SHANGHAI, Nov. 22, 2017 /PRNewswire/ -- Technology has been continuously pushing the evolution of business forms since the primitive age and it still does in the Internet era, which is, in essence, technology reshapes business logic. With the development of blockchain technology, its distributed, open-source characteristics and economic mechanism design will produce a brand-new form of business: Distributed Business.
Recently, Distributed Business Value Research Institute of Wanxiang Blockchain conducted a research on blockchain and the derived business patterns, and released the latest research report "Blockchain and Distributed Business White Paper" ("White Paper"). Dr. Xiao Feng, Chairman of the Board and General Manager of Wanxiang, served as the chief editor.
As stated in the White Paper, blockchain technology is reshaping the business model. First, in a public blockchain network, tokens become the proof of the right to use of transactions between nodes. Token mechanism gives incentives to nodes, promoting more users to join the network, further enhancing the value of the network, and thus forming a commercial bootstrapping mechanism. Second, the increase in the value of blockchain network is a reduction in transaction costs. The addition of nodes flattens the transaction costs and brings the marginal cost infinitely close to zero. As a result, enterprises or companies as forms of organization are no longer needed. Instead, it will be a brand new, self-governing organization called "Distributed Autonomous Organization (DAO)". Therefore, blockchain technology gives birth to the important elements of Distributed Business, improves the network effect and reduces transaction costs. It can be said that blockchain technology is remodeling the business community and creating the entirely new Distributed Business.
The White Paper is focused on new forms of Distributed Business. Based on the analysis and understanding of existing applications and organizations, Distributed Business Value Research Institute of Wanxiang Blockchain systematically summarizes the characteristics, forms, operation mechanisms and elements, and concepts of Distributed Business. They believe that Distributed Business weakens the concept of ownership of the traditional business community and places greater emphasis on the significance of the right to use. This form of business is no longer attached to the centralized and closed organizational structure and decision-making model, but adopts a distributed, virtual and open-source form so that everyone can participate in it in different roles (investor, user, developer or operator). For these reasons, Distributed Business generally appears as a sharing economy. Its operation is supported by the bootstrapping mechanism, which improves the value of a Distributed Business network with the increase in the number of participants who are motivated to join. As a result, the marginal cost comes closer to zero. In addition, this bootstrapping mechanism not only eliminates the need to rely on capital to seek market monopoly as traditional enterprises and platform enterprises, but also provides itself with endogenous development momentum and provides infinite possibilities for further business innovation.
Meanwhile, it is pointed out in White Paper that, though Distributed Business has been realized both technically and commercially, it still faces deficiencies and obstacles. Distributed Business Value Research Institute of Wanxiang Blockchain adopts SWOT model to analyze Distributed Business from four perspectives including strengths, weaknesses, opportunities, and challenges. On this basis, it offers suggestions to government, entrepreneurs, research and development staffs, and industry enterprises for them to make decisions and carry out Distributed Business.
Full version of the White Paper is available on:
Introduction to Editor-in-Chief of the White Paper and the research team: Dr. Feng Xiao is currently the Vice Chairman and Executive Director of China Wanxiang Holding Co., Ltd, Vice Chairman of MinSheng Life Insurance Co., Ltd, Chairman of Wanxiang Trust Co., Ltd, Chairman of Minsheng Tonghui Asset Management Co., Ltd and Chairman of All-in Payment Network Services Co.Ltd., and DATAYES Inc., Chairman of ZheShang Fund Management Co., Ltd, and Chairman and CEO of Wanxiang Blockchain Inc. He holds a PhD in Economics from China Nankai University. Dr. Xiao has over 20 years of experience in Chinese securities and asset management industry. He was the founder of Bosera Funds, which is one of the first and largest mutual funds in China.
China Wanxiang Holdings has been executing its strategic plan in the field of blockchain technology since 2015. Now, Wanxiang Blockchain has built a blockchain ecosystem which includes Wanxiang Blockchain Labs, Wanxiang Blockchain Business Consulting Service, Wanxiang Chainbase Accelerator, and Wancloud. With these initiatives, Wanxiang Blockchain is promoting the development of blockchain industry in China in the aspects of including technology, capital, resources, and more.
SOURCE Wanxiang Blockchain