Conflux Network has formally launched its Tree Graph Research Institute with the government of Shanghai, according to the latest announcement. This launch will experiment with building a regulatory compliance platform that can bridge global Decentralized Finance (DeFi) applications and government regulations.
Fan Long, Conflux Founder, and Tree Graph Research Institute Director, claims that DeFi is a new ecosystem that may present a risk to regulators. Therefore, it is crucial to maintain a reliable communication flow between DeFi innovators and the regulators.
With scalability, stability, and extensibility, Conflux is the next-generation Blockchain-based protocol that is dedicated to implementing Blockchain technology with strategic partners in real-world environments and creating decentralized mass acceptance applications.
Conflux Network Aims to Make Open Communication Crucial
Tree Graph Research Institute aims at experimenting with permissionless DeFi applications to make open communication crucial for continued legislative acceptance.
Fan Long, Founder of Conflux and Director of the Tree Graph Research Institute, mentioned that:
“Regulators need a reliable way to learn what the new technique is about and where it might lead us to. Innovators need a way to understand the concerns and red lines of regulators.”
Conflux is collaborating with the government of Shanghai on many sandbox projects, including the incorporation of Blockchain borrowing and lending services into the Pudong Development Bank of Shanghai, and the utilization of the unique regulatory structure of the Shanghai free trade zone to devise a unique stablecoin for the city.
Permissionless Blockchain Project to Help Developers
A permissionless Blockchain project, endorsed by the Chinese state, aims to provide developers with a robust and affordable framework to build DApps.
In an interview, Fan Long explained that Conflux Network aims to provide a POW network with a faster order of magnitude for transaction rates. The key enabler technique is a novel DAG-based ledger system along with an optimistic concurrency regulation to achieve easier and quicker transactions between all the nodes in the network.
Fan Long believes that DeFi is a new space for regulators, and therefore the decentralized design of Blockchain would complicate the regulation of DeFi products for regulators. However, there are opportunities to implement controls at the boundary between the decentralized and centralized entities.
Conflux’s Open Defi Initiative
In order to bring global DeFi projects and regulations together, the company has introduced the Conflux Open Defi initiative. Through global program tracks such as risk management, new liquidity strategies, and incubation and innovation, the open DeFi initiative aims to connect the DeFi markets of East and West. Few prestigious members of the open DeFi initiative include Blockpower Capital, Antelope Holdings, dForce, Sequoia Capital, DeBank, along with the Chinese state support and others.