How Do Investment Institutions See The Application Of Block Chains?

There is no doubt that this year's block chain has risen to China's national strategy.

As early as 3 years ago, the block chain was pushed to the cusp with the money circle. Many traditional investment institutions and pure block chain investment institutions all value their technical value. Nowadays, with the application of domestic block chain technology to broader scenarios, investment institutions' strategies and attitudes have also changed.

In a recent block chain forum, many investors said that block chain investment has experienced a severe winter and decline in recent years, which is related to the industry itself and external economic environment.

Huashan capital executive director Zhao Kai said: "block chain is a distributed multi live database, in essence, new technology should be applied to landing. We make equity investments, and a new technology alone can not completely fascinate us and pursue it. But since the new policy was put forward, we have changed from a prudent attitude to a cautiously optimistic attitude.

By 2019, the direction of investment has also changed, and more inclined to the application of the underlying technology and block chain. Zhao Kai said in a media interview with the twenty-first Century economic report that the block chain is a subdivision track, and the key is to look at the landing application. Currently optimistic about financial applications, access to high-quality financial B client can win.

But now the block chain is still in its early stage, and there is no large-scale application other than coins. In the future, investors will be optimistic about the application direction, including government affairs, finance, digital assets and so on.

Investment boom has gone, how to choose?

This year is not a hot period of block chain investment.

Nova Club's founding member and consensus lab founder Ren Zheng disclosed a set of data: "after analyzing more than 100 investment institutions, we found that most of the investment institutions were founded in 2017, which is also a very hot chain. In terms of asset size, the total assets are mainly around 5-15 billion. In view of the investment volume of investment institutions mainly established in 2017, there are about 10-30 investment projects.

However, due to the impact of the environment, the investment scale and quantity of investment institutions declined sharply in 2019. "We will find that the number of investment in 2019 has declined considerably. On average, the investment volume of block chain investment institutions is basically within 5." Ren Zheng said.

Li Xiangmin, founder of Chain Capital, told reporters: "in the past three years, both traditional investment and block chain investment have encountered cold winter. From the perspective of IPO, the total number of IPO in 2017 is more than 1600, and it dropped to more than 1350 in 2018, and only more than 1200 remain this year. Block chain investment increased from more than 700 in 2017 to more than 2500 in 2018, and this year it has also dropped to more than 200. Avalanches have fallen so that the money earned in our circle has recently been returned on the strength of money.

Why is there such a harsh winter? Li Xiangmin analyzed three reasons.

First, because block chaining is still a very early stage, it will take a long time to develop and solve problems like privacy, cross link and performance. Second, commercial landing is poor because of the bottleneck of technology, there is no large-scale commercial landing application yet. Third, the lack of valuation models, because block chains are new industries, and new industries will bring new business models. Under this new business mode, some traditional valuation methods have failed.

However, investing in the cold winter does not mean that the chaining of the blocks is disappearing. We all pay more attention to the technology of block chain, and have a deeper understanding of technology.

At the same time, according to the data of PANews, from the 2019 statistics, the underlying technology is still in a relatively popular position, and the application of the industry is in the second place of investment quota.

Ren Zheng said: "the landing of the industry and the application of the industrial block chain are attracting more and more attention from investment institutions. We have been saying that the block chain is in the early stage of infrastructure construction and infrastructure construction stage, but we find that investment layout in various industries and subdivision areas is increasing. This indicates that the block chain industry has better prospects and future in physical application and landing. In addition, it still occupies a certain proportion in the encrypted currency. "

Finance and government affairs

In many industry applications, many investors mentioned the most are finance and government affairs, as well as digital assets.

Data show that in 2018, the share of the global block chain market, the financial sector accounted for the largest, about 60%. At present, many banks in China have used block chaining technology in such fields as poverty alleviation fund management, cross-border and cross line, credit checking, supply chain finance and so on. In the field of government affairs, we can explore the use of block chain data sharing mode to realize the cross sectoral and cross regional maintenance and utilization of government data, promote collaborative business management, and deepen the reform of "running at most".

Hunan Chain City private equity investment manager Xie Wei said: "we have been relatively hard in the first three years, but now our block chain products have entered a stage of scale expansion. From the data products, we need more traditional industries to go deep into the giant, and we all share the data value together. The data of the G and B terminals will generate a hundred times the value of Alibaba and Tencent in the future development process, because that is just the value of the C terminal.

"We are more focused on block chain + government, partial finance. We think that there are several prerequisites for the landing of the block chain: first, the data of the upper chain is relatively guaranteed; second, the rationalization of the whole system should meet the requirements; third, after the introduction of the block chain, the original maintenance cost of the whole system can be reduced as a whole. According to these three conditions, we believe that the government and the financial field have relatively three characteristics. Xie Wei said.

Hang Seng electronics senior investment manager Jia Tianyu also optimistic about the application of block chain in the financial field, he explained: "first, most of the block chain companies are still ToB enterprises. ToB certainly can not get around the government, finance and operators. Hang Seng has served almost all licensed financial institutions in China. Financial companies have strong willingness to pay and pay the bill, and are very willing to try. It is worth noting that in the financial field, there are really many scenes that are suitable for solving with the block chain. In itself, finance solves the problem of value and trust, and the block chain is also a solution to this problem. Whether it is identity authentication or ABS, supply chain finance has too many businesses to stimulate people's imagination.

In addition, some investors said that we should not ignore the status of digital assets in all industries in the future. The block chain will develop in two directions. One direction is the landing of industrial applications, and the other direction is the digital asset market will still exist.

At the same time, there are also people in the industry who are worried that everyone will struggle to build chains. Eventually, there will be a lot of scrap chains left. "Roads are built, and they may finally find that there is no car (application), and there will be a lot of operational problems and data problems in practical applications." (Editor: Li Qingyu)