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Babbitt - The Parallel World of Blockchain - The blockchain is interlinked with the internet

On December 21, 2017, the "China Blockchain Innovation Summit (Shenzhen)" co-sponsored by Babbitt, the original chain and the Dreamer Fund was grandly opened. The forum invites representatives of venture capital institutions, financial institutions, law firms and business leaders of blockchain. With the theme of "blockchain technology, value interconnection of industries and capital and ecological outlook", the forum features keynote speeches and roundtable dialogues , Conducted in-depth discussions on risk investment in the area of ​​blockchains at home and abroad, legal supervision, exploration of advanced technologies in the blockchain, and application of industrial applications.

Babbitt founder Chang Yao, than the original founder of the chain Duan Xinxing, founder of the Dream Valley Fund founder Zhu Bo, IDG Capital Partners Tong Chen, Zhong Lun Wende law firm senior partner Chen Yunfeng and other guests attended the forum .

Cheung Chee has made a wonderful contribution on the theme of "a parallel world of blockchain - a mirror image of the blockchain and the Internet." Cheung Chee reviewed the development trend of blockchain and believed that the development of blockchain assets is going through three stages: asset-based equity, asset securitization and asset blockchain.

Next, Nagashima on digital money will be replaced by competitors, why the bottom of the block chain agreement is more valuable, why the need for mining, blockchain transactions and Alipay What are the different hot issues are described in the It seems that these questions essentially reflect the mirror image of the atomic world and the bit world.

The following is part of the speech content, Babbitt did not change the information willing to edit the order:

Blockchain world and the real world is a mirror image

The theme I share is the parallel world of blockchain. This topic was mentioned by me recently when chatting with an investor. He said the blockchain is now very hot and we are also very interested, but I always feel that I and I are not living in one world. Our dialogue It does not seem to be in the same language, so I do not know the blockchain. I also agree that the logic of the blockchain may not only be the parallel world with the Internet, they are mirror images, there is a strong contrast, the Internet is the transmission protocol for information, the blockchain is the value of the transmission protocol, the information Treatment and the handling of value are completely different ways, resulting in the logic of investment, business logic, business logic will fundamentally change.

The first part I briefly introduce the development trend of the blockchain, the first picture is of little significance, is to tell bitcoin's market capitalization in the rest of the world's asset rankings. This picture may be outdated, this picture produced a few months ago, it may be a few months later its noumenon, beyond a few. It is foreseeable in the near future its market value will exceed Apple's market capitalization. Although bitcoin's market capitalization is increasing but bitcoin accounts for a smaller and smaller share of blockchain assets, it is also easy to understand because bitcoin is considered as blockchain 1.0 and blockchain 2.0 is based on a The original assets of blockchain issuance, the proportion of such assets in all blockchains must be higher and higher.

Three Trillion Dollar Forecasts

Blockchain assets what kind of stage of development? In 2009, we think it is bitcoin's era of development. Many people think of the first year of the blockchain's original assets because a large number of companies have issued blockchain tokens in a large number of projects. By 2020 we expect the blockchain not only to issue virtual assets but also to issue real-world physical assets. Based on these three phases we have three forecasts, all three of which are trillion-dollar forecasts. The first is that bitcoin will have a market capitalization of more than trillions of dollars in the future; the second is the blockchain native of non-bitcoin assets, the so-called bit-assets that exceed $ 1 trillion; the third is through the area Blockchain registered physical assets, which is the real claims, equity assets will exceed trillion dollars.



Three stages of asset evolution

We all know that we have also done a project more than the original chain this year and we are also targeting the third phase. We think this market is big enough. The stage of asset evolution We can think of as three stages:

The first stage of the equity of assets, the overall transfer of assets to confirm the overall, a bit like the solid 
phase of the asset ; the second stage is asset securitization, ABS, the assets become separable, it's more liquid, We can understand the liquid state of assets. Liquid has a limitation, the liquid requires a container, the container is some of the assets of the platform, not cross-platform flow; the 

third stage is the asset blockchain, only after entering the blockchain, each agency through the private key To manage their own assets, this time we just think the real asset into a free flow of a stage, is the stage of the gas, filled in the entire space, without the restrictions of the platform.



What's the impact on our life? From an individual point of view to replace their own time, such as Babbitt investors always have a project shuttle time and space shuttle, hope to get through the blockchain with a large V of time, this is a very good application, the next link in time and space Shuttle will sign an agreement with the original chain, the use of the original chain to carry out their smart contracts. For businesses, he can own points, aviation history, game currency, etc. tokens of money, the company is the equity, debt and other agents.


Four questions illustrate the mirror image of the blockchain and the internet

Next, I will introduce a comparative analysis of four common problems to illustrate this mirror image of the blockchain and the Internet.


The first question: Bitcoin will not be replaced by competitors?

Someone raised this question five years ago and raised the question five years later. The fundamental reason is that Internet thinking does not enter into the thinking of blockchain. What is Internet thinking? Internet thinking to understand blockchain as a software. In fact, we blockchain practitioners in fact do not think so bitcoin, we see it as an agreement. They have the essential difference in the following four dimensions. The first software must have its own patent barriers to build its own moat. But for the blockchain project, the more open source is, the better one can approach them. He wants more people to use his code. The second main development, the software must have a main body of development is the company, the development of blockchain project is often a loose foundation or a community. Upgrading methods, the software needs continuous iterative upgrade, which is just the logic of the people who asked the question, with reference to the history of the Internet we found that those early props, such as the sharp increase in browser, the earlier competitor than later replaced, this Logic does not exist. Bitcoin is a protocol. Its protocol is very stable. If you want to modify its protocol, you need to get consensus on the whole network. This is very difficult. Operating mechanism, if you are a software apparently can be shut down, you can stop maintenance, for the block chain it can not be shut down once it starts, this is his very important feature.

The second question: why do the underlying agreement blockchain more valuable?

We are also the public chain than the original chain, an infrastructure. From the architecture to do the application is to make an agreement, because in the past Internet protocols are non-profit organizations to maintain it, but the blockchain is the reverse, is to do the most core value of the agreement layer to grasp the application layer does not Why does it make the value of the agreement layer large? Because the traditional business model is through the production, to enhance the efficiency of productivity, re-sale. For the blockchain through the system of internal control, so it will naturally spontaneous users, miners, investors such a community size. The way this token is distributed is directly controlled by the developers of this protocol, so the people at the protocol level have the most central value in the ecology of the blockchain.

The third question: why do we need to mine?

This problem is also very common. Yesterday, I saw in my friends circle Ali's top manager said bitcoin consumption will eventually collapse, but to see how you think about this issue. If you have a technical background I suggest that you read this book is a retrograde method to prove that the Bitcoin method is the smallest feasible solution, but if you see this efficiency, you can not mine, If you value the transaction can not be tampered with. There are two kinds of attributes in the bit-world and the atom-world. In the real world, everything is random. Everything on the Internet or in the bit-world is pseudo-random. There are no two identical leaves in the world, In the real world, entropy increases, but also to disorder, in the bit world is negative entropy increase, in the real world is a normal distribution curve, in the digital world is reverse distribution. In the real world, all resources are competitive resources, such as a bottle of water, a book. Everything in the digital world is a non-competing resource, a document I pass it on to my friend, and I can not guarantee that I eliminate this copy. Why bitcoin needs to sell energy because it is very difficult for us to replicate exactly the same thing in real life, and it can be argued that it is very difficult for you to make a perfect crystal and that you have to devote great energy costs. In turn, by contrasting thinking, we can understand that it is very hard for you to prevent one thing from being copied in the digital world. You need to prevent it from being copied and guaranteed to be competitive. You have to devote great energy costs.

Fourth question: block chain transactions and Alipay What is the difference?

I am often asked such a question, WeChat payment has been so convenient, why do we need blockchain transactions? One essential difference between them is currency days. Suppose a sum of money is lying in my wallet for 1 month and I hit 100 coins for another person. The meaning of currency is essentially a kind of time. This is a typical transaction, 120 bitcoin corresponds to 5.89 such a consumptive goods, which is the property Alipay WeChat pay, Alipay transactions will not record such a time, what does this mean? This means that we have a completely different credit rating system based on the blockchain to establish credit rating system and ant gold service. This is a traditional credit rating model. A typical cumulative model, what is the disadvantage of this model? Is not anti-brush, brush credit will be very rampant, he reason why the reason is not anti-brush because of its transaction cost is almost equal to 0, and it does not distinguish between A account to B account, B account to A account. So based on this theory we can propose a consumer-based credit rating model, the weight of this credit rating model associated with your goods project.

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Finally, I will explain the difference between transactions on the blockchain and Alipay through a comparative analysis.

First, the credit for the blockchain comes from the blockchain data itself, it does not require big data, it only needs direct data. Alipay's credit is the need for big data to distinguish between real trading and cheating transactions, but the blockchain credit rating model does not require distinction, you can go to brush the credit, you can not brush up, you can brush bad reviews, but also brush can not go on, To ensure that your data is authentic, do not need the assistance of big data.

Ownership, this is a good understanding, ant metal credit does not belong to the user himself, but belongs to the platform, but the blockchain credit, the user is the absolute exclusive credit control of the credit belongs to the user, I can pass my own private key It is verifiable to prove to the bank or institution the balance of my account and that all transactions belong to me.

The second layer of the meaning of the block chain belongs to the user only, one more word, that is, a crown store in Lynx, I can modify the phone number, change the password to sell this shop to others, this is actually a fraud of credit , But the blockchain credit is not tradable because it is a private key, the private key once generated will always belong to you, I have a very high credit address, I can not sell this address to others because I can not guarantee I sold this address to you when I destroyed the private key on other media.

The scope of application is traditionally limited to the in-house, blockchain credit is cross-platform because in the future if true blockchain technology is widely accepted, all of these platforms will support you to log in because you can access the private key Prove your identity.


The fifth is space-time. The application of the blockchain is across time and space. There is no national boundary and no time and space restrictions. Traditionally, these credits are both real and geographical. So I share a large number of comparative analysis of the blockchain and the Internet to elaborate their mirror image, so a lot of this logic is the opposite, leading us to try to establish their own business model, business ideas, and even investment ideas Will be essentially the same way as the original Internet.