【Blockchain in Korea】Yao.Network Walter Komarek:BaaS3.0 Accelerate Blockchain Landing
【Blockchain in Korea】
31days ago
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The full text is a total of 2314 words, expected to read 5 minutes.

Editors note: Coinin is the Korean blockchain media headquartered in Seoul, South Korea, it relies on industry head resources and community advantages to form a huge influence on the media. It is known as an upgraded version of the blockchain field 36Kr.


Coinin recently launched the "Blockchain in Korea" series in South Korea, visiting the top blockchain practitioners in South Korea and promoting exchanges and cooperation between China and South Korea. In the new phase of "Blockchain in Korea", Coinin invited Walter Komarek who is the CEO&Co-founder of Yao.Network to talk about "BaaS3.0 Accelerate Blockchain Landing".




Guest introduction


The 41st phase of the "Blockchain in Korea", Coinin invited Walter Komarek, CEO&Co-founder of Yao.Network to talk about "BaaS3.0 Accelerate Blockchain Landing".


Walter Komarek: 

CEO&Co-Founder of Yao.Network

CEO of Angel Investment

Former founder of Forbestelecom

Expertise in business strategy and business development


Dialogue



Allen: You are currently the CEO and Co-Founder of Yao.Network. How did you connect with the blockchain industry? What is the most interesting part of the work as a blockchain industry practitioner?

Walter Komarek:Before blockchain I was CEO to an angel investment institution in Malta, that was three years ago actually. The Forbestelecom. Of course I encounter with this amazing technology while working on a project we were about to invest, I became fascinated. I mean to imagine a world with genuine efficiency and without cheat or moral hazard. That’s a life dream for financiers like me. I took this path years ago and never looked back. It is a most interesting route, and I believe is the correct route.

The most fantastic experience would be persuading people to believe blockchain and of course seeing more talents joining the industry. The way great minds encounters and tangles with one another, always makes one getting goosebumps.

 

Allen: Please introduce the Yao.Network. It is says YAO comes from ancient Chinese classic I Ching, what does YAO stands for? How is the current status of Yao.Network?

Walter Komarek:You really did your study!

The founding members of the team are almost always technical and international. Of course the founder of YAO is not surnamed "Yao." YAO is interested in the word "YAO" in the Chinese classic "Book of Changes". Reading "YAO" is the long and short cross-section of the composition of "Book of Changes", which is the most basic symbol of the divination.

YAO Network is also providing the basic service module of the blockchain. It is hoped that the basic service module provided by YAO will be used as the basic unit of the underlying facilities to build the entire blockchain world.The name YAO begins with the end, implying the original intention of the project and its vision for the future.

And I am very proud to say that YAO is capable to support most of the major public blockchains and cloud services. Also we are launching multi-chain wallet very soon, users can download our beta version right now. As a platform for the public infrastructure of the Baas 3.0 blockchain, we have made up our mind to be the cornerstone in the blockchain world.

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Allen: Could you analyzes the current obstacles for the development and promotion of blockchain technology and how to accelerate the development of industry?

Walter Komarek:Of course. The dominating points would be blockchain itself is still profoundly immature. It still in a early stage and no past experience is available for reference.

I think it would takes up to five years to be commercialized. And there is no need to rush it, from my thinking, as you cannot force Bruce Banner to become Hulk in a day, right? We just have to give it time. Personally i think this IEO frizzy is really not helping. But obviouly my points are open to any debate. I recognise that many exchanges are doing it all differently.

The Internet took 20 years and reach to this point that people can access most anyone, and we had endured two major bubble bursts, things is same with blockchain. That will be my answer.

 

Allen: How does YAO Network plays the entry role of the blockchain world? By combining cloud computing, decentralized computing and encrypted computing, what kind of synergy does YAO Network create?

Walter Komarek:Generally speaking, YAO mobilises the power of the community to build the entire blockchain service network by introducing Token incentive models and more blockchain communities. And just like a service market, both developers and enterprises can choose the range of underlying services, middleware services, blockchain technology related content, contracts and etc. They need in this service market, so that a range of technologies from the bottom to the top can be customised and modular.

In short, YAO will connect enterprises, developers, communities and industry upstream and downstream participants in the future to provide a full range of blockchain services, including: open blockchain technology service platform, online and offline collaborative technology community.


Allen: What is the difference between the Public chain, the Alliance chain and BaaS? How does BaaS3.0 boost the development of the entire blockchain industry? What are the advantages and disadvantages of BaaS3.0?

Walter Komarek:I am gonna need some time to answer this one with detail. So please bare with me. BaaS, blockchain as a service, refers to the embedded blockchain framework embedded in the cloud computing platform. As a new type of cloud service, BaaS is created on the basis of IaaS, PaaS and SaaS. In November 2015, Microsoft Azure partnered with ConsenSys to provide Ethereum Blockchain as a Service, the EBaaS, in its Azure environment.

So BaaS can be traced back to the R3 blockchain alliance established in 2015, but the original R3 blockchain alliance wanted to integrate resources between banks and capital to form a new financial operating system. Then the parties made a bird and beast because of the interests, R3 had to launch the distributed general ledger Corda first, but the traditional Internet giant has already begun to enter.

So you can see BaaS is more like a service market while public blockchain or league blockchains are like service providers in this big market. In China, I think most major Internet and technology giants are also beginning to lay out BaaS, which I think is brilliant. Take Tencent, Alibaba, Baidu as examples. The Internet giant is the first to realise that the wave is approaching.I believe that BaaS from these large plants is more focused on the infrastructure of blockchain technology to help enterprises and developers better landing their distributed applications. In April 2018, Amazon AWS officially released the AWS blockchain template. So far, IBM, Microsoft and Amazon have established themselves in the BaaS field. So it's a bright future in front of us.

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Allen: How is the blockchain industry ecology in Europe? Are there many real world applications launched? And what are the upcoming blockchain industry trends in Europe?

Walter Komarek:Oh, Europe is difinitely a thriving market. I hope you guys can come and see for yourself. We got miners, exchanges, lots of them, and many labs and accelerators competing against one another. we got regulatory sandboxes, detailed law, politician's attention, all sorts of support.

Some enterprises are making solid progress. Blockchain is helping address several modern-day security concerns, including issues with contracts, identity, and fraud management. Blockchain-based lists will allow online retailers and financial organisations conveniently vet their customers and fight against fraudulent activities.

For example in healthcare, the Venice-based company Gem is bringing that blockchain technology to a broader set of applications through work the company is conducting with the Centres for Disease Control and the European technology services company, Tie-to. This organisation is working with the Centre for Disease Control(CDC) to put disease outbreak data onto a blockchain which says it will increase the effectiveness of disaster relief and response. I think they really done something marvellous, to help the people.

And of course there is us, Yao, we are helping many blockchain projects to merge their networks with major public blockchains, providing them integrated cloud services and helping them via our technical community.

 

Allen: Ethereum Co-founder Vitalik Buterin came up with a higher return on equity for the upcoming implementation of the Proof of Equity (PoS) algorithm on GitHub's Ethereum blockchain. Do you think PoS algorithm is more profitable than PoW mining?

Walter Komarek:This one is very interesting, let me show you a littile example I always tell my friends.

Let us see those two mechanisms more closely. POW is not a perfect system but it works. And it works very well because the “wins” and “losses” are contained to a few market participants. Yes, it lends itself to centralisation. Yes, it favours those with ASIC building capabilities and abundant natural resources asymmetrically. But that is how nature works — and containing the wins and losses keeps individual participants honest, providing temporary outsized incentives to innovate and accelerating the death of the inefficient ones in downturns. It makes POW a very anti fragile and robust complex system.

As I understand Vitalik’s concept (feel free to correct me), the idea sounds …simple? Participants would deposit their own funds into (presumably) a staking account. Staked funds would be inaccessible during a fixed period of time. Stakers would then be rewarded for good behavior or penalized for malicious conduct. Details have not been released but, presumably the network rewards and transaction fees would be evenly distributed amongst the stakers.

Let’s assume that there are 3 stakers in the network during month 1. This would be a good time to mention that under Ethereum’s POS, the penalties would be asymmetrically larger than the rewards to prevent attacks. Ok ,  so 3 participants all staking different amounts over the same period of time. Assume the staked amounts below:

Month 1 Funds at Stake: 1,011

Participant A: 1,000

Participant B: 10

Participant C: 1

 

Now, assume that over month 1, a total of 3 Ethers were collected in fees and rewards. The bounty would then get divided as follows:

Participant A: 98.9% of the bounty (2.97 ETH)

Participant B: 1% of the bounty (0.3 ETH)

Participant C: 0.1% of the bounty (0.03 ETH)

 

That works out to the same interest rate for everybody (3/3,031 = 0.29%) for the month. Equivalent to a 3.5% annualised return (0.29% x 12 months = 3.49%).

This sounds great so far , let’s see what happens if we random is one of the inputs like, say, the network rewards or the value of the amounts staked:

Assume that the same participants remain staking for month 2, but that due to a fortuitous event, many people decided to buy and transact in Ether during that period. A total of 100 Ethers were collected during that time.

Month 2 Funds at Stake: 1,031

Month 2 Network Rewards: 100


The effective annualised return for the stakers in month 2 would be 116%! This would, in turn, cause many more people to stake. As staking could be done immediately, people would rush to buy Ether to stake.

Now, let’s assume that for month 3, ten times as many people staked and the staked amount went up to 10,310 Ethers. Later in the same month, unfortunately, people found it too expensive to transact in Ether and rewards took a huge 10x dip.

Month 3:

Funds at Stake: 10,310 ETH

Network Rewards: 10 ETH

Effective annualized interest rate: 1.16%

People that bought Ether looking for 116% staking returns will not be happy with 1.16%. They will likely sell their holdings and cascade the price down.

 

This is an extreme example, just to see what would happen under volatile environments. This type of staking, unaltered, welcomes wild swings in Ether demand and price as the interest rates go up and down (much like FIAT). It took a bit long but i think this case can clear demonstrate the question, that is, POS creates more volatility in the market.

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Allen: What is the latest activities and future plan of Yao.Network? In what ways does Yao.Network. hope to cooperate with projects or institutions in China and South Korea?

Walter Komarek:In our schedule, the standard services of blockchains and middleware will be completed in the first half of this year. In the second half of the year, we will try our best to open the platform and actively recruit partners and developers to form a stable operation of the platform.

Another aspect of YAO Network's plan is to help introductory developers quickly learn blockchain technology on the YAO platform, help these developers complete the blockchain technology field, and complete the blockchain technology talent echelon.

And of course we are seeking to work with major clouds service providers both in China and Korea to join our network. we could somehow act as their contractors, it would be a win-win situation and we had make some progress already, with 360 Clouds. And we would be seeking for more parcitipants.

 

Allen: As a well-known person of the European blockchain, you may know a lot of outstanding practitioners in the blockchain industry. "Blockchain in Korea" interview program is launched by [Coinin], is dedicated to exploring high-quality blockchian projects and practitioners. Could you recommend three honored guests to our program?

Walter Komarek:I think this question is actually for you, not for me. I am well aware of your many connections in Korea. But for me to choose, if I’m allowed, I’d say you guys can take on speakers from major exchanges, as the different idea and practice between the east and west are distinguishable.

This article is reproduced only, does not constitute an investment opinion

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