Xu Jizhe: How to Identify Blockchain Projects
- Transcript of a speech by Xu Jizhe, Founder of Newton, at Newton’s Global Tour of 100 Cities Offline Meetup in Shenzhen
Newton’s founder Xu Jizhe pointed out in his speech that the current economic model is the contribution of the many for the benefit of a few at Newton’s offline meetup in Shenzhen.
Newton’s new economic model is “everyone contributes, everyone benefits”. Newton is a community economic infrastructure that provides administration, collaboration and motivation at its core. Chain commerce is Newton’s first step towards its commercial scenario and one of the most important commercial scenarios.
The following is Mr. Xu Jizhe’s speech:
“When I told my friends about Bitcoin and Blockchain in 2017, most people thought I was a loon, but by the start of this year, Bitcoin and Blockchain created such a huge wealth effect, that they have caught an increasing amount of attention. Without this wealth effect, it is difficult for everyone to notice and recognize the next big thing, so I think this is a fairly positive and vigorous aspect of price. “ Mr Xu Jizhe introduced at the opening.
Mr. Xu Jizhe believes that everyone is talking about Bitcoin and Blockchain now, although we have reached a stage where everyone has their own interpretation, no matter how lopsided that may be.
How to Identify Blockchain Projects
“What kind of Blockchain project is a good Blockchain project? In previous practices, to start a company, we had to find partners and investors before we register a company. This is the old model of organizational structure. But in the future, I think Blockchain can bring in a new model of organizational structure — the community economy. “ Mr. Xu Jizhe said.
So, what is the difference between the community economy and traditional companies? First, traditional companies are closed. There is an obvious boundary between traditional companies and the market. Traditional projects can only create collaborations within the company, and it’s difficult to form a collaborative relationship between the company and the market — it might even turn into a confrontational relationship. But the blockchain can form a large-scale collaboration across organizations, industries and regions to break this boundary. Secondly, a traditional company aims to make profits, while Blockchain project aims to create a community economy. It manages and operates a community economy by using a non-profit foundation model, thus allowing the growth of the overall value of the community economy to bring about the token’s wealth growth. Thirdly, a traditional company applies the financing model, but Blockchain applies the money-printing model. Take the Newton Project as an example: our value lies not in how much Bitcoin has been exchanged, but in the value growth of NEW created in the future. For the blockchain project, we collected tokens to build and construct the mint, thus giving the tokens more application use cases and extra value.
“Newton’s second round of token exchange can actually get more Bitcoins. Our goal is to exchange 3,000 Bitcoins, but in fact we could have exchanged 5,000–8,000 Bitcoins or more.However, we did not increase this number because it would have been detrimental to NEW’s value in the future. “ Mr Xu Jizhe added.
2018 is the First Year of Commercialization of Blockchains
“Aside from Bitcoin and Ethereum, we can think about this question: Under what circumstances do I have to use this currency? The value of Bitcoin is that, it’s digital gold and it’s supported by consensus. Now Bitcoin has a digital node of around 160G, which is actually a consensus volume. And Ethereum is a super mint, ranking in the top 500 or even the top 100. Every token transaction consumes Ethereum, so Ethereum also has functional requirements. In addition, you will find that other tokens have none application scenarios. “
Mr. Xu believes that all technological advancement goes through a transition from technology exploration to commercialization. For example, in the early stages, steam engine was just a primitive model, and there was no way to operate a train with it. However, when a technology matures to a certain state, it reaches an inflection point: It will gradually turn into a service, to serve people’s livelihood. All technological advancements in the past, including electricity, steam engines, computers and the Internet, underwent such a transition from technology exploration to commercialization. The same can be said for Blockchains, and many existing Blockchain projects are in the process of technology exploration. So far, there are two kinds of currency in the market, one is bad currency and the other is currency that became bad, both of which are being eliminated. As participants, we should promote good currency and expel bad currency by refusing to speculate, otherwise we will be encouraging bad markets.
For tokens on the Blockchain, what kind of transaction is considered truly valuable? The answer is trading on-chain. People often complain about the congestion problem on Ethereum, but I think it’s precisely a concentrated expression of Ethereum’s value. Ethereum can reach its maximum TPS and often run at full capacity, which shows that the transactions on Ethereum chain are very active, which in turn shows the true value of Blockchain. So,back to Newton and back to NEW, we must also trade on NewChain to realize the value interests of both merchants and buyers.
Newton: Community Economy Infrastructure
Mr. Xu Jizhe concluded, “Based on my understanding of Blockchains above, I think the community economy will replace companies in the future. Companies will not be able to realize the model of crowd contributing and crowd benefiting. Take Alibaba as an example. Now its market value is estimated at 500 billion yuan. Almost all of us are Alibaba’s users and contributors, but none of us have gained from its growth in value. This is because their model is a traditional company system in which many contribute and just a few benefit. In the community economy, all of us are connected. “
At present, many people in the market simply consider Newton as Blockchain commerce, which is biased. Newton’s essence is the infrastructure of community economy. The community economy has three core attributes: administration, collaboration and motivation. Newton is an infrastructure that provides administration, collaboration and motivation. Bitcoin has created a cryptocurrency based incentive mechanism through which the world can be connected and internal motivation can be realized. NEW is such an incentive mechanism through which internal administration, collaboration and motivation can be realized. Under the infrastructure of this community economy, Newton will have many commercial use cases. Chain commerce is our first commercial application and also one of our most important.
“Why regard e-commerce as the first business use case? I have worked in the e-commerce field for four years. At the same time, Newton’s many cornerstone investors are well-known figures in the e-commerce industry, so Newton can build the e-commerce supply chain with great ease. Our chain store is expected to reach a global transaction scale of 3 billion CNY in 2019, so according to the current model there will be around 300 million rigid demand for NEW purchase. “
This is Newton’s first commercial application. In addition to this commercial scenario, Newton is exploring commercial incentive use cases for designing daily work. For example, Newton is designing a system which handles the payment of NEW wages to Newton’s full-time employees. They will receive a notification saying their wages have reached their accounts before they reach the elevator after work. In addition, we will continue our commercialization process in agriculture, supply chain, energy, and other fields, all of which will become the value base of NEW.
Newton’s Current Project Progress
For the Newton Project, the raw idea was formulated in January, polished in February, finalized in the White Paper in March, and released in April as a project website. An overseas community emerged the day the official website was released, so Newton’s second round of token exchange naturally became an international exchange. This is a market line visible for everyone.
Newton’s infrastructure technology development line began in March. At the moment, our NewChain beta test network is deployed on 6 nodes in the western United States, Singapore and so on, and TPS can be stabilized at around 5,000. Our NewNET, a decentralized cloud computing infrastructure, is also currently under development. In the future, a large Internet company will become our operator. Many new IOT equipment prototypes, including
temperature and humidity sensors, monitoring equipment, electricity meters and other equipment, are also under development. At the same time, the iOS and Android versions of the NewPay wallet are in beta testing.
At the end of August, Newton released the test network. In October, Newton’s NewChain, iOSs wallet and an early hardware wallet will be released. At around the end of October, Newton will conduct the third and final round of token exchange. In late November or early December, our first commercial application, NewMall, will officially kick off. At the moment, our integrated SKU has covered mainstream areas such as shoes, apparel and accessories,daily necessities, baby milk powder, etc. The products launched will be mainstream products at competitive prices. All preparations are now in place. These are Newton’s past progress milestones and future goals this year.