From a non-policy perspective, how to make blockchain empower traditional finance

Reliable blockchain financial scene

As early as the 2017 currency market bull market, many domestic blockchain companies found the most reliable financial application scenario in the chain of alliances – supply chain finance. I have the privilege of participating in the process. Until now, the companies that adhered to this scene finally waited for the policy, and expressed sincere congratulations to these persistent friends.

To be exact, this reliable scenario is not a complete supply chain financial chain, but a part of the accounts receivable. The reason for the reliable is also in many unreliable conceptual scenarios. The most core part of finance is combined with the biggest advantage of the blockchain.

Let's briefly introduce this model. In traditional finance, accounts receivable as a company's assets can be financed through factoring and other financing methods. The problem with this type of financing is that most financial institutions are reluctant to do so for SMEs or smaller amounts. Financing. With the blockchain, the core company will directly pay the accounts payable (the supplier's accounts receivable), where the winding is not a simple winding of the data, but the account receivable is tokenized, Token The accounts receivable have become unforgeable and can be split and transferred. The accounts receivable have been billed at the same time. The accounts receivable has become not only a means of financing, but also a certificate for payment to the upstream. The risk control process of financial institutions has been fragmented, and the repayment ability of core enterprises has become the most important risk assessment standard. This model will pass down the credit level of the core enterprise, and finally allow the enterprises in the entire supply chain to enjoy the convenience of financing. This is a rare case of changing traditional finances without conflict with existing regulations.

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Of course, there are also some problems in this case, such as the strong position in the core enterprises in the industry chain and the protective resistance of traditional interests. The participants in the alliance chain are not diversified. The final blockchain system is highly centralized and has no name. However, from the ground up and the core advantages of the blockchain, it is undoubtedly the most successful innovation in the alliance chain.

Assets on the chain = increase the possibility of flow (pipe thickening)

Blockchain can play a good role in many areas, but the extent of its role in different areas is different, some areas are natural, and some industries only add points. Undoubtedly, finance is the one that is naturally in harmony. Since the birth of finance, it has solved the problem of mapping and amplifying the real economy. How the blockchain is combined with the real economy, the simplest way is to think about how to integrate with traditional finance.

In the above case, the core is the tokenization of accounts receivable, or asset chaining. Libra is also an asset chain, and it is a kind of cash asset. The process of asset-to-chain (tokenization) actually changes the situation in which the asset book is controlled by a single party under the traditional mode. The release of the single-trust risk also removes the single control restriction and makes the possibility of flow become higher. Liquidity is the lifeblood of finance. The blockchain can't solve the liquidity problem (market problem), but it solves the factors that restrict liquidity, makes the possibility of flow higher, and the potential for anyone who can flow more.

Reanalysis of Libra, its impact on the world is derived from the desire to use the blockchain to lift the flow of money. The impact of the hearing is that Libra only wants to use the blockchain to increase the flow of the dollar. Become a weapon to suppress the possibility of other legal currency flows. The possibility of mobility is the ultimate competitiveness of finance. The possibility of mobility is the conduit for liquidity. How thick is the pipeline determines how much can flow. Last Friday's currency market, some exchanges were stuck, that is, the possibility of low liquidity, liquidity went to other exchanges.

Unlimited magnification of time + space

What is the expansion of the pipeline is the diameter, and what is the possibility of the flow caused by the blockchain? It is space and time. Due to the decentralized nature of blockchain technology, the books of assets are not dependent on the services of a single institution, transactions can be booked, and no post-reconciliation is required.

In theory, assets can be traded at any time. Similarly, without relying on the services of a single institution, there is naturally no concept of service radius, and the theoretical territory can be global. When the trading time and space of financial assets are theoretically infinitely elevated, a set of mechanisms and institutions established by traditional finance may be changed. Just as the Internet has infinitely increased the space and time for information interaction, the three-dimensional changes in the business radius have changed. The traditional business model. Does the Internet's infinite promotion of information only change the space and time for information interaction?

Redefinition of assets (synthetic assets)

Before the Internet, for the rapid dissemination of information, every kind of information was carefully distinguished. Long text relied on letters, faxes, important texts by telegram, calls by phone, and video by TV. Today, every piece of information can be combined at the same time. The information itself is also redefined and innovated in a variety of ways. Twenty years ago, can you imagine today's flying of the vibrato and live broadcast?

The network of blockchains will have the same effect on the assets that run in them, and the types of assets after twenty years cannot be attributed to the current classification of traditional finance. The birth of Bitcoin has created a new type of asset that we can't define, can only be analogous, like gold, like money, like venture capital… I have always opposed the simple definition of digital assets as Utility Token and Security Token. If there is nothing wrong with the current rights and interests, the question is whether he limits our innovative imagination of assets.

The Tokenized accounts receivable have the nature of a note. Is it a receivable or a note? Many platform coins have both the role of Utility and the property of Security. What does he belong to? If Libra is launched, is he a new currency or a payment system? In the future, there will be more Tokens that combine multiple attributes. Token is always a symbol, and the asset logic behind it is fundamental. This will also be the greatest change that humanity brings to the blockchain. Of course, financial innovation also means risk, and it seems to be a bigger challenge for regulators to guide and manage these innovations.

The process of global economic integration will not change, and the process of global financial integration will not change. The asset innovation brought by the blockchain will be the key to the future struggle for financial discourse. The asset type of asset innovation will be the main battlefield for future currency discourse competition and the key to the internationalization of the RMB. The competition for other asset innovations is the battle for financial discourse in the future and is a new round of capital globalization. Better utilization of the advantages of blockchain asset innovation and better utilization of the advantages of blockchain time and space are the key to transforming the global financial landscape in the future. The advantage of Wall Street was established in the pre-internet era, and everything will be different in the post-Internet era due to the emergence of blockchains.

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