Market, investment, and privacy technologies are hot topics in the cryptocurrency industry. But at the same time, the industry is constantly changing. Recently, we have heard new words such as platform coins, Libra, Staking, DeFi and so on.
In order to further understand these new words and analyze hot topics, on July 9th, the chain node live room invited several very representative figures in the industry, they are the legendary FBG founder Zhou Shuoji, the Wright currency spokesperson and founder. Charlie Lee, well-known keyboard man and blockstream chief strategy officer Samson Mow and guest host Michael.
- Securities Times: The most significant application of China's securities industry in blockchain technology is the promotion of ABS business
- China Baowu's first single-chain ABS "Tongbao No. 1" was successfully established and will be listed on the Shanghai Stock Exchange.
- CSI: The most significant application of blockchain in the securities industry is the promotion of ABS business
- The first on-chain finance in 2019: how does blockchain technology land in "bank guarantee"?
The following is the essence of the live room content, organized by Babbitt:
Libra: Better than PayPal, but can't win Bitcoin
As the cryptocurrency of social media giant Facebook official announcement, Libra may be the most important news in this year's circle, but these "old people" who are not surprised are not excited.
In Charlie's opinion, Libra is not really a cryptocurrency, but it can bring a lot of users:
“Libra is not a cryptocurrency, I am not very interested. I think it may compete with currencies such as Ripple or Ethereum, but I will only continue to focus on pure cryptocurrencies such as Bitcoin and Litecoin. They are all sound currencies. Libra is not the same as them, but it is a good thing for the industry. Facebook has billions of users, so it may bring billions of users to the digital currency field, and once they come in, they will start to understand the real encryption. What is the advantage of money? So I think Libra will bring more users."
Charlie believes that Bitcoin is a sound currency and stronger than French currency, so currency like Libra, which is supported by French currency, will not affect Bitcoin.
In addition to Ripple, Michael said that Ethereum, which also wants to do smart contracts, may also be affected. And Libra is more central and efficient, and with the reputation of its big company, customers will naturally have more, Charlie added.
It is clear that Libra's centralization is the main slot they found. So does this mean that Libra will eventually be the same as a centralized payment tool like PayPal?
The answer is no, Charlie and Samson analyzed from two aspects. First, PayPal is a tool to anchor the dollar, while Libra anchors a basket of currencies:
"If you are just a stable currency, you can completely unlock it. But if it is a basket of currencies, such as the Singapore dollar, you can't lift the anchor without knowing what currency is in the basket. Libra is doing the same. They anchor a basket of currencies, but they don’t tell you what’s going on, so it’s hard to attack this anchor.”
Second, Libra implements currency programming, which PayPal can't.
“But the difference between Libra and PayPal Venmo is that it is very happy to open the API to implement currency programming, so we also need to see how they are doing this because it is not possible with PayPal and Venmo. One point, this is a more interesting aspect."
Libra's centralization not only led to its inability to compete with Bitcoin, but also caused regulatory troubles.
"There is also a European legislator who plugs in. This is not a good thing. It is a centralized cryptocurrency. If you can find someone, such as a complaint from the regulatory authorities, then this is a weak, weak point. Their The goal is to be a global cryptocurrency, which means they need to talk to everyone, they always face a variety of requirements, they must find a way to meet these requirements."
DeFi soul torture: Can "financial games" solve "financial problems"?
Charlie seemed to be surprised when asked about DeFi, because DeFi is not a hot topic compared to domestic.
Therefore, Zhou Shuoji has synchronized the progress of DeFi from the perspective of Chinese users:
"I am very excited about DeFi. In the past, when I talked to some people who did the exchange, I said that only a small number of people really participated in the game of DeFi, about 10,000 people. But recently In 2~3 months, DeFi users in Ethereum showed a significant positive growth, reaching 1 million. This does not mean who to draw funds from, but it can lock in capital for 1-3 years, based on different investors. Interests, you can see their different goals.
At the same time, this is not a new way of financing, it is a different way of playing in finance. In the past, many people wanted to find a gap, a game, they traded tokens on the platform, hoping to adapt and participate in more people, but it is very difficult. Last year, many traditional Internet practitioners in China joined the field and quickly disappeared. But now, I can see that they can already try some of the underlying basic gameplay, and I can now see some real applications. Although they are still in the early stages, they will make breakthroughs in the next 3-7 months and they will change the current financing model.
Staking is a good example. I used to think that Stake has a lot of requirements and it costs a lot of money. Now, you can think about how to maintain your ecosystem in another way. If a project needs to raise funds, it can raise funds through the foundation or the project itself, or expand the ecosystem by helping the project to lock in demand at the foundation and give them Stake funds to support the project.
I think this model makes sense. I think this is the right way to expand the project. They can use it to attract real users. They can also be used to solve other problems. For example, the US has frozen their funds. They can still get support. How to expand their project on a smaller public chain, I think this is a good way, these are my views. ” But Michael believes that DeFi is just a financial game and can't solve practical problems.
“I think this is more like a 'financial game'. People are keen to play in the field of encryption, there are a lot of speculation here. We see some people gambling here, many of those who succeed are gambling, garbage coins to garbage Going to the trash coin, do you think that 'financial games' can really solve the 'financial problem'?"
Samson simply responded with a sentence: "You should encourage people to be Hodl." Litecoin and Bitcoin’s “Privacy Plan”
Earlier, it was reported that Liteco plans to deploy the popular MimbleWimble agreement, and Charlie confirmed the news.
"What we want to do now is to make an extension block on the Litecoin, similar to the side chain, a bit like the side chain attached to the main chain. So all the miners who want to do this kind of experiment can be in the main chain. Digging and expanding on the block, they accumulate on them, they can exchange money on these two chains. In this way, when they are on the extended chain, they will experience MimbleWimble, of course you can also The reward is transferred back to the main chain."
But he admits that maintaining the two chains is always complicated, and if the user agrees, they will consider deploying MimbleWimble directly in the main chain in the future.
In fact, the creators of MimbleWimble originally wanted to use it for bitcoin, but Samson said that applying privacy to Bitcoin is a political issue rather than a technical issue. Taking a confidential transaction (CT) as an example, he said:
"Confidential trading (CT) clearly has a larger book size and a stronger calculation, but some companies such as Coinbase say that we don't want confidential transactions because they want to do blockchain analysis, which is political rather than technical. ”
Fortunately, Bitcoin is not stagnant in terms of privacy:
"Lightning network has greatly improved the privacy of Bitcoin, and CoinJoin technology has become more and more popular, and now many mobile wallets also support mobile CoinJoin. This is only a matter of time, and everyone will slowly realize this."
Investing in perspective: how to configure reliable assets?
Michael shared two coins he liked:
“The market will decide who will be the winner. I like two kinds of coins, one is Bitcoin, Ether, Wright, which is fair and needs to be mined; the other is BNB, HT, they don’t care. Regulatory policies, they are developing new rules and expanding their application scenarios. Especially BNB, I don't care how much share their team has, I only care about how much I have. They may not have a high circulation rate, their team is like The Zcash model, which holds about 10% of the volume, is healthier for the industry and fairer for us."
As a senior investor, Zhou Shuoji is more inclined to judge the investment target from the market value.
"I will follow the market with regard to investment, and may be ahead of the market. Now the market value of Bitcoin is around 55%, which is a challenge for investors. If we think Bitcoin, Litecoin and other mainstream currencies will account for cryptocurrency. 80% of the total market value, then you do not need to invest in other currencies, you only need to buy bits, coins, etc., so that you will outperform 90% of the investors in the market. But I need to trade, so I hope that Bitcoin and other mainstream The market value of the currency has increased, but the market share has become smaller, so that we have more room for growth."
In addition, Zhou Shuoji also revealed the investment tendency of FBG:
"We are actually more inclined to invest in some hardcore projects, privacy direction, and innovation consensus mechanism. I think all Ethereum investors will consider this type. On the other hand, we are biased towards investing in some companies that rely on physical assets. Just like the exchange team. They decentralized the original centralized business. I prefer the steady phase rather than the early stage, and there are so many scams on the market."
PoW and PoS
When it comes to PoW and PoS, the scene is immediately divided into two factions. Bitcoin die loyalty Charlie and Samson both believe that PoS will not occupy the market. Because the process of PoS is too simple, unlike PoW, by using energy and computing power to get output.
Michael and Zhou Shuoji said that PoS is more efficient, and the entry barrier is lower and fairer.
Feel the arguments of both sides:
Charlie and Samson:
1. PoS is too simple, you can send a coin at random, then there is no more; PoW is different, you need to have real miners mining, infrastructure, electricity, etc. are the real cost to invest; 2. PoS is essentially It is unfair to say that the more money you have, the more money you will have and the money you will make.
Michael and Zhou Shuoji:
1. The trend of PoW mining seems to be more and more centralized, including mining capacity and equipment; 2. Bitcoin is the same, if you have money, you can make chips (you can also make money) .
Charlie forcibly ended this topic:
"This is not a problem we can solve in this round table. I am more interested in PoW than PoS."
How to break the high-selling and low-selling curse?
The small partners who bought the coins will find that they only need one operation, what to buy and what to sell, what to sell. High buy and low sell seems to be a terrible curse. This is partly psychologically dominant.
"Unfortunately, most people buy high and sell low. When the mood is high, everyone hears bitcoin, Ethereum, and Litecoin, and they buy it. When the price drops 80%, they think it will be zero. And immediately cut the meat."
FOMO (fear of missing) is a good summary of the curse of high buy and low sell, when the price rises, people will buy crazy, afraid to miss the opportunity to enter, and at the same time will sigh not to fall; but to the currency When the price falls, many people will start panic selling and think that they should stop the loss in time.
Therefore, Samson said that prices should not be the criteria for investment.
"I think the most important thing is to know why Bitcoin is valuable. Why do you want to buy Bitcoin, and then decide for yourself (buy or not), don't stare at the price every day."
Zhou Shuoji gave more complete suggestions:
“For most ordinary investors, my advice is to see how big the plate is and how many holders are there; if you buy and hold, you will make some money, as long as you hold it firmly. But if you are a high-frequency trader, I think 99% of the speculators will lose money, as Charlie said, most of them are high-selling and low-selling. When the price recovers, they have no money. ”