Exclusive Interview with Mysten Labs Co-founder: Real World Assets and New Human-Computer Interaction Methods

Author: Sunny, Deep Tide TechFlow

Guest: Evan Cheng, Mysten Labs Co-Founder and CEO

As enthusiasm for Sui Basecamp surges and a series of promising developments are on the horizon, Mysten Labs is at a critical stage in the evolution of blockchain technology. With more projects choosing Sui as their primary platform and FTUSD beginning to integrate, Mysten Labs and its stakeholders in the ever-evolving blockchain space are filled with hope for the future.

In an interview with the CEO of Mysten Labs at the 2024 Paris Basecamp, we explored the concept of stablecoins and other real-world asset tokenization, rethinking human interaction with blockchain infrastructure post-adoption.

The Future of FTUSD Stablecoin and Real-World Asset Tokenization on the Sui Blockchain

Mysten Labs has made significant strides in the cryptocurrency space, particularly on their Sui blockchain. Recently, CEO Evan Cheng revealed exciting developments regarding FTUSD and the broader integration of real-world assets into the blockchain ecosystem.

FTUSD: Accelerating DeFi on Sui

The CEO of Mysten Labs emphasized the achievement of bridging over $300 million in dollar stablecoins to Sui, showcasing the platform's growing popularity. The introduction of FTUSD is seen as a key development that will further enhance this trend. With support from major exchanges like Binance, FTUSD is expected to provide strong momentum for the DeFi ecosystem on Sui, which is particularly noteworthy given that it is rare for non-EVM chains to secure major stablecoin partnerships in their first year.

Expanding Beyond Financial Assets

The potential of Sui extends beyond digital assets to encompass real-world assets like real estate and land. Tokenizing and fractionalizing these assets can democratize access to investments that have traditionally been difficult for most people to reach. This process not only enhances accessibility but also allows investors to share in the potential financial benefits of these assets.

Building a Sustainable Ecosystem

Mysten Labs is not only focused on tokenization but is also committed to leveraging the full capabilities of blockchain technology. This involves creating a robust infrastructure to support the management of billions of dollars in assets on Sui. The CEO highlighted the importance of partnerships that align with a long-term vision and are dedicated to sustainable development.

Challenges and Future Directions

While the early stages of tokenization on blockchain offer significant advantages, such as improved accessibility and the ability to fractionalize ownership, Evan pointed out that these benefits have not fully leveraged blockchain technology. Looking ahead, Mysten Labs plans to explore structured products that can reduce operational friction and minimize the need for human intervention in establishing trust.

Evan also mentioned ongoing discussions with various stablecoin issuers, indicating a significant interest in operating on Sui. This suggests that Sui may soon support multiple stablecoins, enhancing the platform's versatility.

Regulatory Environment and Algorithmic Stablecoins

When discussing algorithmic stablecoins, Evan mentioned the experimental nature of these assets, especially in a regulatory environment that is still taking shape. He cited MakerDAO as an example of a successful hybrid model that incorporates synthetic elements. However, he remained cautious, hoping the industry can avoid repeating past mistakes like those seen with Terra.

First Principles Thinking in Building Web3 Infrastructure and Applications

Emphasizing Innovation Over Imitation

Evan stressed the importance of not just replicating existing technologies but focusing on creating unique and innovative products. This approach has helped Sui maintain a loyal developer community, despite facing challenges early on. Developers are encouraged to leverage Sui's unique features to better serve their customers, highlighting the need for a deep understanding of customer needs and avoiding the trap of pursuing funding without a sustainable strategy.

Leveraging Sui's Rich Toolbox

Sui is not just described as a blockchain but as an evolving comprehensive toolbox. The platform's focus extends beyond the availability of technology; it emphasizes how these tools can effectively address real-world problems. Builders are urged to first define the right problems, which is a crucial step in effectively applying technology.

Transitioning from Centralized to Self-Custody Models

Evan outlined a vision of transitioning from centralized, custodial models to self-custody models that fundamentally change the way humans interact with technology. This involves questioning the nature of products and the infrastructure that supports them, steering clear of centralized solutions that have historically led to failures, particularly highlighted during DeFi crises like Celsius.

"Developers need to create their own products and truly understand their customers. The 'first principles thinking' we emphasize reflects Sui's unique approach. Our difference is not about being different for the sake of it, but stems from our clear vision for the future of human interaction with technology. This involves a shift from centralized, custodial models to self-custody models, fundamentally changing how users interact with software, platforms, and products.

Through first principles thinking, you ask: What will these products look like? What is the infrastructure that supports them? What are the fundamental needs? If designed correctly, there is no need to revert to the failed centralized solutions we have repeatedly seen in the recent cycle, especially in DeFi, such as Celsius. These entities reverted to centralization and made significant mistakes behind the scenes, straying from the spirit of decentralization when issues arose.

The cycle of returning to centralized practices—whether through liquidity fragmentation, centralized exchanges, or custodial social logins—continues to be a widespread mistake. Our approach counters this by advocating for solutions like ZK logins that maintain decentralization. Failing to apply these principles can harm products.

I believe and hope that the way we think and build at Sui will permeate our ecosystem and inspire all developers within the ecosystem to innovate with integrity and responsibility, resisting the pull of centralization."

Challenging Current Crypto Paradigms

Mysten Labs is challenging what are often seen as immutable laws of the crypto world, which are more based on assumptions from early system constraints. This challenge is supported by solid research and engagement with academia, ensuring that their innovations are robust and scientifically validated.

Solving Large-Scale Problems to Attract Developers

According to Evan, the real allure for attracting developers lies in solving significant consumer or business problems. Demonstrating the ability to effectively address these issues is key to drawing developers to the platform. This approach focuses on problems that extend beyond the crypto realm and tackle issues affecting mainstream markets, which has the potential to greatly expand the overall market size.

Rethinking Digital Interaction and Consumer Autonomy

Reimagining digital interaction through blockchain is envisioned as a revolutionary process, where every piece of customer information is controlled and accessed by the customer themselves, protecting privacy and transforming the entire customer journey. Blockchain is seen as a public bulletin board that can fundamentally change the way applications interact, making processes interconnected and responsive.