Hey everyone, Economic Ninja here. I hope you’re doing well. I’m here with Rong Khai, the leader, the CEO of React Networks and you guys know that I’ve been talking about it a lot lately. I’m really excited about the project and I flew all the way around the world to come and meet you personally. We’ve never met before. So thank you so much for jumping on and doing an interview with us. Well, thank you for inviting me and welcome to Singapore. This is a beautiful city. I don’t know if the camera can catch it, but I can’t get over how clean this is, how peaceful it is and everyone’s so nice.

So thank you so much. So you actually grew up here in Singapore, but you also spent a lot of time in Canada as well. Yes, so a little bit about myself. I’m a Singaporean. Of course, I grew up here. I studied in London. That was quite a while ago. I came back to Singapore. I was in the police force for eight years and I went back to the UK and then now I’m in Canada. Man, and how long have you been in blockchain technology? For five years now. That’s awesome. It’s pretty much changed your life, I bet.

Yes. And the technology moves so quickly. Every, I would say every month, something is new. You need to catch up with what’s going on. Yeah. Now, the reason why I picked up on React and it goes along with something you were actually talking with Vitalik the other day about was that you are solving with React Networks a specific problem. Do you mind sharing that with people? Because most people don’t understand, in order to have a project take off, you need two things. You need to solve a problem, but you also need to get that problem out to the masses so that they can actually use it.

And make their companies better, their lives better. So what’s that problem that you’re solving in blockchain? That’s a very good question. So, at React Network, we basically sported like an interactivity gap in Web3. I’m not going to go too deep into the tech, of course. But essentially what it means is that when you build on the internet, you’d be like, oh, I put a code and the code will automate things for me, right? Sport things and you put the conditions and it will happen. But actually, you can’t do that on Web3. And there was a question to Vitalik back then like 10 years ago when Ethereum first came up and they created like a coding layer for Web3.

Why is it that that part is missing? So to sum it up, he had a very good answer to it actually, but somehow it was too difficult for him to do. There was a lot of sacrifices he had to make. So his solution is that he said to leave it to the market to not solve it at like this layer, solve it at the next layer. Exactly. So we came forward and we look at what the market is doing now. They did try to solve it. And what they do essentially is to do it in an extremely inefficient way, but it was right for that time.

So the solution came in about eight years ago where they take the data off chain. Yep. They have to put in different tech to sort it out and then to put a code that is not on Web3, but on the internet, a typical code written in a different language to sort of try to understand what’s going on on Web3. And then you can put the responses there and then come back on Web3 to do it. So we look at it and saying that that doesn’t make sense. Nope. It’s very inefficient. So let me break this down.

He did a great job of breaking it down. All right. I get it. But let me break it down a little bit further and give a real life application. Let’s say a loan company wants to use blockchain technology to issue loans all around the world and record them. Right. Set up a smart contract that you sign. You get the money sent to your account and all that stuff. Here’s the problem. You’re a worldwide loan company and every day the value of the Korean won versus the U.S. dollar or the U.S. dollar versus the Chinese R&B. Everything’s changing every second and that would drastically change the term of the loan or the dollar amount being loaned out and payments and all that stuff.

So Reactive is setting up just like Vitalik said, hey, we wanted to implement real life changes on blockchain the second they happen so that smart contracts can move and adapt, but it was too difficult. So he’s letting the market figure that out. Well, this is where React goes. Well, we’ll build the solution so that loan companies like that can set up the terms and everything and even adapt to split second changes in currency evaluations. Would that make sense? That definitely makes sense. Perfect. In fact, when we built this, we recognize that right now on Web3, it’s a multi-chain world.

There’s all sorts of different chains connected together. And that’s actually what institutions are looking for as well, because they recognize that, for example, even right now, it’s not just Swift. We’re structuring, for example, this other stuff. The Chinese are using something else. The Japanese are using something else. Yeah. And so on. And that means when people move on to a blockchain based technology, it will be multi-chain worldwide. And who’s the solution coming in? We try to solve it right directly there at a multi-chain level. And not just that we build it in a decentralized manner. It’s completely on-chain technology.

Yeah. Now, many of you don’t really understand that this is a problem. And the truth is, a lot of programs and projects know it’s a problem, but they don’t want to come out and admit it, right? So they’re trying to solve things. And how they solve them is by implementing companies like Chainlink or DIA, right? Oracles, right? Well, essentially, you’re putting an Oracle together in a layer once with smart contracts being able to adapt, correct? Yes. So what happens is we try to solve it at what we call at a smart contract level. And we make it extremely easy for the entire system to talk to each other.

So when people deploy that function on us, it’s essentially a smart contract as well. But now it’s reactive. It can see events, and it can therefore react to things happening, and it can react on all the changes it’s connected to. Yeah. Now, I don’t want to go too long into this interview, but one thing that I love about certain projects is a burn factor. And reactive networks have actually burnt in a burn factor into how they run things. And one thing that we need to understand is any company, especially on Ethereum, that wants to implement smart contract reactability, for lack of better terms, uses the React token.

And every time that’s used, a little bit of it goes away. Can you talk about that? Yes. In fact, all of it goes away. So what happens is that as each block continues, the validators produce new tokens in order to sort of justify the energy cost in it. At the same time, the usage of it, where projects, businesses, they deploy a smart contract on us, and those smart contracts need to consume react to pay for whatever it needs to compute. Those react gets burnt completely, 100%. And it becomes a competing gain versus losses in terms of react in this ecosystem.

And as usage goes up exponentially, the amount of react gets burnt exponentially. Eventually, we might reach a stage where the total supply of react actually decreases rather than increase. Yep. And see, what’s really exciting about that is that makes it extremely deflationary, but that deflation doesn’t kick in until more and more transactions are happening on the chain. So I want to keep this short, but I’m going to be talking back and forth with the team as things go on. I’ve bought this myself. I’ve put my money where my mouth is. And just so you know, I don’t take money from teams when I’m interviewing them, when I’m talking about them, because I want to be one of those legit ones that are out there that are actually talking about what I invested and why I invest.

I want to teach people how to buy projects, view projects, study and research, and do all your own due diligence so that you make good decisions. All right. Thank you so much for jumping on. I really appreciate your time. Thank you for having me here. All right. Well, that being said, guys, through Economic Ninja is out. [tr:trw].

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