From the perspective of magic core shutdown, the blockchain governance ability needs to be strengthened

Tencent Magic Core recently announced that it will stop issuing digital collections from August 16, 2022, and all users who have purchased digital collections through its platform can choose to keep them or apply for a refund. What has been rumored for a long time is finally settled, but for the vast number of digital collection collectors, the more concerned is still the security of the digital collection purchased. It's normal for a business or trading platform to come and go, make or break; But how can the security of digital collections in the context of domestic alliance chain get rid of the dependence on the success or failure of specific enterprises? I'm afraid further strengthening blockchain governance capabilities is essential.

The security of digital collections on the alliance chain depends on corporate credit
Different from the public chain that uses POW or POS to protect the security of the assets on the chain, the design of the alliance chain defaults that the controller of all nodes is real name. The number of nodes is also very limited, usually under fifty. In addition to on-chain software-based rules, off-chain governance rules have more important practical significance. Unlike the common practice on the public chain, the alliance chain generally does not solve the problem of chain operation cost and incentive through the design of on-chain tokens, but makes an agreement in the governance rules outside the chain. This makes the operation of an alliance chain a practical activity very dependent on the commercial reality; Different from Bitcoin, Ethereum and other public chains, which can be considered as global infrastructure with strong credibility, alliance chain more reflects the limited credit expansion of alliance chain operators.

Digital collectors deserve consumer protection
Since the credit of the alliance chain is very dependent on the enterprise credit, once the enterprise credit crisis occurs, just like the dilemma faced by the operators of the magic core platform, the operation of the alliance chain and the security of the assets registered on the alliance chain, including digital collections, will also be in crisis. For digital collection collectors, the worse case is that the alliance chain lacks other node operators and also ceases operation. In the worst case, because the underlying blockchain technology used is not open source and does not provide on-chain data access capability, the assets on the chain may be permanently lost after the operation of the alliance chain stops. Even in the best-case scenario, collectors will need to move their assets from the platform to other custodians and accept their terms of service.

From the point of view of consumer protection, buyers of digital collections should not have the ability and responsibility to identify risks technically and professionally. If this professional responsibility is given to consumers and they are required to bear the adverse property consequences of misidentification, the result can only be a huge shrinkage of the relevant market, from a thriving C-end market to a niche B-end market where only professional businessmen can test the waters. The outcome will be a major setback and blow for a blockchain industry that aspires to be the infrastructure of the national digital economy. We need to take the time to promote consumer protection for buyers of digital collections before there is widespread public distrust of the business.

56a8648e68c47b141b8e4139a1ca7df9Strengthen blockchain administrative services and build a unified national market based on blockchain
Since the 18th National Congress of the Communist Party of China (CPC), the reform of administrative departments has been emphasizing the "release of supervision and service", and has made remarkable achievements. As an emerging industry, the blockchain industry urgently needs the intervention of innovative administrative supervision services on the basis of the rapid development of the industry, so as to maintain the healthy competition of the market and ensure that the good momentum of the industry development is not hindered. The market is the foundation of the development of the industry, but the vicious game of the market will also lead to market failure. Proper participation of administrative services can change the structure of the game, reverse market failures, and curb the momentum of undesirable developments such as the tragedy of the Commons and bad money driving out good money. We believe that the following aspects of innovative administrative supervision services and improvement of governance capacity will have good value:

1. In terms of technical standards, promote and encourage the open source of blockchain underlying technology.

Software technology cannot be developed behind closed doors. In today's global development and rapid iteration of software technology, blockchain technology, which still insists on closed-source development, does not have the prospect of large-scale application in most commercial fields, because once a major technical error occurs, it will cause a huge amount of irreparable asset loss. Only with the development of open source, the inspection and criticism of peers and upstream and downstream enterprises all the time, and the rapid upgrade and iteration of blockchain technology, can we be strong enough to bear the requirements of large-scale national infrastructure.

2. In terms of service mechanism, promote third-party independent asset custody institutions to protect the security of users' assets.

For the data and digital assets generated by the alliance chain, the public data query service should be provided under the premise of data confidentiality. Consumers and users have the right to choose and switch the backup and hosting services of data and assets on the chain, and pay for services and dispose of digital assets on this basis.

3. In terms of industry development, actively promote the establishment of industry associations to promote industry self-discipline.

Alliance chain of governance, more time in the chain. Such a new commercial mechanism and model, the savage growth of the industry, will inevitably be mixed, good and bad. Trade associations can promote industry self-discipline, establish industry standards, combat industry chaos, and maintain industry reputation. We can even actively consider granting certain administrative supervision power and arbitration right to the industry association, so as to push the industry to the right track as soon as possible.

4. In terms of administrative supervision, define the division standards of various businesses and the corresponding competent departments as soon as possible, and implement the leading power of the industry and the responsibility of administrative supervision.

Digital collections are one of the rapidly developing digital economy businesses and industries supported by the blockchain technology industry, and there will be many similar rapidly developing industries in the future. For these new industries, innovative administrative regulation is a real need; Compared with the inefficiency of multi-dragon water control, what is more terrible is the lack of dragon water control and the cutting off of water after the flood caused by the lack of dragon water control. Good administrative supervision can not only promote the development of the industry, create a large number of jobs, but also provide stable fiscal revenue.

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