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Future FinTech Group (NASDAQ:FTFT) works to further blockchain technology across multiple sectors

Tony Zerucha

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As Bitcoin’s underlying technology was being designed, its creators had no idea of its potential applications. Nor could they, as entrepreneurs are applying blockchain technology to new industries every day.

Future FinTech Group (NASDAQ:FTFT) quickly saw blockchain’s potential to revolutionize financial markets and as time went on, several additional areas, CTO and director Zhi Yan said. Future FinTech Group is researching and developing digital asset systems based on blockchain technology and operates an incubator for companies applying it. Together with its subsidiaries, Future FinTech Group is developing blockchain technology and cryptocurrencies for B2B and B2C applications including different financial businesses, the distribution, marketing and sale of consumer products and an online shopping mall platform.

Mr. Yan said Future FinTech Group quickly realized blockchain could restructure markets, trade and society.

“After we studied the structure of Bitcoin, we believe its ‘programmable’ and ‘distributed ledger’ feature could lead to a revolution of the internet. Blockchain technology might be the first technology that could make people who speak different languages come together ever since the Tower of Babel.”

Future FinTech Group is helping bring those voices together through Chain World-Cyberspace, its digital asset application incubator that a host of services for promising blockchain companies.

“In order to provide business incubation and acceleration services including projects finance, technology, talent, and marketing services for growing blockchain companies, Future FinTech Group established the Chain World Cyberspace,” Mr. Yan said. “We are looking for companies who have the potential to become a unicorn company in the blockchain industry and we didn’t set a specific limitation to the area the companies engaged in.”

In addition to shared office space, road show organizing assistance, identity support and blockchain training, Chain World Cyberspace offers three value-added service packages, Mr. Yan added.

“The first service package provides pre-project consultation, understanding of blockchain related policies, company registration and compliance requirements, bilingual white paper drafting service and more. The second service package includes digital asset marketing and advisory for domestic and international operations (while) the third service package provides digital assets exchange listing consultation and project implementation guidance.”

Blockchain’s biggest influence will be in how it reconstructs relationships between groups with different interests, Mr. Yan said, likening it to the impact equity and patent systems have had.

“Therefore, we believe that the largest application area of the blockchain will be to reconstruct the relationship between enterprises and customers. It changes the traditional trading relationship to a mutual supporting, cooperation and sharing relationship.”

Blockchain will face challenges on the road to adoption, Mr. Yan said. Banking and securities, for example, will struggle with the blockchain’s complexity as they seek to create reliable data vaults.

Anonymity must also be addressed if blockchain is to fulfill its high potential as an asset-based technology, Mr. Yan explained.

Zhi Yan

“To sum up, the biggest power of the blockchain is to reconstruct the interest relationships of people. So blockchain’s future lies in the asset area. The current blockchain technology is designed for the bitcoin, it’s built on the anonymity system.

“There are two value carriers, property and asset. Bitcoin is created as property at the first place. So its anonymity is no ground for blame. But blockchain’s future is built on asset-related applications. The essence of the asset is people’s interrelation, which cannot build on anonymity. We can see all of the assets in the world are all under real names, including equities, real estates or savings. Therefore, if we want to make blockchain applicable in the real world, anonymity will definitely be the stumbling block.”

For those reasons, Future FinTech Group believes Nova Realm City, a blockchain technology value community registered with real-name users, can have a big impact.

Blockchain technology also has disruptive potential for the insurance industry, and Future FinTech is exploring that sector through its collaboration with InUnion, a mutual insurance provider. InUnion recently launched its INU Life Mutual Insurance Plan on Nova Realm City. Via the blockchain, an insurance provider can provide creative solutions, Mr. Yan explained.

“Every customer who participates in the INU Life Mutual Insurance Plan is both a policyholder and an insurer, as well as an investor and a staff member. Similar to the traditional mutual insurance model, each customer can join the blockchain-based mutual insurance plan and enjoy the benefits of mutual insurance.

“The plan will issue insurance policies and process the claims. The Committee of Verifiers of the plan will serve various functions for the plan, such as INU community management, supervision and operation, and will verify the application and claims, which will all be recorded in the blockchain.”

The blockchain will produce cost savings and the ability to download and access the insurance ledger in real time. Through artificial intelligence service capability will be enhanced as labor costs are reduced, Mr. Yan added.

The blockchain enables GlobalKey Shared Mall to deliver value to participants through a programmable value distribution system, Mr. Yan said.

“The participants include users who are helping to promote, establishing their own stores and purchasing products in the Global Key Shared Mall. It is like redistributes the market value of ‘Taobao’ to all sellers and buyers on the platform.”

China has established a market leading position in two key blockchain areas – exchanges and mining machines, Mr. Yan said, while adding Nova Realm City could add a third with its anti-counterfeiting blockchain project QRO anti-counterfeiting, which has attracted interest from such agencies as the Light Industry Association and China Association of Automobile Manufacturers.

“It’s going to be one of the first applied projects and also supported by the government. Counterfeiting is now one of the most significant challenges facing by the manufacturing industry in China. Counterfeiting has been brought to a national strategic level.

“QRO anti-counterfeiting, using the principle that no one can make a fake token, bundles the blockchain integral and the product together and delivers it to the user. Users who didn’t get the token can go to the fake products seller to defend their rights. Such sellers will face endless entanglement. Eventually, the fakes will disappear in the market.”

The material is not to be construed as an offer or a recommendation to buy or sell a security. See full Terms of Service.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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