Why does blockchain and virtual cryptocurrency coexist?
In 2008, physicist Dorian S. Nakamoto published an article entitled Bitcoin: A Peer-to-peer E-cash System. In 2009, a virtual cryptocurrency bitcoin was born, and became the first application of blockchain technology. Therefore, the relationship between virtual cryptocurrency and blockchain technology began to become inseparable.
"There is no equal sign between blockchain and bitcoin." many people in the industry stressed to reporters that blockchain is an underlying technology, relying on which bitcoin and other digital currencies were born, but the two can’t be confused.
Many experts told reporters that virtual cryptocurrency without real value should not be the application direction of blockchain technology. "Blockchain is the infrastructure of the future digital economy. We should be vigilant against all kinds of scams in the name of blockchain, in case that the underlying technology that should have generated greater value becomes a cover for swindlers."
Low threshold issuance causes regulatory pressure
"Digital assets on the blockchain are different from the infrastructure on which traditional assets rely." the right confirmation, circulation and transaction of traditional assets rely on infrastructure such as banks, registration companies, clearing companies, stock exchanges and securities companies. The relatively complex transaction process and low transparency result in relatively high transaction and circulation assets costs, which to some extent inhibits the liquidity of assets.
However, in the era of digital finance, the digital asset transaction uses a peer-to-peer (P2P) digital payment system, which is based on the blockchain basic network and does not need an intermediary. The confirmation and liquidation of assets will also be witnessed by many parties, so the cost is lower, speed is faster and is more efficient, and can create more liquidity for assets.
"It is precisely because of this feature that the issuance threshold of digital assets is relatively lower than that of traditional assets." the low threshold increases the risk of investors accordingly. "In the past, if a company wanted to go public, it generally needed to spend a high cost. Once it was found that materials were fake, it would pay a huge price. However, in the field of digital finance, the imperfect current regulatory system obviously brings new challenges to the future global financial system."
Therefore, it is urgent to establish a supporting and perfect supervision system for the digital financial system.
"The United States, Japan, Singapore and other countries have made relevant legislation on blockchain, but no country has established a mature regulatory system in this regard. Legislation and regulation will be an important competitive point for all countries in the digital financial era."
“Govern the chain by chain” with scientific and technological means
"The digital financial system is not an old system, it is a new system. Whether they are blockchain information service providers, users or investors, they need to fully understand the underlying operation mechanism, basic principles, asset characteristics and value sources of digital assets."
Facing the immature blockchain projects, what measures should relevant institutions take to supervise them?
In this regard, first, we should gradually bring digital finance into the legal track and start the legislative process as soon as possible; Second, we should use scientific and technological supervision means to realize "chain governance"; Third, strengthen education and publicity on blockchain technology to improve the discrimination ability of users and investors; Fourth, we should strengthen the guidance of application. "We should create a suitable development environment for good projects, let teams with technical strength and application level accelerate the implementation of blockchain technology related applications, and then use the spillover effect to eliminate unsuitable projects, so that swindlers have no foothold."
"Only when blockchain technology is applied to specific scenarios can it involve social or public interests. Accurate understanding and rational use of blockchain technology is the right way."
Besides, it is necessary to distinguish between those who really use blockchain technology and those who are not in various blockchain application scenarios.
