Non-serious discussion on blockchain finance from "self-tearing" (2): reality and current situation

Author: Yang Tao, FinNexus founder, Wanchain co-founder


Choose chicken soup

The development of human finance not only progresses along with the development of human economy, but also evolves on the progress of human accounting tools. The progress of blockchain books will also promote financial innovation. From the beginning of the record of debt on the stone, finance began the deployment of human value or wealth in space and time. This kind of deployment is an angel when it is effective. When the deployment fails, it immediately becomes the devil. Finance also makes participants struggle with the identity of angels and demons. The above is about discussing the problem of black cats and white cats, but it seems that white cats and black cats are the protagonists from the angels and demons.

As a product designer, it is still inferred from the perspective of solving problems. Back to the problem of deployment , the deployment hides the meaning of two levels, in addition to the space and time of the deployment, and who is deployed between. Looking back at the last round of bull market in the blockchain, the 1CO is booming between investors and blockchain entrepreneurs. It is a global financing act in space, and investors and speculators use it now. The money for future earnings.

From this point of view, blockchain finance has solved the problem immediately. But angels and demons always come together, and Chinese philosophy is called yin and yang. The blockchain's public chain progress has not yet made a substantial breakthrough, and the blockchain business project has not yet landed. When this nascent industry still needs time to grow, he is drawn into the darkness. Describe the mood of the majority with the lyrics I hate the most:

Everything I used to have was blinking like smoke. I used to lose. I lost all directions until I saw the ordinary. It’s the only answer. When you still dream about your tomorrow, will she be better or worse?

The reason for hating this lyric is that you X, and finally the question that ends with "more bad". Baidu’s celebrity quotes and soul chicken soup about “Hope” are hundreds of thousands. As an entrepreneur, you must choose chicken soup. As an entrepreneur, we must find a solution to the problem.

From a financial point of view, those problems in the blockchain are not well solved?

The reality is ideally:

The ideal of the blockchain is decentralization. After being combined with finance, it is called Defi. After being called Defi, the spring snow is getting farther and farther away from the majority. Defi was turned into a research project and became a toy for top believers and tech savvy, as well as a compelling talk. For this reason, Defi's blockchain infrastructure is relatively primitive today, with pure chain applications as the goal, which greatly increases the design difficulty and development difficulty of the product, and ultimately limits the use of the scene and the final user experience. At the beginning, it was mentioned that the role of finance is to allocate. When a Defi product increases the difficulty of users' use, liquidity cannot be discussed, and the role of financial allocation cannot be exerted.

Reality looks like a devil:

At the other extreme, exactly the opposite of Defi, the blockchain becomes a skin, and what is not important in bread, whether for survival or development, is always a concerted action for everyone. The result of today's evolution is that even speculators are struggling to find the target, let alone investors. If we return to the essence of finance, the two sides of the “provisioning” are those who have the funds to hope for future returns and those who lack the funds but can create future returns. We simplify him into funds and assets. I remember that there was a discussion with a certain industry person not long ago. Is the blockchain industry lacking money or lacking assets?

Lack of money or lack of assets?

The reasons for the lack of money are as follows: There is no entry of new funds in the industry, the specific performance is that the overall market value is not faltering, and the industry conference becomes a sickle party. If you can't refute it, think carefully. Is this like asking if the crop is short of water? The answer is no shortage, because the crops (bankers) are dead. Of course, comparing money to water is not appropriate, because water only flows low, the money is really smart, and the crops are useless in the low places. When everyone is optimistic about the status of blockchain finance in the future of finance, naively believe that blockchain assets are valued, and water will naturally flow too naively, and the outside world has nothing to do with you. The Utility Token in the blockchain industry is also a Security Token. The quality of these crops is the key to getting smart money in.

The reason for the more professional lack of assets is that there are many interest-bearing varieties in the industry that rely on the borrowing of loans, and the assets are excellent. This cannot be denied, but further reasoning, how many people in the industry who need to hold money to borrow money? If the supply of funds is much larger than the supply of assets, the result is that interest on borrowing continues to fall until no new funds are entered. Simply put, this asset is not enough for a lot of money outside the game. And from the financial logic, such assets naturally encapsulate the systemic risks of the blockchain industry. That is to say, when there is a large-scale decline in the market, the income of such assets cannot be realized, and even when it falls rapidly, it is risky to take back the principal.

The world may be short of money, and the blockchain world may not be short of money, because in the paddy fields of global finance, the blockchain is still an experimental field, and it is successful in flooding. Of course, failures are unrecognizable. Idealists are omnipotent in cultivating purebreds in this field. Realists are trying to enjoy their achievements and wait for death. Opportunists can't tell who is harvesting them.

Recognizing the status quo and discovering problems, water diversion is the key. A cat that can draw water is a good cat. The next article will continue to explore the problem of a good cat from a financial perspective. The next article "The blockchain finance from the "self-tearing" is not serious discussion (3) – reality and future"

Author: Yang Tao