Chinese Internet Giant Tencent Released Blockchain White Paper Again, How Public Chains Can Compete?
On October 19, 2019, the 2019 Tencent Blockchain White Paper was released at Tencent’s first digital transformation strategy meeting jointly held by Tencent Research Institute, Tencent FIT, Tencent Cloud, Tencent Legal Innovation Center and Tencent Finance and Economics.
It is the third consecutive year that Tencent has released a blockchain white paper since 2017. In the past three years, Tencent has not only released a series of white papers every year, but also strives to translate technical achievements into practical applications every year.
Chinese Internet giant’s blockchain including Tencent blockchain, Alibaba’s ant blockchain, Baidu’s super chain no doubt being a strong competitor to the other public chain projects.
Other Chinese public chains have been relatively silent recently, there is even news saying that some public chain projects have been dismissed or gone bust. Will blockchain created by Internet giant be the mainstream in China?
These Chinese Internet giants have abundant capital which enables them to persist for a long time without financing, even go through several rounds of bull and bear. At the same time, they have talents and experts. Most of China’s Internet elites are working in these Internet giants. Besides they have well-established ecology, such as Tencent’s wechat payment which covering hundreds of millions of C-end users and b-end enterprises. Last but not least, they have close cooperation with the Supreme People’s court and government organs at all levels in China.
The public chains cannot compete with the area that Internet giants’ blockchains can do, the only chance of the public chains is in what Tencent blockchain can’t do it.
First, Chinese Internet giants’ blockchain can’t be connected with cryptocurrency, that is to say, they can’t do all the projects related to cryptocurrency. This is a structural defect of Chinese Internet giants’ consortium blockchain and distributed account.
The core function of cryptocurrency is payment, especially cross-border payment. It is impossible to realize the payment function when there is no cryptocurrency in distributed accounts, while public chain projects can.
Cross-chain is built on blockchain, and the core feature is the conversion and transaction between different blockchain tokens. Because it involves digital currency, no matter how powerful Internet giants’ blockchains are, they cannot participate.
In the field of cryptocurrency and its derivative fields, Internet giants’ blockchains are difficult to compete with public chain projects. In the traditional financial field, both sides have the opportunity and public chains may be more competitive, but at the same time, both of them will face the impact of special consortium chains in the financial field.