Oct 9, 2020 09:58 UTC
Oct 28, 2020 at 12:00 UTC
Ex-Goldman Sachs exec trusts that his decentralized clearing house might save DeFi from oblivion.
The ex-banker with reference to DeFi said – “I have seen this movie before,”.
Revolution Populi has unrestricted coating one of a blockchain solution that the establishment team trusts could be used as a clearinghouse for traditional financial transactions & crypto.
The protocol repeats over the vicarious proof-of-stake consensus used by EOS, which employs 21 block producers. Revolution Populi calls its consensus rdPOS, where ‘r’ stands for random. The number of block producers is increased to 63, & 21 nodes are arbitrarily picked as block producers for each round. The team trusts that this arrangement permits for speed while adequate preservative decentralization.
The company’s CEO Rob Rosenthal who expended 19 years at Goldman Sachs previous to starting this newest venture. He trusts that the DeFi scene is a replay of the 2008 financial crisis:
“I’ve seen this movie before, & I see the DeFi markets in a similar method that one what occurred to CDS. This is going to occur. It removed one evil counterparty to take down the whole financial system.”
Rosenthal trusts that their solution can save DeFi from “sure oblivion”. He said that the solution had attracted a lot of care from traditional finance as well as it can streamline record keeping & reduce associated costs. Rosenthal said that his team had designed a “decentralized clearinghouse”, that essentially is a decentralized “database with discrete permissioning”, where “everybody owns & controls their own data”:
“What a clearinghouse is, is two things. One, simple record keeping instrument & two, essentially, a guarantee fund. 1- top of that, you can have coating. 2 – that can use this layer one for atomic record keeping.”
In adding, this guarantee fund would offer ‘real yield’ to liquidity providers that are generated by transaction costs associated with the trade settlements:
“You can make a deposit & earnings yield as trades settle, & that’s actual yield, by the method. That’s like real yield, meaning you earn yield. Once the trade settles, & the settlement of that trade carries with it some small transaction costs & transaction fees, so fees are actually generated. & depositors get a piece of those fees.”
Old-style financial services companies have frequently avoided the use of public blockchains; in its place concentrating their care on the permissioned options such as Corda, Hyperledger Fabric, or Quorum — a private fork of Etheruem. The characteristic suspicion of public chains mainly stalks from 2 factors, the perceived association with illicit activity & anxieties about preserving privacy. However Rosenthal harangued that this was part of the problem — you cannot marry the two ideas a decentralized ledger with centralization: ‘The ‘C’ stands for Central in CBDC stands, the ‘D’ in DLT stands for distributed or decentralized. You can not marry those two, at slightest not internally.’
He said that numerous bankers with whom he has deliberated his method have been amenable. In his view, banks do not have a problem with a decentralized ‘layer one’ per se, but they do have a problem with the ‘layer one’ being possessed by the government or by a competitor. Rosenthal held that though their solution is going to be a decentralized public blockchain, some data will need to remain private.