On December 11th, the Global Blockchain Industry Future Development Summit (FBEC2020) officially opened in Sheraton Shenzhen Greater China Hotel! This conference is hosted by Gyro Technology and supported by Shenzhen Information Service Industry Blockchain Association, Shenzhen Association of Science and Technology, Guangdong Game Industry Association and other departments and units.
In the morning, He Yifan, CEO of Jujube Technology, brought the theme “Why virtual Currency is a Game? “Great speech.
In his speech, he mentioned that virtual currency is a very profitable business, but the current business logic is the logic of the game, as long as virtual currency is not associated with offline assets and offline labor production, the business logic is the logic of the game. However, virtual currency will definitely be combined with legal digital assets in the future to generate value for offline assets and offline labor production.
The following is a transcript of the speech:
Thank you for the invitation of Gyro Finance. Today, I will briefly talk about how we view virtual currency, including central bank digital currency, digital currency and the impact of virtual currency on the business environment.
The consortium has long argued that blockchain technology itself is not the lowest level of logic, ** the lowest level of blockchain logic is actually broadcast data transfer logic. ** The whole blockchain industry came out of Bitcoin. Whoever invented Bitcoin is indeed a very powerful and god-like person. He saw the shortcomings of the Internet transmission logic, and many business scenarios could not realize the point-to-point transmission logic of the Internet. And you take into account the new transmission logic which is the data millions of people hundreds of thousands of people simultaneously broadcasting the data to everybody, and the result is very quickly consensus, what can you do based on consensus?
** The first layer is broadcast data transmission. ** Based on broadcast data transmission, it is easy for everyone to build a shared ledger through data at low cost. We have such a layered relationship with the technology system. However, what we care about most is the “broadcast data transmission logic”, which is a great upgrade of the transmission logic between Internet sites and points. We believe that the transmission logic and business logic of the Internet will be reconstructed, and even the way of viewing web pages will change in 20 years.
Mentioned the virtual currency is based on a consensus, since money is legal term, there is no a country take him as monetary properties, virtual currency is investment property, whether to buy the etheric lane or COINS are basically for investment, not to buy things, so the virtual currency is investment property.
** Second, we believe that virtual currency is currently the simplest application for a distributed consensus ledger based on broadcast transmission. ** At present, all values of virtual currency are not associated with offline assets, so how does the value of virtual currency come from? It’s the consensus.
When I talk to a lot of my friends, is the point of disagreement, is the consensus valuable? The consensus may be valuable or not, or even negative. In my opinion, consensus is only valuable if it can reduce cost and increase efficiency for offline production relations and labor. If it does not, it is worthless. Is there any social value in saying the sky is blue if you reach a consensus? It has no social value; If we do a task on foot, some people say it is too late, others say it is too late. A group of people working, someone said tired to death don’t work, we reached a consensus is negative value to the society. The value of consensus is conditional, and not all values are positive.
According to current statistics, there are about 10 million people using or investing in virtual currency, with a total market value of 400 billion yuan, less than half of Tencent’s market value.
Why is virtual currency a game? I started to play World of Warcraft when it came out in 2003. People went to beat monsters and drop coins and equipment. Later, when they stopped playing, they sold them and turned them into virtual cash. Virtual currency no matter how to get the currency, when you do not want to play, through the OTC into cash out, has no relation to the offline production labor.
** Virtual currency is a very profitable business, but the current business logic is the logic of the game, ** as long as virtual currency is not associated with offline assets and offline labor production, the business logic is the logic of the game.
The meaning of the virtual currency, for example, no matter how advanced the Internet and computers, can be said to be the initial cable, this is the simplest logic of conveying information through electricity, fifty years from now I personally think that everyone to look at this moment IT system and Internet patterns, business environment, means of payment last were the ancestors of virtual currency, now IT can be qualitative, Virtual money is as important as the telegraph was 100 years ago.
Why is that? First of all, the emergence of bitcoin defines this kind of broadcasting transmission logic. It still solves the communication problems of human beings. For example, when primitive people live in caves, is it more efficient to communicate with each other? How to get people to get data in a short period of time and reach a consensus is actually ancient business logic.
Virtual currency is an early digitisation of the concept of digital assets, sometimes used to buy and sell, as in games around the year 2000. In addition, virtual currency has directly prompted central banks of various countries to study legal digital currency, which I think is of great significance and affects the business logic in the future.
Digital assets is a virtual currency, in the past two years, can to hold the currency leads to economic disputes, the court case there are two kinds of situation, a situation in which protection is put on record, there is also a because courts think digital currency cannot be characterised as assets, can’t put on record, both of which have, but the inclination is to protect the law level. For example, if we are trading in the stock market, why does the stock system have a string of codes representing your equity? Not because the technology is good, but because the country has legislation, and the digital currency will be protected by legislation in the future.
In addition, with regard to the digital currency of the central bank, the efficiency of commodity circulation is very low at present. The fund circulation through the system of banks is very slow, but if the fund circulation is fast, the goods must be fast. How much does your profit increase when you nearly double your inventory turnover? When money moves twice as fast, what’s your profit? The emergence of central bank digital currency is also promoted by digital currency.
The future combination of virtual currency and legal digital assets will depend on two to three years later, but once it is combined, the one who first combines with offline assets through legal means will be the boss of the public chain. Now it is very important to accumulate technology.
This is our recent study and found that the business logic of the public chain is correct. When the income generated by my application on the public chain is virtual currency, I can use virtual currency to pay the cost of running on the public chain for business, because the income is virtual currency and the expenditure is virtual currency, which can be offset. But if put the traditional business logic to make application to the male chain will cause problems, namely income is legal tender, but pay the cost is not controllable virtual currency, which is why there is not a bank or multinational companies put their own business in the chain, the logic down or the consensus of chain system, because for many enterprises and Banks, virtual currency can rise to fall, This is not corporate business.
** In the future, there will be a public chain based on legal digital currency, and the resource fee paid by everyone will be shared by all verification nodes or parties of all nodes. When ** business is heavy, nodes will increase, and when everyone does not earn money, nodes will shrink. This is a balance, and I think it is inevitable. I’m talking to the Ethereum Foundation as well, and people think this is a direction. I think there will be two large public chains in the future, one based on digital currency and the other based on legal digital currency. The two will form a certain connection and form their own system, which is worth thinking about.
Our blockchain services network, BSN, is an environment we have built to integrate all blockchain technologies with two purposes:
The first is to reduce the cost of blockchain technology to the floor. Even middle school students who are interested in the technology can try it. Only when everyone can try this technology can innovation be achieved.
Second, both the public chain and the alliance chain are local area networks (Lans). The Internet is great because it can get through all the data and produce the mode of e-commerce and games. If only the mode innovation of LOCAL area networks is not possible, the purpose of BSN is to reduce costs and make all the chains have better interoperability.
This is our architecture diagram, divided into public city node, framework, portal, operation and maintenance center. This chart shows the framework of our continuous integration of various blockchains. At present, there are 12 public chains, including Boca, which was integrated last month. At present, the alliance chain has been added to Fabric, FISCO, BCOS, etc. The leapfrog mechanism was launched on October 23, and it is still being tested. After January, the alliance chain can directly adjust the smart contract, or even adjust the smart contract of the public chain, and reverse adjust the smart contract of the alliance chain with the public chain.
People always talk about where blockchain will be used in the future, and it is almost certain that the real widespread use of blockchain will come when legal digital money is widely circulated.
Imagine how much business has been driven by mobile payments in the last 10 years? Mobile payment keep the cell phone more popular, mobile payment is only between individual and individual, no male probability, company transfer impossible through WeChat pay treasure, digital currency realized toward male quick settlement in the future, must be the whole block chain industry in the future, digital currency may not be available in the future, of course, chain blocks, as long as use block chain, Will drive various industries to use blockchain technology. So I think the flashpoint is still in the central bank digital currency, does not necessarily represent China, the whole industry is being studied in various countries.
BSN is also preparing for this. We will establish a Universal Wallet, which only supports central bank digital currency and reliable stable currency, and can support transfer between Wallet and Wallet. This is suitable for individuals and applications. The Universal Wallet is a research infrastructure for banks to process digital currencies and digital assets from central banks around the world.
Second, legal digital currency and chains, we hope to start up in January, this is a week before a PPT, we suddenly found the etheric fang is not necessarily suitable for now, in the talk to EOS, because may be more suitable for the mechanism of super node, but it is a very complicated set of things, the consensus is changing, and there is no digital currency as a security mechanism, How to prevent attacks? There may still be a lot of people attacking, what about consensus, what about pricing mechanism? In China, the failure of the public chain is not the problem of virtual currency. The core problem of the public chain is that the CYBERSPACE Administration cannot control information.
Thank you, and thank you to Gyro Finance.
The FBEC2020 assembly by the Chinese communications industry association of professional committee of the virtual reality, gaming industry association of guangdong province, shenzhen science and technology association, shenzhen information services block chain association, shenzhen association of Internet culture market guidance, gyro technology, development of science and technology exchange center of shenzhen, heng yue and guest rubik’s cube, Industry head media gyro finance, gaming gyro, VR gyro, gyro e-sports, gyro media co-hosted. FBEC2020 with the theme of “Visionary steady Progress”, will continue to pay attention to the future trend development, industry innovation and upgrading, new links to business ecology and other frontier fields.
Summit conference of the global chain block industry future development together government leaders, many famous enterprises large coffee industry, the experts and scholars, executives and partners, around four core topics: block chain industry “block chain industry ground application”, “financial innovation chain block application”, “block chain technology innovation progress”, “block chain technology research progress and the regulation”. Deeply discuss the trend of blockchain industry, and jointly promote blockchain economy with many partners.