On April 12th, the core team of Newton (NEW), the second phase of the Fire Money Prime project, was a guest at the ChainNode live room. What is the background behind the team behind Newton? In addition to the online fire coin Prime, what new actions does Newton have? E-commerce DAPP on Newton's public chain – How does NewMall plan to break the traditional e-commerce with blockchain technology?
In response to these questions, four guests answered them one by one. They are:
Li Shubin: Co-founder of Newton, co-founder of Good Music, graduated from Communication University of China in 2002. In 2007, Okbuy.com was founded, focusing on the field of e-commerce. Haole bought several rounds of investment from famous VCs and institutions such as Sequoia, Intel, DFJ and Tencent.
Hu Dingjun: Former President of Chongqing Lifan, Ph.D. in Economics, Wudaokou Finance College, Tsinghua University, doctoral tutor. Member of the National Youth Federation, Executive Committee of the National Federation of Industry and Commerce, Standing Committee of the Chongqing Municipal CPPCC, Vice Chairman of the Chongqing Federation of Industry and Commerce, President of Lifan Holdings, Director of Southwest University, and Director of Chongqing Grain Group. He used to be Assistant President of CITIC Bank Head Office and President of Chongqing Branch, and Deputy Director of Propaganda Department of Ningxia Autonomous Region. He was awarded the National May 1st Labor Medal and the State Council Special Allowance.
Liu Jun: Once the head of Dangdang Technology, the vice president of Joyo.com (acquired by Amazon in 2004), and the co-founder of Lanting Gathering (Supply Chain Service) (NYSE: LITB)
Guo Feng: In 1999, Sha Lala Flower Network was founded. It entered the Internet industry quite early. In 2007, Weilan Diamond Network was founded. The Woodland Diamond is the first professional jewelry brand engaged in e-commerce diamond sales in China.
Question 1: Today's theme name "E-Commerce Avengers" is very interesting, the focus is on e-commerce, and the other is revenge. So let's first talk about what is wrong with the existing e-commerce platform. What are the pain points? What is our revenge?
Li Shubin: There are three obvious pain points.
The first pain point is that the Matthew effect of the e-commerce platform is very concentrated. Several large e-commerce companies have almost monopolized most of the transactions, and the monopoly of the platform has led to a substantial increase in transaction costs, which has squeezed merchants and consumers in both directions. The transaction costs, deductions and advertising costs of the mainstream platform may account for more than 20% of the total transaction amount. In other words, if you buy 100 yuan, 20 yuan is to be handed over to the platform. This is a common situation at home and abroad.
The second pain point is also our special emphasis. Consumers are the biggest contributors to the entire e-commerce shopping ecosystem, but the value of the platform has nothing to do with consumers. Regardless of whether you spend 10,000 or 10 million on this platform, you are still not the equity holder of this platform, but just a consumer. However, we believe that consumers as ecological contributors should be directly tied to the interests of the platform. So far, no e-commerce platform has done so.
The third pain point, the user is the producer of the sales data, but does not own the data. Nowadays, people have more and more such ideas and knowledge that data is the most valuable asset in the Internet era, but this asset is monopolized by various platforms. We believe that consumer data should be given to consumers, so that consumers can get income from these data, which is the future development trend.
Guo Feng: Actually, since last year, social e-commerce has become popular. With the listing of many people, on the one hand, everyone's focus shifts to the shopping consumption of grassroots people. Originally, outside the mainstream e-commerce platform, there is such a big dividend space. On the other hand, we found that there are still such a quick way to gather people and get traffic. In fact, the blockchain may be more direct and more exciting than the birth environment. So before investing in this project, our judgment is that perhaps overthrowing Taobao is not a traditional e-commerce method, but a new model. Based on the judgment of the dual dimensions of traffic and social e-commerce, we saw a new opportunity, so we invested in the Newton project.
Liu Jun: I prefer to call "breaking" instead of "revenge." Whether it is Taobao or Amazon, the centralized e-commerce has achieved the ultimate. Everyone knows that any enterprise has its life span, and then a strong enterprise will also experience the stage of growth, maturity and decline. Who will be after Ali? This is the question I have been thinking about. The emergence of blockchain e-commerce is a good break, and many defects of centralization are solved in a decentralized way. Of course, it is still very difficult to completely decentralize today, but my understanding is decentralization, decentralization of organizational structure, decentralization of beneficiaries, and finally decentralization of technology. Newton is practicing this kind of path and walking step by step.
Question 2: When it comes to the "revenge plan" and wants to subvert the products of the previous generation, the new generation of products must have its own unique competitive advantages. For example, in the case of Taobao's own big one, Jingdong is the mainstay of technology products and logistics. A lot of low prices, from the product point of view / user experience / price point of view, then the unique advantage of Newton's first DApp NewMall? In the ecological business, what changes have occurred in the user's rights and interests?
Li Shubin: First of all, the most direct is that when you shop on NewMall, you can become a shareholder on NewMall. The more you buy, the more value your shares add. I just make an analogy. In fact, it is not just this. Secondly, we try not to make huge changes in the payment method. Users have become accustomed to the original e-commerce shopping process and payment methods, so what we do is to add extra incentives instead of changing the previous shopping form.
Hu Dingzhen: It is very good for everyone to contribute to everyone. The significance of this is that trading is mining, increasing the computing power through purchasing behavior and getting a return. Recently, the National Development and Reform Commission issued a document to include Bitcoin mining in the phase-out industry. Although the mining method of Bitcoin has maintained its power, it does consume a lot of electricity. Our transaction is mining, which is through daily purchase. Activities are good for everyone.
Liu Jun: NewMall has a big difference with Taobao. Buying or mining is only part of it. I don't think NewMall can do very well on the first day, and the shopping experience will surpass Taobao and Jingdong. But NewMall belongs to us all. In the process of growing up, every community member's contribution to the platform will be rewarded. In this case, everyone is NewMall's quality supervisor and price supervisor. This is the biggest difference between me and traditional e-commerce, with Taobao, Jingdong and Amazon. For example, if I feel that Jingdong has any problems, I can only complain about it, but on NewMall, I can point out that there is a problem with this product, and then get the reward of the equity, not just the reward of the points.
Guo Feng: Therefore, this management mechanism has changed from the top down to the bottom-up. The original ownership and management rights are all in one center. The decentralized management method is actually more efficient.
Question 3: If the profit of the platform is transferred, how should the platform be profitable? Earlier, some people thought that "the public chain does not need a profit model. What do you think?"
Li Shubin: First of all, we are not without a deduction, no transaction costs, but our friction is small, consumption is small, and transaction costs are greatly reduced. For example, our community members are consumers themselves, and they can save costs in promotion. The platform as an operator still has some consumption, but we will return the profits of the platform to consumers and those who contribute to the platform.
Second, does the public chain need a profit model? NewChain is the public chain, NewMall is the above DAPP, I agree that the public chain itself does not need a profit model, but the DAPP on the public chain needs a profit model, or how to survive? How to attract users? DAPP on the public chain needs to have a good profit model, which can bring more users to the public chain and promote the long-term development of the public chain.
Question 4: We look at the longer term. The fixed fund reserve may not meet the long-term development of the project. What do you think of the future form of NewChain or other public chain projects?
Li Shubin: Everyone earns not a fixed number, but a token. The most hopeful result is that most of the benefits are returned to the consumers, but the operators also get a part. For example, 10% of transaction costs, 8% of which are returned to consumers, and operators retain 2%. With the growth of NewMall, the value of this 2% token is also increasing relative to the legal currency. The interests of consumers and platforms are Consistent and benefit together.
Hu Dingzhen: With the development of the blockchain, the BTC we raise will add value, and our NEW will also add value. This is like a traditional economy with both entities and finance. The process of promoting the company's listing is actually asset securitization. We are preparing to set up the Newton Ecological Development Fund to maintain the team's operations. For example, American universities do not have financial allocations, or rely on alumni donations. Harvard University's education fund has about 40 billion US dollars, and the annual rate of return is more than 10%, that is, 4 to 5 billion US dollars. The same is true for Newton, through the operation of the Newton Ecological Development Fund, through the value added of NEW itself, to maintain our normal development and operation.
Liu Jun: I think that big NewMall itself can bring a lot of value to the team. It took three years to fight and made $24.1 billion from zero. If NewMall is able to make the same size as the community members, then the share of NEW is enough to support operations.
NewMall has a big advantage over traditional enterprises. Traditional companies pay dividends in a half-year or one-year cycle, and there are no clear rules for dividends. Shareholders can only wait for the company's charity. However, NewMall is a daily dividend, and Newton's public chain has begun to divide the profits of the entire system. Community members and platform contributors will be greatly encouraged.
Guo Feng: The distribution mechanism determines that its growth must be non-linear, and it is likely to be geometric growth, which is different from traditional e-commerce.
Question 5: The centralization contrast decentralization, its biggest advantage is efficient, such as Alipay's processing per second reaches 200,000 + / sec, in the last eleven activities, in the second generation of the payment peak, AntBase's database OceanBase handles 42 million requests. At present, Newchain's tps is 5000+/second. There are a lot of voices in the past that this high-interaction application scenario is not suitable for blockchain. What do you think? Will efficiency become a bottleneck in the development of Newmall?
Li Shubin: First of all, everyone will have a misunderstanding. The processing speed of Alipay is 42 million times in the last 11 years. Then someone will ask the blockchain e-commerce to achieve such performance. First of all, we must know that Taobao's annual GMV is close to 5 trillion, which is the state that has been achieved after 15 years of development. And Newton is an innovator. It is the forerunner of the combination of blockchain and e-commerce. We use a platform that is just starting out and in the growth stage to compare the processing speed with a platform that has been developed for more than ten years and is the world's top platform. This is not fair in itself. You can see how we will improve in a few years.
Secondly, the advancement of blockchain technology has processed 7 transactions per second from Bitcoin, and now we can process 5,000 transactions per second. You can calculate initially, the TPS of 5000 per second is 18 million per hour. Pen transactions can handle hundreds of millions of transactions a day, which is enough for today's Newmall. As Newmall grows, the technology on the chain will grow as long as they complement each other and meet the demand.
Guo Feng: Technically speaking, TPS refers to the concurrent processing speed per second. Alipay uses this speed in an instant, and most of the tasks are based on other server loads. Not all e-commerce behaviors are paying for this moment. Its storage, browsing, and dialogue require other equalization methods. Newmall is now sufficient.
Question 6: For the market, two products appear in front of me. Users will compare who has more advantages. The reason why they can develop more is because it is absolutely superior in one aspect. You said that you should use After 10 years of development, Newmall went to compare with Taobao, but the problem is that after 10 years, Ali will become more powerful. What is the advantage of Newmall?
Li Shubin: The fight is actually finding a point of entry. It is not going to be richer than Taobao, nor is it to be faster than Jingdong, but to the point that is ignored by Taobao and Jingdong. So I think the most important thing is to find the advantages that belong to your user base, rather than raising each part on average. And value distribution is a special bottom layer, especially important points.
Liu Jun: Do not underestimate the changes in the underlying organization and incentive mechanism. The impact it brings will far exceed everyone's imagination.
Guo Feng: Generally speaking, it is the money that is right, and the matter is half. The advantage of Newmall is to solve the problem of profit distribution.
Li Shubin: Munger also said that the power of interest bundling and incentive mechanism should never be underestimated.
Question 7: If Newmall has a special advantage over traditional e-commerce, what are the advantages compared to projects in the field of blockchain?
Liu Jun: Why do I choose Newton instead of other projects? Let me give you a very simple example. I told my wife about the blockchain for a long time. She was not interested at all, but when I told her, You are telling him that when you buy something on Newmall and get something like Ali's original stock, she immediately feels. This means that Newmall will bring a lot of new users to the blockchain, so they will start to understand what is the blockchain, what is the digital currency, and then they even have to try to get the NEW to go to the fire currency, I I think this is a very big difference between Newton and other blockchain projects. It really makes a lot of non-coin users understand the blockchain, which is a very good popularity.
Hu Dinghe: I think Newmall is a downsizing against traditional e-commerce. As an investor, I am optimistic about Newmall because it is not just a simple concept. It is upgraded on the basis of traditional e-commerce, unlike other public companies. The chain can't be grounded at all, but also how to solve the distribution, how to solve the warehousing, Newmall all solved. In addition, the threshold is a problem. After the Yiwu market is up, it is difficult to do the same thing in the surrounding area. After the rise of Alibaba, it is more difficult for other e-commerce companies to become giants. Newmall is also the same. It is the first one in the world. E-commerce, and on the big exchange, this is the threshold.
Question 8: NewMall chooses French currency as a means of payment. What are your considerations for doing this?
Li Shubin: We don't want to change the way users shop on traditional e-commerce. Payment is the most important and last step in shopping. If you ask users to pay only with NEW, they will exclude a large number of users, they don't know how. Go get it. So we have been saying that NEW is actually an incentive, not a means of payment. How should the previous ecology be paid, we should not change as much as possible.
Liu Jun: I add that most people are accustomed to using French currency as a standard for their own assets. If the product is priced in digital currency, it may have relatively large fluctuations, and there will be uncertainty in the user's mind.
Question 9: There are two minor problems. First, the payment is now in the form of NewMall currency. Is it possible to pay in digital currency in the future? Or in the form of stable currency? Second, NEW only acts as an incentive rather than a means of payment. Will it restrict its circulation and use?
Li Shubin: In the future, if China introduces a digital currency anchored with the renminbi, we are of course willing to support, or other countries that are recognized by the state, and representative digital currencies, such as USDT and BTC, will not be in the future. exclude. But as a means of payment, we still have to use some currencies that are relatively stable and relatively easy to anchor.
Hu Dingzhen: Whether it is BTC or NEW, it is an asset itself, and assets are volatile, so using them as pricing tools is not appropriate.
Liu Jun: Regarding the problem of NEW usage scenarios, we consider that there are several places that can be used. The first one is that merchants pay commissions. We may charge NEW, so all merchants must do business in Newmall and must go to the secondary market to buy. NEW. The second is that merchants are advertising on Newmall, and may also consider bidding through NEW. In addition, Newmall is just a DAPP on Newton's public chain, and Newton-based games and various applications will be launched in the future. So don't worry about the use and circulation of NEW.
Question 10: Newton from the main online line in December 2018, to the first Dapp online today, the development plan is also in an orderly process, from the Newton official website to understand that the latest plan is divided into Dapp, followed by a plan for 2019 / What is the road map, can it be disclosed?
Li Shubin: The game may be the next DAPP type that was detonated after Newmall. This is the area we will prioritize.
Question 11: On April 9th, the fire currency announced that Newton will become the second phase of the fire coin prime. How do you highlight the encirclement and finally reach a cooperation?
Li Shubin: We have always had communication with the founder of the fire coin, Li Lin, and Xiao Qi. They are also concerned about the progress of our project. And we basically follow the plan, including the main online line, wallet online, operation promotion, code implementation, application landing are all methodical advancement. I believe that the fire coins and other support partners can see it. This is a long-term cooperation and understanding process. On the other hand, we are a diverse team, not just relying on technology, but also the traditional e-commerce background, is a team that can combine blockchain and traditional e-commerce.
Question 12: Can you disclose the follow-up plan for the Newton project?
Li Shubin: We think that the most important criterion for judging a public chain is how many users in this public chain have generated real liquidity every day, so we plan to expand to other fields besides Newmall. For Newmall, because this is the first project to combine the original physical Internet business with the blockchain, we have to do a good job of the interaction between the two, and then we will go online with a large number of categories, we have a lot of Such resources, this year's plan is to improve the category, giving users more choices.
Hu Dinghe: We will further internationalize. I am now a visiting scholar at Harvard University. We are going to set up a point in Boston to attract outstanding students from Harvard and MIT to join Newton's research and development. We are still talking about the blockchain laboratory with the University of Tokyo. Taiwanese lawmakers have created a space for people to create, and we may also join in. And we plan to go to the exchange in South Korea.
Question 13: I heard that Newton's community is very powerful. Now there are already 100,000 people. How do you quickly achieve such a large community size?
Li Shubin: First of all, everyone agrees with our philosophy that everyone contributes to everyone. Secondly, we are constantly introducing products. Then there is some community interaction, everyone can participate in the voting of the node. In general, I feel that I need a good value concept to guide the user, not just staying at the technical level.
Question 14: There are also a lot of Newton cornerstone investors present at the live broadcast today. What opportunities did you have at the time to recognize the Newton project leader and finally decide how to invest in the Newton project?
Hu Dingzhen: I was the first time I saw Li Shubin at a forum at Tsinghua University on January 11 last year. It was also the first time I heard them speak Newton. After listening to it, I felt very shocked. I think the blockchain allows humans to promote democracy and technological advancement at the same time, which is very good. I think the blockchain model, or Newton's model, has opened up a new era, the digital economy era, which is the first reason I invested in Newton. The second reason is to look at the team. I think the Newton team is very good. Shubin has made great achievements in traditional e-commerce. Ten years ago, he received investment of 100 million US dollars from Tencent and Sequoia. I am also very willing to join this team. Share some of the experience of finance and traditional industries.
Guo Feng: Also in January last year, Shubin called me and said that I had a blockchain idea to talk to me. At the time, I was also very curious. We were about the cat 屎 coffee in Sanlitun Soho. Six technical staff discussed some technical terms that I could not understand. Because I am a traditional e-commerce, not a blockchain practitioner, I can't understand many terms, we try to convince each other with each other's logic, but I am a conservative person, a little repelling these things. My wife said that my husband can't understand, don't listen, go on the bus and say, don't think so much. I think about it too, because I have known Shu Bin for a long time, based on the trust and support of old friends, blindly got on the car, but later I learned more and more, I found many advantages inside, perfected my The blockchain knowledge system is the biggest benefit that invests in Newton.
Liu Jun: I was introduced by Guo Feng. The old electric businessmen are actually a group. Before I knew the Newton project, I already had some understanding of the blockchain. I also speculated on the coins and mining, but in the past, the way to participate in the blockchain was a bit like a speculator. The blockchain is tall, but it is very empty and empty. It is far from ordinary life. Until the Newton project combines our previous experience with the blockchain, there is no reason to try it. The more you try, the more you realize that the blockchain needs to go into the thousands of households and walk to the people's side. This kind of project is needed. Otherwise, ordinary people will never understand this technology, and the blockchain will not be popularized. I think Newton has opened a very good head, and through the form of e-commerce, the blockchain really enters thousands of households. From my point of view, this is a very meaningful place to invest in the Newton project.
Question 15: Both the government and the blockchain enterprises are emphasizing the illusion of reality. Therefore, the “chain reform” has been in full swing in the past period. Do you think that “chain reform” will become a political task or a real application scenario?
Li Shubin: You can't solve the blockchain for the blockchain. What problems can you solve? What exactly does the company's genes look like? This is very important. If a traditional enterprise can't use the blockchain at all, then its organizational structure can't be like Newton. At the beginning, it is a community-based structure that everyone contributes. If I want to change the chain, I think the difficulty is still Very big.
Liu Jun: I am engaged in technology. Just like the appearance of quantum computers has changed the original traditional PC. In fact, when new technologies appear, we all have strong curiosity. Let’s first understand this thing and see if it is Can become a tool for business logic, I think that in this process, we should not reject new things and integrate the learning mentality into our own business.
Question 16: Newton has officially established a strategic partnership with Chongqing Grain Group. Just now Shubin has also talked about a plan for Newton for 19 years. Can several investors add to the cooperation that you will reach with Newton?
Liu Jun: The combination of our and Newton is more in the service of goods. I have a long time in the jewelry industry, and I have mature experience in style design, style development, and storage, transportation and payment of jewelry. Therefore, we can provide Newmall with more complete jewelry products.
Guo Feng: I have invested in some consumption upgrade projects in the past, and there are some e-commerce projects. I believe that these projects can be well integrated into the Newton system, including homestays, restaurants, mothers and children, and the future may become Newton. DAPP. In addition, we may also have an education channel to bring K2 training schools across the country to Newton, and users can get NEW incentives for class training.
Hu Dingzhen: I used to engage in finance. I joined a group of private entrepreneurs from Chongqing and the National Federation of Industry and Commerce to set up a digital currency investment fund, invested in several blockchain projects, and then planned to launch the Newton Ecological Development Fund. Financial means have helped Newton's development.
Question 17: From an investor's point of view, what do you think is the standard for a good project? From your past experience, what are the key factors behind a successful project?
Liu Jun: I think a reliable business model plus a reliable team is the most important. In comparison, the latter is more important because the business model can be changed, but if the team is not reliable, then the best business model is useless. Therefore, the early project of investing is mainly to look at people. Shubin is a very prestigious person in the circle. He can participate in this project, and he does not have to think about it.
Question 18: Recently, the cryptocurrency market has picked up slightly. Many people think that this is the beginning of the bull market. Several people have experienced the process of the Internet bubble to the return of value. Do you think that now is the beginning of a real bull market?
Hu Dinghe: I personally judge that it is the beginning of the bull market, because the blockchain digital currency trading is 24 hours and 365 days, it is much faster than the traditional stock market. Moreover, Bitcoin has faced a reduction in production after more than a year. It has been almost a year and a half since the peak in 2017, and I find it difficult to fall below $4,000. I have only entered the blockchain world for more than a year, and have driven more than one hundred investors around me to enter the blockchain industry and buy bitcoin or other digital currencies.
Liu Jun: There have been fans of the community asking, what price will NEW be after prime? Explain that you may still be very concerned about the price, but I think this is precisely what we should not care too much now. Some of us are people who come from the traditional Internet. Everyone has always said that the blockchain gives people a feeling of being imaginary. They are all people who are speculating in the currency. There are very few people who are really clerk. Then I think we should focus on how to do well on Newmall. Some people say that Newton is a fund, a Ponzi scheme, what is a Ponzi scheme? The money that the people in front gave was given by the people behind, so how can Newton not be a Ponzi scheme? It is to let Newmall generate profits and continuously distribute its profits to everyone. Imagine, if you drive hundreds of millions of consumers to shop on Newmall, what kind of price should NEW be? Maybe Newton can be the reason for the beginning of the next bull market, so it doesn't matter if the bull market doesn't come. What matters is that we can make Newton the reason for the next bull market.