Rachid Ajaja discusses AllianceBlock's growth and DeFi regulations

0:01i'm ashton addison from block west capital for investmentpitch media in the Crypto Coin Show and today on blockchain interviews we have rasheed ajaja founder and ceo of alliance block rashid welcome to the show and it is great to have you back once again thank you very much ashton and yeah it's been now a little bit less than one year so i'm really glad to be here because

0:20one year in crypto i think it's more than five years so lots of things to discuss i completely agree the market has exploded since we last spoke d5 has been growing alliance block i know has a lot of updates to get to i would love to kick it off for the viewers who didn't catch our first interview on just an overview on alliance block and some of

0:38the solutions that you're bringing in merging traditional finance and decentralized finance indeed so yeah so to give you a really high overview so our objective is to build the new generation of financial infrastructure so leveraging the high standard of traditional violence and the innovative technology of decentralized finance so we believe that the two world can't stay

1:00siloed and we believe that they will merge in the near future and we want to be an actor so lion's block in a nutshell is based on three pillars the first pillar is regular compliance regulation the second pillar is data and the third pillar is the applicative layer which is d5 and as we know regulations are coming and we need to be reading and if we want the

1:23adoption of d5 from traditional finance we need to have compliance in regulation and this is really our value proposition of course other products we have eight products we will have to occasionally speak about this but initialities we want to build the next generation of financial infrastructure that will replace the current one less costly less middlemen

1:43more inclusive participative transparent and fair and this is what we believe is the future of finance definitely and i agree rasheed and yeah i'm glad you touched on those pillars i want to talk about the compliance and the regulation which is a necessity later on but i want to start with you know that the applications and the functionality that you're

2:05looking to bring as you mentioned there you already have a lot i'd love to know where you're at right now since we last spoke in terms of the applications and the growth yeah of course like really lots of has happened so i would say the first one of the first product that we released is the liquidity mining so for us because it's very important to get to have

2:26liquidity it's one of the most challenged of every crypto project but even in the traditional space and also as we remember back in 2019 when we were speaking about stos so the most challenge of seos is the liquidity and now there are product projects that are trying to solve this liquidity so liquidity is important so once we did liquidity mining

2:46for us we managed to get around 50 million dollars total value locked more than 30 million albt locked which is really huge and we have really amazing like i would say answer from our community and they believe in what we are doing and this is why we managed to get this high total value lot and actually we saw that a lot of product we have audited many a

3:07different auditor updated our smart contracts and actually we saw because it helped us not only in terms of the trading volume not only in terms of liquidity not only in terms of driving the value of the lights block so we said that most of the project need this specifically the one that just starting they have done their ideo or they just launched that token so this is the

3:26problem that we have every single project we have so we decided to build our liquidity mining as a service so basically with xero code they will be able to deploy a platform where they can do liquidity mining for different blockchain they will be able to do stake and they will have access to analytics so it's one stop shop for defy so they will be able

3:47to focus on their on their product they will be able to focus on what the division and their ambition and then they will be able to use this to drive because at the end so they need liquidity to for their token so this is something that is very important and then we started to have multiple products so we have daffy as a first client then we have polka cara then we

4:07have hypersign we have terra vertua now we are speaking with more and more projects that they see and actually now it's even though we are going to the next step is we are basically planning to sign with launchpad that they will be able to not only launch liquidity mining as a service for them but for any single project that is launching liquidity that

4:27is mentioned through them to do this because we see that it's really it has a really huge use case and also the second product that we launched is the bridge so we saw huge like a number of different bridge the problem is they are based on centralized relay they've been hacked we saw the story about like all the different hacks that happened for the bridges so we

4:49decided thanks to our collaboration with hydera hashgraph which is like they are doing an amazing job so we have used hedera consortium services where we have built this fully decentralized bridge that not only supports like all other bridges on the ethereum virtual machine compatible share but we will be able to support also not evm machine so now we have energy option we

5:11have avalab we have avex we have ethereum we have dsc we have polygon we will add its own arbitrium which is layer 2 and other so we are working also not only on bridging the token but also bridge into nft and later on the messaging and the good thing is we released also we released the sdk fully open source that we will be able for projects that use liquidity as a service to provide

5:35liquidity pool not only on ethereum but also on pancake swap on bsc on quick swap and balance around polygon on pangola on overlap and so on so forth so we see that this product basically interacts between them even though that they have different things we have also like a data channel for the marketplace and we have lots of lots of products that are coming such as the p2p funding

5:57lending and investments we have data quasar which is basically aggregating all the data between the default industry and blockchain and the good thing is we are not doing it as just events where we need to be layered on top of it to have access to this data but more than that we are doing it enterprise grade api so imagine as bloomberg or definitive or writers where

6:19they just connect to the api and then you will have access to all these data you will be able to do analytics you will be able to do strategy you will be able to do dynamic years like yet protocol optimal allocation and so on so forth so as you can see so like we are building so and also we are almost finalized with our decentralized exchange with thanks to our team like

6:41that's the executive that he joined us and actually we have built that's amazing product which is new automatic market making that's in that minimize impermanent loss by more than 50 and it will go to the test nets very very soon we are successfully doing the audit and now we are doing the second iteration of audits so you take the tax you take the breach you

7:02have multi-channel basically magician swap so you have questions okay you added this to a liquidity mind as a service you provide a tool for all projects to be able to be multi-shine to be able to have the token in different chair and to be able to provide liquidity in different shapes amazing rasheed it sounds like your team is working on so many different products

7:21and it's just the next evolution of in all these different blockchains into you know one holistic finance platform that people can connect together and as you mentioned with the bridges just sort of having that next stage where you can easily move liquidity around between all the different blockchains and it really sounds like your team has done a great job

7:44getting every kind of protocol that you can together in one spot i would love to talk about you know as well i'm sure the audience is curious on how the alliance block token fits into the ecosystem is it required for the main products and how does it provide a sustainable ecosystem for alliance block yeah i think this is very important so our token is really like at the

8:10center of every single product that we do so for example when we release our bridge so alliance bridge dot io for those that want to see so we every single bridge need to have transaction with one airbnb okay so of course if the lbg price goes up without we will be able to decide that the fees will go down which means it will not be one for rpg the objective is that the fees will

8:30be always like a really really low so this is for the energy so the for the bridge but also if we go to the data where we will have we'll be able to use alliance block to be able to deploy the data and monetize the data like what we will have for example for now every single product that your project that is using liquidity mining as a service he has to

8:50have a pool between and bt and his tokens so this is tight partnership but also give more utility to the tokens and this is only for the first time project but once we have more projects there will be transaction fees there will be basically subscription fees and all this will be done with abc but also when we speak about the like when we have our

9:11protocols when we speak about trustless kyc and having the data and the data but when we will have trustless kyc and people will need to verify their data so they will need to use a bt and later on once we have our data node and it will have q it will be based on depos so people have to take lbt in order basically to run the network and we'll be able

9:32to earn some rewards also when we are speaking about the p2p funding so and look there will be like different years we will have dow they will be taken of the apt but also pay transaction fees with lbt and once we have like all these products so every single product use avg but once we have like all these products basically go together to create a nice

9:51blog protocol and we have our nodes infrastructures as i said depots and everything so it will be very like alberti is a central in terms the fuel of the network is that for the state gains it's for the payments and it really has huge rituality and i think this is something very very important that drive the i would say the value but also like give a really important

10:12utility of ipt which is central to every single product that we have definitely and i completely agree and you mentioned there with the trustless kyc which i think is really cool and i think that's going to work well with the decks i would love to know as you mentioned one of the three pillars of alliance block is the compliance and regulation and with

10:34traditional finance you know that comes regulation and as you know as d5 continues to grow out and d5 becomes the norm for finance there's going to be regulation involved in there and i know your team's working on that early can can you talk about the global compliance and how do you deal with different jurisdictions and make sure that your products are going to be

10:55available around the world yeah indeed so i think like now one of the biggest barriers when we speak with financial institutions is compliance and regulation so when we see for example uni swap or rv or all these protocols or decentralized exchange of building protocol the banks will not be able to participate or to use this product or to sell product or to create new products

11:15because they don't know who is participating which means that there is high like probability of there is like money laundering and this is impossible because they need to justify to the regulator they need to give them okay we are dealing with this with this with this and this is very important okay so now our pillars so we have these three particulars as i have

11:33said but one of the important pillars that will breach this two word is to okay regulation compliance where we have two products so the first product is justice kyc so trustless kyc basically is based with our partners on gdg where they have like one of the biggest kyciml providers around the world they work with the biggest investment banks and we will use them to

11:53verify the data but the way that the data is verified instead of projects or like that is seeking investment or borrowers or financial product or whatever instead of asking users to do the kyc and sometimes we have the users must do the kyc with multiple providers there is a huge probability of leak and so on so forth so now we give the power to the

12:14users two users to the kos okay his data is completely encrypted okay and we leverage also a new cipher which is amazing in terms of decentralized and encrypted for the data with the two key pairs so it's very complicated basically to decrypt these data and the most important thing is once we have the users done and verified his data and once he's verified so he will

12:37be able to give access or revoke access to banks project launchpad and he will always be in control of his data and he will monetize so instead of the project that is seeking investment in the launchpad that will pay kyc providers doesn't need to bake ioc providers he will pay less but fifty percent of the things that they will pay it will go to the users so

12:58the users may be let's say one and bt for his kyc but every time there is kyc he will get 50 50 like so which is good so it's not like you need to pay for every kyc like what is happening now so not only will give the control to the users but also like he will get monetized but why this is important it's because so they will choose if they want to participate into investment trading or

13:25lending or whatever if they don't want to comply with this yeah so they are not obliged to show the dates and they just don't participate second product is the cross-border rules cross-border rules we are starting to take jurisdiction among them we have switzerland we have netherlands singapore uae philippines liechtenstein germany and the france of

13:46course uk and the united states and these are the 10 jurisdictions that we are starting with almost 10 and the objective is to define the cross-border rule so for example we're having the rules for the landing page the lending of investment or tokenize the shares or even basically digital assets with nfts or something that we are proposing to

14:10to invest traditional financial institutions which is certificates that is based on this nft based on liquidity mining based on staking and here anyone will be able to know depending in his jurisdiction he currently can't do the transactions to lending investment whatever okay so now if we take step back and we take decentralized exchange that we are

14:32building that we put on top of it the trustless kyc and we put on top of it to cross border regulation what will happen is we are creating basically the future of finance where the way that we have a compliant tax where banks private banks rate managers whatever will be able to participate within this provide liquidity to have the trading fees construct products on

14:53top of liquidity mining have any generation so the people will not use their traditional limited accounts but they will put the liquidity into deposit and it will be able to work on this compliant tax or yield compliance and being protocol so the position is huge and this is why defy is the traditional finance in my opinion will not survive without differ

15:14however if we want to do this it need to have strict rules compliance relations and high standards of security it needs to be transparent but also it needs like basically to err that we don't we cannot have operational mistakes that is happening now within the industry and then we see hacks of 600 like 600 million 30 million 13 million bridge or protocol or decks or pool so we need to

15:36have high standards and we see that most of these hacks are not because of the technology or because of the blockchain it's because of operational errors or because people audit and then they don't basically deploy the audited one they blow something else so we need to be careful and this is where we need like once we have this once we have regulation compliance it will open the

15:55door and amazing opportunities this is why i think it's really exciting at the right moment at the right place and yeah the opportunities are endless to be honest and this is why it's really exciting i completely agree rasheed that is very exciting and i do like the security measures in there with the kyc you know you have to make sure that you're protecting people's personal

16:16information if they are uploading and not having vulnerabilities never mind you know having vulnerabilities for your losing money but you're also losing people's personal information which can lead to more money or other things lost as well so i'm glad that you're taking the approach with that and you're completely right that i don't think traditional finance is gonna survive

16:34without d5 but define needs to be done right to be able to merge in with traditional finance exactly and actually we see this for investment bank investment bank they know about d5 but they cannot participate because of the barriers because it's slow and early so what they do they invest into d5 or they partner with some of d5 so of course they will survive but i think

16:57the cost that is happening like for traditional finance and we saw now retail bank like retail bank are really struggling against neo-banks they are losing a lot of lots of customers so even this retail bank they have to innovate they have to see how they can catch costs so i think we are going through this so i yeah they cannot serve they can't survive but i think they will

17:18have huge competitive advantage if they leverage d5 definitely and you're right they have a lot of overheads and you know traditional infrastructure that is just bogging down in traditional finance and it's clearly shown by alliance block you know with the 10x to 20x growth that you've had in your products your team alliance block token everything is just

17:42moving so quickly that it's hard for traditional finance to keep up so congratulations so far on all the success thank you very much i really appreciate it i think yeah things are moving super fast we grow our team from 3 to 80 people and i think we have just one event this friday it was like the 17th of september that was really amazing when we had some of

18:02the community our stuff from around the world the contractors that we are working with and we had of course like some some technology we saw that crypto space love techno it was really amazing to see all these people connecting different background different like teams different subjects different products they are working on and we see all these

18:20connects and like yeah so we are very proud of what was what was that has been achieved in now and i think this is just the beginning of the journey so we will be happy once we have all our products used not only by retails and crypto space but also by tradition and we are really like working hard to have this definitely and if the viewers are interested in trying out some of the

18:40products or getting involved and learning more about alliance block what's the best way for them to learn more definitely so we have a lines blog.io so where we have the product so we can find the bridge you can find the d5 terminal or the liquidity mining where we have amazing pool like in different chain we have on dsc we have we have on avax we will have on polygon very soon actually

18:59so and we will have the new version of the liquidity model as a service where the users will have really cool ui very easy they can have on the analytics and then we have of course twitter twitter that is like a slash lines block we are very very active there we have amazing marketing teams so there are a lot of news a lot of updates as you can see and we have of also

19:20our telegram to almost 10 000 community members and they have they are helping each other amazing community manager also so they are there to help them and we are lucky to have this community because without them we will not be here 100 and the community is the center in crypto and even in finance the future of finances is every single project that is giving the

19:39power to the community to the people because this is what will drive also growth and i think we are thankful to have this amazing community and i welcome you to be with us and you will see i think you will love it definitely thank you rasheed for coming on i will leave all those links in the description box below as well all the best with everything on alliance block

19:59moving forward and let's follow up in the near future absolutely thank you thank you very much and yeah maybe we'll see another year and we'll have the full protocol and yeah so and we tell you all the banks that are using us so looking forward you