20th June Hangzhou– In an interview by Xinlianshe, the Bytom team reveals the project’s future business model, user case and the innovations in its management.
According to the Bytom whitepaper, major features of Bytom are:
- Bytom adopts three-layer architecture: application layer, contract layer and data transmission layer.
- Wallet is compatible with BIP32，BIP43，BIP44 or HD wallets, therefore support multiple assets and currencies.
- Compatible with National Encryption Standard of SM2, SM3.
- Compatible with sidechain for asset exchange and dividends distribution
- POW algorithm is friendly to AI ASIC chips.
- Asset naming adopts ODIN protocol.
Changjia, founder of 8btc and Bytom
Q: Please round up Bytom in one sentence.
Bytom connects the digital world with the atomic world, bridging online space and offline space. Offline assets could be registered and exchanged on blockchain.
Bytom is an interpretational protocol for multiple assets.
More and more digital assets will emerge in the future. Bytom bridges physical word and byte world for multiple digital assets, promoting the registration, circulation and exchange of various digital assets.
Q: Many public chain projects are just an open source platform without a clear business model. What is the profit pattern of Bytom?
First, Bytom network provides a trust service. The project itself provides a mechanism for cross-asset transactions and swaps of a variety of assets. We will conduct a paid due diligence investigation on all projects to be listed on Bytom. Secondly, we will provide free free basic service and paid additional service for the the flow and exchange of asset. Thirdly, upper layer application will be developed on Bytom for the entire ecosystem. Finally, with the continuous improvement of Bytom network, the token of Bytom itself will also enjor appreciation.
We can provide credit services. If two assets transaction counterparties do not trust each other, then Bytom can act as escrow. Later, with the circulation of assets over Bytom becomes more and more efficient and increasing volume, the credit rating of transaction counterparties is very important, based on this we can provide credit rating report, which could even be accessible by other platforms.
Duan Xinxing, Executive Director of 8btc
Q: What is the application scenario of Bytom?
There are three major user cases for Bytom. First is the management of income assets, including movies, home-stay projects, of which the investors only care about the dividends rather than the asset-holders. The dividend distribution is conducted via smart contracts. Specifically, supporters can quickly exchange their rights of income with others via Bytom, which could be completed via blockchain wallet and escrow feature of Bytom.
Second, should the regulation be clear, Bytom could be used for the management of non-listed company options and private fund equities. At present, the only way to withdraw money from private funding projects is being acquired or repurchase. In United States the ratio of withdrawal through equity transfer is very high. Also the transaction costs are lower. With blockchain technology, Bytom publicizes all shareholder’s info on blockchain to register the ownership, thus eliminating the complicated paperwork involved in the share transfer process, improving the efficiency of asset circulation in a safe and reliable way.
Third, Bytom will be used for asset securitization. With the blockchain technology, asset-backed securitization (ABS) can be simplified into three steps: one is the right registration; the second is the tokenization, assets are divided into currency or token; third is the smart contract transactions. Managing securitized assets through Bytom can greatly improve the efficiency, safety and traceability of ABS. Transaction record are safely stored to ensure the immutability of information and execution of smart contract.
Q: Other public blockchain projects use algorithm that are compatible with FPGA to achieve hardware acceleration. Bytom take a different way by adopting a consensus algorithm that is friendly to AI ASIC chips. Why?
The proposal of AI ASIC-friendly consensus algorithm is a major innovation of Bytom network. Bitcoin ASIC miners could only perform hashing computation, which is a potential waste in the arms race. Bytom can be directly integrated on existing ASIC chips for mining. This is a win-win situation for AI industry and blockchain industry. Miners will be rewarded for getting involved in the mining and in turn boost the demand for ASIC chips. As for the mining industry, the outdated mining farm could be transformed into data center that provides AI hardware acceleration service. This will generate social benefits and raise the utilization of resources.
Simply speaking, previous blockchain consensus mechanism relies on a fool-type computing. Bytom consensus algorithm could provide computation power for AI and other industries along with mining. Bitcoin’s POW algorithm is often criticized with too much energy waste. Bytom’s mining mechanism could bring benefits to various participants in the ecosystem.
Q: In the economic whitepaper, Bytom proposes a three-tier governance structure, namely the Autonomy Committee, the Management Committee and the Token-holder Committee. What is the difference between this and other projects?
The governance structure of Bytom is designed to balance the “efficiency and justice” issue between investors and developers. Therefore, the token-holder committee is introduced into the management circle, which represents fairness and the interest of investors. As the core unit, the Management Committee is responsible for efficiency and authorization, coordinating the development of the project.
Other public blockchain project is positioned as a pure open source platform, the management of which is loose and seeking no profits. Such model obscures the obligation and responsibility. Bytom’s governance structure could achieve balance between fairness and efficiency.
Bytom has over 30 members at the moment. Core development team consists of industrial experts: Changjia is the founder and CEO of 8btc and has been committed to promoting blockchain technology and theoretical research for years. Duan Xinxing, former VP and Chieft Researcher of OKCoin, is responsible for product design and branding work. Lang Yu, founder of 8btc and former engineer of Alipay, is in charge of development. Gavin Qu is responsible for 8btc marketing and operation and running the blockchain hardware lab. Li Zongcheng, former senior executive of Kedi Group, has rich experience in investment and financing and profound understanding of the blockchain application in the financial industry.
As for the future of Bytom, Changjia, the leader of the project, said,
“We want to prosper along with the industry.”