Star Xu - Everything Onchain, Self-Custody is the Future
1. The Evolution of Financial Infrastructure
Star mentioned that the financial landscape has changed significantly since the days Bitcoin was viewed as a niche gaming coin. He highlighted the growth of Bitcoin ETFs and the establishment of Ethereum and Solana as foundational elements for decentralized applications. This signifies a shift from traditional finance to on-chain solutions, emphasizing the potential for a new era where individuals can maintain control over their financial assets.
2. The Importance of Open Financial Systems
Star drew parallels between the mobile industry and the financial sector, contrasting closed systems with open systems. He emphasized that just as Apple transformed the mobile landscape by enabling a more open ecosystem, the future of finance will also require transparency and accessibility. This indicates that decentralized finance (DeFi) must serve as an open platform, allowing anyone to develop applications and transact without gatekeeping.
3. Characteristics of On-Chain Systems
According to Star, effective on-chain systems must have four key characteristics: transparency, support for code deployment by all users, independence from single service providers, and globalization. These qualities facilitate a more democratic financial structure where assets can be migrated freely, encouraging innovation and reducing reliance on intermediaries.
4. The Transition to On-Chain Assets
Star projected that more assets will transition onto blockchain platforms as the technology matures. He pointed to the emergence of tokenized equities, bonds, and real-world assets on-chain as indicative of this trend. The existing infrastructure is no longer a limiting factor; advancements in transaction speed and scalability have made it feasible to accommodate a wide range of asset types on blockchain.
5. Self-Custody as a Revolutionary Concept
Star proclaimed that self-custody will be central to the future of finance, allowing individuals to manage their assets independently without relying on trusted third parties. He underscored the historical context of self-management, citing that for millennia, people safeguarded their wealth personally. In the blockchain realm, tools and technologies will enable users to verify and trust DApps before committing their assets.
6. Advanced Security Measures and Regulations
Star addressed the importance of regulatory compliance in the crypto space, noting that many firms are learning to operate within established frameworks. He asserted that blockchain technology indeed facilitates superior anti-money laundering measures compared to traditional finance, thanks to transparency and the availability of user transaction data. Innovative technologies like abstract account wallets can enhance user security, ensuring that crypto remains compliant and safe.
