Original by Eight-Dimensional Capital Research Institute, please indicate the source for reprinting
Original by Eight-Dimensional Capital Research Institute, please indicate the source for reprinting
Recently, the digital asset issuance platform pandaq platform (Lily Valley Villa Project in Koh Samui, Thailand) successfully assisted Southeast Asian real estate on-chain transactions, realizing a leap from theory to practice. In this article, we will explain in depth how blockchain and financial technology can optimize global asset allocation. Project URL: http://hlt.blueskyhomes.asia
A collection of some viewpoints:
Focus on several major trends: blockchain as a trust machine, Southeast Asia as a new global growth pole
Networking of equipment -> digitization of the network -> capitalization of data -> share of assets -> transactionalization of shares -> financialization of transactions
Asset on-chain and DeFi protocol development have become the way to break the situation in the Warring States era of the public chain, assets on the chain -> value of the public chain
"Company" and "stock" are value carriers based on laws, and are creating a new type of virtual container that transcends borders
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1. The Great Migration of the Value Growth Anchor Point
Liang Xinjun, co-founder of Fosun Group, said that our judgments about the future are always based on some basic assumptions, which constitute the "anchor point" of our judgments. For example, when making an investment, everyone will put a coordinate system in their minds, compare prices, peers, replacement costs, etc., and finally determine whether a certain company, real estate, or stock is worth investing in.
Due to major changes in the situation in the next 15 years, the "anchor point" for your value judgment will be drifting. This means that all judgments based on current inertia may fail.
Therefore, we need to pay attention to these three situations:
In a sense, behind the growth engine is the "demographic" factor, whether this "population" is expressed in the form of artificial intelligence (AI) or the young labor force in Southeast Asia.
Li Yanhong pointed out at the Wuzhen World Internet Conference that 10 years ago, the growth rate of Chinese netizens was more than 50%, but today it has actually dropped to about 6%. After the demographic dividend disappears, the new dividend lies in the technological dividend. The technology dividend has three growth drivers:
One is algorithms, artificial intelligence, especially machine learning algorithms, from deep learning, DNN to RNN to CNN, new inventions are constantly being created.
The second is computing power. The cost of computing is constantly decreasing, and servers are becoming more and more powerful. Today, computing power has reached a critical point, which can make many artificial intelligence applications practical and usable.
The third is data. The generation of data is still developing at a very high speed. There are 750 million Internet users in China. With such a large market and data sets, new data is constantly being generated, which will further promote algorithm innovation and support Computing power puts forward an update request.
Xiao Feng, chairman of Wanxiang Blockchain, further explained the value of "data". He believes that:
Data is the oil of the digital economy, and oil is an asset. Just like fossil energy is not only used to drive cars, it is also a very large type of tradable financial assets in the capital market.
In the era of the Internet of Things, devices generate so much data every second every day. Data will become a very large new type of financial asset in the capital market and financial market, and will produce tens of billions and hundreds of billions of companies.
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Data is the oil of the digital age, a financial asset
In the future, with the development of 5G technology and the Internet of Things, smart devices will generate huge amounts of data every day, and the data will be divided into standardized shares, and the buying and selling of data will become a market with good liquidity and clear pricing.
Although China's development engine will gradually shift from the demographic dividend to the "AI" dividend, the Southeast Asian region known as "China 20 years ago" is actually enjoying the "demographic" dividend.
At present, the economy of Southeast Asia is in an upward process. According to the statistics of the World Bank, the total GDP of the ten ASEAN countries is about 2.8 trillion US dollars, with an average GDP growth rate of 5%, ranking the sixth largest economy in the world. ASEAN member states have covered more than 600 million people in Southeast Asia, and more than 50% of the population is under the age of 30. The demographic dividend is very obvious.
In addition, Southeast Asia has several unique advantages:
One is to undertake China's production capacity and copy the Chinese model. A large amount of China's excess production capacity has been transferred to Southeast Asia in the past two years, and many business models that have been proven to work in China can be directly copied and applied in Southeast Asia.
The second is the global value depression. Because the Southeast Asian economy has not had a large and high-speed growth, it has formed a relative value depression. In particular, real estate represented by real estate still has a lot of room to rise compared with Chinese real estate prices.
The third is natural and tourism resources. Southeast Asia is rich in island resources, and there are international tourist destinations represented by Phuket, Koh Samui and Pattaya.
So, over a time period of the next few years:
Artificial intelligence will begin to challenge the technical barriers of most industries, and data will become an important financial asset
Blockchain and smart contracts will have a profound and significant impact on the legal system, international trade and corporate organization
Southeast Asia is growing into a new engine of global growth due to demographic dividends and other factors
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2. Asset on-chain and DeFi protocol fees have become the way to break the situation?
For the blockchain industry, last year was still in the "first year of the public chain" and the market boom of "hundreds of battles", but now it is facing the cold and windy public chain Warring States era. The way to break the situation of many public chains is "the one who wins the DAPP wins the world", while Zhang Jiannan, the CEO of Truechain, the founder of Dorahacks, and a geek who graduated from the Computer Department of Oxford University, gave a new answer. He believes that,
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The potential market size of asset digitization is from pandaq.net
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Digitalization of Assets in the Great Voyage Plan of the Public Chain
We can evaluate the network value of the public chain based on the assets running on the public chain/protocol. A similar concept is the business model of DeFi (Decentralized Finance).
The first layer: the lending rate of the central bank to financial institutions (factory price, 0.72%-3.8%)
The second layer: borrowing rate between financial institutions (distribution price, 3.8%-6%)
The third layer: the borrowing rate of financial institutions to enterprises (retail price, 6%-12%)
The fourth layer: private loan interest rate (non-core retail price, 12%-25%)
The entire financial industry charges a capital fee of 0.72-25%. If we can use open source protocols to meet the same needs of traditional finance, it is possible to replace traditional financial rates with open source protocol rates. The traditional money market is a trillion-dollar level market. :
We have seen many including payment Dai Card, decentralized exchange 0x, Civic in KYC, TrueUSD in stablecoins, liquidity providers Bancor, Airswap, Trustwallet in custody, derivatives agreements and lending agreements The DiFi project, as well as Compound, Uniswap, and dYdX, which focus on creating a set of smart contracts that lock ETH but do not issue coins themselves. About $400 million worth of cryptocurrencies are currently locked in DeFi applications, and their money-making model is to charge protocol fees.
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Crossing the chasm, from early adopters to mainstream
Many public chains still use gambling and game products such as Bet and Dice to support their facades. Public chains should also try to cooperate with traditional players with a huge user base, such as companies oriented to mass consumers (such as Starbucks, Facebook, Wal-Mart, hotels and real estate companies, etc.), financial institutions (Fidelity, Nasdaq, JP Morgan, etc.) have cooperated to open the payment and settlement functions of the public chain in the real economy of some regions and enterprises.
The deep integration with the real economy puts forward at least three requirements for the public chain itself:
Improve the infrastructure to make the main network safe, stable, fast and easy to use
The ability to screen assets allows high-quality assets from all over the world to be issued on the public chain instead of air projects
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3. "Algorithm" instead of "company"?
Yao Qian, the former director of the Digital Currency Research Institute of the Central Bank, once proposed that the algorithm mechanism of the decentralized and deorganized encryption economy "erased" the "traces" of the enterprise and became a brand-new resource allocation mechanism completely independent of the enterprise .
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Yao Qian: Algorithmic economy, a new mechanism for resource allocation
Lawyer Sun Ming (a high-quality blue-collar worker) also pointed out that the Token Economy’s subversion of the traditional enterprise/corporate system may come faster than expected.
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The structure of a modern company organization
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"Company" container boundaries and associations
For example, in the real estate industry, a separate project company is usually set up for each piece of land as a virtual container for that piece of land. In this way, if you want to sell the land, you are actually transferring the equity of the project company rather than the land itself, because the property rights of the company as a container are easy to split without damage, the transfer procedures are simple, and the transaction tax is lower. "
If you want to conduct a cross-border real estate purchase or international trade, there are several steps when signing a legal agreement:
legal basis. Is it based on British law or continental law?
payment method. Pay in GBP, HKD, or RMB? What is the exchange rate?
Dispute Resolution. Should the dispute be settled in London or Hong Kong? Is it through a court or an arbitration institution?
Suppose I want to invest in a villa in Thailand. According to Thai law, foreigners cannot hold more than 51% of the land property rights. Therefore, foreigners need to set up a joint venture company with Thais to hold land property rights through the company. When paying, there are complicated procedures involving currency exchange. Although countless European and American investors have purchased real estate in Thailand through this form, why can't these problems be solved in a more optimized way?
According to Jia Yinghao, the president of the Tsinghua University Student Blockchain Association and the founder of HashFuture & Lianbaowu, the essence of putting assets such as houses on the chain is to solve the problems of right confirmation and circulation. Assuming that each country is imagined as a public chain, with US dollars or RMB running on it, and companies and governments issue their protocols (protocols) according to cultural customs and legal norms (consensus mechanism), such as business regulations and product governance mechanisms, then There are more than 200 public chains in the world that are not fully compatible.
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"Cross-chain" of assets: Asset interoperability
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Example: The legal structure of real estate transactions in Koh Samui by Qingshi Chain
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Alibaba Group VIE structure diagram
Therefore, we need a new type of virtual container - it must be able to encapsulate business and assets with standardized specifications like a company, and at the same time, unlike a company that must rely on the laws of any sovereign country, it must be able to go beyond sovereignty Jurisdiction exists independently.
Since then, distributed business forms have emerged.
"In the distributed business world, intermediary organizations will be replaced by "mathematical algorithms" for automatic connection and execution. Compared with traditional business model transactions, the cost of mutual trust is greatly reduced. The lower the marginal cost of trust, the larger the space and boundaries of commercial activities. "
—— Xiao Feng
McDonald's and Wal-Mart belong to chain businesses, Uber and Airbnb belong to shared businesses, and many blockchain projects go one step further and belong to the organizational form of distributed businesses. The most prominent representatives are the BTC community, Ethereum community, HT, FT, BNB community and other coin holder communities built around certain tokens. Like shareholders of listed companies, they are deeply tied to the interests of distributed commercial organizations.
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4. A new value carrier that is divisible, tradable, and priceable
"As for whether Token should be classified as securities or other existing concept categories, it is probably as Feynman said, "It is like the meaning of ornithology to birds."
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Lin Hua: Detailed explanation of financial technology, asset securitization and blockchain technology application
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Regis Aspen Resort Real Estate Securitization Structure
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Product Structure of Lily Valley Villa Project in Koh Samui
The most important point in these two cases is how to bind the "token" with a real "right" and how to ensure the fulfillment of the right.
The most well-known financing model - IPO, is an equity financing (Equity Financing) tool. People become part owners of businesses by owning shares, earning returns on their investments through dividends and stock price growth. The way to realize the rights is the capital market (capital market) / trading place (stock exchange).
At present, more and more start-ups have chosen the form of "community system" and "foundation" to obtain financing in the form of "encrypted equity" in the form of tokens, and many investors are willing to hold tokens, mainly Two reasons:
1. The global centralized trading venues represented by Coinbase, Huobi, and Binance have matured, and there are also companies such as Coinmarketcap that provide fair prices. Holders of this form of "encrypted equity" can cash out their rights and interests on exchanges.
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"Biss Trading" in Biss
Different from the original "encrypted equity", in the debt-type and income-right-type new token products based on traditional off-chain assets, there is a huge difference in the definition of property rights between the on-chain world and the off-chain world. The core is the consensus on property rights transfer. Jia Yinghao, the founder of Lianbaowu, and the lawyer team of Bowgun & Cedar in Hong Kong, in order to solve this problem, jointly explored the "payment upon seeing the token agreement".
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The fate of the "company" being marginalized
At present, many projects put the revenue generated by business, cash flow, and the full value of intangible assets such as intellectual property rights and goodwill into new containers. The container of value (a typical example is the relationship between Binance’s corporate shell and Binance Coin BNB). The company has been reduced to an empty shell, only responsible for formal functions such as registration, paying social security for employees, signing contracts and leases.
Therefore, the object that really plays a role in carrying value in the market economy has migrated from the "company" to the "container" such as the "community". operational burden without reducing the radius of organizational activity. At this point, the Fcoin community/community committee is a typical case.
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The gradually mature governance framework and business system of Fcoin ecology
References:
References:
Fosun Liang Xinjun: In the next 15 years, inertial judgment will fail, and the "anchor point" of value will be drifting
Robin Li: Speech at the Internet Conference China's demographic dividend is no longer there, but the opportunity for AI is here
Xiao Feng: China Unicom 5G+IoT Tires - To form a closed loop for the Internet of Things, it will definitely complement the blockchain
Lin Hua:Detailed explanation of financial technology, asset securitization and blockchain technology application
Lawyer Sun Ming (high-quality blue-collar) part of the point of view
Dialogue with Hash Future Jia Yinghao: The first principle of asset on-chain｜Chain Catcher
Jiangnan Angry Youth Chen Yu: Why did I invest in Southeast Asia?
Interview with Chulian Zhang Jiannan: Assets on the public chain during the Warring States Period will become a new direction for breaking the game｜Huoxun Zhang Yidan
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Other research produced by Eight Dimensional Research Institute
Real estate ST examples of high-end apartments in New York and the St. Regis Aspen Resort
Coinsuper: The development path of the first compliant exchange in Hong Kong
Cross-border financial technology platform Pandaq officially released
"Blockchain vs Internet Revolution"Are we in 1994?What's the next step?
Medium:https://medium.com/@8DecimalCapital
