Comment: The premise of regulation is to clearly define the precise meaning of digital assets

Recently, management agencies have launched an overwhelming regulatory storm, and the media has contributed to the formation of propaganda offensives, to a certain extent, to curb the unhealthy atmosphere of the currency circle, to build a good environment where Fengqingqi is returning to its original heart, and to promote blockchain technology to benefit people and serve the society The economy plays a leading role. However, in the words published by some media, Feng Qingping often found that the definition of digital assets is very vague, reflecting the more subjective arbitrariness of multiple standards.

We know that in the high-level speech on October 24, the term digital asset trading was mentioned, which confirmed the future of digital assets from the macro strategy, and roughly depicts the inclusion of digital asset transactions from the meso-industry pattern In the context of the entire industrial chain, some directions and requirements are also given from a micro perspective. We need to carefully study and accurately understand the precise meaning and clear definition of digital assets in the context of the digital economy.

What are digital assets? What are the structure of digital assets? What kinds of varieties will be derived in the future technological evolution and compliance development?

I. Definition of Digital Assets

Regarding the definition of digital assets, this article adopts the perspective of Teacher Xiao Feng. Mr. Xiao Feng defines assets as three states of existence: solid, which represents the real right of assets and can be transferred as a whole. Liquid, which represents the securitization of assets, can be cut and subdivided. The gaseous state represents the chaining of assets, so that assets can permeate the entire space and are no longer restricted by the container (asset platform). Everyone, institution, and organization can manage their own assets through private keys.

These different forms of digital assets will be licensed by different countries and different stages of development, but this is the ultimate definition of digital assets.

Under the current development constraints, there are only native assets on the chain, such as Bitcoin and Ethereum, and various fiat currencies that enter the chain through anchoring methods, such as USDT, Petro, and Libra, the ambitious Lingyun.

In the future, the definition of digital assets has created a fork, which can be divided into assets on the chain and assets on the chain from off-chain. When traditional media platforms published a series of articles, they used negative conclusions similarly to the original assets on the chain, which is not a rigorous approach to be discussed. In some media commentary articles, air currency, scam currency, and zero coin are frequently mentioned, and words such as virtual currency, crypto currency, and digital currency are also used repeatedly, although the word context of these words varies. However, there are many guiding conclusions in the world of currency circles.

Feng Qingping believes that although a project started in the blockchain industry will face failure, leading to the bankruptcy of the project and its currency value to zero, we must not panic and rashly define it as a zero-coin currency. Fengqing Ping's view is at best a virtual currency category that has not yet been implemented. This view is not only a reflection of a professional attitude, but also an inclusive cultural environment for entrepreneurial innovation failure. Feng Qingping once again called for the fact that while token financing has not yet been regulated, although it cannot support the illegal financing phenomenon of relying on Tokens, it is absolutely impossible to put a scammer's hat on this behavior without distinction. .

Although Xiao Feng's definition is comprehensive, it makes beginners feel more abstract and difficult to understand, so I will introduce Mr. Chang's perspective here.

Teacher Chang Yan suggested that the assets on the chain be divided into four quadrant diagrams based on separability and interchangeability, so as to define four asset classes, namely:

1. Bit Asset (BAP-01), can be divided and interchangeable. Corresponding to virtual assets such as Token and real assets such as currency, points, stocks (equal shares and same rights), it is equivalent to the Ethereum ERC-20 agreement.

2. Atomic assets (BAP-02) can be divided and not interchangeable. Real assets such as Bytom's native assets BTM or other stocks issued with the same rights (with different rights) are equivalent to non-homogeneous cryptocurrency protocols such as Bitcoin.

3. Quark assets (BAP-03) are indivisible and not interchangeable. Suitable for virtual assets such as game props, game pets, and real estate assets such as real estate, collectibles, commodities, anti-counterfeit codes, etc.

4. Quantum assets (BAP-04) are indivisible and interchangeable. It can be applied to virtual assets such as red envelopes and voucher-type real assets such as coupons, tickets, and QR codes.

Second, the current dilemma of digital assets

According to a recent video released by CCTV, "What can blockchains that are competing to lay out? "", "Whoever masters the blockchain technology, whoever has the wealth," clearly tells people that in the future world, assets can be chained, and the original assets on the chain together constitute the entire digital Asset world. CCTV brings us a scientific outlook on the future of digital assets, but in the current development, there are still some difficulties, either due to technology or compliance, leading to these views are still described in the vision map, these problems Reflected in the following aspects.

1. Native digital assets need to be further accepted by mainstream society.

Native digital assets such as BTC and ETH, despite their indomitable development, are also recognized by more and more countries and regions, and the recognition methods are also different. Some are regarded as currency and some are regarded as commodities. The conversion of POW to POS is also very likely to be regarded as securities.

Some countries hold a neutral attitude and let them experiment and develop. Some countries have a negative attitude. Some even consider India as a beast of flood. People involved in BTC transactions may face jail for more than 10 years. disaster.

Hegel says that existence is reasonable. Through the analysis of the global acceptance of Bitcoin, it can be roughly concluded that the native digital assets represented by Bitcoin and ETH are different from the Dutch tulips of the 17th century. Although the price may be temporarily disconnected from the value, it does not We cannot fundamentally deny the value it brings as a new technology application. Feng Qingping believes that as long as the Bitcoin network has not suffered a powerful attack such as quantum computing and caused a crash, the native digital asset BTC in its network always exists. The reason, whether as digital gold or digital currency.

According to data provided by Binance Research Institute, a survey of 150 universities in Europe and the United States showed that 94% of the surveyed units have configured cryptocurrency related assets, and university endowment funds have actively deployed cryptocurrency as another asset. Among them, native digital assets such as BTC and ETH are the main representatives.

It is optimistic to estimate that the native digital currency represented by Bitcoin will be accepted by more and more countries and regions. This speed depends on the speed of the introduction of regulatory regulations in various countries and the speed of coordinated advancement of financial games in the context of globalization.

The launch of China's sovereign digital currency, DCEP, will accelerate the popularity of application scenarios. Many people think that the launch of DCEP indirectly announces the demise of native digital assets. Feng Qingping believes that this view has a general pessimistic tendency, and I really look forward to how the exchange rates of DCEP and BTC will occur.

It must be mentioned here that the current regulatory storm makes everyone think that there is a strong sense of 94 supervision. In depth, 94 supervision is a one-size-fits-all way of supervision. Today, China ’s open capital environment is completely different from 2017. This time it is still a reprint of the 94 regulation, and it is completely wrong. The country just told everyone this time that they must be clear-minded and be honest in their entrepreneurship and innovation. The key word is landing. This is the same as two concepts of living to eat and living to eat.

It is foreseeable that if regulatory regulations are not promulgated before, if the impetuousness of losing the original intention is repeatedly high, this kind of suppression will repeat itself. Relaxation is the rhythm of regulation, and objective calmness is the emotion of investors.

2. Offline compliance regulations for on-chain assets need to be launched

The assets on the native chain have formed a huge ecosystem, which is self-contained. In the Ethereum network, there are already many offline financial industry forms, such as mortgages, loans, debt issuance, financing, currency issuance, stablecoins, and transactions. Objectively speaking, as long as the types of financial companies in the traditional world, smart contracts with the same functions can almost be found on the Ethereum network.

This shows that the assets on the chain have gradually matured, and a virtual world framework with unlimited prospects has been formed. What is missing is mainly the recognition from the real world, which is also the sense of the urgent mission of the regulatory policy to be launched.

Regulatory regulations are urgently needed to go online. Another urgent reason is the isolation between the on-chain world and off-chain world caused by its absence. Like the two universes, the embarrassment of the on-chain world cannot go offline and become idling, and offline assets cannot. The bee effect in front of the glass window produced by the winding chain has a bright future, but it cannot fly. Many teams are committed to helping off-chain assets enter the chain. At present, it seems that there has been great progress. The on-chain road to the on-chain for the off-chain assets is being carried out in an orderly manner. Very representative, only two cases are presented.

On November 18th, MakerDAO multi-collateral Dai was officially launched. Currently, the collateralized assets have only increased BAT on the basis of ETH, but we need to see that its positioning is to introduce various types of offline assets, including legal digital currencies such as DCEP , And traditional quark assets and quantum assets, such as real estate, equity, bonds, etc., because of their promising positioning, it has a particularly wide range of imagination. Multi-collateral smart contracts will open a door and introduce huge numbers to the Ethereum network. The liquidity brings the engine and also the feasibility of the integration of the Ethereum network into the real economy.

On November 23, Maple, the world's first digital bond platform, was launched, and users on the DeFi lending platform could issue digital bonds (Maple Smart Bond) by pledged digital assets. With the development of the DeFi lending market, users will be able to create banks in the future, raise funds by issuing bonds, and then lend to others. In a nutshell: these on-chain banks will sell digital bonds to global investors, and then use the funds raised to issue digital loans to connected users. Ethereum will become the world's first on-chain capital market.

Actions on the chain are in full swing, flourishing, and the voices off the chain have been long and growing. We look forward to the promulgation of regulatory regulations, the scene of the two divisions' military establishment, and this is the true meaning of digital assets.

Digital asset concept shock

3. Cross-chain asset circulation

As digital assets become an inevitable trend, various types of blockchain projects led by various countries are being launched in an endless stream, such as various alliance chains, and various public chains together to form the trend and pattern of the development of Wanchain. These situations also clearly describe a pain point that is about to come out, that is, how to let digital assets flow out in their closed systems and flow freely, that is, cross-chain.

Cross-chain is just needed, and there are very many teams that solve cross-chain. The solutions adopted by cross-chain are also different. The essence of COMOS and Polkadot is actually to recreate a universe. In this universe, there is no need to cross-chain. Digital assets and information can flow freely, but only if the universe is strong and attractive enough, others will actively access your universe. Come and participate in your ecological construction. For example, if you want the Ethereum network to access Polkadot through Substrate, it is still very challenging, so strictly speaking, they are a public chain ecosystem with a cross-chain banner.

For Wanchain and other types of projects, Feng Qingping's understanding is that the vertical public chain dedicated to cross-chain, or to help others cross-chain, is currently positioned in the financial industry, but this type belongs to cross-chain positioning in vertical industries. .

Ontology and other types of projects, while building an economic system, also provide cross-chain functional options, just like BTM. The recent MOV released by BTM allows us to see that Wanchain Interconnection in the context of the Internet of Everything is about to enter reality.

On November 25th, MOV tested online. MOV is a decentralized cross-chain value exchange protocol developed by the Biyuanchain team based on the Bystack main and side chain architecture. Bystack not only provides blockchain technologies such as distributed identities, blockchain signatures, and vouchers, but also helps the real economy go online, such as asset on-chain, currency issuance, etc. MOV helps complete the cross-chain transfer of digital assets. Complete system.

Through the above cases, it can be seen that the quite effective achievements on the chain have paved the way for on-chain, the integration of on-chain and off-chain is not far away, and the full spread of digital assets is ready to be launched.

Before the digital assets are fully listed on the chain, the problem that still needs to be solved is the issue of regulatory policies, which involves the identification, evaluation, storage and circulation of the value of assets off the chain.

Going back to the term "transaction of digital assets" as President Xi said, only when this link is in place can a complete closed loop of digital assets be formed. In the compliance section of the exchange, Feng Qingping made an interesting study.

Decentralized exchanges such as 0x, Uniswap, BTS, etc., have long obstacles and will continue to develop, but it is imperative to solve the compliance formalities of centralized digital asset exchanges. Which of the top three exchanges with Chinese backgrounds, Biance, Huobi, and OKEX, will come first, and in the recent regulatory storm, it seems that there is a vague trace.

Due to the founder CZ's international thinking mode, Biance did not care too much about China. As a result, while it was developing overseas, it also alienated its relationship with the Chinese government. Its extremely market-oriented and distributed operation model also allowed It is always in the role of wanderer. There is no room for optimism in the layout of China's first-round exchange compliance industry.

OKEX founder Xu Mingxing declared last year that if the country needs it, the exchange can be sent to the country. In Feng Qingping's ears, the voice of the wild goose is the time to test OKEX's contribution to the country, but It seems that the authorities are not as interested in their exchanges as they are in their users. After all, the introduction of DCEP, due to the endorsement of sovereignty, there is no concern about domestic use. If foreign users ca n’t widely spread, they will implement RMB international through DCEP. The strategy of globalization is also very awkward. Like the users of Alipay and WeChat, these exchanges should be able to make contributions based on their user base.

In the layout of the Huobi Group, in addition to the core links of the exchange being placed abroad, such links as training, development, and investment are all placed in the country, and they interact frequently with the government. The well-established political and business relations and a thorough understanding of China's national conditions should give Huobi a first-mover advantage in this compliance action.

There is no doubt that no matter which exchange is the first to obtain a compliance license, the stablecoin that supports liquidity should be DCEP.

There are classifications of digital assets, and not all assets on the chain have no value; digital assets also have development problems, which should reflect the trend of gradual expansion of the scope of digital assets and the gradual recognition of native assets on the chain; digital assets are ultimately a destination, representing The choices made by people migrating to the digital world today should be a timely and pragmatic action. Correctly understanding the concept of knowing and accepting digital assets under existing conditions is an imminent brainstorm and reality. There is no problem with blockchain as a technology. The problem is that blockchain also involves economic and financial issues, and thus involves political issues. The only difficult problem to solve the current development dilemma of blockchain is to focus on regulatory compliance. We will wait and see.