Meng Yan: The pass-through economy is a relatively mild road to the digital economy

On October 19th, at the first digital transformation strategy meeting of Tencent, Meng Yan, the vice president of the Digital Assets Research Institute, published the theme sharing from “Reality to Number: The Thinking and Practice of Industrial Blockchain”.

Meng Yan pointed out that although many people are trying to study the blockchain, the state has also introduced policies to encourage the development of blockchains, and the community has given the blockchain a high honor. However, in some scenarios, after the blockchain is actually used, people find that the problem has not been solved in the future, or the problem solved is always so painless. There are some blockchain projects, the government has invested money, and after it has been developed, it is quietly there, and there is no use at all.

This leads to a question: What problems can the blockchain solve?

In the case of the currency practitioners, if the blockchain is allowed to issue digital currency, allowing the use of intelligent contracts in the blockchain to manage the digital currency and a series of subsequent issues, all doubts seem to have vanished. The problem is that this approach is too radical and many practices are very special.

• UK Finance Minister: FCA has the final decision on whether to implement the ban on crypto derivatives
• German Ministry of Finance report: privacy and stable currency may lead to increased risk of money laundering and terrorist financing
• Raised $61 million, Morgan Creek pre-launched a second blockchain fund

Chain practitioners are embarrassed to promote blockchains in a compliant manner, but there is always a feeling of not being able to grasp the pain points.

Meng Yan pointed out that the two roads of the currency circle and the chain circle actually reflect the two roads of the digital economy.

At present, human society is in the process of moving from a traditional industrial economy to a digital economy. In a highly developed digital economy society, various assets, bills and rights are expressed digitally, and people’s trading behaviors are all It runs inside the digital system.

The core characteristics of the digital economy are: First, no more production-centric, but transaction-centric. Secondly, the original property rights and creditor system were turned to the "number rights" system. Third, existing organizations will move from a corporate system to a flexible and dynamic self-organizing organization that is free to join and freely withdraw on the Internet. Finally, the monetary system may have multiple levels of credit, credit range, and liquidity systems, and is no longer a single system of unity.

In particular, the concept of “digital rights”, Meng Yan pointed out, is a power that automatically triggers with trusted digital evidence or requests other stakeholders to take appropriate action.

And how to accumulate credible digital evidence to generate digital rights? Meng Yan believes that the most mature and credible infrastructure is the blockchain.

People in the chain and the currency circle also have two routes in using the blockchain to generate the number of rights.

The practice of chain links is to accumulate digital evidence and then go to customers, financial institutions, and courts to request the corresponding actions of the existing power body based on the digital evidence accumulated by the company, whether it is a judge's judgment or a financial institution's loan. Issuance, or the purchase behavior of the customer.

Meng Yan believes that the chain is the path of reform and moderate change. It essentially treats the blockchain as a credible database or a distributed trusted account book, and acts to provide credible digital evidence for financial institutions and judicial institutions.

“At this end, all companies work together to accumulate a digital evidence chain on a trusted infrastructure such as the blockchain and a trusted distributed ledger. This digital evidence chain is used to find existing authorities, financial institutions, and regulatory authorities. Institutions, the judiciary, ask them to take appropriate actions, such as giving us approvals and issuing loans, such as consumers purchasing our goods, such as judges to judge the results that are beneficial to us."

The currency circle has adopted a more radical attitude . Since the digital evidence is collected, why not directly change the currency issuance mechanism and re-allocate the coinage rights based on the number of rights? This approach has changed the financial infrastructure and financial logic. Meng Yan believes that this approach may encounter problems.

Meng Yan made a compromise between the chain and the currency circle, using the route of the pass economy.

This approach, on the surface, condenses the digital evidence collected in business operations into a certificate and uses the system to support its operation. But in reality, banks, courts, and existing authorities are required to make final value support, commitments, or judgments. Therefore, it is a relatively gentle road.

Meng Yan said that the pass-through economy is not so deviant. In essence, it is only a step forward in the logic of the chain. Meng Yan made an image metaphor:

"We condense the digital evidence into a general certificate, as if you killed the enemy on the battlefield, bombed the bunker, and achieved a lot of combat power, and finally condensed into a medal. When others see your military medal on the road, you don't need it. Knowing what you did on the battlefield will have a spontaneous respect for you."

Meng Yan finally mentioned that whether it is the industrial blockchain, digital currency and the pass-through economy, they are actually doing the same thing, that is, trying to achieve a truly high-level digital economy, but the path and method adopted. different.

If you want to learn more about the general economics, then come to the World Blockchain Conference (Wuzhen) hosted by Babbitt. Teacher Meng Yan will attend the conference and deliver an important speech.

Conference link: https://www.8btc.com/wbc-2019/

We will continue to update Blocking; if you have any questions or suggestions, please contact us!