Dialogue with Movement Co-founder: Move language has great potential. How to seek differentiation in the saturated L2 market?

Compiled & edited by: Xiaobai Navigation Coderworld

host:DeFi Dave,@redactedcartel Head of North America

Guests:Rushi Manche, Co-founder, Movement Labs

Podcast source:Flywheel DeFi

The Power of Movement w/ Rushi – Flywheel #111

Air Date: July 4, 2024

Summary of key points

• This podcast features Rushi Macnhe, co-founder of Movement, and host Defi Dave engages in an in-depth conversation with Rushi, focusing on the power of Movement and its unique advantages in the crypto space.

• Rushi He shared his career journey from a programming beginner to becoming an expert in the Move language.Rushi Emphasized DeFiSafetyand the need for high-throughput virtual machines, and detailed how his project Movement uses innovative incentive mechanisms andSafetymeasures to promoteBlockchainPopularization and application of technology.

• This article will summarize the main content of this conversation, covering the background of Rushi, the discovery process of the Move language, theSafetyAdvantages, future development direction of the Movement project (including the wealth code), criticism of the current status of fundraising & airdrops and possible optimization directions.

Introduction and Background

• Dave At the beginning, the content of this issue was introduced, saying that this issue will delve into the various applications of Movement and how its unique Move language may subvert the Internet economy. Dave was very impressed with Rushi, especially Rushi's use of the metaphor of upgrading car parts to explain the improvement of the Movement VM to the language.

• Rushi Pointed out that although the current adoption rate in the market is only 5%, Movement has unique advantages. Movement is not only compatible with existing technologies, but also developed by Facebook, aiming to allow more ordinary users to accept and use encryption technology.

• Rushi emphasize,Safety性和低费用是吸引用户的关键因素。他们的技术不仅提供了速度，还确保了安全性，使得用户在链上进行交易时无需担心被黑客攻击。

Rushi's background and the process of discovering Move

• Rushi He started programming at the age of 14 and initially worked at health insurance giant UnitedHealth Group, responsible for cloud infrastructure migration. He began his career in the field of distributed systems and databases, and later came into contact with computer science in college.cryptocurrencyHe mentioned that four years ago he was attracted by the concept of Cosmos and began to learn Rust and Solidity, which laid the foundation for him to enter the encryption field.

• When it comes to discovering the Move language,Rushi explained that while in college he learned that Facebook was developing its ownBlockchain, which aroused his interest. He began to study the Move language in depth and eventually decided to build his career in this field.

• Rushi It was also mentioned that July is an important month for Movement, as they will launch the first high-throughput Ethereum Rollup testnet, and there are a number of exciting applications coming online, including a fully on-chain sports prediction market and some excellent DeFi applications.

The difference between Aptos Move and Sui Move

• Rushi He first learned about Facebook's development of a newBlockchainproject. This news excited him very much, because at that time Cosmos had only 5 users, Ethereum had only a few hundred users, and Facebook's user base was in the billions, which brought huge potential for the mass adoption of encryption technology. He began to study the Move language in depth and acquire knowledge from the Move Book.

• Host Defi Dave Adding that when Facebook released this project in 2019, it was during the downturn in the crypto market, but this move was a huge validation for the crypto space. Although Facebook's project ultimately failed due to regulatory reasons, the impact of this project is still far-reaching.

• Rushi 进一步解释了 Aptos 和 Sui 的区别。尽管这两个项目都源自 Facebook 的Blockchain项目，但它们在技术实现和目标上有所不同。

• Rushi It is emphasized that the emergence of the Move language is to introduce a new virtual machine (VM) on a brand new consensus mechanism, rather than simply improving the existing EVM (Ethereum Virtual Machine).

• Rushi He also shared his experience of choosing between Avalanche and Cosmos. In the end, he and his team chose Avalanche as their early supporter and started their entrepreneurial journey during college.Rushi Mentioned that while they were at Vanderbilt University, they persisted in developing their program despite limited resources.

Move's security focus and EVM issues

• Rushi Mentioned that he and his team started their Move project in November 2022, when they were working with Avalanche to introduce the Move language to Avalanche's consensus mechanism. Their goal is to bring the Move language to EVM because they believe that EVM has many problems in design, especially in terms of scalability and security.

• Host Defi Dave Mentioned that although EVM is very mainstream in the crypto space, it is not designed for large-scale users. Rushi further explained that EVM was originally designed as a temporary solution and was not designed with large-scale usage scenarios in mind. In contrast, the Move language and other Rust-based virtual machines (such as SVM) are designed for high throughput.

• Rushi It is emphasized that one of the main advantages of the Move language is its security. Unlike EVM, Move is notcontractFormal verification is done before the code is deployed to ensure that it is secure. This means that if a developer introduces an error into the code, Move will detect it and prevent it from executing before the code is deployed. Rushi likens Move to a firewall that detects and blocks potential security vulnerabilities before the code is executed.

• Defi Dave Adding that while the EVM has become more secure over the past few years, it still has many vulnerabilities that could be exploited by increasingly sophisticated hackers, he noted that Sui Move is more focused on high throughput, while Aptos Move is more focused on security.

• Rushi In response, he said that although EVM is constantly improving, its design flaws make it difficult to completely avoid security issues. He mentioned that 92%'s EVM protocol, including some mainstream DeFi protocols, are at risk of being hacked.

• Rushi Explained that Aptos and Sui's Move language are actually completely different languages, which leads to confusion and division among developers when choosing. Aptos is closer to the Move language in the Facebook DM project, while Sui has been iterating on this for six months and is more similar to Solana's semantics and consensus mechanism. Therefore, Aptos Move is more secure, while Sui Move has higher speed and compilation efficiency.

Movement is Ethereum’s L2 solution

• Rushi Introduced their project Movement, the first Ethereum second-layer solution based on the Move language. They chose Ethereum's second layer instead of an independent first-layer blockchain because Ethereum, as a stable and liquid asset, is better able to attract liquidity providers (LPs). Rushi emphasized that using Ethereum as the underlying asset allows users to enjoy the advantages of the Move language without leaving the Ethereum ecosystem.

• Rushi Explains how they implemented support for Aptos Move and Sui Move. They built an RPC translation mechanism to compile Sui Move and Aptos Move to the same bytecode, thus achieving compatibility. In addition, they developed an EVM interpreter called Fractal that allows developers to deploy EVM smart contracts on Movement.contract.

• Host Defi Dave Mentioned that Ethereum, as a store of value and a widely used asset, has a very strong network effect.Rushi Agreed, adding that Ethereum is not only highly programmable but also very secure, which makes it ideal for building second-layer solutions.

Go-to-market plan and building the Movement ecosystem

Xiaobai Navigation

• host Defi Dave One possibility mentioned is to use Ton as a second-layer solution for Ethereum (L2).

• Rushi Two possible directions are explained: one is to deploy the Ton VM on Ethereum, which can take advantage of Ethereum's liquidity but provide a poor programming experience; the other is to deploy the EVM on Ton, which can retain the characteristics of Ton but provide a better programming experience.

• Rushi 强调，Movement 的一个主要卖点是其安全性。他指出，在当前的加密环境中，开发者很难快速部署应用，因为 EVM 智能contract的安全性问题需要昂贵的审计。而 Movement 希望提供一个安全的环境，让开发者能够快速部署应用而不必担心被黑客攻击。

• Rushi It is also mentioned that Movement hopes to become the best platform for user experience, providing high throughput and security, allowing developers to quickly build applications from 0 to 1. In addition, Movement also supports EVM compatibility, which means that existing EVM applications can be easily migrated to the Movement platform.

• host Defi Dave Mentioned that they have launched an incentivized testnet, which has attracted many outstanding application developers.

• Rushi The operating mechanism of the incentivized testnet is introduced in detail: developers can deploy their applications on the testnet and get incentives through the testnet. This method can not only attract more developers, but also help them find and fix potential problems.

Applications on Movement (with wealth codes)

• Rushi Emphasized the two main selling points of Movement: security and user experience. He pointed out that the current production speed in the encryption field is very slow because developers need to spend a lot of money on security audits. Movement hopes to provide a safe environment where developers can quickly deploy applications without worrying about being hacked. In addition, Movement also provides high throughput and good user experience, allowing developers to quickly build applications from 0 to 1.

• Rushi The operating mechanism of the incentivized testnet is introduced in detail: developers can deploy their applications on the testnet and get incentives through the testnet. This method can not only attract more developers, but also help them find and fix potential problems.

• Rushi Mentioned some key applications that will be released on Movement:

  • Meridian:This is a lending market similar to Aave, focusing on the staking and re-staking functions of the Move language. They are also developing a decentralizedexchange(DEX) and stablecoins.

  • Echelon:This is a lending market that aims to provide users with a safe lending experience. Users can deploy Ethereum assets on Echelon and earn returns without worrying about being hacked.

  • Bracket:This is a fully on-chain prediction market focused on the sports ecosystem. Users can make predictions for sports events on Bracket and use leverage. This feature makes the prediction market more liquid and attractive. A key feature of the Bracket application is that users can create their own brackets, such as the future March Madness (American college basketball tournament), and put them completely on-chain, which increases transparency.

Partnerships and consumer applications on Move

• Rushi The Bracket team built their own oracle, but also supports other oracles. Their oracle is completely open source and randomized, which makes the system more transparent and reliable.

• Rushi Emphasize that Movement's high-throughput virtual machine and excellent user experience enable it to support many unique applications. For example, users can use Ethereum assets for betting on Movement and enjoy better user experience and security.

• Rushi As mentioned, many teams want to launch their own chains (app chains) because this can increase their valuation. Movement provides a stack that allows teams to customize their rollups, thereby achieving high throughput block space.

• Rushi He used a metaphor to explain the bottleneck problem of the current Ethereum Virtual Machine (EVM). He said that the current EVM is like a luxury car with an old engine. Movement focuses on improving this "engine" and providing a more efficient virtual machine.

• Rushi Mentioned that they work with multiple teams to provide customized chains. For example, they work with a Bitcoin L2 team to solve transaction congestion. There is also a team called Link that is developing a chain containing 300 mini-games.

• Rushi An application called Henry is mentioned, which is a consumer cashback application similar to Honey. Henry has attracted many consumer teams through customized chains and has cooperated with many large retailers. For example, when users buy shoes on the Crocs website, they can get Henry points, which can be used for future airdrops.

• Rushi Finally, an exciting project to mention: Up Network. They are about to launch a mobile device called Movement Phone, which is a mobile-first Android device that will be launched in the next few weeks.

Product differentiation in a saturated market

• host Defi Dave He mentioned that in a recent interview with Jay, Jay discussed how to promote the development of the Internet economy. Dave recalled the previous discussion of whether institutional investors would enter the market, and believed that instead of waiting for institutional investment, it is better to focus on the existing Internet economy.

• Dave He believes that Move VM is a perfect tool to improve the Internet economy with various applications. He mentioned some applications, such as Honey, and believes that these applications, once they are online and gain real users, will help attract more people to entercryptocurrencyfield.

• Rushi Adding that Move VM can also be used with friends, it is similar to a social trading platform. He further explained the concept, giving the example of the possibility of trading on platforms such as Telegram, which would allow users to trade directly on existing communication platforms without having to download new applications.

• Rushi He believes that although there are many fast chains on the market, most of them may not succeed in the end. Solana is one of the few fast chains that are still running. He emphasized that the difference in user experience is the key, and many new blockchain projects have failed to significantly improve the user experience and therefore failed to attract widespread attention.

Create new products and user experiences

• Rushi Mentioned that their team is focused on staying consistent with Ethereum and considers Move VM to be their core technology. Although the market acceptance is not high at present, they believe in the potential of this technology.

• Rushi 强调，他们的目标不仅是吸引现有的cryptocurrency用户，还希望吸引那些对技术持怀疑态度的普通用户，比如他的母亲和叔叔。他们关注的是安全性和低费用，这也是 Move VM 的优势所在。虽然安全性不像隐私那样吸引人，但它对于用户来说至关重要，尤其是在涉及资金的情况下。

• Dave It is mentioned that there are many new blockchain projects and L2 (second layer solutions) on the market, but there is a lack of obvious product differentiation between them. This makes it difficult for users to distinguish the pros and cons of different projects.Rushi I agree with this view and think that the current market sentiment is not good. Many projects are just raising a lot of money but fail to really motivateCommunity, which led to negative sentiment in the market.

• Rushi Explaining further, their goal is to launch projects with radically new products and user experiences. They have already built a largeCommunity, and plans to stimulate user interest through innovative DeFi experiences and new mechanisms.

• DaveA project called “Fair Share” was also mentioned, which was considered to have some unique innovations in consensus mechanisms, such as liquidity proof. They successfully activated the testnet through NFT, attracting early users, similar to early believers in religious beliefs.

Challenges and opportunities of fundraising and airdrops

• Rushi 提到，许多项目通过激励早期开发者和用户来推动社区的发展，但有时会设定过高的期望。例如，有些项目在空投中吸引了大量流动性，但最终的回报并不理想，导致用户不满。他认为，关键在于不要设定过高的期望值，并通过分层系统有效分配奖励。

• Rushi They said that they plan to distribute a certain percentage of rewards to applications instead of being distributed directly by the foundation. This approach allows applications to better identify and reward their active users, because applications know their users' behavior and contributions better than the foundation.

• Rushi It was also mentioned that a key success factor for airdrops is the element of “surprise.” For example, Uniswap’s airdrop was very successful because users did not expect to receive airdrops when using the application, and this unexpected reward strengthened user loyalty and engagement.

• They also discussed the pros and cons of a “points” system. While a points system can provide a transparent reward mechanism, it can also lead to users engaging in excessive behavior in order to accumulate points, ultimately expecting large returns. If market conditions are poor, such expectations can lead to user disappointment.

• Rushi It is mentioned that both the traditional point system and on-chain KPI (key performance indicator) have their own advantages and disadvantages. The point system is simple and direct, but it can easily lead to users having too high expectations and a "sense of power". On-chain KPIs focus more on unexpected rewards and reduce this sense of power by allowing contributors and applications to allocate rewards themselves. For example, developers can get rewards by building applications on the chain instead of getting small amounts of funding through a complicated application process.

• Rushi The key to airdrops, Rushi stressed, is to avoid setting too high expectations. Many projects have attracted a lot of liquidity in airdrops, but the final returns are not ideal, leading to user dissatisfaction. Rushi suggested that by allowing applications to distribute rewards themselves, they can better identify and reward their active users, thereby improving overall fairness and transparency.

• Rushi He is critical of fundraising, believing that the traditional fundraising process is cumbersome and has limited effectiveness. Many projects spend a lot of time and energy on fundraising, but in the end they can only get small amounts of funds that cannot sustain the development of the project. He suggested that more attention should be paid to helping teams connect with investors and the market, helping them raise funds and establish sustainable business models, rather than relying solely on fundraising.

• Rushi He believes that successful projects in the future need to innovate in reward mechanisms, such as delegating distribution rights to applications and allowing communities and users to participate together, thereby improving overall fairness and transparency. He also mentioned that future blockchain projects need to provide unique user experiences and fundamental new products to attract and retain users.

Creating Wealth in Cryptocurrency: Effective Incentives

• Rushi Different ecosystems have adopted different funding strategies, such as Optimism’s long-term funding and Arbitrum’s DAO He believes that the traditional grant process is cumbersome and inefficient, usually taking months and multiple interviews, and may only get a small amount of funds in the end, which is not very helpful for truly promoting project development.

• Rushi He advocates working directly with teams one-on-one to provide market connections and fundraising support rather than simple cash grants. He believes that this can more effectively help teams build sustainable businesses rather than relying on short-term funding support. He also mentioned that many ecosystems have attracted some "grant farmers" through direct cash grants, who deploy the same applications on multiple chains but have not really built an ecosystem.

• Rushi He stressed that the community should lead the allocation of incentive mechanisms, rather than the foundation deciding which projects are valuable. The market and users should verify the value of the product, not the foundation. He believes that grants should be used more for public products rather than business models.

• When talking about future development,Rushi He said that he hopes to build a secure Ethereum ecosystem so that people can trust blockchain as much as they trust AWS and websites. He also mentioned that the focus in the future should be on improving user experience and enhancing system security.

• at last,Rushi He said he hopes to see more social and consumer applications developed on blockchain, rather than just infrastructure improvements.

The article comes from the Internet:Dialogue with Movement Co-founder: Move language has great potential. How to seek differentiation in the saturated L2 market?

Related recommendations: Bitcoin's decline triggered a $250 million liquidation, "Super Wednesday" may be the key to the market's next move

This decline is a good opportunity to buy on dips. Compiled by: Jordan, PANews June 12, Beijing time, is called "Super Wednesday" by the financial market, because tonight and tomorrow morning will usher in two "blockbuster" data: the latest CPI data and the Federal Reserve's interest rate decision. The relevant data may become the vane of the next wave of trends in the crypto market. The crypto market…