An Interview With Quai Network

Quai Network is the only fully scalable and programmable Proof-of-Work Layer-1, In an exclusive interview with BitcoinWorld, We discuss what is Quai Network, Is All About!!

• In Simple Terms What Is Quai Network is all about?

Quai Network is the only fully scalable and programmable Proof-of-Work Layer-1. Through the implementation of a variety of new Proof-of-Work primitives, Quai brings reliable, real-world value on-chain to function as financial infrastructure for a compute-centric economy.

• What inspired you to create Quai Network, and how did your background as an Apple software engineer influence its development?

My journey from being captivated by Bitcoin in high school to founding Quai Network was fueled by a deep-seated passion for decentralized finance and blockchain technology. Founding the Texas Blockchain club and collaborating with my current Quai co-founders allowed us to conduct extensive research on scalability and cryptography at the University of Texas Austin. Transitioning to Apple, where I worked as a software engineer focused on enhancing business intelligence for supply chains across North and South America, provided invaluable hands-on experience in data management and operational efficiency. This diverse background profoundly shaped the development of Quai Network, empowering us to integrate advanced business intelligence capabilities into our platform while tackling pivotal scalability challenges. Today, Quai Network stands at the forefront of advancing blockchain solutions for decentralized applications, drawing from insights gained both at Apple and through rigorous academic research.

• Quai Network is described as the only fully scalable and programmable Proof-of-Work Layer 1. Can you explain what makes Quai’s scalability unique compared to other blockchain networks?

Unlike many blockchain networks that rely on Layer 2 solutions for scalability, Quai focuses on enhancing scalability directly at the foundational protocol level using Proof-of-Work consensus. Proof-of-Work functions as an oracle for real-world demand and energy costs, allowing for the creation of a completely decentralized “stablecoin” tied to energy. This token is not backed by any asset, but rather exclusively uses market incentives to consistently drive the token’s price towards the cost of energy. Allowing Quai to potentially handle a larger volume of transactions while maintaining the security and decentralization benefits of Proof-of-Work consensus.

• How does Quai Network’s native “stablecoin” work, and how is it connected to the cost of energy?

Within Quai, Proof-of-Work is used not only to secure the network from attackers, but also to function as an oracle for real-world demand and energy costs, allowing for the creation of a completely decentralized “stablecoin” tied to energy. This token is not pegged to or backed by any asset, but rather exclusively uses market incentives to consistently drive the token’s price towards the cost of energy. Energy is the single largest input to both human activity and artificial intelligence. The intrinsic value of energy to both man and machine makes it an ideal foundation for a new currency to be built upon.

• In what ways does Quai Network enhance decentralized finance (DeFi) and trading experiences for its users?

Quai Network enhances DeFi and trading experiences by offering a scalable Layer 1 blockchain solution with Proof-of-Work consensus, ensuring high transaction throughput and security. This infrastructure supports the seamless execution of DeFi activities such as trading, lending, and borrowing with minimal congestion and low transaction costs. Additionally, Quai Network prioritizes interoperability with other blockchains and financial systems, facilitating the integration of assets and liquidity across platforms. Combined with decentralized governance mechanisms, which empower community participation in decision-making, Quai Network strives to provide a robust and user-friendly environment for decentralized finance and trading.  Additionally, Quai’s partnership with Portal DeFi enables cross-chain transactions between Quai and the Bitcoin network, allowing Quai-native assets such as QUAI and QI to be swapped for native BTC. Both of these tokens will have liquidity pools on Portal DEX, bringing Quai’s DeFi capabilities beyond EVM-compatible chains to the budding ecosystem of Bitcoin DeFi.

• What benefits does Quai Network’s EVM compatibility bring to developers and users within the blockchain ecosystem?

By maintaining EVM compatibility, developers on Ethereum and the wide ecosystem of EVM blockchains can start building on Quai using Solidity-based and SolidityX-based smart contracts. With a vast majority of blockchain developers currently working on EVM chains, Quai presents an interesting alternative for builders with its built-in interoperability features which enable seamless cross-chain interactions between Zone chains.

• How does Quai Network serve as financial infrastructure for a compute-centric economy, and what are the practical applications of this?

The energy-based “stablecoin” acts as decentralized money for the compute economy, while its infinite scalability accommodates an ever-growing user base of both humans and AI agents. Quai aims to embody inclusivity and accessibility for the emerging world. Their vision involves refining their technology, expanding its reach, and reducing costs to make it accessible to all. This trajectory mirrors historical trends of progress, which Quai intends to follow in scaling their operations. This approach positions Quai Network as foundational financial infrastructure for a compute-centric economy, enabling practical applications across diverse sectors.

• Can you explain the concept of merged mining on Quai Network and how it benefits miners?

Merged mining involves mining a block header that includes data from Prime, Region, and Zone blockchains. This method allows a miner’s hash rate to be distributed across all three blockchains, enhancing efficiency and network security. Merge-mined parachains are blockchains outside of the Quai Network that inherit security and hash power from Quai through merged mining. This provides a cost-effective security solution for developers, eliminating the need for apps to build their own native validator network.

• What are the next big milestones for Quai Network, and how do you see its role evolving in the blockchain space over the next few years?

The next major milestones for Quai Network include the launch of its fourth testnet and the anticipated Mainnet rollout later this year. These milestones mark significant advancements in refining our sharding technology and overall platform design. Looking ahead, we envision Quai Network playing a pivotal role in the blockchain space by further enhancing scalability and fostering innovation through our incentivized grants program for developers launching with our fourth testnet.