On September 26th, at the 2019 Yunqi Conference·Ant Block Chain Ecology Summit hosted by Alibaba Group, Xiao Feng, Vice Chairman and Executive Director of China Wanxiang Holdings Co., Ltd. published “Decentralized Economy (DeCo): Reconstructing Business The keynote speech. Xiao Feng said that as a decentralized value network, the blockchain will completely reconstruct the business after superimposing the decentralized information network of the Internet.
Blockchain restructuring business is divided into four phases: economic activities within the public chain, smart contracts, decentralized finance, and distributed economic ecosystems.
In the speech, Xiao Feng also predicted the new business form constructed by the blockchain. The core views are as follows:
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1. The blockchain is a decentralized value network. The centralized information network is superimposed on the centralized value network, and the business will be completely and completely reconstructed. So the Internet is just a part of refactoring the business, and the blockchain may be refactored very thoroughly.
2. Reconstructing the blockchain in business brings about restructuring finance and providing a new set of financial service systems for the digital economy.
3. Blockchain restructuring Finance includes two points, one is point-to-point real-time payment and liquidation, and the other is non-guaranteed transactions and sales.
4. The economic or financial characteristics of the blockchain are the establishment of a new accounting method and the establishment of a new account system.
5. In the future commercial application of blockchain, it is not only decentralized, it is the combination of centralization and decentralization.
The following is the full text of Xiao Feng’s speech, edited by Mars Finance APP:
I am very grateful to the ant blockchain for giving me the opportunity. The organizers hope that I will talk about the impact of blockchain technology on industrial change. It is just this time that I have also made a small reflection on this aspect. The topic of today’s speech is called “decentralization or how the distributed economic ecology reconstructs business”.
This speech was specially held at the Alibaba Yunqi Conference. Alibaba places special emphasis on Alibaba's economy and economy. I want to start from this point of view, borrowing the name of a famous best-selling book, "The world is flat."
In the eyes of the blockchain, the world is distributed. Internet, Internet of Things, artificial intelligence, big data, cloud computing, blockchain, this combination of digital technologies has brought a new world, and we are now Yunqi Town, Yunqi Conference·Ant Blockchain venue Not the same world. That is the digital world. Digital technology is built on these basic technologies and data tools.
In the non-objective, non-material, non-physical world of the data world, our cognitive and cognitive methods will change a lot, otherwise we will not be able to clearly understand the digital world. In the industrial world, a whole set of physics or mechanistic thinking methods established by Newton and others have not been able to explain the digital world well. So we need to establish a new set of cognitive theory and methodology. What kind of "new"? I turn it into a biological thinking or a biological methodology that looks at the digital world from the perspective of looking at complex systems.
Everyone knows that Kevin Kelly has written a very famous book called "Out of Control." A few decades ago, he predicted the changes brought about by the Internet world and the blockchain world. He also used biological thinking and biological cognition when writing this book. After reading these more than 700 pages, I summed up the sentence – "The world is distributed, decentralized, and organized." The world described by "Out of Control" is precisely the most important feature of the blockchain world. From the Internet to the blockchain, the world has evolved in this way.
I basically believe that after the blockchain technology is mature, the world may be completely reconstructed.
We know that when Internet technology went to individuals in the 1990s, many people in the United States asked what the Internet was. When I opened the newspaper at the time, the American media explained the Internet to the public, using the word – the Internet is an information machine. You may also remember that when the British "Economist" magazine explained what the blockchain was in 2015, it was said to be an "information machine." Both the Internet and the blockchain help digitally reshape the digital world through digital technology.
The Internet is an information network. In the early days of blockchain development, some people expressed disappointment with the Internet and said that the Internet is becoming more and more centralized. In fact, no, from the perspective of information networks, it is still decentralized and distributed.
What is the blockchain? Blockchain is a decentralized value network. When the Internet and the blockchain are combined, that is, the "centralized information network" is superimposed on the "decentralized value network", the business will be completely and completely reconstructed. So the Internet is just a part of refactoring the business, and the blockchain may be refactored very thoroughly. I think this may also be a very important purpose of today's Ant Financial Service to hold the blockchain conference here.
Whether it is Ali E-commerce or Ant Financial, or other search, socializing, or even take-out, in terms of Internet business, in fact, at the bottom of the list, everyone is doing the same thing – collecting as much data as possible, then drawing customers And the precise image of the product, and then do a precise match. All Internet commerce is refactoring business from the most basic level of this place. What does it bring in the process of rebuilding a blockchain business? The blockchain will bring about restructuring finance and providing a whole new set of financial service systems for the digital economy.
This will bring new financial markets, new financial institutions and new ways of financial services. So from the bottom, how will the blockchain reconstruct financial? There are also two points: point-to-point real-time payment and clearing, and unsecured transactions and sales. This is also the result of the new trust system and the new trust mechanism mentioned in the previous ant blockchain.
When it comes to the commercial application of blockchain, we must understand what the blockchain has. Regarding the characteristics of the blockchain, I will summarize it from two aspects.
First, in terms of governance architecture, the characteristics of the blockchain governance architecture are consistent with the complex systems portrayed by Kevin Kelly. Because it is sufficiently digitized and completely out of the constraints of physical space, it achieves time and space and cross-organization. The data is not constrained. There is also no organizational structure that can constrain its flow.
Second, distributed, decentralized, and organized. It should be noted that the term “decentralization” as used herein refers to the de-intermediation of economic activities or the distributed business to the center.
What are the economic or financial characteristics of the blockchain? It has established a new set of accounting methods and account systems. Some people say that the digital currency on the blockchain is not the account model but the Token model. In fact, Token is also a new type of account. Ant Jinfu has the scale of today because we created a new account, the Internet account. The reason why people create Internet accounts through Ant Financial is that bank accounts cannot provide real-time, peer-to-peer transactions, settlement, payment, clearing and other services in the Internet business scene.
So we saw that NFC had competed with the scan code payment five years ago, and finally NFC lost to the scan code payment. NFC must be inductive, but you can't ask the other party to have a receiver. Why not generate a QR code? QR code accounts are based on Internet accounts, not bank accounts. Imagine that you encountered a jealousy on the street and decided to pay him five dollars. Are you using a bank account to pay him or scan the code for him? Which is more convenient? The truth is actually very simple.
Look at the new account system and billing unit. Under the so-called digital currency, finance is likely to be reconstructed. We see that finance has been refactored to a large extent in the Internet due to different account systems. This refactoring has been happening since the birth of the Bitcoin blockchain in 2009, and this restructuring of the business has taken place. I divided this process into four phases.
The first stage is referred to as DeCo 1.0. It is based on the economic activities within the public chain. Around the distributed ledger , a group of miners work together to establish a basic consensus to inflate people working for the blockchain through inflation taxes and fees.
The second phase is DeCo 2.0, which revolves around the public chain. Around the application of blockchain , we introduced smart contracts, using smart contracts as a decentralized autonomous organization framework to explore the so-called DApp development platform, allowing everyone to explore distributed autonomy mechanisms and commercial applications based on blockchain.
The third stage, the so-called DeCo 3.0, is the “DeFi” developed in the last two years – decentralized finance. In the third stage, the blockchain truly reflects the characteristics of its decentralized value network. In this era of DeCo, digital contracts, digital currencies, and digital assets are very cleverly concentrated. What did we watch? We have seen a new phenomenon – "Tokenization." Also at this stage, we have perfected the entire digital currency system, and as a result, the market has developed stable coins, which perfectly serve as a payment and trading medium in blockchain economic activities. From this time on, the entire financial structure will no longer be just DeFi. The decentralized activities of the blockchain are now being tried, and may become very mature in three or five years.
The fourth stage is called DeCo 4.0, which is a distributed economic ecology. It really uses a decentralized trust network to connect various economic scenarios, connect many economic scenarios, and establish a decentralized trust relationship. In addition, it will be organized in the form of a community or alliance, such as Facebook Libra, which organizes 100 member associations, each with only 1% of voting rights. In addition, it will also generate a new topic, which has been discussed in recent months, "We are no longer using shareholder capitalism as the economic organization's business objectives." It is very similar to what Mr. Ma Yun said.
Two months ago, some companies in the United States said that they would abandon the corporate governance philosophy of maximizing the interests of shareholders. These trends in business and economics point to the trends mentioned above, from shareholder capitalism to stakeholder capitalism, and the interests of all parties in all economies should be positively motivated. This is also the "economic compatibility" and "cross-class respect" introduced by economics. This will be the best solution for cross-stakeholders, and there is no second better solution to date. The blockchain world has no shareholders or management. Take the Bitcoin blockchain as an example. Who is its shareholder? No; who is the management? No; who is the employee? nor.
Of course, in the future commercial application constructed by the blockchain, it is not only decentralized, it will be a combination of centralization and decentralization, complement each other. We should not regard digitalization as a tool to improve the marginal benefits of our original business model, but as an opportunity for the system to reconstruct business and underlying logic. This kind of thing has been happening all the time. When Internet companies promote "Internet +", traditional business people say that this is not "Internet +" but "+ Internet." Now, in the past five or six years, is there anyone who says "+Internet"? No more.
When Ant Financial introduced the concept of financial technology, many leaders of traditional financial institutions said that it was not financial technology, but technology finance. Is there anyone talking about technology finance now? The world is talking about financial technology. So I also predicted that if you want to use the blockchain to reconstruct the underlying logic of the business, if you just use it as a tool, you will make the mistake many people made five years ago. If you embark on the "+ blockchain" road, you may be abandoned by the times and trends.
My sharing is here. Thank you everyone.
Source: Mars Finance