On August 28, the "2020 New District Potential Blockchain Technology Finance Summit" was held in Beijing. This summit is co-hosted by Huobi Group, 36kr and Odaily, sponsored by Behelix & HBTC, strategically sponsored by ChainUP, specially sponsored by PayPal Finance, Conflux, BitUniverse, WaykiChain, XnMatrix, Hashi Co-sponsored by Technology, Mixpay, COCOS, and Shanghai Diyi.
Many authoritative experts and professors from financial institutions such as funds, securities, banks, and industry leaders gathered here to share new information on financial technology and explore the future potential of blockchain. (Click to enter the video replay of the summit）
On August 28, the "2020 New District Potential Blockchain Technology Finance Summit" was held in Beijing. This summit is co-hosted by Huobi Group, 36kr and Odaily, sponsored by Behelix & HBTC, strategically sponsored by ChainUP, specially sponsored by PayPal Finance, Conflux, BitUniverse, WaykiChain, XnMatrix, Hashi Co-sponsored by Technology, Mixpay, COCOS, and Shanghai Diyi.
Many authoritative experts and professors from financial institutions such as funds, securities, banks, and industry leaders gathered here to share new information on financial technology and explore the future potential of blockchain. (
Click to enter the video replay of the summit
In the afternoon, Zhu Hui, deputy managing partner of BitRock Capital, delivered a speech on the theme of "Blockchain and New Finance in the Eyes of an Investor".
Among them, Zhu Hui mentioned that the new form of payment based on the central bank's digital currency may appear in four areas: fiscal and taxation invoice innovation, cross-border payment, special function digital currency, and 5G-related payments. In general, from the perspective of investment, BitRock Capital will focus on the three tracks of banking services, supply chain finance and payment.
The following is the full text of Zhu Hui's live speech, edited by Odaily, enjoy~
Good afternoon, everyone, thank you for the host, and thank you for the invitation of the organizer. I am very happy to discuss and share with you about the blockchain here. I hope to give you some different information from the perspective of investment for your reference. .
From the perspective of the industry, you can see that the focus on the underlying technology is still focused on artificial intelligence, blockchain, cloud computing, and big data. We focus on two areas: the first is to compare the underlying blockchain infrastructure and technology, how to solve the pain points, change the status quo of the financial industry, and achieve a more efficient level; the second is the real application of the front-end blockchain.Because investment looks at long-term trends, let’s first take a look at what we think the development of blockchain from an investment perspective.
The first stage is the emergence of the overall virtual currency. The second wave is the current position of the world including China. At some point, for example, there are breakthrough applications in application scenarios, but the breakthrough point has not yet been reached. At the application layer, the current blockchain is still more biased towards 2B business models and scenarios. Enterprise services are very different from 2C, and will not change with the emergence of one or two hits. The third stage is rapid growth. At that time, the application of the overall blockchain will form an ecology, and the underlying technology and front-end applications will be fully integrated. We believe that the so-called nodes will come, and they will make ecological breakthroughs one by one, and they must break through from the whole plane, not from the perspective of bottom-up and point breakthroughs. Supervision and large financial institutions need to reach a consensus on some aspects, and can agree on some standards and procedures. At this time, the overall atmosphere will rise.
So under such a big trend framework,
From the perspective of investment, we have three points worthy of attention, namely the three tracks in the next 3-5 years: the first is banking services; the second is supply chain finance; the third is payment.
Banking services are mainly based on Bitcoin and Ethereum. Under the background, the underlying technology needs to be managed, processed, and wealth management. In the world of digital currency, it corresponds to the service of legal currency. We look at the trend of market development. Every year due to various reasons, the magnitude of stolen digital currency rises very fast. In 2018, it was 2 billion U.S. dollars, and last year it was 10 billion U.S. dollars. At this time, more regulated and lower-level technologies are needed on the demand side to provide a complete full-chain banking service for digital assets or digital currencies, from custody, loans, and wealth management to lower-level services.
We invested in a bank in 2018, which is licensed in Singapore and Switzerland. It provides a complete set of B2B banking services, which can be provided to institutional customers and individual customers, including custody, asset management, intermediary, and financial management. Conversion between legal currency and digital currency. Now this relatively low-level new blockchain infrastructure can provide complete banking services to these institutional investors or individual investors who need digital currency, and at the same time boost the development of the entire digital asset on a global scale from a bottom-level perspective.
This is an example of how they provide solutions from a more ecological point of view. The boundaries of blockchain banks are constantly expanding, and Deutsche Börse is also cooperating with them. Whether it is the current exchanges or e-wallets, generally speaking, they are not in a state of strong supervision. Supervision is done from a top-down perspective, so strong supervision is needed to complete this closed loop.
To sum up, if you want to build the infrastructure of the underlying blockchain, you must integrate or connect the upstream and downstream suppliers in this ecosystem, not only from a single point, but also from the point of view of compliance and regulation. To provide a complete solution.
We believe that the blockchain has a very broad application prospect. The supply chain financial technology platform invested and incubated by Tencent in 2018 is growing very fast. Its essence is a trading platform that connects funds and assets. They will also do some risk control and tracking technology output. The biggest pain point now is information asymmetry. It is difficult to achieve "four-in-one" because there are many upstream and downstream players involved in various aspects. How can everyone transfer information quickly while being efficient and transparent? Before the chain is realized, it is difficult to have a consensus to achieve such a big breakthrough.
You can see that what the blockchain plays in the middle is still the underlying technical architecture platform. There are different upstream and downstream suppliers, ABS technology service providers, brokerages, and bridge banks on it, and investors may match corresponding assets on it. The following are some third-party ones, including law firms and accounting firms. On the whole, the blockchain can continuously lower the threshold.
How can financial technology companies in supply chain finance use blockchain technology to solve pain points in the industry? Blockchain supply chain creditor's rights multi-level circulation platform.
We all know that the risk control of secondary suppliers by banks and capital parties has caused many pain points and difficulties. After the intervention of blockchain technology, it can theoretically be transmitted infinitely. As long as the information can be reflected in the blockchain, at the same time technology and electronic The technology of vouchers and encrypted claims is continuously submitted online, the threshold will be greatly reduced, and the willingness and ability of the capital side to participate will continue to increase.
