To Forge the Credit Soul of WEB3: The Huge Opportunity for the crypto industry in Future
The Speech of Sunny Feng Han in Chendu
A few days ago, I discussed Web3 with Mr. Hongbing GAO, vice president of Alibaba Group, and yesterday I had an in-depth exchange with Mr. Baoshi. Therefore, I can take this opportunity to share with you about how to develop the cryptocurrency industry in the future.
In fact, there is only one theme we need to discuss, that is, how to make the crypto industries sustainable development. Of course, it is well known that this industry experienced a bull market last year, but it is a bear market now. There have also been various events. Those who have just entered the industry may feel that this industry is particularly unstable, because a project appears today, but it will disappear within one or two months. It is impossible for any industry to develop in this way, so we must find a really good scientific development pattern.
Of course, this industry has been in existence for a long time. I joined the industry in 2013. This industry has a great wealth effect , It is very attractive to everyone, including me. In 2017, I basically relied on it to achieve wealth freedom. But it’s true that sustainability has not been well addressed for a long time. We are all exploring it. Especially, Vitalik Buterin, who wrote an article recently: Decentralized Society: Finding Web3’s Soul, with Microsoft Research experts in May to explore this issue. I read it at that time and then combined it with our own CreDA practice. I quite agree with his point of view. What is his basic point? He said that the reason why this industry is so unstable, with sharp ups and downs, clear bear and bull markets boundary, is that there are only transferable digital assets in this industry at present, such as many coins, including NFT. Therefore, the main behaviors of everyone in this industry are basically speculate coins, triggering all kinds of excessive finance and producing a lot of bubbles.
Of course, there are many great wealth effects. We have all experienced huge growing up, but it is seriously unstable because it can only be speculated and over finance.
Why did this siuation happen? I think Vitalik them has made some basic analysis, which is quite consistent with our previous analysis and practice, including the development of decentralized credit systems such as CreDA. The conclusion is basically the same. In other words, in the world of Web3, decentralization is currently emphasized, but there is a lack of credit characters , or responsible characters. In real life, we know that without the concept of legal representative, we can’t really sign a business contract for long-term cooperation. If two people encounter with each other, they can only buy and sell something together, and engage in excessive speculation. But in real life, with such credit characters, legal representatives and ID cards, we can have long-term economic cooperation. There are many more long-term economic and credit behaviors, including issuing credit cards, credit lending and unsecured lending. Therefore, the business models of the traditional economic world are much richer and more stable than that of crypto industry now.
Vitalik and his colleagues concluded that we should build the soul of Web3. In fact, the simplest explanation of the soul is a decentralized credit ID. You can have a DID identity, but it’s not from an centralized institution or a government. Instead, it depends on computing a standard DID that conforms to the W3C of Microsoft. Of course, it has been developed by Elastos, which is just like the suit I wear. Meanwhile, the DID of Elastos has another major feature. It can merge more than half of Bitcoin’s computing power to jointly mine to protect this DID. Since it is a decentralized mechanism, it needs to be protected by hash power, otherwise it is easy to be broken and tampered by hackers. If your DID is broken by hackers in the future, the consequences will be very serious.
Of course, after you have DID, you have to bind all kinds of credits on it. Most directly, you have to bind all kinds data of crypto wallets you used to have, and use the assets and transactions data in your wallet(on blockchain), including the so-called social graph and the connection with other wallets. Because if you frequently trade with some wallets, you may probably be friends with them. This is a decentralized model to prove your social relationship. Using these on chain data, you can first establish basic credit and bind it to your DID. This is the beginning of a Web3 soul, with the decentralized computation process.
CreDA has scanned 80 million wallet addresses, and it is preparing to build such a preliminary decentralized credit in the future. Now there is a concept of Soundbound Tokens (SBTs) from Vitalik them paper, so that we are also very excited and totally agree with them. This is a non-transferable, but pledgable, liquidatable concept that will be able to serve as a credit and responsibility characters(credit soul). In the world of Web3, we now develop a product called SBTKey(灵钥), which borrows from Vitalik’s SBTs concept. We call it Soulbound Token Key.
With the SBTKey, the whole business models in the future will be very different from that now. I have discussed it with President Baoshi. For example, if you participate in a project in the future, it will not only speculate coins. No matter how the project is, or whether it is a large-scale transaction, the NFT is all OK. These are all chain behaviors. As long as you have the DID of Elastos, you can start to forge your soul. Projects may be popular at one time or cool down in other time, but your soul will only be enriched by participating in various projects, and your credit will only be continuously improved, so you can participate in some longer-term economic cooperation activities, such as credit lending, and even some longer-term smart contracts with credit to participate in creation and design. In short, if you own a soul identity, and you have a soul with particularly high credit, you will probably be airdropped and valued when you enter a game, and you will directly obtain a higher level. Moreover, even the threshold of various fees previously required will be reduced to zero for you.And also, your twitter account can be bounded to your SBTKey, we can have a bridge crossing from Web2 to Web3 and your social graph can increase your credit level and become your wealth.
In this way, we can imagine that if in the future crypto industry world really has such kind of credit soul, which we call SBTkey, the future business model and innovation will be fundamentally different from now. Therefore, I think the soul concept in the Web3 of Vitalik them is equivalent to the smart contract he proposed in 2013 and 2014. It is of guiding significance and strategic direction to the future development of the whole industry, so I appreciate it very much, and then we will respond to it and follow it up immediately. As you know, in the last round of 2015, I invited Vitalik to Tsinghua University and gave a speech at the iCenter. I understood his smart contract at that time. As a result, I seized an opportunity to buy 30,000 Ethereum with RMB three yuan. Now everyone knows what opportunities that will give you. Since such a transaction, I have basically achieved financial freedom, so it is particularly important to seize mainstream opportunities in the future.
I think we should seize the Soul opportunity in the future Web3 to forge a credit soul for everyone. For the future development in the crypto industry world, it is not limited to transferable coins and NFTs, but also be limited in participating in speculation. No matter what you do in the future, owning a credit soul ,I believe that your future development space, including various innovative business models and playing methods, will continue to emerge. We can also get many huge opportunities.If we success, Elastos and CreDA will become the pillars of Web3 world.
In one word, entering this world, as I wrote in my book <Quantum Era Wealth in Web3>(will public in next year), fundamentally indicates that we can achieve wealth effect and prosper global economy by constantly reaching new wealth consensus. Because only with a large amount of wealth and the emergence of wealth consensus can we continue to prosper our economy. This is not just a theory. In the last wave of the overall prosperity of Internet economy in China, Professor Xiangshuai of Peking University, analyzed that very well, because the real estate has created the wealth of US 65 trillion dollars for China. I analyzed the process in detail in my book. All in all, if global economy and our human beings want to develop continuously, and if we want to make the market economy flourish and set off a next climax, we must constantly reach new wealth consensus. Why does Web3 bring us great hope now? Because it can authenticate everyone’s data and make everyone own their data. I think this meaning is equivalent to that when the Chinese house property certificate was issued in 1998, and the house assets began to be confirmed and privatized. Therefore, there will be a possibility of huge wealth effect in the future.
Today I just share so much with you. In one word, let’s expand our ambitions and win a better future in the Web3 world. Thank you for your attention.
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