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Interviews

Interview with everiToken on blockchain, stablecoins, and token economy

Thursday 8 November 2018 | 08:50 AM CET

The Paypers interviews everiToken’s CEO Brady Luo to find out how blockchain can minimise the hassle of doing complex transactions in ways that bring positive benefits to the economy.

Could you introduce everiToken to our readers? What types of services do you provide, what markets do you address, and how did your company start in the payments industry?

Thank you for the opportunity to speak with The Paypers. As the world's first token-based public chain, everiToken aims to be the best platform for tokenization and token economy infrastructure. EveriToken provides three core technical features: high TPS, high security, and high standardization. The platform does away with the smart contract layer of a traditional public chain structure, using an entirely new Safe Contract. Both traditional Apps and decentralized Apps (DApps) can use EveriToken by calling token-related APIs to realize token issuance, transfer, and management. We raised USD 10 million in a private funding round from several high-profile crypto funds, including Asian market leader Fenbushi Capital.

The everiToken platform is designed to provide tokenization and payment services to a wide variety of markets, but we’ve already launched some use case projects. We’re excited to announce that everiToken is partnering with Malaysian holding Hoh Wah Genting (HWG) Group to launch a stablecoin called HWG Cash. HWG chose everiToken over the Ethereum platform for their travel and entertainment USD pegged stablecoin HWG Cash, which is officially licensed across all of Malaysia and backed by USD 500 million of reserved HWG funds. everiPay, the first commercial token payment standard made for face to face micropayments, boasts the capability to support up to 10,000 TPS, delivers confirmation times of under a second, and provides simple and quick integration, advantages which proved decisive in HWG Group’s choice of everiToken over Ethereum. HWG Cash holders are able to use the new stablecoin at any HWG business, greatly reducing commission costs for HWG merchants. New merchants are added to the network constantly.

Could you briefly explain the concept of token economy? What role do safe contracts and fuel tokens play in this ecosystem?

The everiToken platform allows anyone to “tokenize” their assets, such as buildings, company shares, or even artwork and collector vehicles, or rights, such as oil drilling rights or copyrights. These tokens, which are stored on a public blockchain and are linked to real-world assets and rights, can then be issued to investors and traded on secondary markets with ease. The advantages don’t stop there. everiToken’s technology enables merchants to accept payment, roll out loyalty and reward programs, and implement electronic ticketing, all through a single, unified technology platform.

How can real companies use this technology? After depositing USD 500 million in a special bank account, HWG used the everiToken platform to release a stablecoin that is linked to these funds. HWG Cash holders can buy a ticket to an HWG cruise via a wallet app on their smartphone, and then use their phone to check in for the cruise. Merchants who accept payment in HWG Cash pay practically no commission on the payment. In another example, an investor who signs a contract to buy ten thousand barrels of oil in 3 months at a certain price can then issue tokens that represent these rights and sell them to other investors in order to gain liquidity. The token economy provides a much more secure and efficient way to conduct the sorts of complex transactions that underpin our modern economy.

Smart contracts are revolutionary in the sense that they allow developers to literally build contract terms into the code, eliminating the need for middlemen such as lawyers and notaries. However, if businesses want to implement smart contracts for their business, they need to hire expensive blockchain experts to integrate a standalone custom technology into their current business model. This process be very costly, take quite a bit of time, and may not even deliver the desired results. That’s why we’ve developed a completely new innovation that we call the “Safe Contract.” Safe contracts enable companies to use their in-house developers to issue their own tokens within hours, simply by using well-established API protocols, saving huge sums of money and months of development time.

Our platform uses EVT as fuel for several important purposes. Fuel helps protect everiToken from attacks on the system, such as DDoS, to provide Stake for the DPOS vote, and to give a reasonable reward to the producers. EVT will be charged as a service fee on every transaction conducted in the system, which will act as a producer reward. The number of EVT charged will float automatically, and the fees collected are primarily to prevent malicious attacks and will not affect most users’ regular use.

Transaction speed is an important criterion when it comes to adopting a new payment systems/methods. So far Visa has one of the fastest transaction speed, with 24,000 transactions per second. How does everiToken plan to overcome this situation?

In our opinion, looking at TPS alone is misleading. Visa does have one of the fastest transaction speeds, but, on any typical day, Visa handles an average of 1,500 to 2,000 transactions per second (TPS), and will experience a peak load of between 5,000 and 10,000 TPS. everiPay is already able to handle 10,000 TPS, there’s no business need to use additional resource to try to achieve bigger load capacity, and we have no plans to do so at this time. Further, each transaction conducted through everiToken is protected by a password against double spend and transactions are confirmed within seconds, so the everiToken user experience is totally on par with capabilities that consumers have come to expect from Visa.

However, we’ve definitely achieved some advantages over Visa, advantages that we believe will drive user adoption on a massive scale. First and foremost, everiToken is up to 99% cheaper than Visa for merchants. Those savings will then naturally be passed on to consumers. Safe contracts allow companies to issue tokens that are backed by a range of assets and rights. Merchants can customize everiToken to fulfil a range of additional services, like payments, or rewards programs and ticketing, in a transparent and secure way. That sort of technology is light years ahead of what Visa can do.

Congratulations! You have just received the Florin Award for Best Innovative Practices in “Hassle-Free Transacting”. What, would you say, are the main elements that make everiToken stand out from other similar services?

Thank you! We’re thrilled that a group of international fintech experts have selected everiToken for the Florin Award. This would never have been possible without our amazing team, which worked tirelessly over the past year to build everiToken, our wonderful investors, who always believed in us, and our partners, including HWG Group and several others that we will announce shortly. We feel that our strategy of focusing on product development, increasing quality, and scaling the product up for mass use has been proven.

I mentioned several factors that set us apart from any of our competitors, including our safe contracts, ability to deliver TPS support and transaction confirmation times on par with Visa, and some strategic partnerships with large companies.

About Brady Luo

Brady is a true believer in the global token economy based on blockchain technology. His professional background includes the successful career in Wall Street (Oppenheimer Fund) and Asian market (Mitsubishi UFJ Securities) as well. Brady is a serial entrepreneur he has several successful ventures in China. His academic experience is in both engineering and finance.

 

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