The Great Migration of Value Growth Anchors – Blockchain, Southeast Asia and Real Estate Collisions

Part of the collection:

  • Focus on three major trends: AI as a productivity, blockchain as a trust machine, and Southeast Asia as a new global growth pole
  • Networking of devices -> Dataization of networks -> Assetization of data -> Share of assets -> Trading of shares -> Financialization of transactions
  • Assets have become the way to break the chain in the era of the Warring States Period, the assets on the chain -> the value of the chain
  • "Company" and "stock" are value carriers based on law and are producing a new type of virtual container that transcends national borders.
  • Blockchain and smart contract technology can help investors invest in global value in a more convenient and safe way

First, the large migration of value growth anchors

Liang Xinjun, co-founder of Fosun Group, said that our judgment on the future is always based on some basic assumptions that constitute the "anchor point" of our judgment. For example, when investing, everyone will put a coordinate system in their own hearts, compare them with price, peers, replacement costs, etc., and finally determine whether a company, real estate, or stock is worth investing.

Due to major changes in the next 15 years, the “anchor” that will lead you to value judgment is drifting. This means that all judgments based on current inertia will likely fail.

Therefore, we need to pay attention to these three major situations:

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In a sense, the growth-driven engine is all under the “population” factor, regardless of whether the “population” is in the form of artificial intelligence (AI) or young labor in Southeast Asia .

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Li Yanhong proposed at the Wuzhen World Internet Conference that the Internet demographic dividend in China is no longer, but the opportunity for AI is coming. Ten years ago, the growth rate of Chinese netizens was over 50%. Today, it has actually dropped to around 6%. After the demographic dividend disappears, the new dividend is in the technology dividend, that is, technological innovation represented by artificial intelligence.

Specifically, the technology dividend brought by artificial intelligence has three growth drivers:

First, algorithms, artificial intelligence, especially machine learning algorithms, from deep learning, DNN to RNN to CNN, have new inventions.

Second, the computing power, the cost of computing is declining, the server is becoming more and more powerful, and today's computing power has reached a critical point, which can make many artificial intelligence applications become practical and become available.

The third is data. The generation of data is still developing at a very high speed. There are 750 million Internet users in China. Such large markets and data sets are constantly generating new data, which will further promote the innovation of algorithms and The computing power proposes an update request.

Xiao Feng, the chairman of Wanxiang Blockchain, further explained the value of “data”. He believed that:

  • Data is oil in the era of digital economy, and oil is an asset. Just like fossil energy is not just used to drive cars, it is also a very large class of tradable financial assets in the capital market.

  • In the age of the Internet of Things, devices generate so much data every second every day. The data will become a very large class of new financial assets in the capital market and financial market, and will generate tens of billions and billions of companies.

  • If the data cannot be a financial asset for a shareable transaction , the commercial value of the Internet of Things will be greatly reduced.

Data winding

Data is oil in the digital age, a financial asset

In the future, with the development of 5G technology and the Internet of Things, smart devices will generate huge amounts of data every day, and data will be divided into standardized shares. The sale of data will become a market with good liquidity and clear pricing.

Although China's development engine will gradually shift from the demographic dividend to the "AI" dividend, the Southeast Asia region, which is known as "China 20 years ago," is actually enjoying the "population" dividend.

At present, the economy of Southeast Asia is in the upward process. According to World Bank statistics, the total GDP of the 10 ASEAN countries is about 2.8 trillion US dollars, and the average GDP growth rate is 5%, ranking the sixth largest economy in the world. ASEAN member countries have covered more than 600 million people in Southeast Asia. More than 50% of the population is under 30 years old, and the demographic dividend is very obvious.

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In addition, Southeast Asia has several unique advantages:

The first is to undertake China's production capacity and copy the Chinese model. A large number of China's excess capacity has been moving to Southeast Asia in the past two years, and many of China's proven business models can be replicated directly in Southeast Asia.

The second is the global value of the land. Because the Southeast Asian economy has not had large, high-speed growth, it has formed a relative value. Especially the real estate represented by real estate, there is still much room for improvement compared to the price of Chinese real estate.

The third is natural and tourism resources. Southeast Asia is rich in island resources and has international tourist destinations such as Phuket, Koh Samui and Pattaya.

So, in the time period of the next few years:

  • Artificial intelligence will begin to challenge the technical barriers of most industries, and data becomes an important financial asset.
  • Blockchain and smart contracts will have a profound and significant impact on the legal system, international trade and corporate organization
  • Southeast Asia is growing into a new engine of global growth due to factors such as demographic dividends

Based on this judgment, along with the migration of value anchors, it is necessary to open the 21st century voyage, explore and bet on the new continent of value growth.

Second, the asset chain has become the way to break the public chain?

For the blockchain industry, last year was still in the market boom of "the first year of the public chain" and "hundreds of battles", but now it is facing the cold and windy era of the public chain . The breakthrough of many public chains is that "the DAPP is the best in the world", and the CEO of Truechain, Zhang Jiannan, a geek who graduated from the computer department of Oxford University , gave a new answer. He believes that

“The asset chain is a field that has not been tapped in the public chain industry. There are hundreds of billions of assets in the world, and most of them will go on the chain in the next 20 to 30 years. On the asset chain, how much does a public chain support? A billion dollar asset? It is a very valuable measure for the infrastructure of the public chain. "

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Potential market size for asset digitization from pandaq.net

Currently, all public chains support Dapp (decentralized applications), and the core of Dapp support is Traffic. And what is the ultimate goal of Dapp? There are a lot of users who actually use this application on the public chain, that is, a large-scale landing application, so that the public chain can grow into an organic economy.

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Digitization of assets in the public chain

At present, there are only about 31 million users of digital assets and blockchain, within the influx of 2.5% of the global population, and there are nearly 4 billion Internet users worldwide. The scale of global digital assets is only $100 billion. Commercial property assets amount to 54 trillion US dollars. With technical scalability, privacy, data storage, hosting and interoperability, and improved user experience, we will gradually see the disruptive development of Dapps and asset-winding cases, and the blockchain user level will also be implemented from thousands. A 10,000-to-billion-level leap.

figure 1

Bridging the gap, from early users to the mainstream market

At present, many public chains are using some betting and game products such as Bet and Dice, but the public chain should try to cooperate with traditional players who have a large user base , such as companies that target mass consumers (such as Starbucks, Facebook, Wal-Mart and hotels and real estate companies, etc., financial institutions (Fuda, Nasdaq, JP Morgan, etc.) cooperate to open the payment and clearing functions of public chains in the real economy of some regions and enterprises.

The deep integration with the real economy has placed at least three requirements on the public chain itself:

  • Improve infrastructure to make the main network safe, stable, fast and easy to use
  • The ability to filter assets, so that the world's quality assets, rather than air projects, are issued on the public chain
  • Develop Dapp with real traffic and expand the payment of public chain certificates and stable coins in actual scenarios

Third, "algorithm" replaces "company"?

Yao Qian, former director of the Digital Bank of the Central Bank, once proposed that the algorithm of decentralized and de-organized encryption economy “erased” the “marks” of enterprises and became a completely new resource allocation mechanism completely independent of enterprises. .

The cryptographic economy clarifies the economic interests of all parties by stimulating compatible algorithm rules and related contractual arrangements, fully mobilizing the enthusiasm of all parties, and making effective distributed collaborative production truly possible.

2

Yao Qian: Algorithmic economy, a new mechanism for resource allocation

Sun Ming lawyer (high-quality blue collar) also suggested that Token Economy's subversion of traditional enterprise/company system may be faster than expected.

"The organizational structure of the company is an abstract thing that is invisible, intangible, and purely legal. Its role in the modern economy is largely similar to that of shipping containers, as a standardized cargo packaging container. .

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Structure of modern company organization

In the absence of a standard container of "company", if two parties want to buy or sell a business, it is difficult to define what the business is, where is the boundary, and what assets and liabilities are included? Only by encapsulating business and assets in a container like a company makes the subject matter of the transfer clearly defined – because it is legally easy to find out which rights, debts, employees, business relationships, etc. belong to this container.

the company

"Company" container boundaries and associations

For example, in the real estate industry, a separate project company is usually set up for each land as a virtual container for that land . In this way, if the land is to be sold, the equity of the project company is actually transferred instead of the land itself, because the property rights of the container of the company are easy to be cut, the transfer procedure is simple, and the transaction tax is lower. "

If you want to conduct a cross-border real estate purchase or international trade, there are several links in the signing of a legal agreement:

  • Legal basis. Is it based on British law or mainland law?
  • payment method. Paying pounds, Hong Kong dollars, or RMB? How is the exchange rate calculated?
  • Dispute resolution. Is the dispute resolved in London or Hong Kong? Is it through a court or an arbitration institution?

Suppose I want to invest in a villa in Thailand. Because Thai law stipulates that foreigners cannot hold more than 51% of the land property rights, foreigners need to set up a joint venture with the Thai to hold the land property rights through the company. When paying, there are complicated procedures involving exchange of exchanges. Although there are already many European and American investors who have purchased Thai properties in this form, why not solve these problems in a more optimal way?

According to Jia Yingjun, the founder of the chain house, the essence of the chain of assets such as houses is to solve the problem of confirmation of rights and circulation. Suppose that each country is imagined as a public chain, which runs on US dollars or RMB. Enterprises and governments issue their agreements according to cultural practices and legal norms (consensus mechanisms), such as business charters and product governance mechanisms. There are more than 200 public chains that are not fully compatible around the world.

"The essence of asset-winding is not the information chain, nor the division of assets into small shares to sell. More is to confirm the rights and obligations and the consensus (who belongs to the property rights) ."

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"cross-chain" of assets: Asset interoperability

In the blockchain scenario, the house assets can be packaged into the SPV company. The investor can obtain the house income right by holding the shares of the offshore company through the certificate. Some laws can be presented in the smart contract situation. As long as the conditions are met, the contract will automatically Execution and clearing, and investors from N countries can complete automatic KYC and qualified investor certification on the platform, and invest and receive dividends through digital wallet.

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Example: Legal structure of real estate transaction in Samui

As a product of the law, the company has geographical limitations, which has led to the development of regulatory arbitrage between different countries. The most typical example is the well-known Cayman Islands, BVI structure and VIE form red chip listing . The Chinese generation of Internet giants, including Sohu, NetEase, Alibaba and Tencent, are listed overseas in this form. However, this arbitrage space is currently experiencing a sharp decline. The small countries are forced by international pressure to impose "commercial substance" requirements, so that offshore companies are not so good.

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Alibaba Group VIE structure icon

So, we need a new type of virtual container – it must be able to encapsulate business and assets in a standardized way like a company, and unlike the company, it must rely on the laws of any sovereign country and must be able to transcend sovereignty. The jurisdiction is independent.

Since then, distributed business forms have emerged.

Dao

"In the distributed business world, intermediary organizations will be replaced by "mathematical algorithms" automatically connected and executed, and the cost of mutual trust compared to traditional business model transactions is greatly reduced. The lower the marginal cost of trust, the larger the space and boundaries of business activities. "

——Xiao Feng

McDonald's and Wal-Mart belong to the chain business. Uber and Airbnb belong to the shared business. Many blockchain projects go further and belong to the organizational form of distributed business. The most prominent representatives are the BTC community, the Ethereum community, the HT, FT, BNB communities and other money-holding communities built around a certain type of certificate. They are as close to the interests of distributed business organizations as the shareholders of listed companies.

In other words, for a super-sovereign “DAO community”, there is no need to have Offshore (offshore), Onshore (onshore) multi-layer legal structure to control or financing, but instead replace the existing one with a Oneshore container parallel to the national border. mode.

4. New value carriers that are separable, tradable, and priced

"As for whether or not Token should be classified in securities or other existing concept categories, presumably as Feynman said, "is like the meaning of ornithology for birds."

-High quality blue collar

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Lin Hua: Explain in detail the application of financial technology, asset securitization and blockchain technology

Asset-driven financing, with the main body being SPV, requires financial engineering to design products. For example, the St. Regis Resort in the United States has realized an asset financing through Tokenized REITs. Aspen REIT, Inc. is the investment entity of the St. Regis Aspen Resort, a real estate investment trust. Each Aspen Coin represents a share of ownership of a single-asset real estate investment trust (REIT) that owns a portion of the Certified Regal Aspen Hotel. Here, Token represents an electronic share of REITs.

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St. Regis Aspen Resort Property Securitization Structure

In the case of the Samui Villa, Hidden Villa Token represents a transferable, consumable, tradable Timeshare membership card with real real estate mortgages behind it. It is not a security but has a mix. The property of the income. After the user has purchased the membership card, he or she can use and live in the villa. He can also hold the membership card and get the benefits from renting the property. He has the right to discount the hotel and attractions, or sell the membership card directly to the OTC market. Others, get the difference.

Final version

Samui Lily Valley Villa Project Product Structure

The most important point in these two cases is how to bind the “pass” to a real “right” and how the rights can be fulfilled.

The most well-known financing model, IPO, is an Equity Financing tool. By holding stocks, people become part of the business and get a return on investment through dividends and stock price increases. The way to fulfill the rights is the capital market/ stock exchange .

At present, more and more start-ups have chosen the “community system” and the “foundation” form to obtain financing in the form of “encrypted equity” in the form of a certificate. Many investors are happy to hold a certificate, mainly Two reasons:

1. The global trading venues represented by Coinbase, Huobi and Binance have matured, and there are fair prices such as Coinmarketcap. By holding this form of “encrypted equity”, the exchange can be honored.

2. Unlike real estate, art, and company stocks, digital assets are the primary assets of the digital world and do not involve the definition and transfer of property rights in reality.

Different from the original “encrypted equity”, in the new credit card type of the traditional chain, the definition of property rights between the chain world and the chain world is huge. The core is the property rights consensus. Transfer. In order to solve this problem, the founder of the chain house, Jia Yingjun and the team of Bowgun & Cedar in Hong Kong, have jointly explored the "Certificate of Pay-as-you-go" agreement .

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"Seeing the PTO Agreement" simply states that who holds the title certificate has the right to take the assets to the escrow node of the physical assets. The biggest difference between it and the traditional agreement is "electronic storage form" and "beneficiaries of non-specific objects" . At present, this electronic trust structure is undergoing the assessment and judgment of the judges in Hong Kong courts to verify whether it has the same legal benefits as traditional cardboard legal documents. If the judgment is successful, it means that the transfer of property rights between the chain and the chain is established. of.

5. Community and company, who is the shell?

At present, many projects put the full value of the income, cash flow and intangible assets such as intellectual property and goodwill into new containers. The “community” replaces the “company”, and the “passport” replaces the “stock” into a real package. The container of value (a typical example is the relationship between the company shell of the coin and the coin BNB). The company has been diluted into an empty shell and is only responsible for formal functions such as registration, social security contributions, contracts and leases.

Company (1)

"The company" is marginalized

Therefore, the object of real value play in the market economy has moved from “company” to “container”, and the project can also outsource a large part of the functions to the so-called “community” of the holders. The operational burden does not reduce the radius of the organization's activities.

In the future, old containers will have no value if they do not contain goods and will be gradually marginalized. For the investor, even if it is the company's equity, it can be withdrawn through the carrier that truly carries the value, instead of sticking to the traditional merger/listing exit. What kind of ultimate form will the development of financial technology make the company evolve into? Let us wait and see.

 

Reference materials:

Fosun Liang Xinjun: In the next fifteen years, the inertia judgment will fail, and the value "anchor point" is drifting.

Li Yanhong: Internet Conference Speech China's demographic dividend is no longer, but the opportunity for AI is coming.

Xiao Feng: China Unicom 5G+ Internet of Things tires – Internet of Things to form a closed loop, will certainly complement the blockchain

Lin Hua: Explain in detail the application of financial technology, asset securitization and blockchain technology

Sun Ming lawyer (high quality blue collar) part of the point of view

Dialogue Hash Future Jia Yingwei: The First Principle of Assets Chaining | Chain Catcher

Jiangnan angry youth Chen Yu: Why do I invest in Southeast Asia?

Interview with the early chain Zhang Jiannan: the chain of assets in the chain of the Warring States period will become a new direction of breaking | Fire Zhang Yidan

The big migration of value growth anchors – the collision of blockchain, Southeast Asia and real estate

Author: Wei Ran, eight-dimensional