The cryptocurrency sector has evolved considerably, thanks to innovations in finance.

The cryptocurrency industry has evolved significantly, thanks to innovations in decentralized finance (DeFi) and blockchain technology. In the midst of this change, Waves founder Sasha Ivanov introduced the modular network. Designed as a base layer, the Units network connects ecosystem chains in a completely interoperable and trustless manner, providing full asset recovery and security with real-world assets (RWA).

In this interview, Ivanov discusses the strategies and innovations behind Units Network, its role in the Waves ecosystem, and the broader implications of blockchain technology. It also reflects past challenges, including the neutrino decoupling from the US dollar and the impact of the FTX collapse, and provides valuable insights into the future of DeFi.

Cointelegraph: What do you have in store for the next bull cycle?

Sasha Ivanov: We are launching a new project, Units Network, based on the Waves ecosystem. The goal is to significantly grow the ecosystem and attract new community members. This project allows the launch of your own layer 1 (L1) blockchain based on the Waves system (WAVES). The network is fully compatible with Ethereum and aims to make it simple to launch your own blockchain network.

Additionally, networks within the ecosystem interact through the Waves network, which becomes more than just a L1 blockchain but represents the fundamental Layer 0 (L0) level of the ecosystem. We believe that the ease of launching blockchain networks and efficiently connecting them to existing networks is the key to mass adoption of blockchain technology.

#waves This will become a chain that supports dozens of chains built on top of it. $waves Miners benefit from mining the native tokens of all these chains.

This setup is unique and your Waves mining rewards (which aren’t too bad now either) will increase several times.

– Sasha.waves (@sasha35625) April 13, 2024

CT: How did you deal with the wave challenges, what were the results and what lessons did you learn from this situation?

VS : The last two years have been very difficult for all of us, and Waves has also had many unpleasant problems, but of course they pale in comparison to what is happening in the world.

On the positive side, we can highlight the following: The USDN fork and other similar stablecoin issues have shown that a model that relies solely on market mechanisms to maintain the stability of these assets does not is not sufficiently stable and is vulnerable to attacks (such mechanisms can work). ). In 99% of situations, but the unexpected 1% can undermine the entire model.)

Furthermore, through the example of Waves, we have demonstrated that decentralized autonomous organizations (DAO) models can work in crisis situations. After the USDN situation and the blocking of liquidity in the lending protocol on the Waves gateways and Waves Exchange, the possibility of central funding for the development of the ecosystem’s core products has disappeared. The Waves ecosystem is now fully decentralized, with all funding done through the Waves DAO, allowing Waves to continue its development.

CT: How did the conflict with Alameda Research impact Waves? What do you think about the collapse of the FTX exchange?

VS : “What doesn’t kill us makes us stronger.” My attitude towards the cryptocurrency market and my vision of what I aim to achieve in it has changed dramatically. The collapse of FTX was a huge surprise to me and opened my eyes to the risks within the Western financial system, which I tended to underestimate.

CT: How do you assess the current approach to Ethereum development and scalability?

VS : The Units network aims to do what Ethereum is likely to do in the coming years: connect the Ethereum layer 2 (L2) and core networks into a single ecosystem based on Ether (ETH) storage. In this case, L2 networks essentially become “shards” of Ethereum, and the shard will have a new life within the future Ethereum ecosystem.

I believe this is the end of the current development of cryptographic technologies – an ecosystem based on the economic mechanisms of a strong L1 network with L2 networks using these mechanisms to achieve decentralization and interoperability internally. In this scenario, the L1 network essentially becomes the L0, the central tier that provides consensus and connects all networks into a single ecosystem.

CT: Can you give us an overview of the module network and its role in the blockchain ecosystem?

VS : The modules aim to grow the Waves ecosystem by providing the ability to launch Ethereum Virtual Machine (EVM) networks quickly and efficiently. This avoids the need to deploy individual validators and allows networks to communicate with others inside and outside the ecosystem. It is expected that there will be hundreds of interconnected EVM networks within the ecosystem, with the first Unit0 network being central. Its Unit0 token governs the DAO units within the ecosystem.

We are launching a Units testnet campaign, which allows users to learn about the product and earn rewards for testnet activities. This will be followed by a staking campaign, where users can earn unit tokens to provide liquidity. The units are expected to be launched in June and July this year.

🧱What if cubes were used to lay the foundation for an infrastructure to solve the blockchain problems we talked about earlier? Units can do more! But first, let’s shed some light on some context.

In the blockchain industry, there is a lot of talk about layer one and layer one… pic.twitter.com/0oqKcs2DqZ

– Units.Network (@UnitsNetwork) March 21, 2024

CT: Can you tell us about some of the specific tools and solutions offered by Modular Network?

VS: The goal of Units Network is to enable a very clear process for launching your own blockchains. The blockchain creator submits a DAO governance proposal, offering certain rewards to network validators. If the proposal is approved, their blockchain will launch in a few days. You don’t need to manage your own nodes. The new blockchain is supported by the existing validator community and is seamlessly connected and fully interoperable with all other chains in the ecosystem. Additionally, external bridges provide connectivity with other ecosystems.

CT: How does the RWA hybrid stablecoin system work and what are its advantages over traditional stablecoins?

VS: The RWA listing is very important for future applications of blockchain technology, as it promises to move a significant part of the world’s financial infrastructure to blockchain technology and could provide an almost unlimited flow of new projects for years to come. On the other hand, RWA’s talk demands lowering entry barriers for projects, especially when launching their own blockchains.

The modules will facilitate the launch of multiple RWA projects in the ecosystem, with the aim of showcasing the network’s advantages in terms of ease of launch and connectivity to the external ecosystem. One of the projects that will be launched is a hybrid RWA stablecoin that combines crypto collateral with a less liquid RWA collateral, such that the RWA part provides an annual stablecoin yield (APY) and the crypto part secures the peg of the stablecoin.

CT: From a user perspective, what are the tangible benefits of using Units Network over traditional blockchain platforms?

VS: We focus on the simplicity of launching your own chain, integrated into the existing ecosystem with useful features such as internal bridges for custodians, external bridges with native stake for all assets and a DAO system of ecosystem that can help you start your own channel. The goal is to create a Swiss army knife type solution to unlock and maintain your block space for all kinds of projects that require it and make it truly accessible to everyone.

CT: Looking to the future, what are the future plans for the modular network?

VS: Currently, we are launching testnet and liquidity campaigns aimed at showcasing the features of the Unity network. The mainnet of the ecosystem’s first blockchain system, Unit0, is expected to launch this summer. The next big step for Units is the launch of the DAO ecosystem based on the Unit0 token. This will help start more ecosystem chains and launch decentralized applications on the Unit0 chain. In parallel, zero-knowledge (ZK) proofs will be integrated into the ecosystem, enabling different approaches to L0-L1 interoperability.