Entrepreneur veteran: 3 pieces of advice for blockchain companies to enter the enterprise service market

On September 28, at the sub-forum at the BSN Global Partner Conference, Da Hongfei, the founder of Distribution Technology, Chen Honggang, the vice president of Zhongxiangbit, Shuai Chu, the founder of Quantum Chain, and Luo Xiao, the founder of Yulian Technology “Markets and Opportunities” launched a round-table discussion on the theme, discussing the market status, opportunities and challenges of industrial blockchain in the enterprise service market. These are the domestic blockchain entrepreneurs veterans with more than 5 years (compared to the history of the blockchain, 5 years are long enough), and they have completely experienced the changes in the domestic blockchain industry. If you are an entrepreneur who wants to engage in the industrial blockchain or transform from the currency circle to the industrial blockchain, their following advice may wish to read:

Seize the opportunity to prevent pioneers from becoming martyrs

2015 was a watershed in the blockchain industry. IBM held high and launched HyperLedger for the enterprise service market that year. With the entry of IBM, many large institutions, companies and capital continue to enter the market. The mainstream eyes and the investment in the blockchain industry are becoming more and more concerned.

In February of this year, it was reported that “IBM will no longer have a real blockchain team.”

According to four people familiar with the matter (including former employees), IBM’s blockchain department has failed to achieve revenue targets for two consecutive years, and IBM has cut its blockchain team to almost a few people.

Although the IBM spokesperson denies the above news, I am afraid I just don’t want to lose the last face.

Since 2016, IBM has invested a lot of money in blockchain, vigorously promote a series of blockchain networks based on HyperledgerFabric, and constantly convey to the outside world that blockchain technology has great potential in changing the way businesses conduct business in all walks of life. In IBM’s 2017 financial report, IBM claimed to be the “enterprise blockchain leader.” Today the company’s financial report says nothing about this technology.

Shuai Chu, the founder of Quantum Chain, attributed IBM’s failure in blockchain exploration and application to the wrong timing.

“Blockchain is a very early emerging technology. Really wanting to replace the traditional IT industry with the advantages of blockchain requires ten or twenty years of accumulation, which is not a day’s work. On the other hand, at that time, community-based projects, such as Ethereum The Fang public chain has achieved great success today, and in a sense it is more in line with the status quo of development at that time, including now.”

It is actually very difficult to accumulate deep barriers in the field of financial services or corporate services. The concept of blockchain proposed by IBM was relatively early. In 2015, it was thinking of using blockchain technology to replace the banking system or various financial institutions that have been successfully used for 10 or 20 years in the Oracle database or the last wave of Internet giants. This is a very difficult task for the inheritance. Banks have great risk control requirements and huge learning costs, which leads to IBM not going so smoothly.

Don’t want to do everything, nothing can be done

The concept of enterprise services is very broad, and there are thousands of industries. What type of enterprises are blockchain companies aiming at?

Luo Xiao believes that entrepreneurs should not expect their products to satisfy the business services of hundreds of industries. This is not realistic. It is a more important first step to clearly know which industries and types of companies they want to serve.

“Entrepreneurs should choose the field of’big + closed + high barriers’ instead of the banking industry. Although the bank is very large, it is too open. You can come over and cooperate with him today, and he can come over tomorrow. Just turn your technology into his own technology. Therefore, cooperating with a bank is faced with a situation where dozens of companies compete at the same time. Obviously, it is difficult to have a good way to drive. The enterprise customers facing the company must be very closed. There are high barriers, so it may take three or five years for you to enter, but once the cooperation is established, it will be ten, twenty, or thirty years. This is the first principle of my entrepreneurship.”

Chen Honggang believes that the enterprise-level blockchain has now reached a very critical period, from rough to subdivided industries. Judicial notarization, education, cross-border trade, copyright, warehouse receipt financing, and industrial Internet are currently more promising for blockchain. Useful place.

For example, in the education industry, blockchain is used for student status management to ensure that student status information and test scores cannot be tampered with after they are on the chain. In the future, companies will not need to do various background checks very hard when recruiting, they can check on the chain, and the data on the chain is true and credible. If you apply for study abroad, you don’t need to print out all kinds of transcripts, you can do it directly.

Blockchain is not a panacea

The demand for technology in the enterprise service market is multi-level and relatively complex, and it is difficult to solve all problems with a single technology.

The main problem that the blockchain solves is that the data after the chain cannot be tampered with. How to ensure that the massive data from the IOT device is credible before it is chained? Privacy computing, Internet of Things, AI and other technologies need to be used to solve the credibility of the IOT itself. At the same time, the original data is encrypted and signed end-to-end to ensure that the data before the chain cannot be tampered with, so as to form a closed loop.

At present, the best domestic revenues on blockchain are not pure blockchain companies. Many of them are solutions for corporate digital transformation. According to Da Hongfei, the company with the highest annual revenue in the industry is around RMB 300 million. The main customers are government agencies, and they are building digital platforms for government agencies. The largest order is around RMB 100 million. The second and third place have a revenue of about 100 million yuan, mainly for financial industry solutions, not just for blockchain, but for the entire financial IT system. Therefore, the current enterprise service companies with blockchain elements are basically doing IT informatization or digital transformation work.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/entrepreneur-veteran-3-pieces-of-advice-for-blockchain-companies-to-enter-the-enterprise-service-market/
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