Recently Changelly partnered with Kcash – a multi-currency crypto wallet that supports the highest number of currency types in the world. Our CEO Eric Benz took an interview with Kcash CEO and founder Xuejiao Zhu to encrypt the company’s plans for the future along with Xuejiao Zhu’s personal view on major topics that bother the global crypto community the most. Read the interview below and download Kcash at a click of a button!
Eric Benz: Thousands of assets available in one crypto wallet! Wow, that sounds fascinating. How did you manage to achieve that? Am I to understand that all the assets listed on Kcex can be kept in Kcash wallet?
Xuejiao Zhu: As a decentralized wallet, Kcash strictly complies with the BIP39 and BIP44 protocols in the underlying protocol, that’s why a wallet can manage the digital currency of multiple blockchains by using only one set of mnemonic phrase (in the form of 12 English words), which is convenient for users to backup and keep. At the same time, the Kcash team has been keeping an eye on the development of the blockchain industry, continually studying and integrating outstanding blockchain projects. At present, Kcash has supported mainstream blockchain networks such as BTC/ETH/EOS/BCH and many other contract assets based on these networks.
For each cryptocurrency to be supported, Kcash’s technical team starts with studying the source code of the project and its wallet, consensus mechanism, mining and signature algorithms, and other core content, this is how we can ensure the assets safe storage and transfer. In order to improve the user’s experience, we also adopt the multi-wallet service backup scheme, which greatly improves the speed of interaction with P2P network in acquiring transaction data and transmitting transaction information, besides ensuring security it also improves the efficiency and fluency of user’s experience.
Kcex and Kcash are independent systems: Kcash wallet mainly provides users with decentralized wallet services; Kcex cooperates with Huobi cloud and thus shares the trading technology provided by the later making sure that users get first-class trading experience and that all their needs in safe storage and transfer of the funds are met.
Eric Benz: Recently you’ve implemented Changelly’s API inside Kcash wallet, thus allowing users to exchange cryptocurrencies within the wallet interface. What are the further steps of wallet development?
Xuejiao Zhu: The secure storage and seamless transactions of digital currency are the main needs of users at this stage. Kcash has gained trust and recognition of more than 2 million users because of its efficient and stable service, providing secure and convenient digital currency storage. At the same time, API integration with Changelly is an important step for us. Now we have Kcex centralized, KEX de-centralized exchange services and Changelly exchange built-in Kcash wallet. Thus we can meet different needs of users. The next step is to optimize and integrate the relevant services as soon as possible so that the transfer of users’ assets is more convenient and efficient.
Since wallets are the entrance and gateway to the blockchain, we will pay more attention to the connection between digital money and the traditional world. Apart from that we will also explore payment and application specifics using the existing digital money bank card Kcard and the self-developed Kchain.
Eric Benz: There are many discussions around the security and anonymity subject in the crypto industry lately. What do you do in Kcash to keep users from hacks and money loss? Where is the edge line between users’ security and anonymity?
Xuejiao Zhu: Kcash team has been engaged in the development of Cryptocurrency wallet for more than five years. We have a professional technical team with an impressive experience in the blockchain industry. In all the products and services provided, there has never been any assets loss. Specifically for Kcash wallets, we have taken advanced measures to ensure the safety and security of users’ assets :
When creating a wallet, we use standard BIP protocol to generate mnemoniс phrase/private key locally in the user’s mobile phone and store it there only. This way we can ensure absolute security, as there is no usage of the mnemonic phrase on the internet and even if there is disconnection you can still complete creating the wallet. To ensure the secure storage of the mnemonic phrase on the mobile phone, we use PKDF+AES+sandbox cryptography. At the same time, in the transmission of information data, we adopt the multiple encryption systems of NONCE+AES+RSA. When we need to interact with the server, local wallet data is transmitted through multiple encryptions. Apart from that, there are many security optimizations for a specific blockchain network, such as blacklists, fraud alerts, etc.
For now, to ensure the security of ordinary users’ assets, we should develop the habit of them having full control over assets, 100% ownership means 100% Custody liability. Thus, the most important task for a wallet is to educate and guide users so that they store mnemonic phrases/private keys offline only without passing it over the internet if possible and implement different storage methods for different amounts of money, etc.
With regard to security and anonymity, Kcast mainly provides decentralized wallet services. Most of the functions related to the product can be processed on the chain. Whether it is money transfer, calling a contract, dapp, etc, it does not involve the user’s personal information. A small number of centralized services, in the framework of compliance, minimize interference and unnecessary acquisition of users’ personal data.
Eric Benz: Do you have plans regarding KCASH token swap (i.e., to run KCASH mainnet or to move the token to binance chain), or will you keep operating on Ethereum blockchain?
Xuejiao Zhu: Kcash is not just a wallet. As we introduced in our white paper, wallets are just our entry-level products. With wallet as the core, we position “future Alipay” to form a service carrier consisting of three parts: Kchain, wallet APP, digital currency bank card, so as to achieve the seamless connection between cryptocurrency and real-world, making digital assets accepted and used in various transactions.
At present, our public chain Kchain has been in constant development. Kchain refers to “payment” and “finance”, which is a high-performance, high-stability, high-availability blockchain that ensures distribution, exchange, and transfer of digital assets. In terms of payment, we have come to a unique solution that deals with transaction speed, excessive fees, currency fluctuation and so on. It will be announced to the audience in the future. KCASH serves there as the fuel and basis for cryptocurrency. When the public chain comes out, we will switch KCASH to our public chain.
Eric Benz: What’s your attitude towards all the hype around Libra coin? Do you believe that the US government deservedly keeps an eye on Facebook plans to run its cryptocurrency?
Xuejiao Zhu: For me, when talking about Facebook coin, the most important concern is not the value of “coin”, but the impact of the huge “circle of Facebook friends” on the payment field. At present, the project has exceeded 2 billion, with such a huge volume, once Facebook relies on its appeal to delineate enough rich players, it will have a rich “soil” for further experiments. We know that the most difficult application of blockchains is “consensus building”. If there are enough players, there will be enough partners to work in consensus together. If successful, it’s like “reaching the sky in a single bound” thing for blockchain payment.
However, as a blockchain payment, Libra faces two major problems, one is the regulatory issues you mentioned, and the current situation has fully proved this point. Whether Libra will die or not is the decisive factor. Another one is the following: for the blockchain practitioners, Libra is an alliance chain, which can not be regarded as a strictly decentralized blockchain project. Its transformation is half-done.
In addition, you mentioned the regulation of Libra by the U.S. government. Whether it’s about privacy or cyber attacks, the essence of U.S. government regulation is to ensure controllability. But on the other hand, digital currency is a big trend. What countries need to consider is that if the wave is not guided and regulated at the right time, they will probably miss the opportunity and eventually let the financial position of the future virtual currency pass by. This is a balance that the U.S. government, and even governments around the world, need to balance.
Eric Benz: Which industries, in your opinion, can get the most (in monetary and technical aspects) from the implementation of blockchain solutions?
Xuejiao Zhu: We believe that the financial industry is the most promising application area for blockchain technology, so Kcash has also been expanding its financial sector, especially in the payment field.
Because the financial industry itself confirms that the true cost of information is high, there is also a demand for large-scale consensus, the industry naturally contains a lot of raw data, and the number of participants can form a network effect, so the blockchain has a higher fit with the financial industry. Specifically, blockchains have many major applications in the financial sector, such as cross-border payments, clearing and settlement, securities issuance and trading, and discounted bills. In addition, in a number of government documents, blockchain technology has repeatedly been mentioned to actively promote the application in the financial sector, and the industrial innovation it brings can be expected.
In the financial field, Kcash focuses more on payment. The combination of blockchain and payment can enable security, identity authentication and data processing. Moreover, payment through blockchain is a direct point-to-point payment, eliminating the intermediary which greatly changes the production relationship of the payment industry and is of great significance.
Eric Benz: Do you believe that the “living on crypto” concept will become possible someday? If so, when will it happen eventually?
Xuejiao Zhu: This question, in Chinese, would be: is “blockchain +” the future?
Personally, I don’t like the slogan of “blockchain + everything”. The value of blockchain itself lies in decentralization, which solves the credit problem. If the technology is mature, so as to say, there is no need for a third party to guarantee trust. Therefore, I think the application of blockchain + must also be facing the “credit dilemma” in the first place. For example, the financial industry, such as copyright protection, such as the supply chain. These are the first areas that blockchain will transform. In the foreseeable five years, with the maturity of blockchain technology, profound changes and impacts will be made in these industries.
Eric Benz: What will BTC price be by the end of 2020?
Xuejiao Zhu: 30000-50000$
Eric Benz: If you had a chance to ask Satoshi a question, what would it be?
Xuejiao Zhu: Is this the prosperous age that you wanted?
(On the one hand, Bitcoin really proved itself, in terms of the number of traders, price, and consensus, no one will strangle, but on the other hand, thousands of other cryptocurrencies derived from Bitcoin technology and are all around trying to line up with the original intention of the white paper issued by Nakamoto)