RadarZero | April 15th, 2018 | [https://radarzero.com/2018/04/11/blockchains-future-harmonizing-fiat-and-cryptocurrency/]
“The best way to tell the future is to make the future” (Dejun Qian, founder of Fusion)
Ten years ago, the global financial crisis caused victims to distrust banks. Satoshi Nakamoto created digital coin, Bitcoin, on its transparent, decentralized ledger. Commerce is faster, cheaper, unmediated, more secure, unhackable. Best of all, your business is transparent.
Since then, more than thousands of tokens, called alt currencies have sprung up, each claiming it's the next Bitcoin. The problem? Too many digital coins that hamper the blockchain/ digital currency revolution from revolutionizing finance.
Fusion aims to integrate fiat and cryptocurrency on one platform so you can expedite all your transactions from paying checks to renting a home - and everything in between - in the cheapest, fastest, safest, most convenient way.
Fusion was started by Dejun Qian, founder of BitSE, QTUM and VeChain. Incidentally “Qian” means money in Chinese, and Dejun aims no less than to ‘fuse’ all the world’s money - digital as well as fiat - to accomplish the full range of your financial functions.
“The first time I heard about cryptocurrency,” Qian told TechBullion, “was in early 2013 from a colleague at the IBM research lab. From the very beginning, I was curious how it might be different from QQ token. After I read the whitepaper, I was obsessed by this very creative technology especially as it involves gaming theory. It opened my mind and I believe there definitely will be something I can do to change the world to make it better.”
Along the way, Qian realized Blockchain was a system of fragmented chains. Each blockchain startup isolates itself. Also, since blockchains cannot read off-chain data, many important values in centralized organization remain off-chain. True, you have Bitcoin’s simple private key that replaces going to a bank and helps you send currency anywhere, at any time. It’s also true that Bitcoin is faster and cheaper than sending money the standard way - and that it services more than two billion unbanked people. Still, there are lots of other important financial functions that only exist in the centralized or offline world and that blockchain still has to deal with.
How Fusion makes a difference
Fusion innovates by using a hybrid consensus of proof-of-work (PoW) and proof-of-stake (PoS) to achieve cross-platform operability. PoS is where a person can mine or validate block transactions according to how many coins he or she holds, while PoW considers the work of the miner or owner.
As Qian told me:
Fusion’s first level is where miners are broken up into batches, by a method called “sharding”, to work on different aspects of the smart contract. Miners use PoS in their parallel computing to make the system faster and more scalable. This is the level where the actual computational work is done.
Fusion’s second level uses PoW where users pass around transactions on the ledger and win tokens as rewards.
This mix of PoS with PoW makes for a more powerful, collaborative community where power and wealth are equally distributed.. On Fusion, each node has its own private key, or digital wallet, with tokens like Ether, BTC, Dash, even the TrumpCoin, BananaCoin, or WhopperCoin, depending on the owner. Unlike other platforms that only interoperate with their own tokens, Fusion helps you contract and finalize deals using different tokens. So, for instance, you can apply for a loan from Fusion’s Risk-Free Loan system in one form of token, and pay your loan back with another. Or a user could create a smart contract for a retirement account that accepts payment in Ripple, Ethereum, and Bitcoin, and could disburse payment in kind or use Dash and TrueUSD.
Fusion also has off-chain data support, where you could store data off the main chain, reducing cost and block size. Storage data on the main blockchain is expensive. A 2GB movie on the Ethereum blockchain costs more than one million US dollars. Fusion’s “off-chain” data resource helps its smart contracts interact with centralized platforms to accomplish all sorts of financial functions.
What about Bitcoin volatility?
A month ago, review website BestTechie applauded Fusion but saw only one problem: crypto volatility that makes using cryptocurrency a risky game for many mainstream users.
When I asked Dejun how this affected him, he agreed: “Yes, It’s terrifying! There a 20 to 30 percent change every day, compared to fiat. But look at it in a different angle. Sure cryptocurrency is volatile today, and mayle it will be volatile five years from now, too. There are other commodities like gold and silver that are volatile, too. Cryptocurrency is just another volatile commodity. And if you want to avoid that, you can always use asset-backed tokens, like Tether, that are mapped on Fusion, too.”
“Please note the glare in the eyes. Fiery and strong. This is the leadership the crypto-community desires.” That description of Dejun came from Bob Lee, founder of Bleecoin, a private crypto-investment firm, and one of Fusion’s investors.
When I asked Dejun whether he thought he was a great leader and whether Lee was correct in his assessment, Dejun told me: “I give them a vision that this technology is going to change the world by making it more efficient and running with lower cost. It’s good to give people a vision. It makes them into a team that works to an objective. And they can see this vision coming true all the time. I also do a lot of reflecting, thinking of things from different angles - how things will look like tomorrow, or the day after.”
After all “the only thing,” Dejun noted, “that does not change is change, and we have to find newer and better ways to meet that change.”
That’s Fusion in a nutshell.