Gu Yanxi: Looking at the future digital financial ecology from today's game industry

The game company Fortnite is currently challenging Apple and Android. Fortnite built direct payments into its own app to avoid paying the 30% service fee to the Apple and Android app stores. Both app stores immediately pulled the Fortnite app. Fortnite therefore took the two companies to court. The outcome of this lawsuit is unknown, but I think it is difficult to make a big change to the charging strategy of Apple and Android. I also pointed out in a previous article that the game industry is actually one of the best application scenarios for blockchain applications. If it is matched with the corresponding business organization form, then the game industry can be developed on a more solid foundation. In fact, such an industry infrastructure based on distributed ledger technology can be further developed into a financial market infrastructure (Financial Market Infrastructure, FMI) for the future digital financial ecology.

Gu Yanxi: Bitcoin transactions ultimately need to meet all compliance conditions before institutional investors can directly hold them: On December 25, Gu Yanxi, a researcher of blockchain and encrypted digital assets, published a column saying that at present, Bitcoin transactions Some of the relevant compliance transaction premiums indicate that there is still a large amount of funds waiting to enter Bitcoin directly. He said that Bitcoin has not yet become a mainstream financial transaction product. So it is still not traded in all compliant trading venues. Most of the funds of institutions can only be traded in these compliant trading venues. In order to hold bitcoins in their positions, they can only buy bitcoins indirectly. This forms an indirect compliance premium on Bitcoin transactions. Such a premium is formed because many institutional investors cannot directly hold Bitcoin, so they would rather pay a high premium to purchase Bitcoin trust shares, thereby holding Bitcoin indirectly. This shows the judgment of these investors on the future trend of Bitcoin. Gu Yanxi pointed out at the end that the current bitcoin transactions cannot meet all the compliance conditions required by institutional investors, but institutional investors obviously have a very urgent need to hold bitcoins now, so the above compliance Regulatory premium. Such a premium is obviously not sustainable. Bitcoin transactions ultimately need to meet all compliance conditions before institutional investors can start holding them. At that time, such a premium will not exist in the market. This also indicates that the price of Bitcoin will rise further. [2020/12/25 16:28:01]

The current game industry is completely different from the financial industry. Where the two come together is where users in the gaming industry use currencies to pay. The two industries are built on completely different infrastructures. However, the demand for market infrastructure generated by the development of the game industry is more and more similar to the demand for infrastructure in the financial industry, so the future digital financial ecology based on distributed ledger technology is likely to follow the continuous development of the game industry. developed to emerge.

Gu Yanxi: European finance ministers may consider cooperating with technology companies to formulate Libra response strategies: On September 14, Gu Yanxi, a researcher of blockchain and encrypted digital assets, published a column saying that European finance ministers should perhaps change their Consider the strategy to deal with Libra from the angle of view. He said that European finance ministers should adjust their strategies to allow digital stablecoins like Libra to operate within a controllable range. In this way, we can have a more accurate understanding of the impact of digital stablecoins on the currency market, and it will also help us develop a Euro CBC that can better meet market demand. Judging from the trends brought about by the development of technology applications, technology companies have more advantages than commercial banks in implementing the central bank's monetary policy in some respects. Therefore, European finance ministers should perhaps consider how to better cooperate with technology companies, rather than rejecting them as the opposite. [2020/9/14]

The game industry is a virtual digital ecosystem. The current games are increasingly dominated by multiple users participating together, and the e-sports industry is also becoming a new industry with the largest revenue. Another feature of the game industry is internationalization. Users from all over the world can participate in the same game online at the same time. This feature also matches the characteristics of blockchain technology very well. However, the current market infrastructure supporting the gaming and esports industry is not very effective. For example, in terms of payment, the payment methods in the game industry are very backward. The backwardness of the cross-border payment function has led to frequent occurrence of problems in the e-sports industry due to failure to pay on time. Another example is in the field of mobile games, game producers and consumers need to pay 30% of the income to the intermediary. Such a high financial intermediary cost is obviously very unfavorable to the development of the industry. Another pain point in the game industry is the poor liquidity of digital assets. The assets generated in the game can only be circulated and traded in the game at most. Assets generated in different games cannot be exchanged among each other. All of the above problems can be effectively solved through blockchain technology, digital currency and digital assets.

Gu Yanxi: The competitive advantage of digital stablecoins is its underlying clearing and settlement system and corresponding supporting facilities: On September 7, Gu Yanxi, a researcher of blockchain and encrypted digital assets, published a column article "From USDT to Libra, Analyzing Digital Stability According to the Business Model of Currency, the competitive advantage of digital stable currency is its underlying clearing and settlement system and corresponding supporting facilities. For example, for the digital stable currency issued on Ethereum, the operator does not need to develop an additional underlying clearing and settlement system, and there will be very little work on the payment terminal. In addition, due to the global nature of Ethereum, it can reach a very wide range of users. These advantages are not available in ordinary financial institutions. At the same time, he also said that such advantages do not guarantee that such institutions can obtain sufficient income based solely on stablecoins. For the operator of digital stable currency, only in a specific application scenario that can give full play to the advantages of digital stable currency can the continuous operation of this digital stable currency be guaranteed. From another perspective, if a digital stablecoin is introduced to the market as a general-purpose digital currency, then this business model will be difficult to sustain. If this is the case, the larger the stablecoin, the greater its chances of failure. [2020/9/7]

If we compare the game industry with the securities industry, we can see many similarities. Stocks in the securities industry are recorded in writing during the private placement stage. After the IPO, it is recorded through the centralized computing system of the securities registration company. The stock product is a standardized electronic product, so it can be traded in a centralized exchange in the form of matching transactions. The stock exchange is responsible for matching transactions, the clearing company is responsible for recording transactions and becomes the central counterparty, and the settlement company is responsible for the actual payment of transactions.

Gu Yanxi: The U.S. Office of the Comptroller of the Currency (OCC) stated that the encryption policy of the U.S. Office of the Comptroller of the Currency (OCC) stated that the National Savings Bank and the Federal Savings Association can provide customers with encrypted currency custody services. Gu Yanxi, a long-term practitioner in the Chinese and American securities markets and a researcher of blockchain and encrypted digital assets, said in an interview with Coin World that retail customers in the United States have more choices in storing their encrypted digital currency assets. Costs are thus also reduced. This also helps commercial banks enter the field of encrypted digital currency. So it's a good thing for commercial banks and retail customers. [2020/7/23]

Compared with stocks in the securities industry, most of the assets generated in the game industry are non-homogeneous assets. There are many types of games, so the number of assets of this type is also large. These assets are not suitable for trading in a centralized way of matching transactions, they are more suitable for direct transactions between users. Blockchain technology is the best technology to support such transaction methods. Therefore, based on the support of blockchain technology, various digital assets can be customized in the form of smart contracts. The game is nothing more than a scene of generating and using these digital assets, just as the company's operations generate stocks and generate subsequent dividends and stock appreciation. But these digital assets are all generated, stored, circulated, traded and settled on the blockchain. Therefore, the underlying infrastructure of the same blockchain can generate both digital assets in the game and digital securities representing equity. The digital assets in the game are traded more in a peer-to-peer manner, and the digital securities are traded more in a centralized matching trading method.

On the same technical underlying infrastructure, digital currency can be used to support various transactions. Digital currency is also produced on the same technical support, so it can be traded in the DVP mode on the same technical underlying support. Such transaction settlement efficiency is far better than the current clearing and settlement of accounting methods.

Judging from the application development of blockchain technology in the two industries, the application of blockchain technology in the financial industry started relatively early. However, due to the characteristics of the financial industry, the application of blockchain technology in this industry is not progressing fast. In contrast, the application of blockchain in the game industry started relatively late, but the game industry is an emerging entertainment industry that does not have a great impact on financial, economic and social activities. Therefore, the degree of supervision of this industry is not high. There is a lot of room for innovation. So now it seems that it is very likely that the application of blockchain technology in the game industry has developed rapidly, and therefore a corresponding financial market infrastructure has been established to support the generation, confirmation, and circulation of digital assets in this industry , transactions and settlements. When the infrastructure of these markets is established, the types of digital assets that can be traded are not limited to digital assets generated in the game industry. The digital form of actual assets can also start to circulate on this financial market infrastructure.

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