Xiao Feng: $5 Trillion Worth of Public Blockchain Projects May Appear In the Future
Dr. Xiao Feng, Chairman and CEO of Shanghai Wanxiang Blockchain Inc and a heavyweight figure in China’s blockchain space, said at the Distributed 2018 conference in San Francisco last week that $5 trillion worth of public blockchain projects may appear in the future.
He asserted that ‘Killer’ applications may not appear in the blockchain space. “There may not be a single ‘Killer App’ in the blockchain industry, nor will there be billions of users using the same app, but rather, a public blockchain supporting 100 million DApps that worth more than 100,000 USD individually, which makes it a digital economy with the total worth of 10 trillion USD.” Xiao said.
When asked about which blockchain startup is potentially to become the next Alibaba, Facebook or Google, his answer was the public chain projects whose market cap hits 5 trillion USD. No DApp will become a company like the above-mentioned technology giant.
“Public blockchain, not individual DApps themselves, will breed something like “FANG”, namely Facebook, Amazon, Netflix, Google and BAT, that is, Baidu, Alibaba,Tencent. We have witnessed companies worth of 500 billion USD in the manufacturing business, and 1,000 billion USD for that in the Internet age. We may expect blockchain give birth to 5,000 billion USD worth of projects due to its commercial scalability. Industrial enterprises serve 50 million people at most, while the Internet companies serve 1 billion people. But blockchain companies’ customer number will hit 5 billion in total. ” Xiao said.
From industrial manufacturing to Internet to blockchain, firms’ market cap is experiencing a magnitude increase.And the digital economy era requires digital ledger.
“The digital economy needs a native digital accounting system supporting digital currencies. While their total supply maybe limited, digital currencies do not necessarily lead to deflation because they are without ‘ face value’ and can support a considerable amount of decimal places, meaning the increase of the market-cap may equate another form of issuing mechanism for digital currencies. The value of a public blockchain token depends largely on the aggregated economic value generated by the DApps it supports.”Xiao said.