Key Leaders | Thoughts About The Future Of Blockchain Part 1

Hashgard
9 min readFeb 2, 2019

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Key Leaders’ Opinion in the community is Hashgard’s new section.

We will invite key leaders from Hashgard community every week

to share their blockchain story.

This time we invited Hashgard sparkling fleet.

to talk about what they think about blockchain

we will publish the sharing in two articles due to the length of it.

Hello everyone, we are from Hashgard sparkling fleet. Since the establishment of the group, we have been with the project for almost half a year. Everyone has confidence in the development of Hashgard and has a unique understanding for the future development of the blockchain industry. At the beginning of the new year, some members of the Sparkling Fleet Group had some of their own thoughts about the development of blockchain industry ,about the cryptocurrency circle and the direction of the blockchain market in 2019. We hope to share what we think is valuable to every member of the hashgard community, and everyone is welcomed to discuss and contribute to the development of our project, and also let’s have a great 2019.

Fleet member Cao Jianwei spoke out his mind about the of realization of the future business from the landing scene of blockchain technology, that is, the financing problem of SMEs.

After analyzing the current situation of financing difficulties for SMEs (Small and Medium-sized Enterprises)in China, he made bold predictions on the possible opportunities of blockchain technology and Hashgard projects from the perspective of SMEs financing. He has considerable confidence in what blockchain technology can do with SMEs financing and also the the disruptive innovations that blockchain technology has to mitigate the cash flow in large and medium-sized (SMEs) companies.

SMEs have always been an important part for Chinese economy. Statistics indicates, as early as 2003, 56% of our national GDP, 59% of sales, 46% of tax revenue, 62% of exports and 75% of employment; which are created, provided or contributed by SMEs. In the past ten years from 2003 to the present, with the advent of the era of entrepreneurship, the number of small and medium-sized enterprises have increased and the scale of which has increased as well. By the end of 2017, there were nearly 400,000 small and medium-sized enterprises, accounting for 98% of the total number of enterprises in China. The contribution of SMEs to the national economy is also on the increasing.

However, the financial resources obtained by SMEs are extremely disproportionate to their role they had in the national economic and social development. The financing of SMEs has always been one of the key issues of national concern. To some extent, if the problem of financing cannot be solved in an effective manner, SMEs will never be able to develop and will never possibly develop into a larger enterprise.

Blockchain technology can provide a perfect solution to the financing for SMEs, and hashgard as a one-stop asset management platform, can also play a certain role in this business scenario!

In the existing framework system, the main channel for SMEs financing is through bank loans. However, the banking system in China makes it very difficult for SMEs to apply for bank loans. It is undeniable that some large financial institutions did make it easier and more convenient and provided loans to some SMEs, and Chinese government also made a lot of effective effort in financial support for the financing issues of SMEs.

In June 2018, the “Opinions on Further Deepening the Financial Services for Small and Micro Enterprises” jointly issued by the central bank and other five departments pointed out that modern financial technology should be used to improve the availability of financial services, to reduce operating management costs, and to improve loan disbursement efficiency and the convenience of financial services. With the development of society, there will have more and more such convenience; but based on the current situation, these policies are still far from sufficient to meet the financing needs of the growing SMEs in China.

According to the data of China Insurance Regulatory Commission, as of the end of 2017, the domestic loan balance was 30 trillion RMB from small and micro enterprise, accounting for only 24.67% of the total bank loan balance. To improve the situation of financing difficulties that the SMEs are facing is imminent, which is also one of the important factors that restrict the healthy and rapid development of chinese national economy.

The emergence of blockchain has provided a new solution for the financing of SMEs. Currently there are related blockchain projects, such as Ultiledger tailored the chain, to provide financing related business for SMEs.

Our Hashgard project can also conduct such business, that is, the core enterprise (generally a large manufacturing enterprise) issues a chain bill (similar to token) to the first-tier supplier, and such a chain bill can be issued by the core enterprise and it also can be issued by a professional factoring agency. The core company is responsible for the acceptance of the chain bill. After receiving the chain bill, the first-tier supplier can split the chain bill or transfer it to the lower-level supplier or individual. The chain bill can also be transacted in the circulation market, while individuals representing SMEs or sub-suppliers can also go to the banks or factoring institutions to do financing with the chain bill; and banks or individuals finally complete the delivery with core companies through the chain bill. Of course, suppliers or individuals can also choose to repay the bank and get back the chain bills to go to the core company to complete delivery themselves after they have sufficient cash reserves.

Under such a business scenario, as long as the enterprise or individual has the chain bill, they can easily acquire financing. At the same time, the core enterprise can acquire more cash flow through the issuance of the chain bills, and thus solve the problem of lack in capital.

Hashgard is a one-stop asset management platform that provides enterprise users with a one-click token issuance service that can absolutely handle such business scenarios.

The current blockchain and cryptocurrency industries are full of illegal fundraising, and the phenomenon of fraud is also on and off. ICO has been repeatedly banned but never successful,small individual investors suffer great loss from time to time. However, there is not much technical discussion on the blockchain technology itself. There is no in-depth and further research on how the landing scenario of blockchain technology should be. It’s very common that most investors, like headless flies, have no clue but to follow up what others have been doing; a lot of experienced people in this industry don’t want to see this happening ; and still on a national policy level it cannot be ignored.

Blockchain technology must be combined with the real economic entity to realize its great potential. Only by solving the pain points in the real national economy will it be accepted by the national policy. I always believe that some companies will be monopolies with great development rate in the blockchain industry in the near future. And thus it will also bring about different changes in our social life.

Of course, how the landing scenarios of the technology should be, and how to expand it with more application scenarios; which requires community members or the project teams to conduct more in-depth and further discussions, but we won’t stop the pace of our development as to move forward; and the pursuit of innovation will not be annihilated. We also wish more and more people will join in this kind of revolution of innovation to reflect on our own social values and to realize our dreams.

The key leader Peoley in the community has his own unique insights on the direction and future development of blockchain industry in 2019. Peoley believes that:

The bear market will not end in 2019. Since the end of the bull market (Dec,2017-Jan,2018), the blockchain market has gradually declined. From the launch of hundreds of projects till the halt of these projects, all indicating that the market has cooled down a bit.

In the previous blockchain cycle, due to the fact that not so many people involved, it may less time to rebound; but since 2017, the blockchain industry has been booming, the exposure and popularity of blockchain have been greatly improved, and thus a large number of investors have entered into this industry and at the same time various MLM organizations are rampant; so I think it will take longer time to recover. Although BTC may stay stable in a short period of time, it will take a longer time to recover and reach its historical highs.

Blockchain investors are not only suffering from financial losses, but also their sentiments and their perspectives for blockchain are also affected. In a short period of time, small investors will not return to the market. Only the experienced investors who believe in blockchain technology will remain in the market. At the same time, because of the instability of the token economy, most of the traditional institutions are reluctant to enter the market. Due to the anonymity of the transactions, Token is used by various illegal activities, which brings a negative image to BTC, and thus it leads the governments to have their excuses as not to recognize its legality.

However, I believe that opportunities and risks coexist for the current blockchain market. In 2019, we should steadily and cautiously decide to invest in projects with valuable potential and carefully purchase their tokens. Although the overall value of blockchain may be higher in the future, it is recommended that you invest with your spare cash and wait for it to rebound..

Several Events To be Focused On In 2019:

  1. ICE will launch Bakkt, although it has been delayed (from Dec 12nd, 2018 to Jan 24th,2019; and recently it is announced that the updated online time will be in early 2019. It will be revised according to the CFTC process and timetable), but there are no signs of plan abduction so far.

2. VanEck / SolidX Bitcoin ETF On August 7, 2018, the SEC announced that the decision on the VanEck/SolidX Bitcoin ETF proposal was postponed, and the decision will be announced by February 27, 2019, but it should be earlier than that date.

3 NASDAQ launches Bitcoin futures as early in December 2017 NASDAQ indicated that it will launch Bitcoin futures in the middle of 2018, but soon after that it indicated the launch would be postponed, Nasdaq will work with VanEck (US investment company) to issue the planned futures contracts ,to establish it as the world’s first transparent, regulated digital asset product. According to relevant information source, the release date is expected to be in the first quarter of 2019.

More on the thoughts from Sparkling Fleet Team

Check the next article.

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Hashgard is a new generation of digital financial public chain led by Fenbushi Capital and BKFUND and invested by 80 well-known investment institutions. The public chain will create an open, high-expansion ecosystem, solve the pain points in the digital finance field through technological innovation and ecological construction, protect the assets and rights of investors, and promote the healthy development of the digital finance industry.

The Hashgard Technology Empowerment Platform is the first distributed commercial application on the public chain to provide enterprise-level services for a diverse blockchain ecosystem, including but not limited to digital asset management, securities tokens services, multi-party collaboration, and intelligence. One-stop solutions for contract deployment, community reward distribution, content & media promotion, and legal compliance.

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