OKX President Hong was invited to attend the main forum of the "2024 Hong Kong Web3 Carnival" on April 6, 2024, and delivered a keynote speech on "Responsible Innovation".
Below is the full text of the speech:
Good afternoon, it is my honor to be invited once again to participate in the Hong Kong Web3 Carnival event jointly organized by Wanxiang Blockchain Lab and HashKey Group. This provides us with a great opportunity to come together to discuss how to build a healthy and sustainable Web3 ecosystem.
The topic I am sharing today is "Responsible Innovation", but before delving into this topic, I would like to discuss two interesting sets of data.
The first set is "2 years" and "7 weeks". In 2004, it took more than two years for the first gold spot ETF to reach $10 billion in assets under management. In 2024, the first Bitcoin spot ETF approved by the U.S. Securities and Exchange Commission at the beginning of the year quickly surpassed $10 billion in assets under management in just seven weeks, forming a very interesting comparison.
The second set is on-chain transaction data. For those who have experienced bull and bear markets in the capital market, there are various signals in the market, some are noise, and some are significant long-term trend signals. The second set of data shows that since 2019, whether in bear or bull markets, on-chain transaction volume has been steadily increasing. Even if we turn our attention to earlier periods, such as the past 10 years, similar trends are evident. Whether it's the Bitcoin network, the Ethereum network, or others, overall on-chain transaction volume has been steadily increasing.
These two sets of data tell us that there are noises in the market that should be ignored, and there are long-term trend signals worth paying attention to through price performance. I believe that a long-term trend is happening, that is, technological development is driving more and more activities to move to the chain and gain more attention.
The first Bitcoin spot ETF accumulated the same assets under management as the first gold ETF in a shorter period of time, indicating people's attention to Bitcoin. As the first unique global digital currency network, Bitcoin provides people with the greatest transparency, control, and choice value, all of which are brought about by the unique technology of blockchain.
Returning to today's topic, what does our industry represent? At the birth of Bitcoin and Web3, the true spirit of the industry has always revolved around transparency, responsibility, and rights. How can we provide more transparency, responsibility, and rights through the enablement of technology, products, and solutions? This is our purpose here. In the development process of the past two years, in addition to the best applications brought by innovators, entrepreneurs, and builders, we are also learning from regulated industries, enhancing transparency, responsibility, and rights by adopting the best practices of these industries. Next, I am honored to share with you the development direction of OKX in these aspects.
First, we increase transparency and responsibility through technology. Since November 2022, we have led the industry in widely adopted Proof of Reserves (POR) and have built it into a monthly automated technical solution. We have published POR reports for 17 consecutive months, and this is not just a simple repetition. In fact, we have decided to update the POR plan by accepting feedback and continuously improving it, and providing more technical support for the plan to enhance our POR plan. We have expanded the coverage of POR assets from 3 to 22 and publicly disclosed 450K+ addresses on the chain for users to verify their ownership. In addition, we are also the first platform in the industry to adopt zkSTARK technology to ensure the integrity of the POR plan through mathematics, cryptography, and technology, ensuring that users can trust the plan without the involvement of third-party intermediaries. We believe this is an important step for industry self-regulation, using technology to bring more transparency and meet users' expectations for traditional financial audit standards from centralized platforms.
Secondly, we have invested heavily in Web3 technology and launched the self-hosted wallet - OKX Web3 Wallet, and developed it into a powerful one-stop Web3 gateway. We believe that by allowing users to control their private keys through self-hosted wallets, we can reduce the risk of platform misconduct. In addition, through hard work, we are committed to providing OKX Web3 Wallet with as many accessible public chains, DApps, NFT platforms, and DEX aggregators as possible for users. We have integrated these options to provide users with the most comprehensive and free choices.
Like many other innovative technologies, in the early stages of technological development, the entry barriers are usually high for new users who are not proficient in technology. Therefore, we are committed to technological solutions. We believe that as a platform, it is very important to make it easier and more convenient for a wider range of people to enjoy the benefits of new technologies. Therefore, we are very pleased and proud to continue investing in convenient features such as account abstraction, MPC wallets, and social recovery brought by them, to help more and more users use self-hosted wallets without having to remember and manage mnemonic phrases, and in case of accidentally losing mnemonic phrases, it is possible to continue to own and control their wallets through their chosen social contacts.
As a leading platform in the industry, OKX Web3 Wallet has launched the AA smart contract wallet by adopting account abstraction technology, aiming to help our users trade and transfer between different chains in a simpler experience, faster speed, and lower cost. All our efforts are based on the belief that when we provide customers with more choices in a simpler and more secure way, they will be more capable of making wiser decisions.
In addition, we also believe that self-hosted wallets are a purely technical solution, which is important for ensuring transparency. Of course, more transparency means more responsibility. In the OKX Web3 self-hosted wallet, there are multiple open-source and audited modules, and anyone can view our code on Github if they are interested in security audits or wish to provide feedback on these modules. These modules include but are not limited to account generation, transaction creation, transaction signing, and MPS algorithm. We are very proud to open source these modules and will continue to open source more modules to accept feedback from the community. We believe that as a software and technology-driven platform, providing more transparency means more responsibility, which will bring more value to the customers and community we serve.
As a technological platform, in addition to applying the latest technology to platform construction, we also realize that as a centralized platform involving user assets, we have a huge responsibility. Therefore, we believe that establishing appropriate internal control systems is very important. We have been applying for licenses in many important and strategically significant jurisdictions, not only because it is important for our global operations and business, but also because we believe that the process of applying for licenses is an important part of building internal constraints and balance mechanisms.
In the past 12 months, we have obtained conditional approval and license from Dubai VARA, and received a provisional approval for a major payment institution license (MPI) in Singapore. These are important milestones that we are proud of, but not the end. This is recognition of our efforts so far, and we are very confident that we are moving in the right direction. But more importantly, as an organization, we will strengthen governance, improve operations, cooperate with relevant departments and judicial institutions, and use technology and tools to jointly combat financial crimes.
As a centralized platform, we will continue to adopt advanced technological means to ensure transparency with users, partners, regulatory agencies, and key stakeholders, and consider it as our important responsibility. One of our key global strategies is to ensure that we are transparent, responsible, and provide relevant permissions to our customers and stakeholders in order to better serve and build in the local area. Hong Kong is a location of strategic importance to us, and we are honored to be part of the Hong Kong Web3 ecosystem. We are also honored to be able to work with many partners, stakeholders, and legislators to build the Hong Kong Web3 ecosystem. We will adhere to localization to integrate into the Hong Kong Web3 ecosystem and make contributions, so that we can make long-term investments and remain compliant.
As an important participant in the industry, we are pleased to be part of the industry, and we will continue to work towards building a healthy and sustainable ecosystem in the Web3 industry to create value. We look forward to bringing more transparency, responsibility, and rights to users and the industry through technology, and to jointly build a better future. I am very optimistic about this. Thank you for your attention.
Disclaimer
This article represents the personal views of the author and does not represent the views of OKX. This article does not intend to provide any advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holding digital assets (including stablecoins and NFTs) involves high risks, may fluctuate significantly, and even become worthless. You should carefully consider whether trading or holding digital assets is suitable for your financial situation. For questions specific to your situation, please consult your legal/tax/investment professionals.
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