SERO Unveils S++: Hand Control of the Market Value to Real Decision Makers
On April 22, Tony Tang, global chief strategy officer of SERO, was live in conversation with ChainNode, unveiling the roadmap of SERO and discussing the future of privacy public blockchain. Tony Tang is a Wall Street derivatives expert, a veteran in global asset securitization business. He served as managing director at Salomon Brothers, Bear Stearns, Societe Generale, Citigroup, Deutsche Bank and other top financial institutions, and co-founder and managing partner of several well-known private equity funds in China.
In the online conversation, Tang talked about SERO coin burn scheme and competitive products of privacy coins, and released their plans in DeFi, cross-chain and DEX, as well as the commercial layout of “S++”.
ChainNode: What’s the consideration behind SERO coin burn scheme?
Tony Tang: The burn is to adjust the inflation curve so that more investors could have a chance to gain profits. The block halving burn of SERO is actually driven more by the community than the project team’s “top-level design or rule change”.
After this burn, the maximum block reward is reduced from 71.2 SERO to 35.6 SERO, and the ratio of PoW reward and PoS reward will keep 1:1. The percentage of output released by the team is proportionally reduced. And the maximum block reward will continue to be reduced from 35.6 SERO per block to 17.8 SERO per block after the natural halving happens in April.
In terms of the impact of this burn, the number of PoW miners may be reduced in the short term, but the long-term earning potential will attract them back to our network. The gradual growth in ecological demand and the correction of earning inflation to a reasonable level will lead to a continuous increase in SERO market value, which will result in continuous mining gains. On the other hand, the annualized interest rate of PoS at 10-12% is still quite a high level in the industry. No matter what kind of miners, they will have more confidence in long-term holding due to the adjustment of inflation rate, and break out of the cycle of “mining-selling-cashing out”.
ChainNode: There are already a lot of privacy coins in the market, including Dash, Monero, Grin, etc, what’s different about SERO? What advantage SERO have?
Tony Tang: First of all, it needs to be clarified that the privacy protection schemes of Dash, Monero, Grin and others are not based on zero-knowledge proof protocol. ZCash uses zk-SNARKS, but users use it mostly in unprotected transactions because of its poor speed. ZCash takes about 75 seconds to produce a block, while SERO’s average block output time is 14 seconds, which is a significant increase in the speed of transaction confirmation.
SERO mainly has two core features: 1) the fastest zero-knowledge consensus implementation technology in public chains. SERO achieved this performance by first selecting Twisted Edwards from the elliptic curve series and generating the Merkel Tree with ECC Hash, which increased the speed by nearly four times. Second, in line design, SERO uses a single input-output structure and each description is connected by an asset channel, which modulates the system and makes full use of the multi-CPU computing environment, and further improves performance by nearly three times. Finally, some of the core code in SERO’s super zero knowledge library is written in assembly language to optimize execution efficiency. These innovations are implemented on the underlying structure to empower SERO unparalleled speed and flexibility.
2) support for issuing non-homogeneous assets. An important fact about real-world assets is that they cannot be represented in simple tokens, and today’s mainstream public chains can only issue these simple tokens. For example, a receivables asset, which in the real world is an important means of obtaining business credit, and requires a series of supporting data to describe and verify. How can a simple token describe it? SERO implements three different kinds of data structures on the underlying network, namely Token, Ticket, and Package, to capture the complexity of the real world, which is not featured by most public chains.
About future plans
ChainNode: What’s SERO focusing on at present?
Tony Tang: from the perspective of a public chain, we think these three are important: DeFi, cross-chain, and decentralized exchange.
About DeFi. It can be asserted that without zero-knowledge proof, there will be no real DeFi, as no regulator will allow companies to engage in financial activities without privacy protections. SERO is a technology platform that does not determine specific privacy policies for business practices, but it provides tools related to privacy protection including regulatory tools. Its underlying protection architecture provides a means for DApp developers to be regulated, as it supports the function that private asset owners have the right to authorize third-party audits. Another feature of regulated financial activities is their need to protect privacy while maximizing transparency. Regarding this, SERO is about to roll out a heavyweight DApp that we believe will be an innovative breakthrough towards the goal of dramatically reducing the issuance of “air coins” and curbing scams in the public chain domain.
As for decentralized exchanges and cross chain, decentralized exchanges require strong underlying technologies and cross-chain technologies, and massive concurrent transaction requests require real-time matchmaking technical support. Decentralized C2C OTC transaction is also a more pressing challenge technically. These challenges will ultimately affect users’ experience. SERO is not going to stay out of this space, and we’re going to show the world our breakthrough soon.
ChainNode: What’s SERO’s plan in commercial uses?
Tony Tang: SERO has two strategic directions. One is facing government and enterprises. We will help government departments improve efficiency in government affairs and economic activities. We also want to help the loosely integrated organizations and business entities to achieve a distributed trust decision, S++ is set to implement this goal. The other direction is to provide a decentralized governance structure for pure market behaviors. Although the two development paths are completely different in terms of scenario and purpose, there is a lot in common in the underlying technologies, and there is still a need to provide standard components in the middle layer to ultimately deliver two different technical solutions.
S++ is a company established by SERO foundation with joint venture of several traditional institutions, which is committed to the development of the commercial application in the Chinese and international markets. Its position is to be a standardized middleware platform, used for custom DApp deployment in the real business world. Our vision for S++ is to enable assets in the real business world to flow more securely, privately, and efficiently in the digital world. S++ will focus on three DApp clusters: supply chain management/supply chain finance, private data management/anonymous payment, and digital asset management/digital securitization.
S++ is operating in domestic and international markets separately. In the domestic market, it operates through the 100% controlled “Shanghai Super Zero Information Technology Company” and develops a “no coin” consortium. Based on the same technology used on the SERO public chain, or directly as a two-layered chain of the SERO public chain, it will meet the needs of corporate customers with strong supply chain finance needs. “No coin” is to meet regulatory standards for blockchain in China, core domestic enterprises can take advantage of the SERO technology to deploy its isolated but related business sub systems on the enterprise consortium chain.
In the international market, it could apply in a series of application fields such as anonymous payment, stablecoin, over-the-counter transaction management, digital asset securitization, and digital asset management. Our target business has room to release great potential through the asset circulation of DApps. Here, channel software developed by S++ can quickly deploy these DApps on the SERO network. S++ could capture part of the value added by the flow of digital assets, usually in the form of SERO coins, through smart contracts embedded in channel software.
ChainNode: With so much work done, what exactly determines the market value of SERO?
Tony Tang: Since the positioning of SERO tokens has been determined, we did an in-depth analysis of the market value of SERO. Most importantly, we’ll let the DApp developers and their users determine the intrinsic value of the DApp. No one can determine the intrinsic value of a tool to a particular business, but the participants themselves in the ecosystem. Ethereum and similar projects define the universal usage value of tokens as the cost of Gas, which is fantastic. As a public infrastructure, the Gas cost of the SERO network is tiny, and its value is entirely in the form of management fees or operating fees that DApp smart contract builders charge eco-users. Only in this way can the pricing of SERO get rid of speculative supply and capital flows, but anchor basic supply and demand determined by commercial activity.
Maybe it’s more intuitive to use some figures. In terms of supply chain management/supply chain finance, China has the potential to unleash 17 trillion yuan worth of assets, which are deposited in its vast supply chain system, which is one of the focus of traditional financial institutions and it will unleash huge financial value. In this application area alone, based on the background of S++ shareholders and SERO’s own technical strengths, our goal is to capture 1% of the business unleashed by this asset, which is conservative. In terms of total asset management at saturation point, the stock of digital assets backed by SERO technology is $170 billion.
If the builders of these supply chain finance DApps ask their users to pay 2% SERO tokens as a credit risk premium, some of this goes to the investor’s account as a default compensation, and others is eventually allocated as a fee to the asset manager builder. Then, domestic supply chain finance business alone may become a potential source of demand for 3.4 billion yuan equivalent SERO tokens.
Both the investors of supply chain assets and the asset management companies that build the DApps will put these SERO tokens back into the market circulation after obtaining them, so as to truly form the supply and demand flow for the industrial use of SERO tokens. This is the goal of our business model, as opposed to a situation in which only speculative capital determines pricing, which hands control of the market value of SERO to the real decision makers.
SERO is a new generation privacy public chain. The core value is that SERO allows issuance of privacy-protected assets and supports rich asset data expression forms. These characteristics give SERO a unique advantage as compared to other platforms. SERO public chain is a well-known public chain project in China, has a strong technical team and a large community. In this context, led by the SERO Foundation, the “SERO Blockchain 1st Global DApp Developer Competition” will be held. We hope that through this competition, more excellent applications will be spawned to form a powerful blockchain developer application ecology. Developers can know the specific competition information through the Blog on the SERO official website(sero.cash)