On July 19th, the “Distributed 2018 Conference” jointly organized by BTCMedia, Consenses and Wanxiang Blockchain Lab was held at the Westin Hotel in San Francisco. The conference brought together nearly a thousand blockchain industry elites from around the world. Nearly 150 guests shared their understanding of blockchain technology and their views on the future development of the blockchain industry in just two days.At 2 o'clock on the first day, Dr. Xiao Feng, Chairman of Wanxiang Blockchain Lab, gave a very wonderful speech at the PlatOn project briefing. It tells the latest thinking of the blockchain industry leader in the domestic blockchain industry.
Translated from www.8btc.com.
The following is the author's content according to the on-site notes:
1. Xiao Feng believes that the blockchain is the Columbus sailing boat that humans have discovered in the "New World ." Columbus expands the physical space of human society, and the blockchain will expand the "digital space" of human society. There is no contradiction between physical space and digital space. Digital space does not replace or subvert physical space. The relationship between the two is a "parallel universe."
2. For the recent application of blockchain technology and technology, Xiao Feng believes that the blockchain has not yet reached the “blockchain+” . It is necessary to first mature the technology on the blockchain, and then there will be a "blockchain+" that is widely used. The current blockchain technology is still immature. The establishment of a blockchain ecosystem is first of all the stability of the chain itself, and then the development of the native blockchain application, such as wallets. Then there will be an explosion of various industry applications, namely "blockchain +".
Internet companies such as Alibaba and Tencent were founded at the end of the last century, but it was not until 2008 that the "Internet +" broke out. From the blockchain to the "blockchain+", a long process was also required. The current focus should be on developing blockchain technology and a variety of native applications.
3. Xiao Feng is the proponent of the distributed business concept. He believes that distributed commerce is a new commercial frontier brought by blockchain technology . In the distributed business world, all intermediary organizations will be replaced by "mathematical algorithms." Both the Internet and the blockchain have changed the system of credit and trust in traditional business activities. The cost of trust in traditional business practices is very high, and the Internet and blockchain have greatly reduced this mutual trust cost through technical means. The lower the marginal cost of trust, the more business activities tend to be borderless.
Internet technology has made information exchange easier than ever before, and the marginal cost of information has been close to zero, but the Internet is operated by a centralized organization, which collects fees and participants have costs. In the blockchain world, in theory, mathematical algorithms bring real “zero marginal cost” to business activities. Therefore, the distributed business model based on blockchain will make the expansion of commercial activities tend to be infinite.
4. From the App to the DApp. The Internet has platformed the business model, and the blockchain has gone the other way. The business platform has been deconstructed and the centralized platform has been “de-centered” . This is the difference between the centralized App in the Internet era and the decentralized DApp in the era of blockchain.
5. Dr. Xiao proposed that the industrial economy follows the principle of Newtonian physics and is “the transformation between energy and physics” , while the information economy follows the principle of quantum physics and is “the transformation between energy and information”. The law of value growth under two different economic models is completely different.
Taking Bitcoin as an example, the mining machine realizes the conversion of energy and information. While we are seeing bitcoin and Ethereum mining high energy consumption, we should also see that traditional centralized governance is also a high-consumption model. Under the centralized operation mechanism, various organs such as the military, the government, and the police are needed. In a sense, this consumption will be much higher than the energy consumption of hardware and chips.
In the consensus mechanism of the blockchain, energy conversion is indispensable, otherwise the blockchain system is not safe. In the future, various computer chips will become the key to energy and information conversion in the blockchain.
6. Blockchain is the underlying architecture of the digital economy. In a digital world where code is the universal language, its governance mechanism can only be mathematical algorithms. Dr. Xiao believes that any attempt to use people to rule and campaign the chain of governance, They are all "non-blockchained" and even "anti-blockchained."
7. There may be no “killer” application in the blockchain industry. Unlike the Internet, the blockchain industry may never see users with hundreds of millions of Internet-level phenomena. More likely to see a million DAPPs on a public chain, each with its own token, valued at $100,000, forming a $10 trillion digital economy.
In the blockchain world, large market capitalization can only occur on public blockchains and does not appear at the application level. Historically, there have been $500 billion in manufacturing, and trillion-dollar companies have emerged in the Internet industry, and in the blockchain, there are likely to be $5 trillion in projects.
8. In the digital economy era, digital accounting is required, and digital accounting requires a digital account system. Digital wallets are the way digital accounts record digital currency. The biggest deficiency of legal currency compared to digital currency is the inability to program.
Many people say that the circulation of digital currency is fixed, which will cause deflation. But digital currency can be divided indefinitely, such as bitcoin, which can be accurate to 18 decimal places. In the traditional financial field, the government realizes “currency issuance” by issuing legal currency. In the field of digital currency, the growth of market value is the “issuing and issuance” mechanism of digital currency.
9. How is the value of a public chain determined? Dr. Xiao gave a formula: the value of the public chain = the total amount of all DAPP values on this public chain. Therefore, when there is a large amount of DAPP on a public chain, the value of the public chain will be reflected and improved. With the development and maturity of DAPP, it is entirely possible to have a public chain of $5 trillion in market capitalization.
The following is the question link:
Q1: How do you view the risks of the blockchain and digital currency markets?
Xiao Feng believes that the current blockchain technology is still not mature, and it is necessary to pay attention to the development of technology, and the investment risk comes from the capital market, which is another matter. According to Dr. Xiao’s survey of the industry, at the end of 2018 and early 2019, the main networks of various public chains will be concentrated.
Q2: How do you view the battle of the public chain?
Xiao Feng believes that the battle for the public chain exists, which shows that everyone is concerned about public chain technology, but 80% of the public chain will fail. Only those who are serious, have their own values and analytical framework, and team and project that write code line by line can become a 20% winner.
Q3: If big companies like Google and Facebook enter the blockchain industry, what impact will it have on the existing industry landscape?
Xiao Feng believes that the core value of the public chain lies in the currency. Now most large companies enter the blockchain and often focus on the alliance chain. The alliance chain removed the currency, just a distributed ledger. Without the currency, it loses the core value orientation of the blockchain and loses the distributed commercial value of the blockchain. Therefore, the alliance chain does not go a long way, and these large companies choose the alliance chain, and it is very likely that they will not be able to make a contribution in the blockchain.
Source: WeChat public number @carbon chain value
Author: Ancient Shiqianfeng
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