Data Increment: New Business Opportunities for Enterprise Services + Blockchain

Author: Huangling Bo, distributed Capital Partners

As we all know, after several years of development, the application of blockchain is still lacking. The reasons can be summarized into two points: technology and data. At the technical level, the underlying technology of the blockchain is not yet complete. It is impossible that the balance of the triangle has not risen to a qualitative level. The design of the incentive model lacks innovation. Cross-chain technology, distributed computing power, and private computing are not mature. Program. V God said at the Wanxiang Conference in 2017 that the core issue of the blockchain industry is technology. The solution of this problem is a very long experimental process. However, the data is not the same. In the past two years, the blockchain industry may usher in a large explosion of traditional data on the chain, which will lead to various ways and opportunities for these data to be applied on the chain. The data on-chain mentioned in this article includes the on-chain of data information, the on-chain of ownership and other rights, and the migration of traditional payment scenarios.

From the perspective of the blockchain, data sources (Oracle) are mainly divided into three categories: the first type is the data generated natively on the chain, which is the native on-chain database Oracle; the second type of Oracle is in cooperation with traditional institutions, Traditional institutions grant credits and let them act as nodes to output data on the chain; the third type of Oracle uses the governance mechanism to verify the data itself and upload it to the chain.

The first type of Oracle (the data generated natively on the chain) has continued to develop poorly after 2017 to 2019. It is still mainly data related to asset transfers, and it is widely used in the field of transactions.

The third type of governance Oracle has always been a more promising direction in the industry, and I am also very optimistic about it, but I think it is too early now, and it may take a chance after the overall development of Machine to Machine. In this case, the data is from the machine Get on, not from people. Because much of the data that people participate in is uncontrollable, untrustworthy, and opaque, but the machines are different. The data produced by machines can be transparent, trustworthy, and without any private benefits. The machine can be a node in the blockchain network. The network ledger can ensure the security and immutability of the machine data, and the machine itself does not necessarily belong to the individual, but belongs to the entire blockchain network as a data carrier.

Here is a little divergence. In fact, the rapid development of the entire blockchain industry is likely to be 5G-> IOT-> M2M-> Tracking Economy-> Blockchain after M2M matures. In this process, there will be a large number of Machines (5G per square kilometer supports at least a million-level devices). They naturally become Oracle and distributed nodes of the blockchain network, and they are also virtual asset carriers that carry large amounts of data. Together with suitable encryption and communication technologies, this is the era when blockchain can truly play its role in the digital virtual world formed by M2M networks and land on a large scale. However, the entire process may take more than 5 years.

Now it is more suitable for the current environment. In fact, it is the second type of Oracle, that is, to support more traditional enterprises, governments, and financial institutions, and let them spontaneously upload data to the chain. There are two main opportunities that can bring this data increase:

The first is the policy. Although many countries are still waiting to see it, on the whole, the world has a positive attitude towards the blockchain technology itself. Many companies are willing to try this out for a variety of potential reasons. Technology to support their business environment.

The second is that smart contracts / tokenize brings new business opportunities. With the increasing electronicization of business models and the popularity of understanding of blockchain technology, companies have begun to find that smart contracts can reduce friction in their business models. Bring new incentives. For example, NFT tickets for ball games, or some merchants started to use smart contracts to collect customer prepaid card funds to prove to customers that the possibility of running their money is very low.

Therefore, in this process, there will be more and more traditional data on the chain, including living consumption, personal identity, financial credit, physical assets and so on. This has laid a good data foundation for the future development of the blockchain industry.

Of course, as investors, we are most concerned about the blockchain projects with related data increments. Such projects can be divided into four categories:

The first type is to make a public chain by yourself, cooperate with trusted nodes, and then use tokens to motivate nodes. Vechain is a good example;

The second type is to provide technical services for governments, financial institutions and large enterprises. Such projects are generally not limited to blockchain technology, but will provide customers with a complete set of technical service solutions. The solutions will also include cloud computing and labor. Intelligence requires high overall technical capabilities of the team. Such companies generally charge according to the project system, which is a human-intensive service, which is similar to traditional cloud computing service companies. The product model is mainly the bottom IaaS + middle BaaS (PaaS-like) + upper SaaS (combined with application scenarios). However, with the overall maturity and modularity of the underlying technical services of the blockchain, SaaS-like standardized products and charging models may be presented in the future. In addition, such companies have other opportunities for derived revenue in the future. For example, if they are providing technical services for the industrial chain of the enterprise, a blockchain data circulation platform between industrial chains may be built at the same time. Data transactions or on-chain certificate storage can be charged by the platform operator through commission sharing. We have already seen such cases.

The third type is to cooperate with the traditional scenarios with C-end traffic. Similar to toBtoC, the project generally chooses the traditional scenarios with stable traffic to provide them with technical services. For example, scenes with attributes of electronic vouchers + confirmation, including the ticketing industry, electronic collectibles industry, and digital intellectual property rights. Such products are generally implemented through NFT. What is interesting is that they are not limited to their product attributes themselves, but also can be extended to become a client-side function integration with the product. For example, Alphawallet cooperates with UEFA related companies to produce NFT. Tickets, products not only have ticket functions, but also can integrate sponsored hotels or peripheral derivatives (jerseys, souvenirs, etc.) information and cooperate with operation; an IP collection card not only has the uniqueness of collection, but also can integrate this IP-related game This is a new business model with great imagination. In addition, it is easier for everyone to understand that these electronic vouchers are secondary transfers.

In addition to ownership, the locking and automatic distribution of income rights is also a new direction. Such projects are more suitable for consumer service areas with better cash flow, such as catering, haircuts, beauty, etc., or internal incentives for employees. The direct distribution of cash flow can be used to motivate users, employees, etc., and the lock of cash flow can avoid running out of money or Ponzi scheme. Generally, this cash flow will be reflected by the stable currency. For example, the user uses DAI to purchase a fitness card, and then completes the consumption one by one through a smart contract, and at the same time is given a personal education according to the agreed part. Of course, the simple stablecoin payment itself is a good traditional payment scenario on-chain process, but because no new business model has been developed, only a certain amount of intermediate processing fees have been reduced (at the same time, the core interest groups have been greatly affected) And therefore difficult to push. But if it diverges, combining more derivative business models of the digital economy into the stablecoin payment scenario through smart contracts may bring new opportunities. In addition, individuals feel that the mortgage and transfer of these rights themselves can also open up a new capital market.

In short, on the contrary, the blockchain industry as a whole is very lacking in the data of the traditional world. In this case, it is basically impossible to talk about the large-scale landing of the blockchain. And this year, there will be more and more traditional data starting to be chained. The chaining process and the data itself can greatly enrich the ecosystem of the blockchain industry, and bring various innovative business opportunities, which will really allow the community to begin to understand what It is a blockchain and digital economy.