[Blockchain in SEA] The rise of technology after bursting of bubble
[Blockchain in SEA]
58days ago

The full text is a total of 2382 words, expected to read 5 minutes.

Editors note: Only the companies that built good services and products survived.


Time: 07/23  10:00(GMT+7)

Wechat group: BlockChain-in-SEA

Guest: Hoang Nguyen, CTO and co-founder of FinanceX

Host: Andy Zheng, Beecast CEO



Andy Zheng: Good Morning, everyone! I am Andy Zheng, CEO of Beecast.

Welcome to the leading blockchain community media [Beecast] and join us with 5000+ communities & 1000000+ Beecasters in [Blockchain in SEA] to discuss blockchain technology and industry development.

This is the phase 27,

Topic: The rise of technology after bursting of bubble

Guest: Hoang Nguyen, CTO and co-founder of FinanceX


Hoang Nguyen has more than 12 years experience in e-commerce and software development. He is responsible for system architecture design to ensure the scalability, security and high performance of FinanceX platform. Prior to FinanceX, Hoang was General Manager at Balance Internet - one of the top 3 biggest e-commerce solution providers in Australia and New Zealand. He also co-founded 3 start-up companies providing online marketplaces and digital assets exchanges.

After graduating from President University, Indonesia specializing in Computer Science, he got his MBA degree and certificates from Microsoft, PMP, Scrum Alliances, Blockchain Foundations.


Andy Zheng: Mr. Hoang, you can introduce yourself. As an expert of e-commerce and software development, what is your initial opportunity to understand and join the blockchain industry?

Mr. Hoang: My name is Henry and I’m the co-founder and CTO of FinanceX. Our company is based in Singapore and we are operating a crypto-currency exchange which helps customers trade crypto-currencies easier using their local fiat from anywhere in the world. We also provide blockchain services, dApps development for the enterprises.  

Previous to FinanceX, I had many years experience developing large scale system for e-commerce and financial institution. I also had experience in stock and forex trading. I am very passionate about the new technology. I was actually late to the blockchain revolution. I first knew about blockchain and bitcoin in 2016 when it was a hype among the tech community and boomed in 2017 with many project ICOs. The more I research about blockchain, the more I realize the power of this technology. It can impact many industries such as banking, finance, and e-commerce. With more than 10 years of experiences in software development specialized in e-commerce, I am very positive about the way blockchain technologies and crypto-currencies will change the world economy. It will make the transaction more secure, faster, more transparent and cross the borders. I believe in the a vision for a future in which people will enjoy economic freedom that wasn’t possible before the advent of crypto.


Andy Zheng: It is reported that FinanceX is a financial technology company. It is a company that integrates technology applications, blockchain experiment as well as development and has a wide layout. What is the reason for you to concentrate on the development of technology in this almost crazy industry?

Mr. Hoang: As you may know, we are in the beginning of the 4th industrial revolution. There are many advanced technologies have been developed in AI, IoT and of course Blockchain.

The first application of blockchain was Bitcoin and later many kind of cryptocurrencies. The world is so hyped about crypto-currencies, the same way it was used to be in DOT COM era in 19xx.

There was a dot com bubble when many companies provide computer and internet services and over valued by the market. Most of them failed after the bubble blasted. Only the companies that built good services and products survived. They now become internet giants Amazon, Google, Facebook. Their core values lie in the disruptive technologies and products.

The same thing will happen in the blockchain industry. You saw many companies ICO in 2017 and raised a lot of money. But most of them only have product on whitepaper or some kind of Proof of Concept. But people still believe in their vision and invest money in because they can make fast and easy money from token price movement. Very few of them have running products and cashflow. In 2018, it was the time of crypto winter. Many cryptocurrencies have lost 90% of their values. Only the good projects can survive and continue growing in 2019.

We saw this trend from the start of FinanceX. That's why we spent most of our time and effort to build the greatest product and service to our valued customers. Our core strength is technologies, blockchain expertise so we choose to concentrate on the development of technology so that we can BUILD the best products and services to the world. We want to build a sustainable business and promote BLOCKCHAIN to all the people. Fortunately we have survived over the crypto winter and have cash flow from the day one we run the exchange.


Andy Zheng: What do you think of Facebook's release of Libra on international payments and the international monetary system?

Mr. Hoang: As I said earlier, blockchain will evolve the current monetary system. Our traditional banking system have to adopt blockchain technologies otherwise it will be replaced by a new model. You may hear that JP Morgan Chase - the top financial corporation has released their own crypto currency.

Facebook is late to this world changing game but they don’t want to be the last to the party. With more than 2 billions users and many technology experts, Facebook has advantage to develop their own crypto currency and payment system. Libra is the next step of Facebook to become not just large enterprise on the internet but an empire. Facebook has been connecting people all over the work, make people closer, and now they want to help people exchange and do commerce in a faster and easier way.

With the support and sponsor from many financial institutions and high tech companies, Libra has a very great chance to succeed. However, it threatens the existing financial system of America. The FED does not want money of the whole world is under control of Facebook. Therefore, it will be very hard for Facebook to persuade Congress and US Government to deploy this project unless there will be some consensus among them.

No matter the decision of FED over Libra project, it helps increase the awareness of people about blockchain. Libra becomes the hottest search keyword in China recently. The more people are interested in blockchain, the more chance for blockchain companies like FinanceX bring the products to the potential customers and thus the blockchain industry will grow faster.

The cashless payment is the future of global payment system. We see the rise of mobile wallet and mobile payment such as Alipay, Wechat Pay in China, Momo in Vietnam. Blockchain technology will bring it to the next level when people can use the cashless payment system at anytime from anywhere in the world.

My last visit to Indonesia, I don’t have to bring any cash or go to the money changer. I just need to bring my smart phone with a crypto-wallet. At the moment, I still have to cash out for daily spend but in the future, if the crypto payment is accepted in many countries, it is just as easy as scan QR code and you can buy anything with your chosen crypto currencies. Libra is born for the same purpose and I hope it will happen soon though it will have to comply with legal regulations


Andy Zheng: Based on your experience, please talk about your understanding and opinions on the projects, markets, and supervision of the global blockchain market.

Mr. Hoang: I believe the blockchain industry will be blooming in the next 5 years. At the moment, people are still confused and unclear about this disruptive technology and the use cases. It needs time to educate the market and get user adoption. We are still in early stage of the revolution

There are many opportunities open for the blockchain start-up like FinanceX. I can see the growth of decentralized applications in gaming industry, in banking and finance, in agriculture, logistics.

In FinanceX, we already established a FinanceX Lab where we do research and invest in the blockchain application for enterprises. The enterprises have many problems that can be solved using the advanced technologies and we will have to come up with the solutions and propose to them. The next trend I think will be crypto banking, P2P Lending, and crypto payment. We will see big booming in those areas.


Andy Zheng: Tether created 5 billion USDT due to human errors, causing people to question the decentralization of the blockchain. What do you think about this?

Mr. Hoang: Tether is one of the most popular stable coin in the market and it actually has big impact to the market movement. Every time Tether prints more money, the market is in doubt about their transparency and their real money backed for the token issued. It is not a good thing when the power of printing money is lied in the hand of one organization.

And the human error happened recently that created 5 billion USDT showed that it is necessary to have a mechanism to control and audit stable coins. The way blockchain designed and the consensus mechanism determines the decentralization of a blockchain.

For instance, Bitcoin - the oldest blockchain might be technology obsolete but it is still considered the most decentralized blockchain. It is the reason people still trust Bitcoin more than other chains. Stable coin like USDT is important for the crypto ecosystem but it should be managed by a community rather than a business entity like Tether.

I think Facebook is smarter than Tether when they propose stable coin Libra. They get involved other parties so that people are not worried too much about the centralized power of Facebook


Andy Zheng: What role does the exchange play in the overall ecology of the blockchain? How to ensure the long-term activity of the trading platform?

Mr. Hoang: The exchange plays a very important role in the ecology of the blockchain. People have the needs to exchange their assets with each others. And the exchange helps them do it in a fast and convenient way.

There are 2 types of exchanges in the blockchain ecosystem: centralized and decentralized. Some people think decentralized exchange (DEX) is better than centralized (CEX) since the users keep their assets in their wallets, not on the exchange, but I think both have advantage and disadvantage.

FinanceX is the CEX and have advanced security layers to protect users assets. It is more secure for novice users. If you don’t know how to secure your crypto wallet, you'd rather give it to the expert that you can trust.

Moreover, the CEX often has higher liquidity than DEX so it will be faster to trade on CEX. The exchange will always exists within the blockchain industry as the platform people can store their digital assets and exchange things and for the traders, they can make money with price movement.

As you can see, there are many crypto exchanges launched recently. The competition in this area is very high since the crypto community is still small compared to forex or stock. So it is important for the exchange to know what the users need and provide the best service to ensure long-term activity.

The most important is security. People choose your exchange because they trust you to keep their assets. The biggest exchange - Binance even has their own FUND to insure their customer funds. It is a very smart way to gain users trust. Since the beginning, FinanceX has put security in the number 1 thing in the TODO list. We hired the experts in the security field to audit our system regularly and provide multiple layers of security and permission mechanism to protect user funds at the highest level.

The second thing is liquidity. Exchange without liquidity is the dead place. No one want to wait too long to buy or sell things. FinanceX get involved market makers and investment funds to increase the liquidity.

The third thing is the core technologies. Our solution is well proved by the industry since it has been used as the core for some stock and forex exchanges with millions of orders per second. Crypto exchange scale is still very small but we have prepared our solution for the booming in the market in the next 5 years.


Andy Zheng: As a senior preacher in the blockchain field, you may have come into contact with a lot of people in the industry. Are there anyone you admire, and why? Beecast currently covers 250 cities in 15 countries, 5,000 community nodes, 1 million users , and hopes to invite more big names to [Blockchain in SEA] to share the blockchain knowledge, promoting the development of the industry. In the blockchain industry of SEA, if you introduces one or two guests to be interviewed, who would you recommend to Beecast to share?

Mr. Hoang: The one I admire the most is the mysterious man - Satoshi Nakamoto, I think everybody here knows him. Unfortunately we cant meet him in person. So the one I would recommend is Roger Ver and Vitalik. They are two persons have been devoting all their time for the blockchain community and blockchain adoption.

Their visions inspire me and bring me to the blockchain industry. Roger Ver is preaching about crypto payment, the true cashless payment system with Bitcoin cash as the example. Vitalik is more on technology side with the advent of Smart Contract which help create many other ERC based tokens. In South East Asia, I would recommend Beecast to have interview with Loi Luu from Kyber Network. Kyber protocol is a very great idea and Loi's vision for Kyber Exchange is fantastic.

Another guy that I would like you to meet is Oscar Darmawan - the founder of INDODAX - the biggest P2P crypto exchange in Indonesia. Oscar and his team also develop the token ideas for one of the biggest market in South East Asia.


This article is reproduced only, does not constitute an investment opinion


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