The industry has ushered in major benefits, and To B is the future of the blockchain?

Recently, the blockchain industry has ushered in major benefits, and the status of the industry has been significantly improved. On October 26, the "Encryption Law" was passed. The blockchain industry has begun to usher in a turning point. With the support of major national policies, blockchain Chain will quickly flood into all walks of life and achieve vigorous development.

But some people say that what the country is talking about is more about the blockchain industry (chain circle), and has little to do with the exciting currency circle. In fact, the country is indeed promoting the development of the blockchain industry, and previously held a negative attitude towards speculation, hype, and financing of virtual currencies. However, with the support of the state, more people know and understand the blockchain, which has a very good role in promoting the development of both the chain circle and the currency circle. There is no doubt about it.

The reason why the blockchain has a bad reputation is precisely because the regulatory system is not perfect and there is no restraint mechanism, and some people have done a lot of things to tarnish the reputation of the industry in the name of the blockchain.

As the widely circulated famous saying "Technology is not guilty", blockchain technology itself is innocent, but those who use technology improperly may be guilty, and blockchain has been promoted as a national strategy this time , The improvement of the blockchain industry will be in all aspects, and the legislation will also be advanced rapidly. Restraining and eliminating fraudsters who use the name of the blockchain to misbehave will be beneficial to all aspects of the industry.

The blockchain industry (chain circle) generally serves enterprises, governments and other institutions. It can be understood as serving the B-side, which is also the direction encouraged by this policy. The so-called "get rid of the virtual to the real" has always been encouraged by the state. The service for enterprises is generally called To B, and the service for ordinary users is generally called To C.

This article will start with the recently released "2019 Tencent Blockchain White Paper", talk about the To B attribute of the blockchain, and the relationship between To B and To C in the development of the blockchain.

1. To B gene of blockchain

In Tencent's blockchain white paper, there is such a sentence: Blockchain naturally has To B genes.

This sentence is quite interesting and worth thinking about carefully.

At present, everyone is complaining that the biggest problem of the blockchain is that there are too many bubbles and no real landing projects. Although each of our participants is also trying to make the blockchain land as soon as possible, but with little success.

Recently, I was thinking about such a question: Do people think that the blockchain has not been implemented? They are all To B, not To C, so the public's perception is not so strong?

For example, Tencent Blockchain has a project that is a blockchain invoice, which is in cooperation with the Shenzhen State Taxation Bureau. I believe everyone has heard of it. Many people ridiculed before that Tencent’s blockchain invoice project neither uses proof of work nor UTXO account system. This is a traditional Internet project without any blockchain elements. It doesn't matter half a dime.

However, it does use a distributed accounting system behind it. Whether you think it is an Internet invoice or a blockchain invoice, Tencent’s blockchain invoice project can indeed solve practical problems and has also been approved by the State Administration of Taxation. Now, more than 2,000 enterprises have been connected. As of August 5, 2019, to the first anniversary of blockchain electronic invoices, nearly 6 million invoices have been issued, with an average of 44,000 issued per day. The billing amount reached 3.9 billion yuan.

In addition, my country's central bank has officially released a blockchain-based check digitization system, which is mainly aimed at discounting bill financing for enterprises. The system aims to combat financial fraud and reduce the cost of printing checks. The system has been put into use More than 1 year.

Central bank digital bill system: Based on the analysis of digital bills and their transaction characteristics, we have initially completed a set of digital bill technology infrastructure based on blockchain technology and based on smart contracts.

Each digital bill is a piece of program code containing bill business logic and corresponding bill data information. These digital bills running on the blockchain have an independent life cycle and self-maintaining business processing capabilities, which can support bill acceptance, A series of core business types such as endorsement transfer, discount, rediscount, and redemption, and various business rules can be realized through smart contract programming.

From this point of view, the blockchain has clearly landed in many aspects, but why is it not perceived by ordinary people?

Because these two projects are for the public, that is to say, they are both To B. For example, invoicing, individuals generally seldom issue invoices, and they only issue invoices when they are related to the company’s business; ordinary people do not issue digital invoices. It will be involved, and it is also a behavior that is only involved at the company level, so ordinary people in these two projects are basically unable to perceive it.

In fact, there are many other projects. For example, the Tencent blockchain involves product traceability and supply chain finance projects. Ordinary individuals will not have nothing to do with commodity traceability, nor will it involve supply chain finance, so No matter how well these two projects develop, ordinary people will feel nothing.

Speaking of this, I think of a very classic sentence that Chang Jia once said. He said: Maybe the killer DAPP of the blockchain may not lie in the massive number of users, but the massive assets.

After this point of view came out, it caused a lot of controversy at the time, and many people's comments were like this:

In fact, if you put the sentence of Changjia in the scope of this article and think about it, you will find that it is quite reasonable.The difference between massive users and massive assets is essentially the difference between To C and To B.

For example, in the supply chain financial business, there may be only three or five companies involved in a supply chain, or a little more than ten or twenty companies, and there will not be too many specific users involved, but the funds involved It may be tens of billions, hundreds of billions, or trillions of funds.

If a certain blockchain is used to carry this business, even if this blockchain is not used by many people, it may survive successfully, because although not many people use it, the amount of funds used is large enough.

If the supply chain is far away from us, we can also think about the example of USDT. There are such sayings in the market: "Whoever wins USDT wins the world", "One USDT can support a public chain".

Take Ethereum as an example. Although Ethereum was once hailed as "the first public chain of the blockchain" and its momentum kept pace with Bitcoin, but with the end of the ICO, the demand for financing with Ethereum basically disappeared, so Ethereum The development of Ethereum has been greatly restricted. Later, people even suspected that Ethereum would become an air currency, wondering if it would never recover from it.

However, some time ago, Ethereum became active again, and the Ethereum network began to be congested due to too active transactions. The reason is that the ERC20 version issued by USDT became popular. The ERC20 version of USDT can crush the Omni version in terms of performance. USDT, so everyone began to turn to the Ethereum version of USDT to transfer and trade.

Using the above statement, although you have no demand for ETH, you have a demand for USDT on ETH. At this time, ETH mainly carries massive assets, not massive users, and this is enough to make ETH revitalize.

Justin Sun of Tron obviously understands this point. He recently pushed Trx-USDT, which is the TRON version of USDT. Currently, more than 500 million US dollars have been issued, and the short-term goal is to issue 1 billion US dollars. It is said that there is no handling fee for USDT transfers on TRON, the arrival time is short, and the performance is said to be better than that of the ERC20 version of USDT.

If it is really possible to issue 1 billion US dollars and it is really used by the market, you will find that although you do not have any demand for Tron DAPP, Tron can still survive, and maybe the more alive it is, the better. No one says that TRON is an air currency anymore, because although it does not have a large number of users, it carries a large amount of funds.

We often say that the Internet is used to transmit information, and the blockchain is used to transmit value. Value is different from information. Information is relatively simple. Each of us needs it, and everyone can produce it, but not everyone has value. Of course, the value mentioned here is the value in the economic sense, not philosophy meaningful value.

Most of us are ordinary people. We usually go to work, go home to take care of our children, and go out to watch movies and go shopping. Basically, we have no chance to come into contact with finance and business. Those who generate cash flow and engage in asset securitization, to put it bluntly, say that most people cannot generate value, and only a very small number of people can generate value.

The so-called "IDO" that has been popular for a while is the tokenization of personal rights and interests. For example, the tokenization of a certain star’s contract and income, such as a certain singer’s tokenization of his record income, such as a certain celebrity’s tokenization of his meeting time, and so on.

You will find that the tokenization of celebrities is not the tokenization of ordinary people. What is the reason for this? It's very simple. Generally, only celebrities can generate value, and ordinary people can't generate much value.There may be only 1% of people in our lives who can generate value, can create value, and are worthy of securitization.

From this point of view, since the blockchain is used for value transmission, and ordinary people cannot generate value, then the blockchain may not be based on personal participation, that is to say, the most important direction should be To B It's not To C's. From this point of view, it may be more vivid.

Of course, it does not mean that the blockchain cannot be To C, of ​​course the blockchain can be To C, for example, digital currency payment is To C, and digital currency transactions are To C, which can be used by every ordinary person. In fact, all To B businesses are ultimately To C in the final analysis.

However, all digital currency To C businesses will encounter some problems, such as financial risks. When it comes to digital currency payments, there are problems of money laundering and tax evasion; when it comes to digital currency financing, there are problems of illegal fundraising and fraud.

There are many blockchain projects with relatively large financing amount, hundreds of millions of US dollars, 1 billion US dollars, or even 4 billion US dollars. The hard-earned money of countless families put together such a project. If the project fails or returns to zero , I don’t know how many families have suffered heavy losses, and even caused social problems in severe cases.

I think the reason why the country has adopted a one-size-fits-all approach to digital currency financing and moved all digital currency exchanges out of the country is also the reason for such a harsh policy crackdown on it. When digital currency involves To C business, you should be very cautious, and there should be a screening process. For example, with this qualified investor system, you must have assets of several million, or talents with several years of investment experience can participate. Or at least sign a risk warning first.

In fact, if you look at this XDD speech, most of the things mentioned in it are about empowering the real economy, and they are all To B businesses, while To C businesses are less mentioned. It’s not that To C cannot be implemented, but that To C needs the intervention of strong supervision, and a legal environment needs to be established first.

The underlying logic of finance is the matching of risks and returns. Ordinary people do not have such a strong ability to resist risks, and perhaps they should not bear such large fluctuations. When most Tokens need financing, they should be mainly oriented to institutional investors, that is, To B-side financing. If it is To C-side financing, it needs to go through a very strict review.

The blockchain naturally has To B genes, which is more suitable for To B business;

The landing of To B business is also landing;

All To B business is ultimately To C;

Whether it is To B or To C, as long as it can reduce costs and improve efficiency, it is good.

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Disclaimer: This article is the author's independent point of view, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion. The picture comes from the Internet.

Disclaimer: This article is the author's independent point of view, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion. The picture comes from the Internet.