Yu Jianing: Blockchains 1.0, 2.0, and 3.0 have produced three kinds of certificates. What are their intrinsic values?

Whether you are willing to participate or not, human society is experiencing an unprecedented change – from physical society to digital society.

China has a "digital China" plan, the European Union has a "European digital single market strategy", the United Kingdom has introduced "UK Digital Strategy", and the United States has proposed a digital strategy in various fields.

But the problem is. After the digitalization of human society, digital assets may become the main assets of human society. Data is so easy to copy, tamper with, and even destroy, how to solve the security of digital assets. At this time, Nakamoto was coming, and humans discovered the secret weapon of digitally safely storing and transferring digital assets—the blockchain.

Some time ago, the “cryptocurrency” in digital assets ushered in a new wave of rising. Many people have blindly followed up and are likely to become “new leeks”.

Inter-Chain Pulse invited the President of the University of Fire and the Doctor of Economics, Yu Jianing, to explain in detail what is a valuable digital asset and how to avoid the loss of other assets.

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President of the University of Fire Capital, Dr. Yu Jianing, Economics

Interchain Pulse : How do you understand the intrinsic value of digital assets?

Yu Jianing : I am very pleased to have the opportunity to explore the issues related to the intrinsic value of digital assets with members of the community. This issue is important because prices always fluctuate around value, and understanding intrinsic value is very important.

And all the friends who invest in digital assets will actually encounter a big problem. They will always encounter many people who question digital assets. It is a kind of bubble and a Ponzi scheme. But many friends will find that this view is not so easy to refute, even if it is questioned more, it will also generate self-doubt. Therefore, fundamentally understanding the intrinsic value of several assets is crucial for firm long-term investment and long-term gains.

Digital assets are a very complex concept, and there is no clear definition until now. The scope of our discussion today is limited to the digital assets on the blockchain, that is, Token.

But Token alone is divided into many categories. Regulators in many countries try to classify, but the standard gap is very large. It can be said that human society does not have a basic consensus on the classification of Token.

So I have to quote some of my own points and clarify the standards and scope of today's discussion. In general, tokens can be classified into payment-type certificates (PT), utility-type certificates (UT), and securities-type certificates (ST). The boundaries between categories are indeed very vague, because a Token often has the ability to pay, the actual use value, and certain securities attributes, so it is not easy to make a strict distinction.

I personally divided the development process of the blockchain industry into three stages, namely the blockchain 1.0 represented by Bitcoin . The pass of this stage often has no specific use scenarios, and its value comes from the consensus of the community. But often it has a certain ability to pay, so I will be in the blockchain 1.0 era of Token, such as Bitcoin, Litecoin, and a variety of bitcoin forks, alternative coins, defined as payment type Certificate (PT).

The representative of 2.0 is Ethereum . The characteristic of this period is that the public chain plus smart contract, Token becomes a tool for settlement within the system. Because Token has a clear usage scenario, its value depends not only on the consensus of the community, but on the boundaries of the entire ecology. There are a lot of Tokens in this category, and we will define them as Practical Authents (UT).

Blockchain 3.0 is the era of the upcoming industrial blockchain . Tokens of this era are often issued and traded under government supervision, and often anchor physical assets and have strong investment financial attributes. Let us call this type of securities-type certificates (ST).

The intrinsic value of these three kinds of certificates is actually different.

Mutual chain pulse: Can you introduce the payment type pass (PT) of the blockchain 1.0 era?

Yu Jianing: For PT like Bitcoin, in fact, I think that the inherent contradiction arising from a financial development is the conflict between the independence of assets and the convenience of payment.

What is the independence of assets? It is the extent to which the holder of the asset does not rely on the commitment of others to control the assets.

We all know that in ancient times, the real wealth was the gold and silver currency, but because gold and silver were difficult to evaluate, difficult to divide, and difficult to carry, standardized copper coins were often used as the actual means of payment. However, during this period, although the payment efficiency is low and the transaction cost is high, whether it is gold or silver or copper coins, it is completely controlled by the owner.

As the country has evolved into the era of national credit currency notes, some changes have taken place. Although the storage and payment costs are greatly reduced, the transaction efficiency and transaction costs of the entire society are optimized. But the actual purchasing power of banknotes is not determined by the owner, or even by an open competitive market. In this case, the wealth owner’s control over wealth actually decreases, and the independence of property actually decreases.

In the later days of e-banking, wealth became a string of figures on the accounts of financial institutions, and even with the convenience of convenient third-party payments, even paper money was no longer used. In this era, money has indeed become a number.

Although the transaction costs have been further reduced by this technology, we have enjoyed unprecedented convenience, but one fact that cannot be ignored is that the control over property is actually declining and the independence of property is greatly reduced. Our wealth, and even our lives, depend on the commitment of various institutions. Once an individual institution has no way to fulfill its promise for a specific reason, property is likely to disappear out of thin air. This is actually a big problem.

So we hope to find a way to pay and store wealth at low cost and high efficiency, while at the same time ensuring the independence of wealth. Fortunately, blockchain-based digital assets have this feature.

In fact, the PT of the blockchain 1.0 era is such a kind of digital gold, which has excellent independence and can be easily paid and stored. This property determines the value of such assets and is of sufficient value as long as there are enough people to recognize them.

Therefore, we will find that those PTs in the blockchain 1.0 era are often older, the longer they exist, the higher the visibility, the wider the degree of recognition, the greater the volume of transactions, and the more stable the value. And those digital assets that have similar characteristics but are not well-known and recognized are often more volatile, and the ingredients of the speculation will be relatively large.

Inter-Chain Pulse: What is the inherent logic and value of the UT in the blockchain 2.0 era?

Yu Jianing: The GAS fuel model pioneered by Ethereum can be considered as one of the core logic sources of UT.

What is the property of the Ethereum in Ethereum? In real life, we can find some similar benchmarking assets. For example, I think it can be considered as a “prepaid card”, a prepaid prepaid card, a fuel card, and a prepaid calling card.

To use the power of the Ethereum network, you must use the Ethereum. In fact, it is similar to how we go to some membership-based restaurants. We do not accept on-site payment, only accept pre-stored value-for-storage cards, and use the stored value to pay the bills.

This leads to a problem. Although members contribute a lot of development funds to the restaurant in this way, it has an important contribution to the development of the restaurant. However, the value of the restaurant has nothing to do with the membership. It is difficult for members to share the value of the restaurant. The proceeds. At the same time, there is no good way for the restaurant to encourage everyone to do the card. It is impossible to encourage everyone to contribute to the development of the restaurant. It is also difficult for the recharge card to become a tool for fission growth.

But if the number of such stored-value cards issued is constant and the pricing is determined by the market, then the situation is different. Due to the constant number of issuances, as long as the restaurant is popular enough, the customer's demand for stored value cards will increase, and the market price of the recharge card will rise, so that members who have previously purchased the stored value card to contribute funds to the restaurant can actually Share the overall value of the restaurant by using a stored value card.

At the same time, if the stored value card is freely circulated, it means that the rights can be freely exchanged according to the market price. The stored-value card system of each restaurant is easy to get through, and users don't have to worry about the amount of stored value being wasted because they are no longer willing to go to a restaurant because of taste changes.

In the UT-based distributed business system, the interests of all aspects are uniformly mapped on the industry pass, and the promotion of the value of the industry pass will become the core appeal of all parties.

Under the catalysis of UT value, we will even find that the financial reporting logic of the company has undergone fundamental changes. A company does not need to obtain income and profits, it can achieve the growth of equity value, because the market price of UT can directly reflect the growth of business volume to the growth of asset value, and thus increase the wealth of value contributors in all aspects. .

Mutual chain pulse: How has the ST in the blockchain era changed?

Yu Jianing : When it comes to the ST in the blockchain 3.0 era , the situation has changed a lot. These STs, on the one hand, are subject to regulatory issuance, trading and investment under the supervision of the government, but the entire trading system and pricing methods are quite different from traditional stock securities:

Since traditional stock securities, etc., are non-independent assets, they are often limited to trading in one or two exchanges. Therefore, the pricing efficiency is actually not high, and often the price is easily manipulated by the big players in the exchange.

But one of the core features of ST is that because assets are independent, transactions are not confined to a single exchange, high-quality assets, and even a global 7*24-hour foreign exchange trading system.

We can compare, 360 in order to withdraw from the United States, back to China, it took almost a year, very tossing, huge losses. And if it is ST, it will never have such a strong dependence on a certain transaction.

And we have envisioned the bitcoin trading system. In fact, there are tens of thousands of exchanges around the world that together constitute a bitcoin trading network. No exchange is a pricing center. There are countless arbitrageurs around the world. The price is closely linked, which can actually be understood as another decentralized pricing system. Of course, each of these exchanges is truly centralized, but just as every node in the blockchain is centralized, we should focus on whether the entire large network will be controlled.

Therefore, from this perspective, the pricing power and efficiency of the digital financial market are higher than the traditional financial market. However, due to market size and other constraints, this advantage has not been fully realized.

From this point of view, ST's intrinsic value is similar to traditional securities on the one hand, and on the other hand, because of higher transaction efficiency and pricing quality, as well as high quality liquidity, the premium is significant.

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