The cryptocurrency industry has undergone significant changes due to advancements in decentralized finance (DeFi) and blockchain technology. Waves founder Sasha Ivanov has recently introduced Units Network, a platform that serves as a foundational layer connecting different chains within the ecosystem in a trustless and interoperable manner. This network allows for the restaking of assets and is secured by real-world assets (RWA).
In an interview, Ivanov discusses the strategies and innovations behind Units Network, its role within the Waves ecosystem, and its broader implications for blockchain technology. He also reflects on past challenges, such as the depegging of Neutrino USD and the impact of the FTX collapse, providing insights into the future of decentralized finance.
Cointelegraph: What are your plans for the next bull cycle?
Sasha Ivanov: We are launching Units Network, a new project based on the Waves ecosystem, with the aim of expanding the ecosystem and attracting new community members. This project allows for the creation of individual layer-1 (L1) blockchains based on Waves staking. The network is fully compatible with Ethereum and simplifies the process of launching a blockchain network. Additionally, networks within the ecosystem can interact through the Waves network, which becomes more than just an L1 blockchain but a foundational layer (L0) of the ecosystem. We believe that the ease of launching blockchain networks and their seamless connection to existing networks are crucial for the mass adoption of blockchain technology.
CT: How did you address the challenges faced by Waves, what were the results, and what lessons did you learn?
SI: The past two years have been challenging for Waves, as we faced various issues. However, these challenges pale in comparison to the global events happening around us. On a positive note, we have learned valuable lessons from these experiences. For instance, the detachment of USDN and similar stablecoin issues has shown us that a model solely reliant on market mechanisms to maintain the stability of such assets is not sufficient and can be vulnerable to attacks. We have also demonstrated that decentralized autonomous organization (DAO) models can function during crisis situations. After the situation with USDN and liquidity being stuck in the loan protocol, centralized financing for core ecosystem products became impossible. As a result, Waves transitioned to a fully decentralized ecosystem, conducting all funding through the Waves DAO, allowing for continued development.
CT: How did the conflict with Alameda Research impact Waves? What are your thoughts on the collapse of the FTX exchange?
SI: “What doesn’t kill us makes us stronger.” My perspective on the crypto market and my goals within it have significantly changed. The collapse of FTX was a surprise for me and made me realize the risks within the Western financial system, which I had previously underestimated.
CT: How do you assess the current development and scalability approach of Ethereum?
SI: Units Network aims to achieve what Ethereum is likely to do in the coming years – connect layer-2 (L2) networks and the base Ethereum layer into one ecosystem based on Ether staking. In this scenario, L2 networks become “shards” of Ethereum, and sharding will play a crucial role in the future Ethereum ecosystem. I believe that creating an ecosystem based on a powerful L1 network with L2 networks utilizing these mechanisms for decentralization and consensus internally is the end goal of current crypto technology development. The L1 network becomes the base level providing consensus and linking all networks into one ecosystem.
CT: Can you provide an overview of Units Network and its role within the blockchain ecosystem?
SI: Units Network aims to expand the Waves ecosystem by enabling the quick and efficient launch of Ethereum Virtual Machine (EVM) networks. This eliminates the need for individual validators and allows networks to connect with each other within and beyond the ecosystem. The ecosystem is expected to have hundreds of interconnected EVM networks, with the first Unit0 network being pivotal. The Unit0 token governs the Units DAO within the ecosystem. We will be launching the Units testnet campaign, followed by a staking campaign, where users can earn Units tokens for providing liquidity. The anticipated launch of Units is in June-July of this year.
CT: What are some of the specific tools and solutions offered by Units Network?
SI: Units Network aims to simplify the process of launching your own blockchain. Blockchain originators make DAO governance proposals, offering rewards to network validators. If the proposal is approved, the blockchain is launched within a few days, with no need to maintain your own nodes. The new blockchain is supported by the existing validator community and seamlessly connected to all other chains within the ecosystem. External bridges also provide connectivity to other ecosystems.
CT: How does the Hybrid RWA stablecoin system work, and what are its benefits compared to traditional stablecoins?
SI: The Hybrid RWA stablecoin system is crucial for the future applications of blockchain technology, as it allows for the transfer of a significant part of the world’s financial infrastructure to blockchain tech. This opens up possibilities for numerous new projects. However, the entry barriers for projects, especially when launching their blockchains, need to be lowered. Units Network will facilitate the launch of several RWA projects in the ecosystem, showcasing the network’s advantages in terms of launch simplicity and external ecosystem connectivity. One of these projects is a hybrid RWA stablecoin that combines crypto collateral with less liquid RWA collateral. This ensures stablecoin annual percentage yield (APY) through the RWA part, while the crypto part secures the stablecoin peg.
CT: What are the tangible advantages of utilizing Units Network over traditional blockchain platforms?
SI: Our focus is on the simplicity of launching your own chain integrated into the existing ecosystem. Units Network offers useful features such as trustees’ internal bridges, external bridges with native staking of any assets, and an ecosystem DAO that can help bootstrap your own chain. We aim to create a versatile solution for launching and maintaining your own blockspace for all types of projects, making it accessible to everyone.
CT: What are the future plans for Units Network?
SI: We are currently starting testnet and liquidity campaigns to showcase the features of the Units network. The mainnet launch of the first ecosystem blockchain, Unit0, is planned for this summer. The next milestone for Units is launching the ecosystem DAO based on the Unit0 token, which will further support the launch of ecosystem chains and DApps on the Unit0 chain. Additionally, zero-knowledge proofs will be integrated into the ecosystem to enable different approaches to L0-L1 interoperability.
Learn more about Units Network.
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