E-commerce&Blockchain:everything is the prologue

The word e-commerce was not just born now. E-commerce originated from the electronic data processing (EDP) technology of computers, which is a major change from scientific computing to word processing and business statistical report processing applications.

When the telegraph first appeared in 1839, human beings had already begun to discuss the use of electronic means to conduct business activities. When trade began to be transmitted over wires in the form of Morse code points and lines, it marked a new era in the use of electronic means for business activities.

In 1991, the US government announced that the Internet open to the public, allowing the development of commercial application systems on the Internet. The World Wide Web appeared on the Internet in 1993. This is a network technology with the ability to process data, graphics, text, audio, and image hypertext objects, enabling the Internet to support multimedia applications.

Until 1995, the amount of commercial business information on the Internet exceeded the amount of scientific and educational business information for the first time. This was not only a milestone in the explosive development of the Internet since then, but also the starting point for the large-scale development of e-commerce since then.

E-commerce has the following three main characteristics. Take Amazon as an example:

(1) High transaction frequency. Amazon’s average sales volume is 50 units per second, and its sales in 2016 were 2.2 billion units.

(2) The average payment amount is small.

(3) There are many types of products and various transaction entities. There are 200 million active users, products on Amazon and 244 million active user accounts

However, the existing e-commerce system structure has some problems:

(1) E-commerce platform control system and user data. The e-commerce platform maintains its database, even if the database is distributed, the data is controlled by the company itself. Users do not know how the e-commerce company uses their private information or whether their data has been leaked.

(2) The processing fees charged by e-commerce platforms and intermediaries are relatively high, and transaction fees include processing fees and authorization fees.

For domestic purchases, the processing fee is 2.9% of the product cost, and the authorization fee is US$0.30. For international purchases, the processing fee is 3.9% of the product, and the authorization fee is the same. These transaction fees will increase as the value of the order increases.

Kevin Kelly once predicted that the future of technology and organizations will become closer and closer to the “organism” trend like living biological organisms.

For example, the memory of a single bee is 6 weeks, and the memory of the entire hive far exceeds this number. There is a difference between a bird flying solo and a group of birds flying together. Many parts of the human body, the eyes and spinal cord, have “calculation” capabilities, not just the brain. Entrepreneurship needs to be a decentralized system. A system without a center has no “deadly weakness”, so it is extremely difficult to be destroyed. Divide an activity into several sub-activities as much as possible, because this is what every complex thing will try to do. That is to say, life itself has the concept of distributed, and the current organizational form must move towards this. If such a huge system of e-commerce is changed organically, it can achieve more efficient, safer, profit reshaping, etc.

The core value of the blockchain is to provide a technical contract of trust for the human society, so that for the first time humans have the ability to use technology to solve trust problems, greatly reduce human costs, and evolve the existing structure of society to programmable New form. In the near future, the vast majority of human activities will be completed in the form of “contracts” on the blockchain, following the absolute principle of code as law, and truly evolving from an “identity society” to a “contract society”, and this contract is based on unanimous consensus rather than unilateral monopolistic decision-making. After experiencing the Bitcoin 1.0 era and the Ethereum 2.0 era of smart contracts, the era of “value token” marked by “production chain integration” has arrived. The core of the “value token” is not the issuance itself, but the self-consistent, sustainable, co-construction and co-governance development of the entire business system, transforming from a “technical consensus” to a “token certificate” that can bring to the physical industry Value”, the real “contract economy” is about to come. At the same time, with the development of traffic decentralization, “consumer sovereignty” will make its debut on the historical stage.

The centralized “empire-type” enterprise model is gradually declining; the distributed “republican” enterprise will develop rapidly. This consensus will gradually expand to any field that we are familiar with with the momentum of a prairie fire, and the token will be everywhere. On the inevitable path of the token economy “from the virtual to the reality”, we use altruism and a programmable world view to carry and realize it, which will ignite a new fire in the token economy-from technical consensus to value consensus. Looking forward to this day coming soon, from the perspective of the future, everything is the prologue, and now is the starting point for the value token.

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