Discover New Value of the Blockchain World

It’s been five years I still remember it was in May 2014 that I organised the first Global Bitcoin Summit at the Beijing International Convention Centre How time flies In the next couple of minutes, I will share with you a story that’s exciting informative and even passionate about blockchain I think for those who are not here you may regret some time later because this speech can be the most exciting speech of today I am confident Thank you But before my speech I want to show you a short video about our journey before we talk about the present and the future ok? If I have three minutes, I want to say that I love blockchain, why? Because I am emotionally attached to it I witnessed the development of bitcoin and blockchain in China I have a lot of feelings Today I am seeing a lot of old friends but more new friends So I really look forward to it ok, Let’s start The topic of my sharing is blockchain&new dimension building Mainly, I will cover 4 sections About me, blockchain, nebulas chain and the evolution that is happening It won’t take too long But I promise it will be very informative It will be gist May be a little bit hard to understand But I want you to really think about it I want to give you truly useful stuff The first section is about myself Where was China’s blockchain born? I think It was born in the Bitsclub that I started at the end of 2013 It is China’s first blockchain technology community the first blockchain technology community In 2014 I started NEO It’s China’s first blockchain project I also initiated China’s first ICO But let’s leave it for now I will talk about it later In 2015 I started Gempay China’s first cross-border bitcoin payment and wallet app In July 2016 before joining Ant Financial I founded ICO 365, China’s first ICO intermediary service platform It is poised to become the portal to the blockchain world You will see its development going forward At the end of 2016, I was invited to join Ant Financial of Alibaba Group to form and was responsible its only blockchain team its only blockchain department I think it was valuable experience But today, standing here, I represent the Nebulas a new blockchain project Then why did I choose to leave Alibaba? Was I not paid enough? I will explain later Here are some pictures of the summits that I organised I hope I can do a better job going forward If you are not happy with some details of today’s meeting Please bear with us But the most important thing is that I am here ready to share with you something valuable I will try These are pictures of our previous summits A lot of people The picture on the top left is the summit at Beijing International Convention Centre in 2014 Next to it is the one in HK Down below is our summit last May The one at Renaissance Beijing Capital hotel had more than 1000 attendees Here are 6 of the 7 founders of Bitsclub Including Da Hongfei, he is the head of NEO now Juxie, Me, Lan Ling, Feichuan, also a founder of Nebulas chain, and Chu Xiahu The picture was taken in 2014 if I remember correctly It brings back a lot of memories But has Ethereum anything to do with us? A little bit Why? When Vitalik made his first China trip He was to speak at our Bitsclub at a sharing event In May, he attended our first Global Bitcoin Summit and gave a speech about Ethereum After the summit, I went back to Shanghai thinking, Vitalik had this blockchain project named “Ethereum” It was fun At Bitsclub, since we had held more than a dozen sharing events Maybe, maybe in China We could launch an equally interesting blockchain project They then elected me to act in the capacity of CEO We then launched our own project On the left-side of the screen is a post I tweeted in my Wechat’s Moments on June 9th 2014 I spent a whole night thinking about it It was NEO v1 NEO version 1 I decided to name it NEO(the Chinese means Small Ant) more powerful than Ant But When I named my project “Small Ant”, Ant Financial was not called “Ant Financial” yet So, anyways It was a happy coincidence As NEO’s founder What should I do? Two things stroke me as being very important To find the right people and to find enough money In terms of people, we found NEO’s current CTO He is also NEO’s co-founder, Zhenwen Zhang With regard to money, things became interesting I have some stories Around June or July 2014 I talked with almost all major angel investors, individual and institutional in China Including the famous Charles Xue who is now an enthusiastic blockchain investor But back then, barely any investor was willing to give us money Why? Because they couldn’t wrap their mind around this thing We said we were a non-profit project We didn’t have a company We would invest for some tokens No, at that time it was still investing to get shares But still, nobody understood With the exception of only one, Pre-Angel’s Wang Lijie in Shanghai I talked with him for an entire afternoon He said he thought this thing is cool It reminds him of the “Matrix” So he said,”ok, we will give you 200,000” But was 200,000 enough? Obviously not

If we were to launch this project, 200,000 was far from enough Then what could we do? So I told my co-founders If we think this is cool if we think this is something we can do Then we do it! So we pitched in I contributed 50,000 RMB There were 9 co-founders Each contributed from 10,000 to 50,000 In total, we got about 600,000 So we started NEO very fun That’s how China had its first ICO ICO is never a result It is a process Because we didn’t have money Because on one would invest in us We were forced to do it Had someone told me that what we were doing could generate thousands of times of return Did I dare to believe him? No We only thought it was fun and that it would create value That’s how China got its first ICO I see there are a lot of ICO projects today but you need to ask yourself What is it that ICO can bring and what is our ultimate goal? I hope you can seriously think about this question Rather than blindly following the trend The second section of my speech is about blockchain Here I try to use three slides to explain what blockchain is It’s challenging Then what is blockchain? I only have three slides Each slide only has one or two sentences I think, blockchain is really about confirming your ownership of data For the first time your data belongs to you We have BAT, Baidu, Alibaba and Tencent Our data is analysed by Alibaba and Tencent everyday But can you say that you own your data? No But blockchain Based on a decentralised relationship of cooperation allows you to own your data Is it possible that in the future assured that we own the data we use AI we feed our data into AI like our location data so that it would run some analysis and give us some BTCs or ETHs Wouldn’t that be more fun? That’s why I say blockchain is a confirmation of ownership of data Then what is the Internet? I think Internet is about communication of data Then what is token? That might sound a little bit hard to understand Token is a carrier of ownership For example, I sing a song It might sound awful But I can still turn that song into my data and share it with others eople can give me rewards But what if I share this song with an AI a machine my data A picture I draw A song I sing All my information is my data So to some extent, bitcoin is just a type of data The second slide That is the core spirit of blockchain It has three parts The first is community Blockchain in essence is bottom up It’s not top down When we started NEO The philosophy was to make it open, open-source, shared and non-profit None of the BAT companies No major institution can do that At Ant Financial During the half a year I was there Our team filed for about 70 blockchain patents Why did we do that? Was it necessary? It’s just big company’s mindset Community We see a lot of blockchain communities A lot of ideas like this come from a community The second part is Token Token is a flow of value I have already covered this part Then what is the third part? Tool When people talk about blockchain, they talk about enterprise-level blockchain But what is enterprise-level blockchain? I think enterprise-level blockchain only sees blockchain as a tool But should we agree? No

For example, 20 years ago, what was Internet to people? I remember in 2000, when I was in college we did something called company website We would polish a company’s information put it on a website, then you got a company website Companies would boast that they had a company website on the Internet! It was just like putting out an ads on a TV or over the radio something like that But how many people would still visit these company websites? Even the website of a company as powerful as Ant Financial When the Internet users reach 1 or 2 billion What can be born out of that? Tencent, QQ, Facebook, Uber, Airbnb, Every app could creates more value than the companies and teams that did company websites collectively could So I think, for blockchain being a tool is part of its value, but is by no means the entire story The third aspect is classification of blockchains As I just mentioned we have public chains, private chains and consortium chains Public chains include Bitcoin, Ethereum and Nebulas They represent an open, open-source and sharing spirit You see here, the words marked in yellow less, what is less? Trustless, Permissionless It means you don’t need trust and there is no privilege Even if Satoshi Nakamoto, the creator of Bitcoin were here he can’t change any code Why? Because he doesn’t have any privilege That’s the basic spirit of public chains Then what are consortium chains? They are enterprise-level blockchains including private chains, featuring TrustBased and PermissionBased What are TrustBased and PermissionBased? To put it simply It is based on trust and privilege For example, both Alibaba and Ping’an want to build a consortium chain Both want to be the boss Both want to have a super-administrator account Both want to have control But is that correct? I think we need to think about it I think the best representative of blockchain is still public chains They are a totally disruptive innovation Only disruptive innovations can create the greatest value The third section, Nebulas chain What is Nebulas chain? In two sentences First, it is the world’s first blockchain search engine And the second? It discovers a new dimension of the value of blockchain Let me explain We talked about what blockchain is Now let’s look at the problems facing the blockchain world I will use another graph with 6 words to explain The first problem is standard or criteria to determine what blockchains are good ones Now we don’t have a standard Everyone claims that their blockchain is the best and is No 1 in the world But really, what kind of blockchains are good? If you target a specific area, you can always find untapped value So we have to think about what kind of standards we want to build Secondly, the upgrading of system and protocols Blockchain systems are different from ordinary systems At Alibaba, or at Ant Financial Around 3 or 4 in the morning when most people are sleeping these companies are upgrading their servers All systems and all software are written by men So they are prone to bugs or mistakes So they need fixes Then, system upgrading If you go to an App Store you would find some software that needs to be upgraded But can blockchain be upgraded? No Why? Blockchain has to be online 24/7 otherwise it will split, into several coins To put it simply, if blockchains are not online the system will break down That’s why people have been debating about the expansion of bitcoin but have yet a conclusion There are divisions among communities That’s why after Ethereum was upgraded it split into two coins one is ETH and the other ETC So upgrading of system, fixing of bug are a very important issue What kind of blockchain systems have the potential to become a good blockchain system? Any idea? For me, I think a system that can keep iterating has the potential to become a good system This system should be able to change itself, self-evolve and iterate fast This is important Bitcoin has not changed nor iterated for years That’s why we have Ethereum But Etheneum’s problems have remained unsolved for several years So you have Nebulas Then what is the third problem? It’s the search of contracts and DApps In the future, there will be a lot of addresses, smart contracts and DApps Then how do you know what Dapps are valuable for you or what DApps are useful for you? How can you quickly find out contracts that will be helpful for you and DApps that will be useful I think that’s an important issue This picture, in my opinion, is a classic one It summarises the three problems I just explained Each represents a property or a quadrant We say digital assets are one dimensional They are a line What do they represent digital assets like bitcoin? Bitcoin is basically digital cash something that I transfer to you and you transfer to me But what about the Y-axis? It’s DApp Thanks to Ethereum for proposing the concept of smart contract as a result,we have many more contracts and apps It opens a space in which there are a lot of apps and a lot of contracts But if there are millions of contracts and apps ordinary people will have no way to judge which one is good and which one is bad like the Internet before Google came out you only got some personal recommendations for some websites You could’t find apps or contracts that are truly valuable for you So at Nebulas, we put forward the idea of criteria of value and established a Z-axis we try to mark on this axis all the addresses, contracts and DApps in the blockchain world to find the addresses, contracts and DApps that are truly valuable for our users So you will see when there are good contracts there will be some criteria of value I will quickly walk you through this We will release our technology white paper soon It is a self-evolving mechanism As I mentioned how could you ensure that a blockchain iterates fast and how could you ensure its quick evolution? We have our own protocol We call it Nebulas Force At the bottom layer we will build a Virtue Machine on which the entire protocol will be built If there are new features we will test them on sub-chains If they pass the tests they will be smoothly moved to our main chain and be integrated into our main chain This is our incentive Because developers in the blockchain world do not have any incentives On the contrary, if you develop a DApp you will have to pay for its fuel So for developers we will put in place a DIP Developer Incentive Protocol as a reward for your DApp We work like an Apple Store We share revenue with you You don’t have to do an ICO You will have your value monetised on our Nebulas chain Here is proof of devotion It’s our new consensus algorithm It’s not to render the poor poorer and make the rich richer Nor will it consume electricity or computing power We use this measurement of value to find truly influential things that will truly contribute to the system thus creating value Here is a picture of the Nebulas World If we say that Nebulas has established a rank then what can it do? You can develop an DApp Store or a search engine or an ads platform on it If what it offers is a measurement of value then the room for imagination is huge This is our core team we will update their information on our new website We have many Tsinghua students that are developing some core algorithms for us with some PHD students ands some former SQL China employees and some former Ant Financial employees We have two co-founders Me and Robin Zhong We were colleagues at Ant Financial’s blockchain team Aero Wang is a good friend Me and Aero are co-founders of NEO I have said a lot But the last section is the most important to be frank So I will be very serious It will take a few minutes if you are willing to hear me out thank you! I entered the blockchain world at the end of 2012 By 2013 Bitcoin users in the world, not blockchain because there was no blockchain amounted to 2 million At the beginning of 2017 when I was still at Ant Financial, I saw a report saying that the number of digital assets and blockchain users reached 20 million you know that in April, May and June and July and August ICO was all the rage Maybe I can make the judgement, that now there are 50m uses of digital assets and blockchain But even if it’s only 20 million, compared with 2 millions back in 2013 in just 3 years the number increased 10fold So we have reason to expect that, in another 3 years, by 2020 our user number will go up 10 fold again from today’s 20 million to 200 million and by 2025 we will have more than 1 billion users I think that is highly likely and we are preparing, planning and making arrangements for this new era Why? With such a conviction You will view today’s blockchain and digital assets from a totally different angle

Bear in mind if you think that blockchain is the next internet with 1 or 2 billion users then what should you make of blockchain and digital assets today? How can you prepare for that? You need to ponder over this Today the size of global digital assets is 100 billion dollars I think soon before 2020 when user number will have increased 10 times this figure will also increase 10 times to a trillion dollar level A trillion dollar marke does not disappear without any reason What can a trillion dollar market create? Blockchain grew from a community to an segment all the way to an industry I was lucky that I rode all the trends A trillion dollar market will create a truly large value chain with relevant services Let’s compare Because I was talking about blockchain and the Internet all the time So let’s compare the two first the Internet in 1997 only had 12m users all over he world in 2007 the number was more or less 130m and in 2017 it is 37 billion So it went through three stages The first stage, or stage 10 is Internet of Information with portals such as Sina and Yahoo providing information and news as well as catalogues to users Google was born during that stage It was just born and was poised to be the main player in the next stage of Internet development or the Internet of Applications represented by Apps such as Google, Facebook and Twitter These are apps that were born on the Internet So I call this stage the Internet of Applications In 2007 iPhone came out and looked set to play a main role in the next stage the Internet of Mobility People use phones everyday They can not live without their phones It is the era of mobile Internet represented by iPhone, Wechat and Alipay In 2017 The idea of bitcoin emerged This graph shows my understanding of blockchain 10 is value flowing represented by cryptocurrency such as bitcoin It is digital cash which you can transfer or transact it’s a flow of value 20 represents value programming What was the 000001 added to 1

0? It was Satoshi Nakamoto He wrote a paper in 2008, yet no one believed him In 2009, he spent about 1 year getting about 1m bitcoins Starting from 2010 more people started to join him By 2013, there were 2 million users Now its 50m In 2013, we call it value programming Ethereum put forward the idea of smart contract to program value and judge conditions in a decentralized eco-system of contracts and apps Now maybe I can make a bold prediction on value measuring represented by our Nebulas Rank that allows us to rank and analyse all the content, contracts and addresses in the blockchain world This is the most important takeaway from this section So what is it? Blockchain is a living organism Blockchain an economic entity A lot of times we ask what blockchain can do for us as a car dealer or real estate salesperson or people doing other things What can blockchain do for us? But that’s wrong You need to think in the way that when the world of blockchain becomes enormous what you can do for it Just like they way you treat Internet You can’t say, I want to make a company website so what the Internet can do for me? 20 years, it could only host a company website for you but you need to have a longer-term view, by thinking what you can do for the Internet We have Wechat QQ and Facebook So what I am trying to say in the fourth section is this It is a living organism It in itself represents value It is a new eco-system that’s truly driven by technology It is a brand-new world I remember a year ago I was here hosting “Chain Show” Global Blockchain Projects Roadshow A year ago, on 6th of August at the Shanghai International Convention centre One year later, even to my surprise I am standing here sharing with you something serious about blockchain I don’t think I am doing a commercial or promotion for Nebulas and I hope you can identify with it I hope we stay in touch and hope to see you next year Thank you!