Ep 53, Hashflow — Bringing Financial Market Structure to Crypto with Varun Vruddhula and Lawson Baker

Wyre Talks

Scalability. Interoperability. Liquidity. Any number of projects in the crypto space are working to tackle these problems. But just one is solving for all three at the same time and leveraging cashflow incentives to encourage participation in the network.

Varun Vruddhula is the Founder of Hashflow Network and Lawson Baker serves as an Advisor and Acting Head of Operations for the team. On this episode of Wyre Talks, Varun and Lawson join us to discuss the problems Hashflow is trying to solve in terms of binding ETH and BTC—while achieving scale. They speak to the three players in the Hashflow ecosystem, describing how they interact on the network and sharing the profile of an ideal hub, watch tower and trader.

Varun and Lawson go on to explain how the Hashflow front end will parallel the Bloomberg terminal and address the flow of funds on the network. They also weigh in on the project’s token design and how it enables Hashflow to bootstrap liquidity, discussing how small and large exchanges alike benefit from joining the network. Listen in for insight around how cryptographic proofs are to crypto what paper currency is to commodity money and learn how Hashflow solves for the biggest problems in the crypto space and incentivizes participation through its unique cashflow token design!
Follow Thomas on Twitter: https://twitter.com/tomscaria
Follow Varun on Twitter: https://twitter.com/GandalfTheBr0wn
Follow Lawson on Twitter: https://twitter.com/lwsnbaker
Follow Hashflow Network on Twitter: https://twitter.com/hashflownetwork
Today’s Topics

[0:55] How Varun’s background in the space industry led him to the crypto space

[5:01] Lawson’s journey from investment banking to FinTech startups to crypto

[8:38] The core problems Hashflow is trying to solve, including scalability, interoperability and liquidity

[10:14] How Varun was inspired by Lightning Network, Plasma and SUMOKOIN and what drew Lawson to the Hashflow project

[20:04] The three players in the Hashflow ecosystem and how they interact on the network

[25:47] The profile of an ideal Hashflow hub, watch tower and trader

[30:56] How the Hashflow front end will parallel the Bloomberg terminal + the roadmap for what the team is building

[33:59] The flow of funds on the Hashflow Network and how it executes around proof of solvency and profit insurance

[42:26] How Hashflow safeguards users against false prices

[44:30] Varun’s insight into the concern around double spending on Hashflow

[47:06] Why Hashflow allows anyone to report prices but incentivizes only those used by users and exchanges

[52:55] How Varun made decisions around what parameters to standardize and when to allow freedom of choice

[56:26] How its token design enables Hashflow to bootstrap liquidity

[58:09] How both small and large exchanges benefit from joining the Hashflow network

[59:45] The process of joining the Hashflow network

[1:00:52] The top concerns expressed by exchanges and OTC desks in terms of integration costs and business opportunity

[1:05:13] The strategic impact of anyone being able to create an exchange on Hashflow

[1:07:41] What differentiates Hashflow from the projects it’s compared to most often (i.e.: 0x, Arwen and tBTC)

[1:14:07] Varun’s insight around how cryptographic proofs : crypto what paper currency : commodity money