A few days ago, Wu Fengheng, executive director of MoChain Technology, stated in his keynote speech “How Blockchain Networks Help the Digital Economy” that blockchain, as the blockchain network of the next-generation Internet’s second-tier network, is essentially characterized as being a part of the network. Rather than simple tool positioning. The next-generation blockchain network has two main features and three major functions. The two major features are transmission assets and settlement assets, and the three major functions are represented by the three values of the economy and society: accounting tools, governance tools, and distribution tools. .
Dear organizers, friends in the industry, and colleagues:
I am very happy to discuss the topic of “blockchain and digital economy” with you. My speech only represents my personal opinion. If there is something wrong, everyone should listen to it.
I started to dabble in the field of digital economy 7 years ago. At that time, we were still called digitization. This wave of “digitization” actually started when the Internet entered life, and it has been going on for decades, and Still going on.
In the first few years of Bitcoin’s emergence, few people thought that the blockchain technology behind it would be an important force in the digital economy. More of us are still paying attention to the evolution of other aspects of the network: from PC to mobile, from 2G to 3G, 4G, and 5G.
In 2014, before the ITU officially proposed the 5G vision, I communicated with the major international telecommunications equipment vendors to adopt the 5G vision. Our understanding at the time was also that network evolution was like repairing highways, making highways wider, making vehicles faster, and making information delays lower.
The ITU clearly put forward the 5G vision in 2015, and one concept is “Internet of Everything”. In the future, 5G will make information transmission faster, the Internet of Things will allow more devices and things to be connected to the Internet, and artificial intelligence will greatly enhance the ability to analyze and process massive amounts of information. These are the core features of the next-generation Internet. But, I think there is still something less.
What’s less? I think that the mainstream international circles that do basic network construction are more concerned about the efficiency improvement of the network, the governance of the network, and how to let the network indigenous people protect their rights and rights in the development of science and technology. Actions are not enough. We have always advocated “humanism of science and technology” and “governance of science and technology with science and technology”. Technology as a tool, I think whether advanced or not, tools should serve and liberate people, instead of controlling people or guiding the evil side.
In the wave of digitalization, there are many innovations and technological iterations that improve efficiency and productivity, which have also been recognized by the mainstream. Then the blockchain, I think clarifying its position in the digital wave is very important for the development of the blockchain industry and gaining more recognition.
First of all, I think it is part of the network. The essential feature of the blockchain is the network, not a simple instrumental status, although it also serves as a tool. Secondly, it is a production relation technology that adds a governance layer to the next-generation network: any economic unit in the digital economy can actually DIY its own governance through the blockchain. Finally, these diversified economic units and blockchain networks become the Internet of Value through organic cross-chain connections. Blockchain networks are not like a pure evolution to the underlying network, let alone a substitute. They are more like a mutually reinforcing and superimposing relationship, making the network more “three-dimensional” and “rich”. The bottom-level productivity network, plus the second-tier production relationship network, together constitute the vision for the next-generation network.
This two-tier blockchain network has two characteristics:
First, it can transmit digital assets. In my opinion, the primary meaning of Bitcoin and Ethereum is not currency or assets, but a network of trillions of dollars in assets. At present, the main assets running on the blockchain are on-chain assets. In the next 5 years, there may be more large-scale off-chain assets running on the blockchain.
Second, it has established an automatic settlement layer. In the future, you may find that the value of everything can actually be automatically settled on the blockchain network.
The second-tier blockchain network also has three values:
First, it can record the contribution of each economy member to the economy more precisely and quantitatively, and reward and punish members’ behavior. Blockchain can first be a contribution recording tool, or a more advanced integration tool. One key to why the three major operators have such a large volume is that they have established a sophisticated accounting system and settlement system. Through the blockchain, many economic activities in human production, consumption, and circulation can become standardized, measurable, and then priceable and tradable. Many of the original contributions or assets that were not recorded as valuable can become valued, Capitalization. This is the charm of the digital economy.
Second, on the basis of the blockchain’s recording of the contributions of the members of the economy or the recording of the assets, whether it is the contribution of labor or the contribution of capital, it can finally be weighted and averaged as a voting right for economic activities. I have always believed that true democracy is not formal democracy, but that the people are the masters of the country, and are the first to speak of their own economic units. Therefore, based on contributions, the blockchain network can provide a governance tool for economic activities, and it can also be DIY.
Third, distribution. Contribution records are the foundation, governance tools are the guarantee of rights and interests, and the blockchain has another value. It can provide a distribution mechanism that reduces human intervention and establish an automated distribution mechanism through smart contracts and digital assets.
To sum up, it is community-defined rules, blockchain recording contributions, contribution-based governance, contribution-based distribution, and automated distribution. In the future, long-distance, distributed, and high-efficiency free collaboration will become a reality, which will greatly enhance human freedom and happiness, and will also greatly explore and enhance social wealth.
Finally, let me talk about my understanding of cooperative economy.
I wrote a sentence “Bitcoin is a network cooperative”. The core role of Bitcoin is to provide a global settlement network, and Bitcoin is maintained in a distributed manner by global miners. If you want to mine, you can mine, if you don’t want to dig, you can get Bitcoin rewards for mining. The reward rules are set. I think this is a bit of a “community of free men”. When it comes to blockchain, everyone likes to talk about “decentralization”, and I want to talk about the value of the “community of free men”. Our industry may be the first industry to enter this stage.
Cooperative economy has a history of hundreds of years of development in the world. It can be traced back to the utopian socialism of Irving and Fourier. The United Kingdom has Pioneer Society, Spain has Mondalagon, Japan and South Korea have comprehensive agricultural associations, and contemporary China has a cooperative economy based on it. Many cooperative economic organizations have become large economies or industries in the construction of new villages in China. The cooperative economy accounts for more than 10% of the total global economy. Don’t think that the cooperative economy is just a kind of idea and non-governmental advocacy. We participated in the construction of contemporary Chinese market-based cooperatives more than a decade ago. When we participated, it was of course non-governmental organizations, but experts and scholars, officials and officials in the system were involved in various fields. Under the joint advocacy of the people, it is now a national policy, which is written into the Central Government’s No. 1 Document, called the development of a “three-in-one” cooperative economy. China is also promoting a reform called the “three changes”, where resources become assets, capital becomes equity, and villagers become shareholders.
Whether tracing the root of the blockchain or analyzing its two characteristics and triple values, the blockchain and some of our country’s core concepts and practices have valuable similarities, so it can be used by us and can be used by our country’s economy and society. Development and creation of value can help our country achieve a leading position in the global digital wave, and promote the global cultural identity of our country. Our government is also enlightened, open and efficient on the whole, giving a lot of room for experimentation, and of course it is also regulating some behaviors, which is also beneficial to the industry.
This picture is a concrete improvement idea for building a blockchain network: one is to improve the machine consensus of the POS network based on multi-layer PBFT to improve its communication efficiency; the other is to improve the voting mechanism, mainly for hope To solve the problem of controlling large nodes in the existing POS network and getting richer, our idea is to adopt a hybrid mechanism that combines voting by rights and voting by person.
Now we are doing blockchain, which is a bit like building railways 100 years ago. Trains and railways are foreign objects. We can learn how foreigners build railways without having to make the rails narrower than them. Or a bit wider, we still need to be interconnected and globalized. At the same time, we can improve the quality of railways and the technology of building trains. Europeans built railways earlier than us. They invented railways, but in the end China was still the country with the most developed high-speed railways.
We do the same with blockchain. We are contemporary “railroad workers”. We learn from foreign blockchains and improve them. Then one day we Chinese may also be able to build a blockchain network capable of carrying trillions of dollars in assets. The Chinese are not stupid than others. We also have the largest market in the world. Our government is also enlightened, open and efficient as a whole. I believe there will be this day. I also suggest that while working in the industry, everyone should do what they can to contribute to society or do some public welfare, to win social respect and support for the important industry of blockchain, and to conform to and promote the historical trend of national rejuvenation.
thank you all!
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.