An interview with Nan Xiaoning by Mars Finance [Thanks to @richie_fallclis for translation!]

An interview with Mr.Nan by Mars Finance RichieBlockedUnblockFollowFollowing Feb 26 Dear VeFam Community, A few weeks ago, Mr.Nan was interviewed by Mars Finance. Mars Finance is a one-stop platform for news, updates, and data related to the blockchain industry. We made up a proper translation for all of you. It’s really worth the reading so we hope you will enjoy! OceanEx Statistics: Online since: 2018.11.30 Decentralized: No Language: English Currently listed tokens: 6 Current trading pairs: 10 Have their own platform token: Yes Profit Model: Trading fees Profit last year: No Innovation: Artificial Intelligence Is it necessary to have so much exchanges in the industry right now? OceanEx founder Mr. Nan Ning states: “Users don’t need this many exchanges, that is the reason currently the leading exchanges have the saucer top effect. The leading exchanges make up for more than 95% of all trading volume in the market. But the reason why there are so many exchanges opening up is because there is a lot of room for improvements with the current exchanges, there exists the opportunity for new exchanges to quickly occupy a part of the market. From 2013 to 2019, the ranking of exchanges and market share has changed drastically every year. So even though there isn’t a need for so many exchanges, users still need more, better exchanges to do their trades on.” What requirements are needed to become a first-rate exchange? “Because the digital assets released by blockchain technology is a new industry itself, there now exists new expansion forms and trends. First of all, it won’t be seen literally everywhere. Second, it won’t be the same as a traditional securities exchange, normal distribution. The bigger trend will be that the top exchanges will occupy most of the market, and other exchanges will split the average of the rest of the market. The exchanges that can keep their top positions in the market has to change according to market trends, but at the same time ensuring the basics of the exchange is very stable; its user experience, security, and project choices has to be of the highest standard.” “ To become a first-rate exchange, one needs to ensure the exchange has security, state-of-the-art technology, and can continually list high-quality projects, meeting market demands and technological expansions, product experience is highly-rated, and the staff of the exchange is properly deployed. In summary, it needs to be easy to use, secure, lists good projects, has trading depth, has transparent operations, and protects users’ interests.” Combined with your own exchange, how to innovate and attract new users? "The basis of the exchange is still Fintech, but the assets being traded on the exchange are assets based on the blockchain. Exchange innovation first needs to ensure the product itself is good as a base, then to productively use new technologies. OceanEx uses Artificial Intelligence technology itself, continuously checking data, ensuring the safety of transactions. Also, the nature of transactions is the pairing of data and exchange of value, there is a natural advantage to using AI technology to process this data, this innovation can make transactions more secure, at the same time the trading experience and supporting services are even better because of this. In my opinion, many exchanges are lacking in user experience, trading depth, etc. These fundamental issues are still lacking, not to mention innovation. OceanEx is based on VeChain’s ecosystem, but it’s not limited to VeChain’s ecosystem. To attract users, an exchange not only has to do its basic duties, but it also needs a good ecosystem, this will allow it to find better projects and community; this will attract users to come trade on the platform. Users will focus on whether the platform is secure, whether or not it has the tokens they want to trade, and whether or not the trading depth can satisfy them. OceanEx will continue to search for better ecological partnerships, find quality projects, and continue to expand its userbase; become a trusted exchange platform in the eyes of its users. Service is not a standard of Winter; as an exchange, providing better trading services is a must, regardless of a bear or bull market.” Regarding the futures market of digital assets, some think it expands trading options, allowing more traditional organizations to join the market; some think it will expand the profits in the short run, but at the same time consume the funds in the market, which will make the market drop in value. Whats is your opinion about digital asset’s futures market? Mr. Nan expressed, "Reasonably adding trading options and financial derivatives to the market is a must for an asset’s expansion, but one shouldn’t too quickly develop too many derivatives, when facing financial derivatives, we should hold a careful attitude and respect technology and the market; this is the way we should advance. OceanEx will, in the future, in accordance with industry developments and compliance requirements, release financial derivatives and supporting services." Some expressed that the futures exchange Bakkt will soon gain the power of traditional futures, bringing new funds into the market, and finally leading the digital currency market out of the bear market. Regarding this Mr. Nan has expressed, "I don’t think that it will have this effect. Whether or not we can make it out of this bear market will depend on the blockchain industry’s landing point and government compliance, and whether or not the traditional economy will recover. The reason Bakkt has high expectations is because its compliance will possibly invite in Wall Street’s more conservative and more solid funds.” What about the compliance issues you are facing? “Compliance is extremely important for digital currency exchanges because the compliance supplied by exchanges is the bridge that connects the world of traditional assets and the world of digital assets. I believe that every exchange should value compliance issues, and grasp the popularity of compliance.” “OceanEx is currently requesting compliance in the US, Cayman Islands, China Hong Kong, and several European countries; an OceanEx Co-Founder is also giving assistance to certain European countries to create laws and regulations relating to cryptocurrency. Compliance is a very important part of OceanEx, and we are continuously advancing. In 2019 we will announce some advancements regarding compliance”. What’s your opinion on the security of exchanges? Mr. Nan said, “Security is the foundation of a successful exchange. For OceanEx, when we considered the different aspects of security is when we first designed it in its blueprint. Technology is the first barrier for exchanges when talking about security. We designed the exchange in accordance with several aspects: The lowest foundation is our basic infrastructure, including server architecture, firewall’s rules and service structure, DDOS deployment, communication encryption, VPN access control, etc. These considerations are required for every web system. We built the exchange based on the strictest standards in every aspect, to ensure that our system is stable and secure. For assets, we used the standard hot and cold wallet separation, also, private key server and exchange separation, to ensure the transaction fluidity is strictly controlled and monitored and ensure if there is an unknown security risk, we can minimize the losses. The artificial intelligence system OceanBrain we are currently building will monitor the platform port-to-port; from user’s login and trading, to market trends changing, to make a decision from analysis against any abnormalities. This way, we can maximize the platform’s security from any known and unknown attacks.” Mr. Nan also stated, “About operations, we have strict withdrawal audits and risk control protocols to protect the users’ funds and account. We have strict back-end and basic facility visitation control, monitoring and auditing the process, this will ensure our staff’s operations are compliant, avoiding the risk of any loss as a result of human error by any staff member. OceanEx will be 100% responsible for users' assets. Currently, we also use 3rd party hosting services to host some assets. And considering the credentials, technological power, and dependability, we will continue to improve our asset management and security protocols, to ensure the users’ assets’ security.” What do you think of the future development of decentralized exchanges? Mr. Nan has conveyed, “The advantages of decentralized exchanges need affirmation to ensure its development. The core of user experience of cryptocurrency exchanges lies within the trading experience. Judging from current technologies, the speed and functionality of centralized exchanges are far superior than decentralized exchanges. This is why most of the focus right now is currently on centralized exchanges. This advantage is why we support high-frequency trading and API trading. Based on the current market volatility, the high speed at which transactions can be done will have a big attraction to professional users. As for decentralized exchanges, we have two things to consider. First of all is security, it is hard for smart contract designs to avoid security risks. And because of the uncontrollable aspect of smart contracts, if a security issue were to occur, it is hard to implement risk control. Secondly, it can be said that if the user has full control of their own wallet it is an advantage, but this also has its own risk. While trading, the user will need to manage a number of trading addresses and repeatedly needing to transfer funds between them, if a mistake has been made it can cause irreversible damage, the user will also need to have a strong sense of account security to prevent from sending funds to a malicious smart contract. Even with this in mind, a decentralized exchange is the choice of many current users.” “In the future, decentralized exchange combined with centralized exchange to create a hybrid will be one of our developmental paths. To give the user their own choice how they want their assets managed and how their transactions are matched. This can ensure the security and successfulness of transactions while at the same time satisfy the needs of different users. To give a better service while providing the very best security will always be our priority.” Join our official telegram channel OceanEx website Twitter Cited from original article - OceanEx创始人南宁做客「火星总编时刻」：去中心化结合中心化的混合交易所是未来我们发展的方向 on Mars Finance