TRON 4.0 Online Conference: Panel Discussion on How Can Centralized Exchanges Transform Themselves? Is Deploying a Public Chain the Way to Go?

>> Irene: The high volatility of crypto has drawn the attention to the interaction between exchanges and public exchange. We need to deliver fast, compliant and transparent transactional experience. At this panel, let us welcome Valter - CSO of Catex, Bridget - brand director of MXC, Celine Yang — COO of Bitribe, Ethan - CEO of biki southeast Asia, Elsa - VP of HBTC, and VADYM, head of listing division and PO of the tech dev team of EXMO. So let’s join the panel discussion. How centralized exchanges can transform themselves is deploying a public chain the way to go?

So let’s go to the first question. Centralized exchanges that dominate the market has either been chosen or transform themselves. Will centralized or decentralized exchanges have the respected challenges? Is public chain the way to go for exchanges? Was this strategy significance of this?

So let’s go first by Valter, please.

>> Valter: I see in two years that the exchange has changed the whole change since we faced pandemic, that’s fine. Many of them have been moving — the economies — I really think we have the conception of the country and the central banks would be updated. Community is strong delivering of the internet. So having the centralized projects and platforms will remind the market behavior. The changes we are facing are — as the new normal. We will not know what will be the normal so I really think that we will have — for the economies and crypto will take the place. It’s fine to realize the strategies for this new world that are waiting for us. I really thank you.

>> MC: Thanks, Valter. The next one will be Bridget. Hi, Bridget.

>> Bridget: Hello guys! Nice to meet you. First, as well, I’m a member of the Blockchain industry, it’s our obligation to explore Blockchain technology and related applications so we have made active exploration in public chain. Besides, we are also glad to support regulation with the Blockchain project. For example, we are supporting the users to have the asset and MAC. Second, we advance the exploration in public chain and roll out the DEX and such, we can offer the users valued choices and satisfy the demands of different users. In turn, users are able to participate in the development of Blockchain and since the changes are by themselves and last, public chain will also be enabled for our native token and will expand the native tokens use cases and to its value. That’s all, thank you.

>> Irene: Thanks, Bridget. The next one is Celine.

>> Celine: No doubt, we will need a stronger public chain. The question is whether the public — and the motivation of the exchange can meet the real public chain. Interesting phenomenon, we can say that all though it may not be better than some public chains but we modify the projects that are still build aren’t the edge. The sheer ecology of most assets still exists so it’s better like the chicken first, or egg first question. Now exchange can guarantee that the ecology of its layout has a strong enough ecological support otherwise, it may eventually become similar to the existence of big shares.

Many ideas of the BTS is enthusiasts today.

>> Irene: Thanks. Ethan, would you like to go next?

>> Ethan: Absolutely. First of all, I like to thank everyone for attending this and also, I would like to thank TRON for organizing such a wonderful conference at the a time when it’s difficult to get together, it’s good to see.

So getting to the question, the emergence of the global public chains are more than expected creating more usage for more specialized such as — I just want to refer to a report on the 7th of February. ETH saw and for the comparison of the comparing — TRX and in example. And so ETH saw 606K transactions in our period where TRX had 116K. If you look at this, there’s 1,960–194 — thousand in February and these numbers are definitely going. These numbers are definitely saying, this goes to show that such public exchange is — more coming up very soon as we saw from the use and there’s so much more cases coming out from public chains, from the ability to apply public chain tokens would basically be the basic to establish and to put things into perspective, the — we accomplish the TRX trading pads in creating a huge merge of TRX coming over so the key ability to serve is — users, DEX as well as — decentralized exchange and centralized exchanges still — create a relatively better experiences especially into the — sector.

>> Irene: Thanks, Elsa your turn.

>> Elsa: So the centralized custom exchange — actually, so does DEX and it has been evolving too. There’s more and more projects and assets so trading in decentralized protect ways — user can better control their success in security and privacy protection with the developmental technology, I think DEX will gradually approach it and bring more choices to users. Since the establishment in early 2013, it has used our patent crypto graphic technology across the chain which can dot all of the public chains in market. Just like, all of the decentralized exchanges too. For a complete cross chain technology to support any public chain circulation and transfer by the chain, to achieve completed DEX support. So in theory, like all centralized exchanges supports trading supports can be as well.

So being committed to better — across the cryptocurrency market and the supports of that DEX in a better centralized exchange. We will also consider adopting open DEX solutions so making it easier for communities and exchanges to implement their DEX. So leading more users in the centralized exchanges for better assess security and protection to our custody technology. To realize a safe and reliable circulation of the cryptocurrency as well as user protection. Thanks.

>> Irene: Also. Now, Vadym we would like to hear your opinion as well.

>> Vadym: Hi, so guys, nice to meet you! My opinion regarding the question will be like representative of centralized exchange, the exchange platform with a lot of gate way for the, like, more than 20. We definitely know it involves the transformation regulation, 5MLD central but the central answer would be like, definitely public chain is the way to go for the exchange and because it will be like strategic for the future. Thank you!

>> MC: Thanks! So let’s go to the final question. We have heard many cases of huge crypto assets being stolen from exchanges in recent years. So which points to the importance of a more open and decentralized public exchange strategy for exchanges? How can exchanges ensure assets safely? So now we can go first by Valter, please, thank you!

>> Valter: All right. I see the real change — maybe not centralized but it can migrate to the DEX model. Nobody knows how long this can happen but the full fact is more and more users are not real traders since we know — we know bitcoin for example, doesn’t really follow chart tendencies and is actually being done by a group of (inaudible). I think the real future of DEX is connected to the bit coin will start losing the super importance. There are many cryptocurrency than bit coin with — being factors against the system. And the decentralization, real mainstream with the whole crypto market cap gets more decentralized too. And free of dominance of one point or token. For example, TRON is a great example. That’s why we place our chips in particular, being one of the first exchanges to adopt it, to adopt invest in TRON. That’s it.

>> Irene: Thanks. Next one is Bridget.

>> Bridget: Okay. So in my opinion, I will say in the security field, an old saying that goes like, there’s no absolutely secure system so however, no matter the centralized or decentralized exchanges, when it comes to security issues. The security issues for the centralized exchanges is directly related to the user’s asset who have issues, encountered by the decentralized exchanges is complicated.

For example, balancer was recently attacked by flash long, especially the key problem is the security of the code, right? And there is an interesting story about why use the HMXD. The founding members they are a team about quantitative trading people. So once they trade on the exchange, they experienced — between of an issue. So they have so worried about it. That the exchange doesn’t meet the world like that, the user’s demands on asset safety was not fully met so they established this and stay committed to safeguard the safety of the user assets. So in terms of security, we must write the code ourself, including the new version of the system that we recently launched which is almost independently developed and we have also introduced third party security audits.

We have some cooperation with some security companies such as (inaudible) so on. So we put the security problem on the top, that’s all.

>> MC: Thank you for the answer. Celine. Here you go.

>> Celine: Thanks, this — about the security we actually think that the security issue of decentralized states changes. We will not lose to centralize the exchanges. While ensuring the quality of the account because in theory, the final answer to the question all comes back to how to crack 256. Due to human error, centralized exchanges may have a greater chance of losing assets. The reason why we have not — DEX is because we cannot find a person to fill this loss. I still want to explore more solutions for this issue.

>> Ethan: Thank you! So with this, I’ll be speaking from the position of safety. So safety is a very holistic interdependent system so any point of time — I think in the last few months and therefore, we have a standard and systems in terms of R & D, operation, maintenance and we adopt the — destabilization and other ideas to design the system of each link. At the same time, we have close cooperation with the security teams to eliminate the threat of new threats in the first place.

So we use realtime auditing and early warning mechanism using automated index systems even by our internal audit management to monitor our systems, transactions and control the frequent or continuous spaces in any given period.

This approach, we realize helps us in the detection of the outliers, inconsistency and other factors of more — other factors to more efficiently focused and audit the resources so also, very recently, we strategically deployed the sources from various — to issue the situation and also, unexpected situations as well.

So the departments of the advisory, internal audit, and we actually — split it in three different ways. The composition makers, the management and the internal audit. So we provide early warning and then we have this closer to the currency and the — will improve the feasibility in the organization and enhance the oversight capabilities to provide our bottom line managers with better tools to manage this responsibilities and last of all, the last layer which is the decision maker. We get regular insights on the daily basis and hourly basis in the status of this inclusive trance actions. All of this, actually helps us improve the recent control and oversight through enhance detection monitoring so this, the measures that BIKI does to ensure that we have the security.

>> Irene: Great point. Elsa, would you like to share more?

>> Elsa: As we have a solution provider. So currently we have about 200 partners using our platform running their exchange and HBTC is our own. So since accomplishing in 2018 until now, there’s no security issues. Ment we keep enhancing the security of our system. So I think in the last year, we had more than 40 thousand integration to operate as well. So as for exchange, we say that both centralized exchange and decentralized exchange is facing different risk problems based on the characteristics of the crypto. So this is still pending among the issue for centralized exchanges which is liquidation, was still postponed. Again, on June 5. So there was also cases such as the contract normal issues on the balance recently. So however, in comparing to decentralized exchange, this can also appear in decentralized exchange besides technical, security risk. So giving the above issues, users are more concerned about centralized exchange. I believe that such risk will be gradually reduced in this for the centralized exchanges but the technical risk of centralized exchange will always accompany the whole industry. Therefore, the exchanges, I would say the best way, the best practice to prove the security is to utilize it and besides to improving the security and technical strength.

The centralized exchanges need to have one hundred percent proof of reserve which is what HBTC is doing and the user can validate their assess information by this. The so this is how we can provide the transparency and also the security as well. So this is one good way to solve the TRON issues and also, I say, I believe that with the popularizing of the higher proof system, the credibility of the whole exchange will rise to a new level.

So HBTC self-development public chain, since it established, we are doing the decentralized cross chain and clearing custodian which is why it’s also to solve the trust issues. So after a launch which is next month, the end of next month, so we will improve the transparency and reduce the recent loss. Thank you!

>> Excellent! Next will be Vadym.

>> Vadym: You know, thank you! I totally agree with the previous speaker and based on our experience and we are more than six years on the market, I can add that unfortunately, it happens to everyone and for various reasons. Problems with all of the different productivities in general speaking, public chains can be considered a solution for solving this problem but we can remember the protocols that can be hacked as well.

So speaking about the centralized exchange and asset safety can ensure the management, is kept professional and conservative approach to the introduction of innovative products and always — already. Thank you.

>> Irene, that is a wonderful discussion! Thank you everyone, you have pointed out good issues in our industry and the efforts that you have made in the direction and will take in the future. I believe the insights that you share will inspire more talks on this topic.

Thanks guys, bye!