a single third-party agency.
The control rights, known as private keys, of each DCRM custody account are stored separately across Fusion’s nodes, meaning a single node can never be hacked to get control of the DCRM account.
In addition, when transactions are approved or “signed”, only the public version of the private key is exposed to the nodes participating in validating the transaction. In other words, at no point, can the control rights of the DCRM account be taken and not a single organization or person can ever gain access to the control right of an account they do not own.
The main benefits of interoperability are increased market depth, asset diversity, participants, and information. Connectivity is the driver of global marketplaces—the more you are able to connect investors to asset owners, the more you can drive market liquidity, and the quicker economies grow. By analogy, the more connected your chain solution is, the richer your marketplace becomes.
By virtue of the extended global reach and interoperability of our protocol, more people, platforms and organizations can extract more value, from their assets.
Q. What are some real-life use cases, you’re working on and what do you have in the pipeline?
We are currently working to refine our protocol in a real-world business environment with our first business partner, Automotive Exchange Platform (AXP). In February, we announced that AXP selected Fusion over other blockchains for our unique ability to improve access to accurate data on millions of vehicles to streamline processing and reduce fraud in the $2.8 trillion pre-owned automotive industry. We have several other exciting partnerships in the pipeline, so stay tuned.
Q) What other plans do you have in the area of digital asset management?
We are excited that DJ Qian (on the photo above), our Founder and CEO, a blockchain technology pioneer who previously launched two top 20 global blockchain projects (VeChain and QTUM) will deliver the keynote address at the inaugural Digital Asset Summit (DAS) May 15 in New York. DAS is the only event during New York’s Blockchain Week designed for financial professionals and will bring together hundreds of influential fund managers, banks, family offices, regulators, CIOs and blockchain innovators.
At this event, DJ Qian explain how we as a community can fast-track the adoption of blockchain for institutional finance and some of the challenges that lie ahead.