Professor Cao Huining:

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How to do token economy?

We are now discussing cooperation with many companies to tokenize their consumption rights such as savings cards, points, and coupons. In other words, we use our chain to give them exclusive tokens. After they generate this exclusive token, they use our USE as collateral. We know that many stored-value cards have the risk of running away. If he really runs away, we can refund the remaining 50% of the USE to the user who bought his stored-value card. We hope that merchants can have a certain discount, and then make a profit from this discount.

Our Usechain can help merchants and customers make better matches. For example, some people like to eat the food in Hongli Village in Shenzhen, and some like to stay in the Grand Hyatt Hotel. Then through the trading platform, we can use the token matching to make an exchange. This is where we bring value. In addition, we can also put the tokens of different companies in a large pool, from which we can obtain a combination of various tokens. Its advantage is that in case some companies have problems with it, they may even run the risk of running away. Then the pass in your hand can also be used for exchange, so that the person who owns the pass can reduce the risk. Therefore, we hope to provide such an insurance between various merchants, so that the token economy can really turn around.

So, how does the token economy under the blockchain reshape production relations? I think being more specific can bring more trust. In the past, trust in many things was weak without tokens. There may be problems with the discount cards and stored-value cards we handle, including the boss running away, or being insolvent and unable to continue. Ofo now has tens of millions of people queuing up to get their deposit. In fact, his deposit can no longer be obtained because it has been embezzled. If we talk about the digital economy, it can put a lot of digital currency as collateral in the contract, and the stored-value card must be guaranteed to have certain assets as collateral, so that there is a certain degree of insurance for the holders of the certificate.

Dr. Wu Tong:

In fact, many of the Tokens we are talking about are commercial. When a company’s credit problems occur, its Token or the company’s assets in the traditional sense will depreciate very much, and its liquidity will suddenly become very Poor, such as ofo and other companies. If it is a token, it will greatly improve the liquidity and market depth of Token. Second, after the increase, its depreciation will not be so drastic, at least we can complete some transactions to a certain extent. I think this is very helpful for the company to get out of the predicament, as well as the confidence of some relevant investors and ecological participants.

Professor Cao Huining:

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Dr. Wu Tong:

Domestic and foreign policies, we must first distinguish which countries we want to compare with. Generally speaking, domestic blockchain policies, especially in terms of digital currency or custody, are relatively strict. Because I made a small statistics at the end of last year, from the perspective of ICO, there are currently 8 countries in the world that explicitly prohibit ICO, but the main (blockchain) countries are only China and South Korea. Other countries are more likely to raise regulatory thresholds, but they are allowed to do this.

As for the future development direction of my country's blockchain, I think the first point depends on the development of the industry. If the industry has a relatively good development situation, or if the degree of compliance is improved, the policy will be further relaxed. In fact, at present, I think that more in China is not a very strict supervision of the blockchain industry. We know that in 2018, the world economy is generally okay, but the downward pressure on China's macroeconomy will be very heavy. From the perspective of consumption or import and export, global import and export are actually affected by various aspects including trade frictions, and there are very large fluctuations and declines. So in 2018, including this year, from a macro perspective, there are actually a lot of challenges. Maybe the current blockchain is not a very important issue that a country’s top executives will consider from a very important perspective. It depends on how the industry will go in the future. . If the industry is going relatively smoothly, for example, there are some killer DApps in China, I think the regulators may consider this issue in advance, if there is still no particularly strong explosive point, or there is no strong one Technological breakthroughs or bottleneck breakthroughs, I think this situation will last relatively longer.

Professor Cao Huining:

I don't think it's suitable. Only those scenarios with relatively low efficiency requirements and relatively high credit requirements are more suitable for blockchain.

Dr. Wu Tong:

I think there are many problems related to rigid needs, which can still be solved with DApp. A very big difference between DApp and App lies in the operating mechanism. DApp is based on the decentralization of the blockchain, so we don't have to worry about what will happen to the centralized company, and we don't have to worry about the company harming the interests of users. Then, we can combine DApp with rigid demand. If there is no blockchain, some requirements will still exist, but it will also have many problems at the same time. I think the next step in the game of life and death lies in how to combine it with rigid needs. Last year we saw a very popular DApp called Fomo3D. In fact, it is essentially a project very similar to the capital market. It clearly tells you that you do not have a very clear team to solve the pain points of the industry, but it is essentially a gambling game. Investors all have this kind of gambling, and it takes advantage of the rigid demand of this kind of gambling, so this game is still very popular for a period of time.

Professor Cao Huining:

We are trying now, but there are still some difficulties. Because the popularization of financial derivatives in China is still relatively slow, and it is still in a relatively early stage. We are currently doing some of the simplest things, such as tokenizing existing models, and at the same time arousing public interest in some ways, so that everyone is more willing to participate. At the same time, it also gives everyone a better exit mechanism.

Professor Cao Huining:

I will say it in two parts. First of all, I think that the underlying construction of the token is still waiting for a bigger breakthrough, and the current technology is still very inconvenient to use. Second, the killer app now has a problem. It’s just that many Xiaobai don’t want to know what’s going on with your POW and POS technology. He only wants your application to be easy to use. Therefore, DApp must be able to guarantee the same good experience and convenient use as the current Internet, and the trust brought by the blockchain. There is still no good solution, and we are still working hard.

Dr. Wu Tong:

In fact, at present, every component of the blockchain plays a certain role in the transformation. First of all, let's look at the distributed ledger, change the previous bookkeeping method, and turn individual bookkeeping into a public bookkeeping. Public ledgers can play a very important role in reducing information asymmetry, including reducing information asymmetry inside and outside the company. The second is the Token we mentioned. Now we are all relatively familiar with the role of digital currency. There is also the community. The blockchain community is actually in the same line as the Internet community. In essence, all platform economies start from the Internet. Therefore, every component of the blockchain plays a very important role in the transformation.

Professor Cao Huining:

Regarding the issue of the small pass and the large pass, the small pass is, for example, a restaurant that issues coupons or stored-value cards. This pass is used in a small area, but it can also be circulated. As for Datou, for example, it is used as a medium of exchange in the entire economic form in USE, or in Ethereum, so it can be used in a wider range.

Dr. Wu Tong:

There is indeed such a discussion in the industry about the distinction between small tokens and large tokens. The difference lies in whether they are public fundraising. At present, the small pass is in line with the national policy. It does not raise funds publicly and does not conduct ICO. At present, Datong is mainly doing ICO. Therefore, according to regulatory requirements, there are small tokens and large tokens.

Professor Cao Huining:

The IPFS system is quite promising, that is, the InterPlanetary File System, which allows us to process files in a decentralized manner, but what about the related File Coin, I am not very clear about its business model, so this coin I don't know if it will be successful, but his entire decentralized file sharing system is quite promising.

I think what can really be implemented now is to first transform the existing business model into a blockchain without changing the experience of merchants and users. This may be the fastest, but also safer route.

Professor Cao Huining:

This is indeed a relatively big problem. But if you don’t use WeChat or Alipay, B2B peer-to-peer transactions are actually hard to break. I think it does have a certain impact on C2C trading users, but the impact will not be that great. Because peer-to-peer transactions are voluntary by two people, they are basically very decentralized.

Professor Cao Huining:

I have been talking about mainstream currencies since the beginning of last year. Most of these currencies have little value, and maybe one or two of them have storage value. Only those with store value can survive. I am generally more bullish on Bitcoin and Ethereum. More than 99% of mainstream coins will die. In the end, digital currency or tokens must carry information and carry value to survive. I think the so-called pass is to make the value of entities and transactions more convenient. So I think that most currencies will continue to depreciate in 2019, but the application-related token economy will rise.

Professor Wu Tong:

My question is a little different from Professor Cao's. I think that due to many factors, BTC may move towards a relatively upward trend within a year. There may be many factors behind the rise of BTC, but other digital currencies, I think, may still be at a relative disadvantage. The combination of these factors I think can rise.