We ask the buidlers within the blockchain and cryptocurrency sector for his or her ideas on the business… and throw in just a few random zingers to maintain them on their toes!
This week, our 6 Questions go to Chen Li, the co-founder and CEO of Youbi Capital, a enterprise capital agency investing in blockchain applied sciences and disruptive decentralized purposes.
Chen Li is the co-founder and CEO of Youbi Capital. He has a Ph.D. in chemistry and labored as a scientist for Regeneron Prescribed drugs, the place he received two awards for his contributions to growing groundbreaking antibody medication. In 2015, he was launched to Bitcoin mining by his roommate in faculty, then collectively based Youbi Capital in 2017. Chen constructed the inspiration of Youbi’s thesis in blockchain infrastructure and led investments in Algorand, Avalanche, Polkadot, Stream, Kadena, Chainlink, Debank and others. He was additionally an advisor to JP Morgan’s blockchain workforce.
1 — What’s the major hurdle to mass adoption of blockchain expertise?
The principle hurdle to mass adoption of blockchain expertise now remains to be its infrastructure, particularly, scalability and safety of layer 1s. All of us noticed that the watershed second for Axie Infinity was not the play-to-earn motion that began in early 2020 however the migration of the sport from Ethereum to Ronin in mid 2021, which led to an explosion of gamers and income development instantly.
However Axie was only one software, and may due to this fact be simply accommodated on a devoted chain, whereas for the DeFi protocols — that are extremely composable and already interconnected — we nonetheless don’t have a layer 1 for your complete set of DeFi protocols emigrate over with out beginning to jam its visitors. Solana is perhaps the closest to reaching this purpose, however it isn’t horizontally scalable for mass adoption.
There’s nonetheless rather a lot to do to put a stable basis for the blockchain software.
2 — What is going to occur to Bitcoin and Ethereum over the following 10 years?
Bitcoin has efficiently prolonged the consensus on its asset as a decentralized retailer of worth for everybody from people to a big group of establishments on this cycle. It’s only a matter of time earlier than it’s universally accepted. Moreover, below the worldwide inflation backdrop, Bitcoin may additionally have the possibility to grow to be a broadly used foreign money in worldwide settlements. There was a number of hypothesis on the Bitcoin worth proposition damaged right down to its utilization in numerous classes.
When it comes to expertise, the neighborhood has deliberately saved Bitcoin’s progress at a sluggish tempo to keep away from introducing any uncertainty. Whereas I imagine that’s the proper technique for its use circumstances, Bitcoin will nonetheless be restricted in supporting good contracts over the following 10 years.
Ethereum, alternatively, goes by a lot sooner reiteration by transitioning to proof-of-stake and doubtlessly sharding within the close to future. All EVM-supporting chains are additionally within the Ethereum ecosystem, contributing worth to the bottom layer. Because of the robust community impact, the Ethereum ecosystem will doubtless stay as a dominant drive within the DeFi area all through the following 10 years.
3 — Whenever you inform folks you’re within the blockchain business, how do they react?
I keep in mind once I first talked to outsiders about Bitcoin in 2015 — they both fell silent and gave me awkward seems to be like I used to be making an attempt to speak them into some type of rip-off, or in some circumstances, enthusiastically challenged me on whether or not Bitcoin had any worth. Bitcoin mining was extra of a enterprise that individuals may perceive, nevertheless it was extraordinarily uncommon to seek out somebody that was open-minded concerning the cryptocurrency itself.
Now, individuals are turning into an increasing number of educated and engaged about blockchain expertise and crypto. I’m usually not the one particular person they know within the business. I was requested plenty of primary questions on blockchain. However now, individuals who aren’t blockchain professionals typically share their views first as soon as they know I’m within the business.
They’ve way more numerous views on the blockchain business now. Moreover holding crypto of their portfolio, a number of individuals are NFT collectors and even landowners in blockchain video games. They see blockchain as a expertise to concern and transact NFT property in addition to infrastructure for the Metaverse, however are extra drawn to NFTs and Metaverses. That’s the reason I’m very assured that the Metaverse would be the entry level to the Web3 period.
4 — Who is sensible to you, and who is not sensible in any way?
Whoever is constructing a product then tells a narrative is sensible to me and who simply tells a narrative or builds a product for imaginary demand is not sensible in any way.
There are many nice merchandise which can be fastidiously designed and reiterated to suit the wants of the customers. For instance, Binance has a really environment friendly suggestions loop, from customer support to administration. Consequently, it is ready to reiterate its product in the best approach and interact a brand new development out there. The Binance workforce is sensible to me. Polygon, Debank and The Graph are all glorious examples of merchandise with robust product-market match. All these groups make sense to me and I see plenty of potential within the adoption of their product.
5 — Listing your favourite sports activities groups, and select the only most memorable second from watching them.
My favourite sports activities groups have been the Chicago Bulls and Denver Broncos. Essentially the most memorable second was Michael Jordan’s ultimate shot with the Bulls that received them the sixth championship.
6 — Apart from the current day, in what time and in what nation would you prefer to have lived?
I want I had lived in Shanghai, China from 2012 to 2015. That was the primary crypto market cycle that I missed. The 2 main occasions in that time-frame have been the expansion of Bitcoin mining and the fundraising and preliminary community-building of Ethereum. They each occurred throughout that point in China.
Plus, China is my residence nation. I like the meals and folks.
A want for the younger, bold blockchain neighborhood:
I want that everybody in the neighborhood can survive the ups and downs, holding tight to their crypto property.