People’s Daily: you give the heavy document translation, what is called a block chain?

The WeChat public number: Kai’s story

 People's Daily: you give the heavy document translation, what is called a block chain?

“Last week, the people’s Daily overseas edition issued a document that will block chain is the key technology of the fourth industrial revolution”

Write the article, Chinese block chain ecological industry initially formed. At the end of March 2018, the number of Chinese blockchain to the main business of the company reached 456, the initial formation of industrial scale. Manufacturing, from the upper reaches of the hardware platform services, security services, application services industry downstream, to support industrial development, the media industry investment and financing, personnel services, various industries in various fields has been basically included, block chain industry chain has been formed.

At the same time, Chinese has begun to establish a national standard block chain, chain block construction standard system plans to push from the top-level design.

 People's Daily: you give the heavy document translation, what is called a block chain?

China communications industry association blockchain Specialized Committee executive secretary Gao Bin introduced, at present the blockchain talent gap to make up, “the blockchain talent gap not only in technical positions in the operation personnel, management personnel, community operations experts etc. there are a large number of gaps.” He believes that the “90” has become the main force of industrial development, and hope that the “90” can take the initiative to participate in all aspects of the industry chain block.

Last week, I sent a text, read an article called “2019”, which detailed the mentioned China will not miss this wave, but the wave came too fast, many people are not intuitive feeling. If you really understand, I think his future wealth will grow at least ten times. After all, the trend is the most important.

In this article, I also pointed out that the upper limit of Chinese A Shanghai stock index is 3100 points temporarily, and the lower limit is 2440, which is China state line ups and downs, the country to encourage you hunters, but for the next ten years will be the great depression for ten years, so the bull market will not happen overnight. The next thing I think we all know. On Thursday the Shanghai A shares the highest hit 3129.94 points on Friday plunged 4.4%. If you read this article, I want to fall in the loss can be avoided.

 People's Daily: you give the heavy document translation, what is called a block chain?

At that time a lot of people in the mixed group. I found a lot of Internet Group, just a quick glance again, quickly pulled to the end of the paper, then sneer I encourage everyone to buy bitcoin, by the way a block chain map project. It is this article is soft and so on, and then continue to discuss the jubilant stock. But the blockchain group in a lot of people in the read, later many people add my WeChat through the public number. Most people are humble, careful questioning. There are a lot of people told me that he read at least 2 hours, or even two days reading. Will the two brush, brush three.

These people will make money, and will earn a lot of money.

For this public chain block chain map project, now is still relatively early. Most people are not likely to understand also could not understand what to do in the end block chain map, what is the significance and value. Investment at this stage block chain chain is the only public map heavyweights do, even the most unlikely people, also see a new species are beyond his age. Because precipitation and evolution of rise of new species also need a period of time for their own.

When Ma Huateng started the Tencent, facing the biggest suffering is not profit model, but a large number of users growing increasingly heavy burden on the server. In November 1999, the number of registered users reached 1 million QQ. In April 2000, the number of registered users reached 5 million QQ. In March 2002, the number of registered users reached 100 million QQ. The middle almost does not survive, but to find people buying. The first is to find the association, the report also did not submit the following staff is to cannot read for away.

 People's Daily: you give the heavy document translation, what is called a block chain?

Then find the NetEase Ding Lei, Ding Lei was the most promising is the mailbox, immediately rejected Ma Huateng, feel that their technical content is too low. Then for Guangdong Telecom, Guangdong Telecom boss was laughing out loud, you said that millions of users, even a fraction of us not to. You are not very easy, I’ll give you 600 thousand. Ma Huateng was expected to grind, is 1 million, and finally did not sell into.

Tencent can survive, the main reason is that Ma Huateng is a good father. Ma Chen surgery, Chaoshanren, Li Jiacheng’s hometown, is also the father of Ma Huateng, he was the most important, Yantian Port directors of listed companies. Li Jiacheng was in the investment and construction of Shenzhen Yantian port, it is the person responsible for the Ma Chen surgery. Also, in the course of contacts with the friendship. At that time, Ma Chen surgery to see his son Ma Huateng couldn’t find a solution, we recommend Li Jiacheng. Li Jiacheng didn’t want to cast a Tencent, but he is also a high EQ, so as to make it to his son Richard Lee, let him mean.

Finally, Richard Lee really just mean $110 thousand, but on the face in order to look good, again recommended IDG us to Ma Huateng. IDG cannot read at all Tencent, but in order to improve relations with Li Jiacheng, also had a mean of $1 million 100 thousand. Then the Tencent burn quickly, but no money. On the profit model, was only vaguely written advertising fees and membership fee. Richard Lee and IDG listen to, immediately gave Ma Huateng a fall on the ground face down don’t bother him, they.

 People's Daily: you give the heavy document translation, what is called a block chain?

Until 2000 the South African investment company MIH to find the door, then Chinese MIH vice president of business development network, a South African Tencent fancy user resources. Because he found Chinese all Internet cafes are equipped with QQ, was keenly aware that the company is likely to become a great company, finally in early 2001 when MIH got 32.8% of the shares of the Tencent with more than $20 million. The Richard Lee to the sale price of $12 million 600 thousand in 20%, and all his shares. IDG sold the Tencent holding 12.8% of the shares.

See, today China BAT’s Tencent, then across the Chinese, not a gangster understand, even the last buy people are purely to face and not because the really want to invest. The last is actually across the earth, the other end of South Africa an investor vaguely aware of the potential of the Tencent, under the re injection.

Back to today, when the investment chain chain block map public should not be an ordinary investors can do. Please always remember, the world’s most important is not money, not people, cognitive. Cognition is the most difficult thing in the world.

Gangster became chiefs have some chance, because cognitive is rapid iteration, we saw a big money is not difficult, as long as you hold the time to give the opportunity, but we see heavyweights continue to make money, it must be because they repeatedly emptied their cognition, broaden their cognitive boundary. So when you do not understand the blockchain map chain in the end what is the public before, do not just investment.

 People's Daily: you give the heavy document translation, what is called a block chain?

Cognitive investment

In the era of abandon a person, do not put a fart. Many people think they can go beyond this age, after that, the vast majority of people are a motley crew. The investment in this matter, we are no different with the aunt. A person can earn money, but because the three point: the transformation of the environment gave him a historic opportunity to choose his own direction to conform to the trend of the times, the last is German financial coordination. This last point is not about others, with their relationship. The first two is you can choose. Don’t look as if this is not the same as what no two. In fact, there is a big difference between.

I have 2013 years to go to Henan. In 2009, there was a story. At that time in Beijing, there is a small dinner, a friend. When wine is over three years, man has been pulling me to get rich, it. Must go to the place of low electricity. Your machine on the line, do not say, do not find the relationship between. Stealing, doubtless fortune. I was also really listen, go to several local research, finally chose to dig coal mine in Henan Dengfeng.

 People's Daily: you give the heavy document translation, what is called a block chain?

This is simply a joke to listen to today. Such a good time, why not dig bitcoin!?

Later, he moved to Nanyang after the failure of the coal mining iron ore. This is really really dig people do not. Spring is not too hard, not too cold in winter, the days of children. No rain, not too wet, windy, machine instability. But this mining started no turning back. As long as the start, every day is a cost. By 2013, lost 10 million small, gray back to Beijing. The Beijing house is sold, the car is sold, all debts.

In fact, each person’s cognition is limited, especially in the field of opinionated, everyone is easy to know information deceived, because the information is always asymmetric.

I have been thinking, in fact that even really hear dig bitcoin money, I also estimated not so fast response. Because everyone has cognitive boundaries, to break this boundary requires a lot of effort.

Now I was going to Henan. Such a thing, in fact, three points are not accounted for a profitable. The whole environment does not support I do this thing, the country was also out of the policy of the integration of the country’s coal mines and other mineral resources. And my own initiative to choose the direction and I am not good at that year, mining needs a lot with the local government to negotiate, and drinks and gifts. Finally, of course, is you cannot read this thing, just think of mining can earn money with fearless passion into a profession I had no understand. So Decai unworthy bit. Lose Gede it ought to be.

 People's Daily: you give the heavy document translation, what is called a block chain?

Back in 2002, it is this year to open coal gold for ten years, the price of coal was very low, only a few yuan price Kengkou tons. Then began soaring coal prices, until 2008 reached a peak of 1070 yuan a ton. After 09 years of decline, in 2012 returned thousands of yuan a ton. Is the gold in this ten years, we saw a golden age mine boss. After the coal prices all the way down, the lowest to 300 yuan a ton. In 2015 the price of coal is not high the price of potatoes, often a ton of coal price is lower than the price of a ton of sand.

If you read my previous article, you know 2004 is the prosperity of this round of Kang vertex of the wave period after turning round the recession that lasted until 2015. In the recession, Chinese riches is precisely the typical coal bosses, we must think in the heart of the coal boss is not possible as good as me. Coal boss is coal boss, is given the opportunity of changing environment. This is not their active choice, but the time they choose. You want to tell me they can see this thing happen, I wouldn’t believe it is dead. Each round of Kang wave cycle of recession, we will see the emergence of the commodity bull market. The last round of Kang wave period of decline was 73 years -82 years, this period is precisely the oil war, oil commodities boom period. In the future, at least 30 years the commodity market is unlikely to produce rich opportunities.

 People's Daily: you give the heavy document translation, what is called a block chain?

“But the change of cognition, conform to the trend to accord with the development of the times, this is everyone can do”

Long term thinking

In 1994, in the financial industry, Bezos realize they can through the Internet to do a bit of what Yu Shihu Amazon, “at the beginning of the birth of the concept”. Then he presented a “network sale” list, and ultimately chose to sell books. In 1995, Amazon as “online bookstore” officially launched. To 1999, began to become a whole category of sales. Before the start of Amazon Bookstore, the largest bookstore in America called Barnes & noble, percent market 8%-12%. Even after he appeared in the Amazon, active financing $200 million to fight was only $20 million in the Amazon, even so, he finally still was overthrown.

In the face of the traditional business of the Internet, Bezos gives a platform for thinking of the strategy: establish the comments section, the reader is encouraged to evaluate the purchase of books, and the establishment of a variety of channels, so that the writer and the reader, the reader and the reader to carry out extensive exchanges. Amazon is no longer a simple shopping website, interactive community but a gathering of friends, the writer. The community has a strong cohesive network, once the formation of scale, will produce a strong attraction. Dimension reduction effect caused by network attacks amazon. The final completion of the first stage of their own.

 People's Daily: you give the heavy document translation, what is called a block chain?

When the book market is completely captured after the Amazon, his goal became WAL-MART, WAL-MART family is a long time the world’s richest man, is believed to be invincible. Amazon began to expand the business, book outside the commodity sales. At first, Amazon still chose their own proprietary models, purchase, sales. In order to meet the sales, Amazon also began to set up their own warehousing and logistics system. However, the problem of this model was soon revealed: the Amazon because of the limited financial resources, so it is difficult for consumers to provide adequate category of goods, which limits its appeal. Buy more goods of course is a feasible solution, but the warehousing and logistics cost is obviously difficult to bear the amazon.

So, how to break this impasse? One idea is that the business model from the self change platform, so that businesses selling goods into the amazon. In 1999, Amazon will this vision become a reality. It will be your own website open to businesses and individual operators, allowing them to sell the goods in the above. The Internet bubble burst in 2000, e-commerce companies including Amazon, have a huge impact, financing has become very difficult. In this case, the platform reform program launched in 1999 that Amazon’s revenue and profit, making it from the capital chain rupture in front of the huge impact of the plight of. The platform of reform is in some sense in the crisis to save the Amazon, completed the second steps of it.

Amazon launched Amazon cloud services in 2006. Traditionally, computing capacity shall be borne by IBM, HP and other companies, but let all people did not think that the Amazon as an electricity supplier, and there is no such a technological gene, even into the cloud computing industry. Now, Oracle, IBM, SAP, HP, DELL etc. these traditional calculation combined corporate giants such as Amazon market capitalization, total. Bezos will be the Amazon internal functional business into foreign service business. When a service outsourcing, it will face real competition, understand the needs of users, and finally becomes a AWS case, completely on the outside of the service. The success of Amazon’s cloud is the multiplication effect brought community user network and platform of reform.

 People's Daily: you give the heavy document translation, what is called a block chain?

The rise of Amazon is to change the entire Kang wave period, this round of Kang wave period boom from 1994 until the beginning of 2004, Amazon’s stage corresponds to the electricity supplier. From 2004 to 2015 the recession appears corresponding to the Amazon cloud and large-scale growth. Amazon is the Amazon, is active and conform to the trend to choose the direction of typical results. In the whole process, such as Amazon have shown a general view of the blockchain, so I think Bezos is in Internet Co, the closest block chain state. About the difference between the Internet and the blockchain, you can see my previous article “IMHO, the first step of Mr. Li Guoqing’s doomed end”.

What is the most close to the blockchain state? Bezos believes in the retail industry there are three important points: 1. unlimited choice, the lowest price 2., 3. fast delivery. Bezos in the letter to shareholders, he clearly said: there are two companies in the world, one is as far as possible to persuade a customer to pay the highest possible profit, the other is to reduce the price, put all profit profit to customers of the company. The two companies will be successful. Apple is clearly the first, while Amazon firmly in the second.

 People's Daily: you give the heavy document translation, what is called a block chain?

What would Bezos do? Busd Stone in the “catch” is described: Amazon AWS business in the long-term absence of competition, prices to 51 times. Bezos said he did not want to repeat the mistakes of Steve Jobs “– the iPhone pricing is too high, so that the intelligent mobile phone has become a target for all to attract large-scale competition.

Another is the user experience. Amazon’s culture is to do the most customer-centric company in the world. Say I have never seen be not at all surprising, but what a company can put this sentence up to the ratio of religious belief should be strictly the point, and the implementation of the real. Including apple, Facebook, Google, never, so these companies will eventually be defeated in stocks in the amazon.

Last year 8 Moonrise a news, said Google still will automatically collect user behavior after the user closes the map data, and fined 4 billion 300 million euros by the European Union. In February this year, Facebook spent billions of dollars to investigate its privacy leaks. As for apple, Icloud is by far the world user privacy data leakage from most complaints. Their original attributes based on, I don’t think that the lack of respect for customers, privacy of the data in the foreseeable future will be improved.

 People's Daily: you give the heavy document translation, what is called a block chain?

In 2005, a middle-level staff proposed to Amazon $99 annual fee, within two days of delivery service for Prime users. At that time, the level of logistics, from Wall Street to the company executives think this is mad. This project will insist on Bezos lipaizhongyi. At that time, most people are against his CFO. The CFO is a fighting force, Bezos comrades. But in this project, the CFO said, free shipping is not what initiative, just let our future balance sheet problems again. There is a meeting, he even let people provide the suggestion of demotion.

At present, Prime global membership has more than 90 million, according to the calculation of $99 per person per year dues, the income of nearly $9 billion, but so far this project is still a loss, the Amazon Prime invested in the interests on far more than this number. But looking back, $99 annual fee to stimulate the members to make full use of the Prime value of the psychological, the more a large number of customer orders, because the service has become Amazon fans. This is considered to be one of the most cost-effective Amazon trading history.

Amazon just to sell their stuff at first, but later it was opened to the three party, called Marketplace, and Bezos, the price tool, open to all consumers. This business will obviously hurt the interests of the Amazon, suffered numerous objections. For example, you want to buy a book, you may find a second-hand book the cheapest, the bookseller will not be happy; others sell, sell cheaper than Amazon, the business person in charge is not happy. Bezos is the introduction of the world external forces forced internal force, will be put out to the world, the lowest price.

Bezos said that Amazon’s core is only three points: Prime, AWS, Marketplace. In a 1997 letter to shareholders, Bezos issued “everything is going to be the declaration, he stated on the Amazon operation of the road. He promised to look to make decisions, and to focus on market leadership. In the next 20 years each letter is written this declaration! In reading this letter you will find that the basic principles of Amazon to do business for so many years is always the same. Is about commitment and consistency. Long term thinking, all to the infinity of the ultimate goal as the goal, all the process can be ignored, from the beginning to the end, strict implementation.

What is the middle of the all process can be ignored?

Amazon reached peak value in April 2018, more than $1 trillion. But in 2018 Q2 profit $2 billion 500 million. Which means that if in accordance with the traditional PE algorithm (mainstream enterprise valuation model is PE value, is your market value divided by net profit per share) up to 400 times, in other words, the capital market of the Amazon 400 years after the money to him. This is not scientific.

In fact, most of the company is the choice of way to calculate the market value of profit ratio. But Bezos is not, from the beginning of 1997, Amazon valuation model is adopted: the enterprise value is equal to the free cash flow to create long-term discounted value of the sum. In other words, the valuation method is used in the Amazon free cash flow multiples *.

 People's Daily: you give the heavy document translation, what is called a block chain?

So from the beginning of 1997 until 2014, the Amazon are not profitable, until 2015, began to appear in the micro profit. But Amazon’s cash flow has been in the annual growth rate of 200% to growth.

In fact, Netflix also used the same thinking, the profits returned to each user, to overcome the short-term profit margins to obtain user growth more than the life cycle of enterprises long-term thinking, finally win in innovation. In the letter to shareholders on Bezos once said a word: I believe that any company will eventually disappear, and we just take the day off as long as possible to infinity.

Up to now。 You may have a little Meng force. Because you still don’t understand this with the blockchain wool relationship.

open source community

Don’t worry, I’ll say one or two examples. 18 years 10 months 28 days, IBM to $33 billion acquisition of a particular cattle company, called Red Hat, is an open-source software platform of the community operates it, most of the code is not own production, is a community of developers on the common contribution. Such a company it had an annual income of $2 billion 900 million, a year’s profit was $259 million.

33 billion dollars is what the concept? Give the company 127 times PE. This is an open source company.

Red Hat all the source code, everyone can use, but it is the core selling value-added services. It is the logic of business use is certainly hope to get better and more stable service, so the data with the code I have free for your use, if I do find value-added services, I only found the money service. IBM can do it? If the chairman of IBM require the company to do the same thing, estimates will soon be expelled from the board of directors. This is the enterprise genes.

 People's Daily: you give the heavy document translation, what is called a block chain?

IBM as a listed company, must to shareholders. IBM system, patent, code is his core competence, he certainly doesn’t want to open up to the world. As a result of this will make the stock not worth a penny. So this is it to hire a large number of chain reaction, BD business, again and again, to run the customer meeting, entertainment to specially customized system. This will generate a large number of unnecessary time and cost loss. The most simple IBM, the world has more than 40 thousand employees, this is no way to reduce the cost. Finally, IBM to sales ratio of 10 times, more than 100 times earnings in the price of the acquisition of Red Hat.

Coincidentally, in June 18, Microsoft also acquired the Github open-source software platform of a similar nature, spent $7 billion 500 million, is to run the way communities. GitHub is not just a programming tool. It is the core of the open source community, to a certain extent is the intersection between the social network and project management tools. It is by far the largest of its kind website. Many companies and organizations hosting open source software projects in it, including apple, Amazon, Facebook, Gu Ge, Verma and the United States government. According to Microsoft, GitHub has 31 million users, 85 million code base. It is a lot of paid use its private hosting services company providing proprietary code and internal communication service.

According to the acquisition of Microsoft’s own expression, history is the most difficult decision, no one. Because it does not comply with the capital market valuation method. This $7 billion 500 million doesn’t buy anything, except for the respective project Github write code 31 million technical personnel, more than 300 employees and Github itself.

To do such a company valuation? With the method of valuation and valuation of the traditional system, it is impossible to make out the valuation. Most of these companies are in the value of intangible assets, the form above intellectual property, software system, data or code, is no longer a plant, machinery, land etc.. We say you have to mortgage loans you want to get the land, houses, cars over the mortgage, the company now is my code, and open source, I put a pile of open source code to show you, you give me a valuation.

The Microsoft 75 billion dollars buy 3100 million users on an open source platform for community consensus.

 People's Daily: you give the heavy document translation, what is called a block chain?

Today, we have undergone tremendous changes in the discussion of the enterprise model, business organization and enterprise valuation method. The original business model with a net profit center is gradually being replaced companies like Amazon, free cash flow is the essence of user centric innovation at all costs. Business organization to the open source community from the center of the body completely, the original data and information to be charged, and then added service fees. Today, data and information are free of charge, only charge service fees. The original enterprise valuation in net profit ratio * to calculate, today we only see this enterprise can form a consensus to calculate its valuation multiples *.

Block chain is long-term thinking with the open source community consensus network

Why is the own long-term thinking. Because most people don’t like Bezos to think, even thinking to, is not like Bezos to perform. So the network architecture in the beginning, the rules of the game are written in the code, enforced by the network, and may not be tampered with. No one can change, means that from the beginning to ensure that the network is based on user benefit maximization as the starting point to design.

Like I just talked about the acquisition of Microsoft Github and IBM acquisition of Red Hat, is not familiar with the form of company organization, community in the way of running Github, there are 31 million technology developers, not their employees, we put the code in the above, and open source, anyone can directly read the code, copy down on your system inside.

There will be more and more commercial patterns to block chain near or become block chain company, with the method of community run, is no longer a strict organizational structure, the structure of the company we are familiar with no longer exists. The method is that there is no community work time, no HR, no financial department financial budget management, is a technology geek, help values drive operating under PR geeks, geeks, geeks community work and the results of day and night, contribution to humanity.

 People's Daily: you give the heavy document translation, what is called a block chain?

Amazon, the world has more than 40 thousand employees, Red Hat before being bought only a few thousand employees, only 300 employees worldwide Github. Block chain? May develop to the last 100 employees have enough. Ethernet block chain project workshop as the world’s second largest valuation, to date only about 1000 employees, has created more than $140 billion of market value. The future, the number of employees will be more low, employees are the community. While the market value may grow exponentially.

But these communities must be run in the way with value, because the whole block chain network is the value of the internet. What value? We speak in any one block chain project, we are thinking about the origin of the three problems: technology, economy, community. This is a very important three points.

 

Network consensus

In 2000 the Internet stock bubble we have heard, but what is the specific way? Let us re checking: the 1990 year, the downturn in the economy. The manufacturing industry never fully recovered, and the transition to a service economy also long and painful. When the Silicon Valley in a recession, Japan was winning the battle of semiconductor. You big brother or child, the Internet also has not taken off, in part because of its commercial use is limited, on the other hand is the lack of good software, such as browser.

Until the mosaic browser in November 1993 released by the official, you have access to the internet. The mosaic was later renamed Netscape, and released their browser navigation in late 1994 (Navigator). The navigator quickly accepted, from the beginning of January 1995, accounting for 20% to 80% of the browser market, only less than a year. Even in the 1995 8 company has not been profitable when Netscape is ipo. Within 5 months, Netscape stock from $28 per share soared to $174 per share.

 People's Daily: you give the heavy document translation, what is called a block chain?

The other is a thriving technology company. Yahoo Corp in April 1996 just listed on the valuation of $848 million. Amazon then is also listed in May 1997 to $438 million valuation. By the spring of 1998, each company’s share price has risen two fold. The earnings of these companies are non network company earnings several times higher.

Many companies in order to obtain the user resources in the early stages of development, to choose to losses in exchange for market share, then “get big fast” is the slogan of this model is the reaction. In addition to direct contact with customers and development of television advertising, advertising, sponsorship and other activities, and even the company in order to deepen the impression of the user, has a simple and meaningless name to sound like! I said that YAHOO, Yahoo!.

The market is full of infinite imagination, a lot of money at the same time, rapid intervention, a new model of the rapid rise of any proposed new concept of the company, after the venture capital pre packaging market will be hot, and then directly into the capital market Strike while the iron is hot., companies in the development required a lot of money at the same time, the initial investors also completed the exit, to earn the limelight, founder of the idle rich. The effect of this money, which in turn attract more and more Internet start-ups into the Council, as long as you can get your story end, you can get a lot of opportunities to grab wealth, even later even if you have no story, eager to profit from various funds will also help you make up a story, and then hastened to market liquidity.

 People's Daily: you give the heavy document translation, what is called a block chain?

So, accompanied by the pursuit of capital, the bigger the bubble blowing, the Internet economy has entered the new millennium, but in 2000 the Internet industry did not usher in a new atmosphere, but suffered a Y2K blow. There is Y2K to make people aware of the development of Internet technology is still in the early stage, many models are not mature enough, many problems are not resolved, the most important is the beginning of 2000 due to burned investors money led to the news of the collapse was also up, people’s enthusiasm to become rational and prudent, even panic, the government also began to rectify the overheating of the Internet economy. Finally in 2000 when the Internet bubble burst.

To date, all such a story on the front is not very familiar with? The inside of the name change, the Netscape into bitcoin, the Amazon into the etheric square, replacing the YAHOO wave field. This is not just the blockchain story?

We will then replay history about the blockchain. First of all we have to think of the Internet now is what kind of Internet, the Internet is an information. Nature is connected to both ends of the asymmetric information through a medium. So this time we see a reason, distribution of information will eventually lead to the birth of monopoly platform. Why? Because it is a medium, then it means that the information must be concentrated to produce high efficiency and low marginal cost, until it reaches the bottleneck location. So there will be China BAT, America FAANG.

 People's Daily: you give the heavy document translation, what is called a block chain?

This time we will review the development history of the modern human society. We speak of the industrial era, enterprises have any boundary, when the scale to a certain extent, there will be no economic phenomenon. Because in the industrial economic environment, business expansion, the marginal cost is increasing, the total increase to an economy, you don’t not cost efficient boundary.

The industrial manufacturing is called GE in the world’s most typical representative enterprises, general. In June 18 of GE were removed from the Dow Jones index. Why? Because it is not representative. GE’s market value of up to 6000 to 700 billion dollars, this is the largest company in the industrial manufacturing industry market, service population of 100 million, a market capitalization of about $500 billion to almost the same. To the age of the Internet company, Apple has become a $1 trillion enterprise level Facebook service, 2 billion people, 1 billion 200 million people service Tencent.

 People's Daily: you give the heavy document translation, what is called a block chain?

In the social economic status of industrial industry, it is difficult to imagine a business organization to serve so many people, the company will collapse. Because the marginal cost is too high. But Internet companies can do service to 10 million 20 million people, because of its marginal cost is greatly reduced.

The Internet is still a center of business organization, is to make money. So whether Google or China drops, will draw on both sides of the transaction cost of the middle. So seemingly free Internet is actually paid. Just pay hidden. Such as WeChat, often in the circle of friends give you a push advertising, Google 90% of the profits from advertising. Not to mention other Internet companies.

There is to cancel the blockchain Internet intermediaries, the marginal cost is infinitely close to zero. This time, we found the essence of the blockchain is the Internet, but the Internet become a value. In simple terms, is the man for me, for everyone, everyone to do network contribution value is also the beneficiaries of value network.

When everyone comes into nodes in the network, it led to the ability of edge computing. For a simple example. It can develop bitcoin mining the earliest only need ordinary computer CPU and GPU, each of the participating nodes are not mining the use of extra resources, but with their idle bandwidth and hardware system, power to drive the development of participation by mining, bitcoin.

It’s like I’m not a taxi driver, is the time to work through the software on the way passengers, actually did not have redundant energy consumption, but the effective use of resources and reduce the cost. Then there is the multiplication effect, block chain network more nodes, more people in the network, the higher the efficiency, in turn, you can get benefit from the network is also higher, you are willing to encourage friends to join the network everywhere?

 People's Daily: you give the heavy document translation, what is called a block chain?

So in theory, because the marginal cost infinitely close to zero, while the marginal benefit maximization, every individual can participate in the network from the network benefit. Then a block chain network can serve people limit can reach 7 billion or even 10 billion. That is the sum of the earth’s population. As I said in the previous article, because the block chain network, Value Agreement captures a large amount, so the chain a block chain is likely to reach $10 trillion in market capitalization.

With technology and code to enforce the rules of the game, in the long term thinking form valuation model, so that a large number of users to participate in the community contribution value, finally formed a consensus network. This is the chain block.

It is still very early, we are still waiting for a killer application to help you spread the blockchain public chain. Recently, Facebook and JPM Coin I think the RMB is not a true sense of the block chain, at least not the chain, only the most private chain and chain alliance. But this is a good thing, the future there will be more and more people participating in the first human system iteration.

We in the past year has seen the blockchain project numerous Duanchao, drained, cut leek, spike, the concept of speculation without practical application scenarios. These are not following the value chain of the real block operation, so in the end, we will see these items disappear in history. But please do not forget that a turning point in the 2000 years of the Internet to bear market bull market, we have witnessed the rise of Amazon, Google. Block chain will also happen.

“Finally, must be a good person, standing the money earned”

The WeChat public number: Kai’s story

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