Dialogue with Zhu Wei: The competition in the mining machine service industry is very basic, and the technology and services need to be more professional and sophisticated (www.blockcast.cc)

Finishing: Zhao Jianghao

The following is the text of the interview:

Zhao Jianghao: It is understood that Inbit Mining’s services mainly include mining machine maintenance, maintenance training, power supply R&D and sales, mining machine hosting and other related services.

After leaving the mining pool, are you mainly doing mining equipment related services? Why choose the direction of mining equipment after-sales service?

Zhu Fang: Inbit is now doing services related to mining machines and mining farms. We are making some attempts. At present, in addition to the power supply of chips and mines, our services are involved.

At present, mining machine repair, secondary sales, custody, and extended warranty services are actually relatively lacking in the industry. The mining circle is still very primitive, and there is not even a maintenance company that can gather the maintenance service qualifications of mining machines.

Zhao Jianghao: In other words, there is no competition in the current mining machine service field? Another question is, what is the demand for mining equipment-related services in the mining market?

Zhu Fang: Competition in this field is also fierce. It’s just that everyone is a very rudimentary competition, the means of competition are very traditional, and competition does not produce any value. The competition in this area is like the competition between breakfast vendors. Everyone is vying for a good location and shouting, no one is going to improve the service.

We want to be the king of Yonghe in the breakfast shop.

The market has great demand for services in mines and mining machines. Mainly because a lot of formal and professional funds have come in and they need professional people to provide services. Now all kinds of professional and intelligent tools have been perfected, allowing us to provide more professional and transparent services. This is also an opportunity for the current market.

Zhao Jianghao: From your point of view, you should agree that “Bitcoin mining is moving towards specialization and scale.” In recent years, we can clearly feel that the mining industry is moving in multiple directions. In your opinion, what are the development trends of Bitcoin mining?

Zhu Hai: Yes. The industry is becoming more specialized and large-scale, and more subdivisions have emerged. Including our services are gradually becoming professional, providing more sophisticated technology.

In addition to these aspects, there are several trends.

One trend is that the risks of mining are decreasing. All ecological risks in the entire mining industry are decreasing and guarantees are increasing. Before 19 years, none of the mines said they were compliant. However, this year’s mine pools can withstand scrutiny in all aspects of laws and policies, and force majeure will hardly come from the government.

There is also a trend that more money enters the market and profits become thinner. In the past, the risk was high, but the return on investment was often high, but if you encounter force majeure, there is no way to lose money. Now the risk is low, but the investment income is low, the loss is also small, and it can be done through various financial means.

Zhao Jianghao: The “mining bull market” -the high water period has long since ended, and now the low water period has arrived, and this year happens to be the year when Bitcoin rewards are halved. What impact did the dry season after the halving have on the mining industry?

Zhu Fang: Every time I look at it, the impact of the dry season is the same, and in many cases there are some differences, which are caused by market conditions, mining machine iterations, and changes in the mining pattern.

Specific to this dry season, one of the impacts is that the price of mining machines will fluctuate greatly. Because of the high electricity price, the price of some low-efficiency mining machines will plummet; after the market gets up, miners find that these mining machines can be turned on again, so the price of mining machines soars.

Taking into account the factor of halving, its impact is to make a batch of older mining machines withdraw from the market early. At a certain stage before the currency price rose, some machines with more than 60 watts experienced panic that shouldn’t have been there.

Zhao Jianghao: In an interview with the market leader of the microbit mining pool before, he mentioned a trend that many mining pools and mining machine manufacturers gradually shift their services overseas. How do you see the trend of “mining abroad” in recent years?

Zhu Fang: Because the demand for domestic Bitcoin mining machines is different from the demand abroad.

In foreign countries, technical geeks used to have demand for mining machines, but now many institutions are in demand for mining machines. Looking at the country again, the country used to be mainly energy players and a small number of technology geeks (technology enthusiasts), but now most of them are still energy players. So there is a big difference between domestic and foreign countries.

Now Bitcoin mining is no longer as hot domestically as before, but its popularity abroad is beginning to increase. The imbalance of domestic and foreign demand has caused some changes in the market. In the second half of this year, many products were indeed transferred overseas.

Zhao Jianghao: In recent times, the price of Bitcoin has risen continuously. At its peak, the price exceeded $16,000, which exceeded many people’s expectations.

What is your opinion on the price trend of Bitcoin in the next year?

Zhu Hai: Judging from the monthly line, Bitcoin this year is almost a unilateral upward trend. The upward trend should continue in 2021, and it is possible for the price of Bitcoin to rise to between US$30,000 and US$100,000 in 2021. However, epidemic factors and world economic and political reasons may have a greater impact on Bitcoin prices. Ideally, I think the price of Bitcoin can reach the price range of 50,000 to 120,000.

The next big trend in the DeFi world: professional-level decentralized derivatives trading platform (www.blockcast.cc)

The increasing participation of institutional investors in the DeFi currency market and fixed-income instruments will create a strong demand for professional derivatives suitable for institutional investors and professional traders.

Authors: Andrey Belyakov (Opium Protocol founder); Deniz Yilmaz (Opium Protocol product and community leader);
Compiler: Zhan Juan

2020 is not over yet, but now it is safe to say that this year’s landmark event will be the ongoing COVID-19 epidemic, which has also exposed the fragility of our financial and monetary system.

However, if you look closely, we will find that 2020 is also a year in which DeFi broke all records and attracted widespread attention. In the past few months, the decentralized financial ecosystem has grown into a dynamic and fascinating sandbox for financial innovation. Although we see that the total value, transaction volume, daily active users, and online participation locked in DeFi have reached new historical highs, it still has a lot of room for growth.

However, which segment of the DeFi field will usher in the most explosive growth? We believe that decentralized derivatives are currently the most promising investment opportunity in the DeFi field. The following are five reasons:

1. The derivatives market is the largest market in the world

Did you know that the derivatives market is the largest single financial market in the world?

In fact, the derivatives market is approximately 10 times the size of the credit market and 20 times the global GDP. Derivatives are not only for professional traders, but also an important part of the financial services we use daily. Personal checking accounts, insurance and mortgage loans are all inseparable from the use of derivatives!

2. Derivatives are vital to every mature financial system

Let us consider why derivatives are used so frequently, and why derivatives are so important to any financial system.

This is because the financial system is composed of financial markets, and financial markets are all about risk-every transaction has a certain risk. Professional market participants, such as traders, banks, and investment companies, would like to offset or hedge these risks to prevent financial disasters in the event of unexpected events such as large price fluctuations. This is the purpose of derivatives such as options and futures. Derivatives allow market participants to manage their risks by limiting potential returns and losses. Simply put, derivatives can smooth gains and losses, thereby preventing financial crises.

3. DeFi will not mature unless derivatives grow

In any important financial system, the typical market size ratio between currency/debt/derivatives is 1/10/100. In today’s DeFi, this situation is almost non-existent. Let us think about these market sizes in the illustration below, just to get a feel for the numbers.

Where will the growth of the derivatives market come from? It will come from many aspects, and this article will explain them one by one. Let me talk about the growth from the current DeFi user base!

Today’s DeFi users face huge risks, and most of them have not realized it until another systemic failure occurs and people lose their funds again. Those users who are aware of the risks are already seeking to use derivatives to hedge their risks (for example: buying insurance on Nexus Mutual or buying put options on exchanges). As the field matures, the DeFi derivatives market will grow exponentially with the overall growth of DeFi. Therefore, derivatives are an incredible opportunity for builders and investors.

4. DeFi will swallow part of the centralized derivatives market

In the traditional financial system, most derivatives markets are already very large and highly liquid, especially those related to important commodities (such as gold, oil, corn) and stocks (such as the Dow Jones Index).

However, derivatives based on DeFi have some inherent advantages, which will encourage part of the traditional derivatives market to shift to decentralized derivatives.

-The decentralized derivatives market is inherently easier to enter. Anyone with an internet connection and an Ethereum wallet can use them-no matter where they are or their social status. This is in sharp contrast to the traditional financial sector, which mainly serves those who live in rich and powerful countries.

-Creating a customized derivative on DeFi is easy, cheap, and anyone can complete it.

In the traditional financial system, the process of creating a new derivative and bringing it to the market is very complicated, and the cost involved is close to millions of dollars. Because of this, most derivatives are created by big banks, which may make it more unfair and less efficient than DeFi. Taking Opium Protocol as an example, by combining the on-chain derivatives formula with a price oracle combination, it takes only a few minutes to create a derivatives contract from scratch. We have already seen this effect, and currently four independent external companies are working to build their derivatives on Opium Protocol and quickly bring them to the market at almost zero cost.

Based on the above, market dynamics will lead to an organic shift from the derivatives market to DeFi, which will increase transaction volume.

5. Institutional players will start participating in DeFi

In the past few years, we have seen increased interest in cryptocurrencies among institutional participants. But this is not the end of their participation. These large professionals will also begin to participate in this Internet-native financial system, which will bring more liquidity, transaction volume and competitiveness to the field. These players may not participate in profit farming to avoid facing catastrophic tail risks, but will participate in arbitration to provide liquidity for the most stable and secure strategy.

No matter how they will participate, they will demand tools for risk management. They will need advanced derivatives to hedge risks. They will need financial primitives with limited ups and downs potential. This is the beauty of this.

Professional derivatives as a new market for DeFi

One thing to be clear: The DeFi field has amazing upside potential. Whether it is relative to the entire crypto market or especially relative to the traditional derivatives market, the total value of DeFi is minimal. New users entering the field will bring liquidity and promote the exponential growth of the DeFi derivatives market.

But where can investors find Alpha? In the total growth of encryption and DeFi, which market will grow faster? We believe that the increasing participation of institutional investors in the DeFi currency market and fixed income instruments will create a strong demand for professional derivatives suitable for institutional investors and professional traders. This new area within DeFi will usher in the greatest relative growth.

Opium Protocol as a professional derivatives platform

1. Opium Protocol is unique because it is designed to be combined with DeFi markets and professional markets. At present, most of the derivatives protocols in DeFi introduce theoretically unlimited risks by using on-chain liquidity pools, or the introduction of AMM, which is actually a step backward for traditional finance. At Opium, we believe in a robust and simple on-chain (layer 1) financial infrastructure, which can further utilize off-chain (layer 2).

2. Opium Protocol provides a powerful financial primitive at layer 1. More complex functions (such as order books, advanced derivatives, market-making strategies, arbitrage, combined orders, dynamic pricing, automatic hedge fund strategies) are implemented in the second layer. This makes the agreement universal and robust, allowing the creation of decentralized derivatives with risks more similar to traditional financial products, which is what professional market participants need.

3. Opium was established in 2017. Before DeFi appeared, Opium had already begun to work on the infrastructure construction of decentralized derivatives. The team behind Opium has professional experience in the traditional financial field and has a deep understanding of financial primitives, risk management and DeFi. The Opium protocol has been launched on the Ethereum mainnet and has been audited by SmartDec. So far, we have launched three working products based on the Opium exchange and assisted four external independent institutions to use the Opium protocol to bring their derivatives to the market .

Equity Road: Professional Lawyers Interpretation of Bitmain 914 Legal Person Change and Its Follow-up Possibility (www.blockcast.cc)

The latest information shows that the fight around Beijing Bit is heating up. One party tried to remove the company’s belongings, while the other party recovered and put a seal on the items. But the screenshots of the pulse show that the negotiations between the two sides seem to be progressing.

The two founders of Bitmain competed for control of the company, and there was a new change.

The dispute over the legal representative of Beijing Bitmain has gone through three cycles in one year:

In October 2019, he changed from Zhan Ketuan to Wu Jihan, but because Wu Jihan’s shareholder resolution for industrial and commercial changes was flawed, it was revoked by Zhan Ketuan for administrative reconsideration.

In May 2020, the legal representative of Beijing Bitmain changed back to Zhan Ke Tuan again.

In the middle, there were incidents of grabbing mining machines and mining farms…

On September 14, 2020, Beijing Bitmain changed again, and the legal representative changed from Zhan Ketuan to Wu Jihan.

Wu said the article on Blockchain said that on the morning of September 15th, the Zhan Ke Group held an all-hands meeting, and the Beijing Aobei Science and Technology Park and the Shenzhen factory were urgently transferring materials.

1. Why can Wu Jihan regain his position?

Article 13 of the “Company Law” stipulates that the legal representative of a company shall be the chairman, executive director or manager in accordance with the company’s articles of association.

The articles of association of Beijing Bitmain stipulate that the executive director shall be the legal representative of the company.

And who is the executive director is determined by the shareholders.

There is only one shareholder of Beijing Bitmain, that is, Hong Kong Bitmain holds 100% shares, and Wu Jihan is the authorized representative of Hong Kong Bitmain.

Therefore, Wu Jihan can represent Hong Kong Bitmain and make decisions as a shareholder of the Beijing company. Wu Jihan serves as the executive director of Beijing Bitmain and becomes the legal representative in accordance with the company’s articles of association.

The escalation of the Bitmain war, the analysis of the role of the two legal representatives

2. Why was Wu Jihan’s superiority revoked last time?

This issue was previously analyzed by the “equity road” because the shareholder resolution Wu Jihan took to make the change was flawed, and it was revoked after Zhan Ketuan went to apply for administrative reconsideration.

In the battle for control of Bitmain, Wu Jihan’s legal representative was revoked, and the reason was finally found

3. Can Wu Jihan be able to sit firmly this time?

Wu said the blockchain article said that the recording showed that Zhan Ketuan has repeatedly emphasized that this change is an abuse of administrative methods and abuse of power in Haidian District to interfere in civil cases.

The “equity road” has analyzed this issue before, and it is only natural for Wu Jihan to request the change of legal representative, because Wu Jihan can make decisions as a 100% shareholder of the Beijing company.

The escalation of the Bitmain war, the analysis of the role of the two legal representatives

Although Zhan Ketuan is the former legal representative, he cannot prevent shareholders from deciding to replace the executive director and legal representative.

If the predecessor can block the change, but Wu Jihan represents 100% shareholders who cannot make the change, then it is really possible to be interfered as Zhan Ketuan said?

Wu said the blockchain article said:

Zhan Ketuan’s strategy is still similar to the previous one. It is to find the formal differences in Wu Jihan’s behavior, such as whether he has made an online application and whether the signing time is correct.

But the mistake Wu Jihan made last time, will he make it again this time?

If Wu Jihan made no mistakes here, the probability that Zhan Ketuan could request cancellation is extremely low.

In fact, even if Wu Jihan really makes another mistake, he can still issue a no problem shareholder resolution again and make changes.

4. What is the impact of the ongoing multiple lawsuits?

The Planet Daily article stated that Zhan Ke’s team filed a request to confirm that the shareholder decision signed by Wu Jihan on behalf of Hong Kong Bit on October 28, 2019 was not established ((2020) Jing 04 Min Chu No. 497).

The previous article of “Equity Road” said that even if Zhan Ketuan won the lawsuit, Wu Jihan’s position would not be shaken.

Because Wu Jihan can represent the Hong Kong shareholders who hold 100% of the Beijing company, even if there is a problem with a shareholder resolution, he can still make 1 billion shareholder resolutions without problems. Then, isn’t Zhan Ketuan going to fight 1 billion lawsuits? Made a fortune with lawyer fees…

The article also said that Wu Jihan’s lawsuit against the previous administrative reconsideration was suspended for the fifth time, and he had to wait for the outcome of the civil lawsuit (2020) Jing04 Minchu No.497.

Bamboo wants to say that this lawsuit has nothing to do with the overall situation, because now it is a new change. Even if Zhan Ketuan wins the lawsuit, it will not change the outcome.

The key is: whoever can control the Hong Kong company can decide the affairs of the Beijing company.

Why does Zhan Ketuan first apply for administrative reconsideration? Instead of going to court?

(1) Regarding the first change, Zhan Ketuan had already filed a lawsuit in the court at the beginning of November 2019, and applied for an administrative response on November 7, 2019, and went to the court to withdraw the lawsuit one week later.

(2) The time for administrative reconsideration and litigation is different

The Administrative Reconsideration Law requires that a decision be made within 60 days after acceptance, and can be extended up to 30 days with the approval of the person in charge.

The Civil Procedure Law stipulates that the first instance is concluded within 6 months, and can be extended for 6 months with the approval of the president; there are 3 months after the judgment of the first instance, and the president can also approve the extension; civil proceedings may also be suspended or suspended. .

The time requirements for administrative litigation are similar to civil litigation.

Therefore, the maximum time for administrative reconsideration is 90 days for a result, and a lawsuit may take 1-2 years to have a result.

In order to buy time, choose administrative reconsideration faster, and after the results of administrative reconsideration come out, you can go to court again.

(3) Different professionalism

In contrast, courts are more professional than administrative reconsiderations, and court judgments are public, subject to stricter supervision, and are not easy to be grayed out.

5. What is the use of the legal representative?

So many companies grab the legal representative because the legal representative’s signature can represent the company, and the consequences of his signature need to be borne by the company, and the legal representative can sue only when the legal representative signs. The legal representative has a role that other positions cannot replace. , You can read the analysis article in front of “Equity Road”.

Choose one of the official seal and legal representative. Which one do you choose as the founder?

Why do some masters advise you not to act as a representative?

Maybe he doesn’t understand the law? Or what he taught you to do was originally illegal and criminal?

If the company is engaged in legitimate business, it is not too risky to establish a representative, and at most it is only restricted to consumption due to company problems.

If the company engages in illegal and criminal activities, whether it is the legal representative or not may go to jail. Criminal liability is calculated based on the actual responsible person, not the legal representative. In the second edition of the book “Corporate Control” written by Zhuzhu There will be case presentations.

6. Why can such a simple thing be reversed many times?

As mentioned earlier, Wu Jihan’s first change was revoked because of flaws in the shareholder resolution.

Before the problem occurs, most people do not pay attention to documents such as shareholder resolutions.

Wait until something goes wrong before you go to court, but no matter how much money you spend in a lawsuit, you won’t be able to change the previously signed documents.

Because of a shareholder’s resolution, it took more than N months to return to the original point. So many things happened in the middle, and the price was large enough.