Guosheng Blockchain | Consensus Conference, Hangzhou Forum Double Star shines, China and the United States lead the world blockchain trend

Summary

Event: From May 13th to 15th, US Eastern Time, Coindesk, the US blockchain head media, held the "2018 Consensus Conference (hereinafter referred to as "Consensus Conference") in New York; May 16th to 17th, China Block Chain head media Babbitt held the "2019 Global Blockchain (Hangzhou) Summit Forum (hereinafter referred to as "Hangzhou Summit Forum") in Hangzhou. US Securities and Exchange Commission (SEC) and Treasury officials, Nobel Prize winners Oliver Hart and Eric Maskin, US brokerage giant TD Ameritrade executive vice president, and Amazon, Ant Financial, Tencent, Baidu, Weizhong Bank, Huawei, Haier and other institutions blockchain leaders attended the meeting.

Traditional Internet companies are actively building block-based infrastructure based on cloud computing. Amazon’s business executives who are responsible for participating in the Consensus Conference come from the Cloud Computing Business Line (AWS). When Ant Financial introduced its blockchain products, it mentioned that its BaaS (Blockchain as a Service) is based on Alibaba Cloud Packaging. With technologies such as consensus, password, and peer-to-peer network, Huawei also proposed that it is a key blockchain in the cloud. Internet companies build blockchain platforms that focus on infrastructure, the platform first, and the business behind. This is in line with the Internet era, where many giants compete for the underlying platform and become the same as the traffic entry.

Data privacy based on blockchain, or the traditional business model of Internet big data will be reconstructed. We have stated in the report that the important business model of Internet companies is based on user data, training artificial intelligence (AI) robots to improve their services, while users who contribute personal data benefit not much, but also risk data. The risk of being leaked and misused, the blockchain is expected to confirm the user data, reconstruct this classic business model, so that users can truly share the benefits: Internet companies use the pass to pay data usage fees for users; Internet companies sell user data from Turn to sell sales power. The speeches of some of the guests at the Consensus Conference and the Hangzhou Forum corroborated our views. For example, Dahongfei, the founder of the public network NEO, proposed that in the new paradigm brought by the blockchain, the big migration and the new wave of technology startups, users Ability to retain control and ownership of the data.

The global blockchain regulatory policy is becoming increasingly clear. The US SEC is highly concerned about the blockchain industry, and has sent at least three officials to participate in the meeting. It is facing the market demand for blockchain industry legislation and proposes to strengthen communication with regulators and is expected to change securities laws. Overall, the existing cryptocurrency regulatory system in the United States does not adequately meet the regulatory body's need to protect cryptocurrency industry participants. This delays the approval of the Bitcoin ETF (Exchange Open Fund), SEC and Treasury Finance from the SEC. The criminal law enforcement network FinCEN is constantly in need of publishing guidelines for the cryptocurrency industry. However, the increasingly clear regulatory framework is of great benefit to the long-term healthy development of the blockchain industry.

Investment suggestion: We recommend focusing on digital property rights in the blockchain industry, including copyright transactions, digital identity (identity information, biogenetic features, etc.), supply chain finance, and edge computing. The Ministry of Industry and Information Technology issued a record list in the previous period, and we look forward to further support policies.

• In order to promote the commercialization of a larger scale, the blockchain giants of Ali, Thunder, Baidu and Jingdong changed in spring and summer.
• Depth | The bottom of the question, is PoS really better than PoW?
• Depth | Read the seven big blockchain project foundation operation mode

Catalyst: Further encourage the introduction of blockchain policies.

Risk warning: regulatory policy uncertainty, blockchain infrastructure development is not up to expectations.

1. Consensus Conference, Hangzhou Forum Double Star shines

Event: From May 13th to 15th, US Eastern Time, Coindesk, the US blockchain head media, held the "2018 Consensus Conference (hereinafter referred to as "Consensus Conference") in New York; May 17, China Blockchain Head Media Babbitt held the "2019 Global Blockchain (Hangzhou) Summit Forum (hereinafter referred to as "Hangzhou Forum") in Hangzhou. US Securities and Exchange Commission (SEC) and Treasury officials, US Congressman, Nobel Laureate in Economics Oliver Hart and Eric Maskin, US brokerage giant TD Ameritrade Executive Vice President, and Amazon, Ant Financial, Tencent, Baidu, Weizhong Bank, Huawei, Haier and other institutions blockchain leaders attended the meeting.

The Consensus Conference is the most influential summit of the blockchain industry. It has been held annually since 2015 and is regarded as the vane of the blockchain industry. As each consensus conference is held, the cryptocurrency leader Bitcoin will rise (according to the black diamond rating statistics, the increase in bitcoin during the 2015-2019 5th consensus conference is 119%, 75%, 72%, 28% from the beginning to the end. 19%), the "consensus assembly effect" is deeply rooted in the hearts of the people. The consensus meeting lasted for three days, including 210 sessions with themes of business, market and technology. Business issues include the financing structure of the blockchain market, cryptocurrency regulation, blockchain games, enterprise blockchain, blockchain supervision technology, etc.; market issues include blockchain funds, Wall Street and cryptocurrency, open financial systems Etc.; technical issues include the future of blockchain technology, mining dynamics, challenges facing blockchains, blockchains and privacy protection. The number of participants in the conference was 4,600 (the number of participants in the 2018 Consensus Conference was 8,500), the Securities and Exchange Commission (SEC) and Treasury officials, Nobel Prize winners Oliver Hart and Eric Maskin, and the US brokerage giant TD Ameritrade executive vice president and Amazon blockchain business manager attended the conference.

The Hangzhou Forum is hosted by the Hangzhou Financial Office and hosted by Hangzhou-based Media Babbitt. The forum lasts for 2 days and includes 21 keynote speeches and 11 roundtable discussions. The main topics include blockchain security and privacy protection, sidechain and cross-chain technology advancement, decentralized finance, CIS economy, and block Chain business application and regulation, blockchain games, blockchain investment, and blockchain consensus mechanisms. Ants Jinfu, Tencent, Baidu, Weizhong Bank, Huawei, Haier and other institutions blockchain leaders attended the conference.

Recommended mainline: We recommend focusing on digital property rights in the blockchain industry, including copyright transactions, digital identities (identity information, biogenetic features, etc.), supply chain finance, and edge computing. Including Anne shares, easy to see shares, Donggang shares, Hailian Jinhui, digital certification, Jinzheng shares, Hang Seng Electronics, Guomai Technology, Digital Zhengtong and other stocks

2. Internet companies: building a cloud-based blockchain infrastructure

At the Consensus Conference and the Hangzhou Forum, the heads of blockchain business of many traditional enterprises appeared, revealing the development of the company's blockchain business, or expressing opinions. These companies were not involved in the blockchain business at the beginning of their establishment, almost all of them were Internet companies. Their two statements deserve special attention:

Internet companies build blockchain platforms that focus on blockchain infrastructure, with platforms first and business behind. For example, Weizhong Bank proposed that (for it) the premise of the blockchain application is the easy-to-use financial-level alliance chain underlying platform; Huawei proposes that the blockchain business will not touch the data and not touch the application. Committed to building a strong and secure blockchain infrastructure network and creating an open underlying technology platform is the focus of Huawei's blockchain in the past two years. This is in line with the Internet era, where many giants compete for the underlying platform and become the same as the traffic entry.

Internet companies build cloud-based blockchain platforms. For example, Amazon's business executives who are responsible for participating in the Consensus Conference come from the Cloud Computing Business Line (AWS). When Ant Financial introduced its blockchain products, it mentioned that its BaaS (Blockchain as a Service) is based on Ali. The cloud encapsulates technologies such as consensus, passwords, and peer-to-peer networks. Huawei also proposes that it is a key blockchain in the cloud.

Internet company blockchain business is in its infancy, and it is still necessary to explore the scene. Ant Financial Services listed many of its land-based projects in the blockchain business service entity economy in Hangzhou Forum. These scenarios have already involved financial core businesses such as payment and accounts receivable financing. There are still many difficulties in the emergence of the Internet block company in the stage blockchain. For example, Li Feng, head of Baidu's Xiaoman blockchain, proposed that it is difficult to cut into the financial scene with the blockchain. It can only cut the financial scene, but the technology is not mature, the user experience is not good, and the business income is not clear. As a tool, the blockchain first makes it perfect, and then talks about the scene, instead of starting from the scene at the beginning; Weizhong Bank does not mention the scene, saying that it should be applied, and found that it can only be the underlying platform of the alliance chain. However, there are also BAT giant blockchain business executives who believe that they should be patient. For example, Cai Yunge, general manager of the blockchain business of Tencent, proposed that in the exploration of blockchain, it is necessary to strengthen the belief, return to the essence, and deepen the scene; avoid the following four thinking Myth: Blockchain should be all-rounder; fundamentalism is blockchain; short-term utilitarianism; technology first, ignoring commercial nature.

3. Blockchain ensures data privacy and restructures the Internet business model

Bitcoin is still the leader of cryptocurrency, and the industry's consensus on the development of Ethereum is low. According to Coinmarketcap, on May 21, there were 2,189 cryptocurrencies in the market, with a total market value of 1.7 trillion yuan. Among them, the market value of bitcoin was 0.97 trillion, accounting for 57% of the total market value of cryptocurrency. Ethereum (ETH) The market value is 188.1 billion yuan, accounting for 10.89% of the total market value of cryptocurrency; the market value of Ripple (XRP) is 116.2 billion yuan, accounting for 6.73% of the total market value of cryptocurrencies; other cryptocurrencies do not account for the total market value of cryptocurrency. More than 3%. Bitcoin, Ethereum and Ruibo are more stable.

At the consensus meeting, the development prospects of Ethereum were somewhat questioned. Bitcoin core developer Jimmy Song and Ethereum co-founder Joseph Lubin have a “gambling contract”: If Ethereum develops better in four years, Song will pay Lubin (or his beneficiary) 810.8 ETH; DApp (chain application) economy has declined in time, Lubin will pay Song 69.74 BTC (worth about 600,000 US dollars); if Lubin wants to win, Ethereum needs to have 15 unique DApps, which need to be in any 6 calendars. The number of active users per day in the month reached 10,000, and the number of active users per month reached 100,000 in any 12 calendar months (including May 23, 2023). According to Godapp.com, on May 20th, the most active DApp in Ethereum was My Crypto Heroes, which had only 2147 active users in 24 hours, and the number 2 IDEX live users in the second place was 1002. None of them exceeds 1000 and the activity is low.

Privacy protection drives the transformation of the Internet business model, and blockchains are promising. The team has stated in the report that the important business model of Internet companies is based on user data, training artificial intelligence (AI) robots to improve their services, while users who contribute personal data benefit not much, but also risk data. The risk of being leaked and misused, the blockchain is expected to confirm the user data, reconstruct this classic business model, so that users can truly share the benefits: Internet companies use the pass to pay data usage fees for users; Internet companies sell user data from Turn to sell sales power. The speeches of some of the guests at the Consensus Conference and the Hangzhou Forum corroborated our views. For example, Dahongfei, the founder of the public network NEO, proposed that in the new paradigm brought by the blockchain, the big migration and the new wave of technology startups, users Ability to retain control and ownership of the data.

4. Supervision: Retain the existing legal system and actively explore regulations that keep pace with the times

Retain the existing legal system and actively explore regulations that keep pace with the times. The US Securities and Exchange Commission (SEC) attached great importance to the consensus conference and sent three officials to participate. Among them, Valerie Szczepanik, senior adviser on digital assets, suggested that if the seller and any buyer are located in the United States, they only need to launch the token sales business and collect it from it. The cryptocurrency exchange for transaction fees must be in accordance with the legal definition of US securities dealers; these cryptocurrency exchanges are subject to broker-dealers, alternative trading systems (ATS) or US National Stock Exchange registrations and License requirements. The meaning of this statement is that cryptocurrency exchanges are also in the existing regulatory system of the SEC.

Call on legislation to keep pace with the times. But there are also US government officials who have proposed new laws to match the new industry model of the blockchain, such as Congressman Warren Davidson. The director of the SEC Capital Markets Trends Office also noted the market's call for changes to securities laws and suggested that active communication with regulators is the only way to promote legislation.

Overall, the existing cryptocurrency regulatory system in the United States does not adequately meet the regulatory body's need to protect cryptocurrency industry participants. This delays the approval of the Bitcoin ETF (Exchange Open Fund), SEC and Treasury Finance from the SEC. The criminal law enforcement network FinCEN is constantly in need of publishing guidelines for the cryptocurrency industry. However, the increasingly clear regulatory framework is of great benefit to the long-term healthy development of the blockchain industry.

5. Risk warning

Regulatory policy uncertainty. At present, the blockchain is in the early stage of development. There are certain uncertainties in the management of blockchain technology, project financing and tokens in various countries around the world. Therefore, there is uncertainty in the development of industry company projects.

Blockchain infrastructure development is not up to expectations. Blockchain is an important technical direction to solve the privacy protection problem. At present, blockchain infrastructure can not support high-performance network deployment. Decentralization and security will have some restraint on high performance, and blockchain infrastructure will not be developed. Reach the expected risks.

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