At 3PM (UTC) on November, 15 2020, VBC hosted the AMA show with Findora project, whose representative for this AMA is Ms.Lily Chao – Founder of Findora.
Brief introduction of Findora and Ms.Lily Chao:
My name is Lily Chao. I founded the Findora organization along with John Powers, the former CEO of the Stanford University Endowment Fund. I am quite well connected as a young entrepreneur and investor active in Silicon Valley and Asia Pacific Rim. – I have a successful track record of investing in early stage businesses both in the US and in China. being tech-savvy generation who seeks to disrupt and improve legacy businesses, as opposed to following their lead, I am the original thought leader, along with the late John Powers, that devised the strategic and product vision of Findora Foundation. With one foot in Silicon Valley and another in the broader Asia-Pacific rim, I have seen the ways technology can create real world solutions across all corners of the globe.
Findora is a globally trusted financial infrastructure, owned and democratically secured by a decentralized network of worldwide organizations and economically incentivized parties. Findora was created to enable the creation of financial services that are transparently operated while preserving user and institutional privacy. Created by a team of Stanford academics and entrepreneurs, including John Powers, former CEO of Stanford’s USD $25 billion endowment fund, Findora will be accessible to anyone in the world, whether individuals, small and medium enterprises, or industry giants. Our team has extensive collaboration with leading cryptographers in the world and our comprehensive cryptography library includes implementation of state of the art Zero Knowledge Proofs such as Plonk, Bulletproofs an Supersonic. For more information, visit www.findora.org.
Question: What are the differences between privacy in public vs private blockchain systems ? Could you tell me more about Zero-Knowledge Ledger ? How this open source blockchain framework ensures custom levels of privacy and confidentiality?
Lily: Great! public blockchains usually have the open consensus and the state machine replication is usually not partitioned. As for the private blockchain systems, the consensus mechanism can be various. I would say privacy on the private blockchain can be executed with several solutions. Some support absolute privacy, some don’t. For example, the channel concept on Hyperledger Fabric is a form of privacy solution. On public blockchain, the way to realize privacy is to use Zero-Knowledge Proofs technology, TEE or MPC. Among these, ZKP is the most feasible way. A Zero-Knowledge Ledger, as implied by its name, is a blockchain where the validator nodes process and validate zero-knowledge proofs of transactions instead of the transactions themselves. So, no third party can see the metadata of the transactions. Findora blockchain is open-source blockchain, we have one of the world’s most comprehensive cryptography library call Zei, community builders can use the lib and the SDK, APIs we provide to create a lot of custom tools for privacy and disclosure.
Question: Findora uses a consensus algorithm called FINSENSE Finsense how it works and what are its unique features and similarities when compared to popular consensus algorithms like POW (Proof of work and POS (Proof of Stake) & BFT (Byzantine Fault Tolerance)?
The Finsense, as the name suggests, is a consensus optimized for financial applications and deployment of large scale assets. It has two working channels: one is a pure proof of stake, which is the main channel, and a second backup channel of federated BFT. So once there are 51% attacks or other issues, the network will detect it and temporarily switch from the PoS to FBAS. This is to ensure Findora blockchain favors consistency over liveness. We believe this is a solution preferred by most financial cases — forking and double-spending is bad.
Question: Some governments emphasize the regulation of blockchain technology and those that focus on privacy. What is Findora’s vision regarding internet regulations and also users’ rights to their privacy and free use of money?
Lily: This is a fantastic and thoughtful question!
Most governments will regulate financial assets. Crypto is becoming a financial asset. The regulations come in two folds: 1. stop privacy infringements; 2. stop money laundry etc. Financial compliance usually comes with privacy protection. In that sense, the blockchain of today such as Bitcoin and ethereum can hardly be compliant: this is just like a bank with its ledger open to the public is NOT compliant. On the AML side, the government will be concerned about privacy coins like zcash and monero because these are not auditable: tax issue, money laundry will be the issues. Findora believes that we can realize both transparency and privacy and create fine-grained auditing capability so that consumers, businesses, and governments will all be happy.
Assets on Findora are private so unauthorized 3rd parties can not see through (say via a block explorer) while still being auditable (through zero-knowledge tools and special viewing keys).
You have the best of both worlds.
Question: Why does Findora need to comply with exports from the GDPR, the Data Governance Principles of China’s Financial Institutions (2018), and the Singapore Cyber Security Act 2018? Is this really essential compliance to run your company? Can you tell us where Findora is based?
The data security regulation on (public) blockchain area is still early. But we expect rules will be applied as to any other Internet-based communities or businesses. And we see the world has stricter privacy, identity and data protection regulations. Findora wants to be proactive in this aspect. Our blockchain is designed to be compliant to these aforementioned laws: the actual transaction metadata remain local (off-chain). There is not a cross-border sensitive data movement.
Question: Congratulations on Findora’s recent partnership with Injective, which is a well-known project from Binance Launchpad. What are the mutual benefits we can expect from this partnership? What kind of business and projects can be a good fit to be a Findora’s partner?
Yes. Injective is trying to use VDF (Verifiable Delay Function) to make a better decentralized derivatives market. We are really good at cryptography and performant blockchain. We can see the collab to tap into a huge future market of on-chain derivatives with trillions of $ of nominal assets. We are looking forward to working with decentralized financial application builders, stable coin issuers, and DAO creators, to name a few.
Question: One of the benefits of blockchain is the transparency that exists in each transaction, which is clearly visible to everyone, as Findora is totally private, will it not bring reliability problems for users and possible duplications or scam?
Lily: One of the benefits of blockchain is the transparency that exists in each transaction, which is clearly visible to everyone, as Findora is totally private, will it not bring reliability problems for users and possible duplications or scam? — Trasparency is NOT equal to see-through. On Bitcoin network and Ethereum, you can SEE THROUGH any transactions, which is an issue : you don’t want to let everybody see your salary amount if it is paid through blockchain. Findora uses the cutting edge of modern cryptography to build something called cryptographical transparency: anyone can verify that a transaction is true but simply cannot know what the transaction is, except the transacting parties. The zero knowledge proofs are well designed and proven algorithms that is not possible to break by any pre-Quantum computers: The private transactions cannot be manipulated, altered for scams.
Question: Findora and Tecent Cloud partnered to offer World’s First Zero-Knowledge Ledger , could you please tell us how it is going and what major milestones have been achieved?
Lily: Findora and Tecent Cloud partnered to offer World’s First Zero-Knowledge Ledger , could you please tell us how it is going and what major milestones have been achieved? —- The joint project is going very well. The goal is to create an enterprise grade zero knowledge transactional ledger for worldwide small and medium sized enterprises. This product will be connected to the Findora public chain, contributing revenue to the community. We have already deloyed the Beta version that can do banking transactions on a clould with no raw data stored on the clould side. I am expecting something very exciting soon. Maybe next time I can bring a Tencent official here to chat together. I think this product could be very useful for Vietnamese market.
Question: We know that financial services in most countries are accessible to large entrepreneurs or business people with a lot of money. How can Findora break this barrier and make financial services accessible to small business owners too?
Lily: We know that financial services in most countries are accessible to large entrepreneurs or business people with a lot of money. How can Findora break this barrier and make financial services accessible to small business owners too?—- This is unfair right? This is the status quo and situation that Findora tries to address. We wanted to break the data silos and enable all people, entrepreneurs and fintech startups can access to a powerful infrastructure that is cheap to use, scalable and very compliance and production ready. For example, I think in the near future to run a international remittance business will be very easy: you just join the Findora coross border payment protocol, and use the APIs and tools the community provides, you then can access to the FX pools and do the business!
Question: Which countries/regions are the main markets that Findora is focusing now? How do you think about Vietnam in Findora market development plan?
Lily: Which countries/regions are the main markets that Findora is focusing now? How do you think about Vietnam in Findora market development plan? — We are very focused on the rest of the World markets incuding South East Asia (Vietnam is BIG), Europe and Africa. Fondora thinks Vietnam market is strategic to its SE Asia development plan: a dynamic economy, high growth, open minded to new technology, booming Fintech market demand. I am thriled!
Question: Looking back for the whole year 2020, what are Findora’s best achievements that you are most proud of?
Lily: Looking back for the whole year 2020, what are Findora’s best achievements that you are most proud of? — 2020 is an unbelievable year, to many. We have no exception. I am very proud of our team: despite the pandemic, we managed to build a great team with well rounded expertise and execution capacity. We are proud of our progress and the supports from key partners! Most importantly, I am so proud of our growth within the global crypto community! I am proud of all of you: the people who make crypto a fantastic global community!