Keone Hon: On-chain finance democratizes the world of financial instruments, the sale of a billion Monad per day transforms the blockchain, and the risks of centralized exchange are exposed.

Important takeaways

• On-chain finance democratizes access to financial instruments, providing equal opportunities around the world.
• Monad introduces a significant improvement over Ethereum, improving transaction speed and storage.
• Blockchain acts as a single source of truth, enabling global interoperability.
• Trading in one place poses risks, especially in times of stress.
• Distributed systems are more complex but offer greater fault tolerance and accountability.
• Monad can process a billion transactions per day, a thousand-fold improvement over Ethereum.
• Delays in final transactions hinder the flow of money in crypto markets.
• Decentralization removes arbitrary decision-making and improves user trust.
• The Monad team is rebuilding Ethereum with the development of high-frequency trading.
• Central exchanges can place orders on behalf of users, not always in their best interest.
• Monad’s success will be measured by the change in public perception of blockchains.
• Standardized systems empower users by giving them control over their assets and data.
• The future of finance will see wider access to global investment opportunities for people in the developing world.

Guest introduction

Keone Hon is the founder and CEO of Monad Labs, a blockchain infrastructure company that builds high-end applications for the Ethereum Virtual Machine. He spent eight years at Jump Trading leading the high-frequency trading teams before moving to Jump Crypto, where he focused on blockchain research and distributed applications. His background in developing low-latency trading systems at both Getco and Jump Trading informs his mission to bring parallel execution and unprecedented throughput to blockchain networks.

The democratic power of on-chain finance

• On-chain finance provides global access to financial instruments for businesses and individuals.

• I think in chain finance it’s incredibly exciting because it gives everyone access to the same tools in the form of personal finance and business access to finance.

  – Keone Hon

• It can facilitate transactions that are blocked by geographical and financial barriers.

• You have to think in a more efficient market economy there are many jobs that don’t happen because people can’t access an opportunity they don’t know about.

  – Keone Hon

• The future of finance will see wider access to investment opportunities around the world.

• It also gives people that maybe don’t have a lot of money… access to American and global products.

  – Keone Hon

• This democratization can change the way people in developing economies engage with global markets.
• Understanding the limitations of the traditional financial system is essential to appreciating the potential of blockchain.

Development of Monad architecture over Ethereum

• Monad presents a significant improvement over Ethereum architecture.

• Monad is a new blockchain system with a lot of software architecture… it introduces the help of the pipeline it introduces an advanced database to keep the type of state followed by the blockchain and a new consensus mechanism that allows for regular blocking and a really fast time to get to the end of the system.

  – Keone Hon

• Monad can process a billion transactions per day, a thousand-fold improvement over Ethereum.

• The combination of all these improvements is a system that can process a billion transactions per day compared to ethereum’s 1,000,000 transactions per day so it is a thousand x improvement.

  – Keone Hon

• This development highlights the potential impact of Monad on blockchain efficiency.
• Understanding Ethereum’s limitations is key to appreciating Monad’s innovations.

Blockchain as a global source of truth

• Blockchain acts as a single source of truth, enabling global interoperability.

• Blockchain is finally here to define a stable source of truth that can allow many different people to connect and that is really important in our world… blockchain allows a single source of truth that is available worldwide and by using consensus mechanisms we keep all nodes in agreement.

  – Keone Hon

• A delay of twelve minutes or more in the completion of a transaction is a significant obstacle.

• A settlement delay of twelve minutes or more is actually a significant barrier to allowing money to move from one place to another.

  – Keone Hon

• These delays affect trading and liquidity in crypto markets.
• Understanding the role of blockchain in providing a unified data source is important.

Risks of centralized trading

• Trading in one place poses a lot of risk to traders, especially during times of stress.

• If the exchanges own the blockchain and are in a crisis and want to turn off your ability to settle they can do that and as a result you may lose what could be the best trading moment of the year.

  – Keone Hon

• Central exchanges can place orders on behalf of users, not always in their best interest.

• Many people had positions or thought they had positions only to find out that they did not because the exchange placed an order on their behalf not because it benefited the customer but rather because it benefited the exchange to reduce the total amount of profit in the system.

  – Keone Hon

• Relying on centralized systems exposes users to significant risks, including social engineering attacks.

• If you work in a centralized environment of any kind you are relying on that person to control it even if you wish to avoid cyber attacks.

  – Keone Hon

Complexity and accountability in decentralized systems

• Building decentralized systems is more complex than centralized ones.

• Building decentralized systems is harder than building centralized ones because you handle all the corners ahead of time and build fault tolerance into users.

  – Keone Hon

• Decentralization creates accountability and eliminates arbitrary decision-making.

• The advantage of distributed systems with open source code that anyone can observe and test and verify their behavior is that it creates accountability and removes the possibility of someone working on the system making an arbitrary decision.

  – Keone Hon

• Configured systems provide greater fault tolerance and user protection.
• Understanding the technical challenges of property allocation is important.

Monad’s new approach to blockchain

• The Monad team is rebuilding Ethereum with the development of high-frequency trading.

• The approach the monad team has taken is basically rebuilding everything from scratch and introducing a bunch of hft-style optimizations to ethereum and building a new decentralized and truly functional decentralized system.

  – Keone Hon

• The urgent need for global financial support requires a decentralized infrastructure.

• It’s just a matter of supporting all the finances and supporting all the commerce in the end by using a fabric layer that allows many different people to all connect in a global shared environment.

  – Keone Hon

• Monad’s approach aims to improve the stability and performance of Ethereum.
• Understanding the challenges and innovations in blockchain technology is important.

It measures the success of the Monad

• Monad’s success will be measured by the change in public perception of blockchains.

• I think we will be successful if people think about blockchains in a very different way a few years from now.

  – Keone Hon

• Standardized systems empower users by giving them control over their assets and data.

• Success will mean that more people are comfortable using decentralized systems and are happy that decentralized systems allow them to regain control of their assets and data.

  – Keone Hon

• This change shows a deep understanding of the blockchain landscape.
• Understanding the current public perception of blockchain technology is important.