Fusion’s September Newsletter!

Putting the Time-Value of Money Where our Mouth Is

When Fusion founder and CEO Dejun Qian — a blockchain innovator with two Top 20 global blockchain projects under his belt — delivered the keynote address at this year’s Digital Asset Summit (DAS) in New York, a sea of cell phones rose from the audience as attendees aimed to capture his presentation of Fusion’s innovative time-value digitization concept, and how it is fundamental to all financial transactions, from everyday real estate rentals to sophisticated derivatives like futures that fuel today’s financial markets.

As we illustrated at DAS and in subsequent videos, by simply including time as part of the digitization process, it’s now possible to create multiple instruments from one digital asset by time-slicing the underlying asset. Despite the growing interest in time-value digitization, making the conceptual leap to how it applies to the emerging and rapidly changing blockchain industry is understandably difficult. Realizing this challenge early on, Fusion built time-value functionality directly into our Ticketed Proof of Stake (TPoS) consensus algorithm.

Achieving consensus when validating the state of a blockchain is crucial for the success of distributed ledger technologies (DLT). As a decentralized means of blockchain governance, PoS methodologies ensure that transactions occur in a trustless way whereby blocks are validated based on the stake of the blockchain participants, most commonly measured by the number of tokens participants have committed to stake. Some of the leading networks like Ethereum are migrating to PoS to increase the efficiency and scalability PoS affords relative to Proof of Work (PoW) networks such as Bitcoin.

Fusion’s TPoS algorithm improves upon standard PoS in several important ways. With our time-value protocol, participants earn rewards for staking, but risk only the value of the token associated with the staking time period and, more importantly, can concurrently extract unrealized value from their tokens by time-slicing them.

With the blockchain industry witnessing the emergence of staking services as an alternative to lending, Fusion’s new method is essentially a hybrid service that introduces new revenue streams for digital asset issuers and distributors. Whereas with other PoS methods, the entire value of a token is pledged during the staking period and therefore “locked up”. With Fusion’s staking methodology, only a time-slice of the token associated with the staking period is consumed, leaving the balance of the token free for other time-value digitization applications, such as futures. Furthermore, the staking time-slices themselves can be exchanged.

This isn’t just a theoretical concept. Fusion community members are already putting “the time value of money” where their mouth is, not just running more than 300 nodes on Fusion’s MainNet but also actively exchanging time slices within Fusion’s thriving decentralized Quantum Swap market.

Another important distinction of Fusion’s protocol is its uncommon and proactive interoperability between assets as well as on-and-off-chain systems. This capability makes it possible to transact between and across Bitcoin, Ethereum, other networks and virtually any digital asset without the need for centralized middlemen or any one cryptographic standard.

As blockchain technology consultant and incubator ConsenSys so aptly put it in its recent research report, “Avoiding Blockchain Balkanization”:

“The vision of a blockchain-powered Internet future the industry so often evokes is nothing without interoperability. Without it, we will find ourselves in a future with a global network nearly identical to the dominant Web2 landscape today. Everyday consumers will still enjoy their smooth and consistent interaction with Web3, but their data will not be secure, their identity will not be whole, and their money will not be theirs.” Source: Mally Anderson and Everett Muzzy, “Avoiding Blockchain Balkanization.” ConsenSys Research, 2019\

On this important point as well, Fusion is turning theory into practice. On our way to becoming an all-in-one ecosystem for stablecoins, for instance, this month Fusion enabled lock-in and lock-out of Tether (USDT), USD Coin (USDC) and Gemini Dollar (GUSD) on Fusion’s network. The lock-in / lock-out process is when an asset is brought into the Fusion protocol to have that asset’s time-value unlocked and exchanged with other digital assets.

This new level of interoperability and asset utilization lends itself to a host of applications such as a seamless and cost-effective forex marketplace. One community member said: “All stablecoins will soon be interoperable on #Fusion #FSN @djqianfusion I don’t think anyone has ever achieved this. Simple, elegant and powerful!”

At Fusion, our mission is to play an active role in collaboration with others to leverage blockchain’s connectivity to exchange value with minimal middlemen and third-party costs. As we look forward to Q4, we are excited to move our Distributed Control Rights Management (DCRM) interoperability solution from alpha to beta, and are actively looking for beta partners to test drive this new technology. With cryptofinance rapidly evolving, these areas of innovation have tremendous potential to make financial systems even more efficient and accessible.

If you share our goal and would like to learn more about our technology or partner with us, we would love to hear from you. For a deeper dive, check out this video or get in touch with us through our partnerships contact form.

PARTNER ROUNDUP

This month, we welcomed four new partner firms among the 40+ projects, corporations, banks, and governments that are using the Fusion protocol. Following Fusion’s MainNet launch in June, we’re often asked which of our strategic partners are putting assets onto our blockchain. Following are adoption updates on two of our partners, with more to come in Q4.

AXP and Fusion Team to Accelerate Data Transparency and Accuracy in Used Car Industry

Fusion partner Automotive Exchange Partner (AXP) CEO Max Kane has been laser-focused on streamlining AXP’s technology and business upstream to massively increase the volume of loans originated from its lending partner Signal Lending LLC. With improved technology and operational efficiency, loan origination volume is on track to be doubled going into Q4.

This increased loan volume will provide the necessary liquidity to fill investment vehicles that would be shown on chain. To support this liquidity, Fusion has been lining up investment platforms, such as Realio, that will provide additional funding options for AXP. Furthermore, we continue to put in place technical components such as support for additional coins and multi-swap capabilities that will provide proper support for structured securities such as AXP’s loans.

i4SD Partners with Fusion to Connect Infrastructure Developers in Emerging Countries

i4SD (Infrastructure for Sustainable Development) CEO Joaquin returned from a productive visit in Uganda where the IoT (Internet of Things) architect and developer is deploying its first smart meters and evaluating the most valuable data points to capture and put onto Fusion’s blockchain. The use cases of marrying IOT with the IOV (Internet of Value) to create new financing options for the underbanked remain compelling. Working with i4SD toward this common goal, we look forward to bringing our proof-of-concept to life in Q4.

Inwedo: Business Process Automation Platform Gets a Boost from Fusion

In August, Fusion announced in August it is partnering with business processes optimization software provider Inwedo to develop applications on the Fusion blockchain. READ MORE

Nimbus-T Taps Fusion to Ease HealthCare Record-keeping and Identity Management

Nimbus-T will leverage Fusion’s technology to help healthcare patients maintain privacy and control over their health records and medical identities. READ MORE

Realio Partners with Fusion to Remove Barriers to Asset Digitization

The collaboration between Fusion and Realio serves to remove development barriers for projects building on top of Fusion, empowering them to quickly get started with an out-of-the-box digitization solution. READ MORE

FUSION IN THE NEWS

NASDAQ TradeTalks Welcomes Fusion to Discuss its DCRM and Interoperability Solutions

In July, Fusion Founder and CEO DJ Qian and Chief Product Officer John Liu were featured on NASDAQ TradeTalks live stream with reporter Jill Malandrino.

Fusion Featured in teQatlas Blockchain Report

Fusion is featured in a new blockchain report on asset digitalization, AI and IoT markets data and research analysis group teQatlas. Fusion [Chief Product Officer] John Liu explains how a growing number of companies are integrating Fusion’s protocol to drive the Internet of Value and derive the potential for asset digitalization to expand access to new pools of liquidity. READ MORE