Record of theNewton First offline Meet-Up Speech from Jizhe Xu, the Founder of Newton project
At Newton’s Beijing first offline Meet-up “Reshaping the Business Principles of the New Economic Era”, Newton’s founder Xu Jizhe pointed out in his keynote speech that new technologies must serve the society, industry and people’s life. Blockchain technology has gone through several stages of exploration and development in past couple of years. It is now mature enough to combine it with practical applications and integrate it in daily life, creating convenience and bringing happiness to its users.This offline meet-up was the first time, since the launch of the project, that the Newton team had in depth, face-to-face conversations about the project with its community memebers.
The Newton Founding Team attended the event. Newton founder Jizhe Xu, Newton co-founder Shubin Li, Newton advisor & angel investor, Tsinghua University professor Xueyong Gu each delivered a brilliant and easy to understand, keynote speech about the core logic behind the logical framework of the Newton project, the opportunities in the E-commerce industry, theoretical research and other aspects.
Here are some wonderful viewpoints from the speech of founder Jizhe Xu entitled “Newton: The infrastructure for a protocol-based economy”
As the infrastructure for a protocol-based economy, Newton has built a “Hyper Exchange Protocol (HEP)”
“I’ve been working in e-commerce for over 4 years. Co-founder Shubin Li has had an e-commerce company for 18 years. That’s why we understand this industry and can abstract what this industry needs in terms of technical support.” Jizhe Xu said. As the infrastructure for a protocol-based economy, Newton has built HEP which includes digital identity &credit, supply chain, digital marketing, trading &payment and etc. The underlying protocol developed by Newton needs technologies such as Blockchain & Decentralized Internet, Atom Hashing and other technical to support it. Ultimately, developers can develop payment, mall, insurance and other DAPP applications based on HEP.
Data is the oil of the 21st century and users have the right to benefit from data generation
When it comes to users’ privacy and data, Jizhe Xu said “There are a lot of applications out there that everyone can use free of charge. However, you will find that there their free service does come with a price attached. You use your privacy and your data in exchange for some convenience. This is the essence of this business model.” Initially, the applications don’t have any data but once people start using them everyone’s browsing behavior, click behavior and purchasing behavior will be recorded into the applications which turn into the so-called “Big Data”. Investors can make profit once again with this method, which is why we call “Data the oil of the 21st century”.
Who should be the owner of this data? It comes from the user so it is naturally their data and it should belong to them. All our activity on the internet generates data. At present, platforms that rely on user data to make profits have become what they call “the wool on the pigs”. It is a very strange business model. What is even more surprising is that we have become accustomed to this business model. Blockchain technology may make this model normal and the data generated by users should belong to them and provide benefits for themselves.
Newton is a protocol for creating a trading platform. A trading platform based on Newton’s protocol can reduce transaction costs.
“A platform is a closed thing.The rules of the game insideare defined by it the people who control the platform and people can only use it. What could you realize with the Newton protocol? Everyone can develop their own e-commerce platform such as Taobao &Tmall or his own payment tools, such as Alipay. If users take no interest in developing themselves, they can use our two official templates, one is NewPay which functions similar to Alipay and the other is NewMall which functions similar toTmall or Taobao. All these platforms built by the Newton protocol will not take service charges and increase transaction costs like those traditional centralized platforms.The Newton-protocol based platforms are decentralized, the transaction profit will return to the users who participate in the transaction behavior to ensures that more people benefit. Newton wants to be more than just a business platform. It wants to develop the basic protocols needed to create a platform. It’s like we provide the infrastructure for building a house. If users don’t want to build the house by themselves, we provide a house for use which is called “NewMall”. If businesses don’t plan to develop platforms, they can directly enter into NewMall such as Okbuy will do in the future.
In the future, an economy powered by the community and managed by a non-profit foundation should replace the current closed platform economy managed by a company out to make profit.
Jizhe Xu believes that” The intrinsic architecture of a traditional e-commerce is a closed platform managed by a profit company.” The organizational structure of those company was born in industrial revolution hundreds of years ago. The main purpose of this structure was to make profit while allowing a few people, the so-called “shareholders”, to benefit. In order to survive and develop, the company continues to occupy the market, seek super profits and achieve a monopoly. At the same time, it creates a clear barrier between the company and outside world and the company’s internal staff could hardly build harmonious cooperative relationships with people from outside the company. The main profits of traditional companies come from the exploitation of consumers, which would gradually separate those two sides. This kind of vicious circle is not conducive for creating a harmonious and win-win environment for economic development which is a difficult problem to solve in the traditional organizational structure.
The emergence of Blockchain technology may bring a solution to this problem. Jizhe Xu emphasized that, in the future, a non-profit foundation-managed community economy should replace the current closed profit company. The organizational change will be an extremely profound transformation and is based on the prediction of a developing trend towards a more mutually beneficial future society. The founding team has constructed this basic theory and underlying logic into the Newton project.
The development of new technology must serve society, industry and our life
The scientific& technological activities of human society can be classified into two stages. The first stage is exploring the truth, such as the development of a basic theory. The second stage is applying science & technology to truly create value and serve humanity. Blockchain technology is no exception. There is a common feature to all Blockchain projects before 2018. They are all in the technological exploration stage and use technology to develop technology. For example, Linux was only a toy for Torvalds and a group of geeks before v1.0 and served no useful purpose. It couldn’t even power a website and everybody’s participation in the project was just out of interest. Many years ago, Bitcoin was in a similar state. However, when the technology develops to a certain extent, it reaches a turning point where it is mature enough to integrate with daily life.This technology can now be applied to the society, applied to the industry, and create value to our lives. This technology now makes senses, otherwise, what do we have to do with this technology?
How does Newton ensure that consumers can benefit from it?
As mentioned before, most Blockchain projects nowadays focus on basic development, which may not be integrated with our daily life, and our confidence in them is the only thing that supports its value. It will solve problems in the industry at a particular point in time and can be treated as an investment model for valuing and realizing the future.
The biggest difference between Newton and other Blockchain projects is that when Newton comes online, it will bring business to our daily life in a very short time. For this purpose, Newton has designed a complete economic business model to ensure that economic beneficiaries cover the service providers, consumers, DPOS nodes’ packers, people working for the community and foundation members. There will be a firm demand for the Newton Token (New) in this business model. For example, traditional sellers mentioned by Shubin Li have to pay money to get their business resources on the platform, which accounts for about 25% of the value. In Newmall, this cost may be reduced by about 1/3. At the same time, because of the elimination of the intermediary, the revenue of the traditional intermediary platform can be distributed to all the participants in the transaction process through the HEP.
Redefining “mining” behavior
Bitcoin invented a term called “mining”, which essentially means that people who contribute to the network and transaction are rewarded. With the maturity of blockchain technology, this concept should have a broader meaning. Any behavior that is valuable to the society can be understood as a kind of “mining” behavior. According to this logic, shopping itself brings economic growth, and consumers are one of the contributors to economic growth. Therefore, we think that shopping can be understood as a very important “mining” behavior. Similarly, sending courier can also be understood as an important “mining” behavior. Because delivery can be viewed as packing your transactions in real life. Only the parcel is being sent to you, you confirm the receipt and then transaction is completed. Of course, DPOS nodes are also contributing. For example, this event organized by Moon Cloud team is a huge contribution, which also meets the broad-based mining behavior. With so many contributors, we should design a very rich incentive mechanism and business economy model. With this business economy model, token can have a real value base.
The “volume” of digital assets supports value of Newton token
In short term, Newton Token’s value is derived from the scale of the entire Newton economy. In the long run, with the increase in effective participation of users, the increase of businesses, and the increase in number of transactions, Newtonian Economy will accumulate more and more digital assets. In the long run, the “volume” of digital assets supports the value of the Newton token. Because real business transactions are the most valuable digital assets. It is more commercial than social contacts because social contacts is an indirect business behavior. What did you buy? What else would you possibly buy? This is a very important digital asset. This adds up to the Newton Token valuation model, which is an important point.
Good blockchain projects are inseparable from the design of the economic model of the token.
Xu Jizhe believes that “all good blockchain projects are inseparable from the design of the economic model of the token.” A blockchain project ultimately targets an industry-based economy. Token plays a role in measuring, storing, and transferring value. All economies are relatively small in the early stages. Your Token needs to cope with the growth of the value of the economy for a long time to come. For example: At Newton we plan to release Token to the economy in the next 20 years to cope with the growth of the Newtonian economy. A good economic token model needs huge reserves. These reserved tokens are continuously released into the economy through incentive mechanisms, through effective incentive mechanisms, and through broad mining activities. In the design of Newton’s economic token model, 60% of our tokens will be released into the economy in the next 20 years through various incentive mechanisms. Only in this way can the project grow and thus there is the possibility of sustainable development.
After Whitepaper is released, we must focus on Newton Token’s economic & business model. These are the two important foundations for Newton.
The essence of Blockchain Token transaction is not the financing, but the process of building teams and communities.
I’ve been thinking for a long time over the past few months. There will be a non-profit Foundation-managed community economy which is a cross-organization, an industrial and a regional collaboration. The Token transaction is the innovation point that innovates organizational structure, cooperation mode & incentive mechanism. The essence of Blockchain Token transaction is not the financing, but the process of building teams and communities. In addition to computer nodes, we have the concept of community nodes also. I think all of you here today have transacted tokens of many other projects. However, you’ll find that people can just sell increased price Tokens without any other meaning. Thus we are also pure investors in essence. Everybody waits for the stock price to increase and then sell. Community has nothing to do.
We must design a mechanism. For example, Moon cloud team will become a node in our community with holding & locking a certain number of NEW tokens to get certain management rights of Newton economies. Just as this Meet-Up initiated, planned and successfully organized, it was entirely Moon cloud team’s own commitment and the scale exceeded my expectations. It was great. This behavior is very important to the development of a community and an economy. This behavior should be stimulated.
We will give priority to people who can participate in the project and contribute to the project to start Token transaction, which is a very important principle. Once Token transaction is completed, people can get benefits by business model and they don’t need to sell their Tokens. The Token value will rise up along with the expansion of economy which is a healthy model I think.
At the end of salon, Jizhe Xu reiterated the core logic of Newton’s communication” I hope it’s not a certain amount of bitcoin during the process, but to build a real community. We will build 100 community nodes distributed all over the world. It’s a very important process”.
Jizhe Xu said that the Newton economy will entirely generate more than 5 hundred million transactions. When the scale is generated, the seller will buy Token in the market, and there will be a real price. We can draw a relatively scientific and reasonable valuation model by making a calculation formula. Token, like stocks, to some extent will realize in the future.
