Introduction: In 2019, bears proceeded to take over the market after a short-term bull. As the cryptocurrency circle entering the secular bears, the public chain projects have undergone a major reshuffle due to poor profitability. On the whole, though the number of public chain projects is increasing, there are few developers who actually grasp the top development technology. The market of the public chain tokens becomes sluggish. At this time, BGC sees the bear market as an opportunity to overtake. How did they turn the crisis into an opportunity? Let’s have a look.
With more than 50 public chain launches on mainnet, 2018 was called the first year of the public chain era. Sharding, Plasma, Casper and other consensus mechanisms arrange and combine into various scaling schemes, trying to find the best solution to break through the “Impossible Trinity”.
However, in 2019, bears proceeded to take over the market after a short-term bull. The gloomy mood shrouded the whole market with Fear and Greed Index fell to their lowest level of 5 since January 2018. As the cryptocurrency circle entering the secular bears, the public chain projects have undergone a major reshuffle due to poor profitability. On the whole, though the number of public chain projects is increasing, there are few developers who actually grasp the top development technology. The market of the public chain tokens becomes sluggish. Fortunately, there are still a few public chain teams who do not lack cash flow and have strong technical capabilities. They regard the bear market as an opportunity to overtake and prepare for the next wave of opportunities. Recently, Cookie Finance paid a visit to BGC and interviewed its founder and chief architect Huang Hua about how they turn crisis into opportunity.
———-I’m a lovely cutting line ———-
Clear standpoint: solving the problems of turning the business into cash in the field of pan-entertainment
Look at the evolution of blockchain technology and its versioning from 1.0 to 3.0, we can see Bitcoin, Ethereum and EOS as the most prominent examples respectively. Though the blockchain technology has developed rapidly, a large-scale application has not yet been born after more than ten years of exploration. The reason for this may be that the new public chain projects always based on solving technical problems of the former, such as the balance between centralization and decentralization, transaction speed, and security. When it comes to how to make blockchain technology usable to business demands and how to cash out, there seem few outstanding solutions and approaches currently.
At the beginning of the BGC project, Mr. Huang had a clear plan that the standpoint of BGC is to solve the problems of turning the business into cash in the field of traditional games and pan-entertainment. Such a decision was made after careful consideration by Huang Hua and his team. Though public-chain projects continue to emerge, there is no single project that can perfectly solve the problems of current traditional games.
1. Transaction speed: The game industry is a high concurrency industry. To develop soundly, the daily active user (DAU) of a game shall be at least at 10,000. However, neither ETH nor EOS can support such processing speed. The network congestion that appeared in the CryptoKitties not long ago is evidence.
2. Cost: the biggest pain point for game content producers has always been that, in addition to high promotion costs, they have to pay 30%-60% or a higher percentage of commission to distribution platforms which are supported by EOS or Ethereum. This is especially true for game merchants with tens of millions of traffic.
3. Market Capacity: the online game industry is a fast-growing market with 100 million users and 100 billion scales, but there is no specialized public chain project to support this huge application market.
Huang Hua and most of his core technical team members are from NetEase Games. As the leader of NetEase Games, Mr. Huang has dominated many popular games such as Chinese Odyssey (《大话西游2》) and Fantasy Journey to the West (《梦幻西游》), which helps him accumulate lots of experience and connections in the field of traditional online games. Compared with other non-target, non-direction public chain project teams, which only look at the popularity of a certain topic, Huang Hua focuses mainly on the traditional online game which he and his team are very familiar with. This can be said as a good start.
However, how to lead the current traditional online game industry through BGC public chain? To solve this problem, Huang Hua believes that on the one hand, they can rely on the progress of public chain technology to reduce congestion and costs, so as to improve performance and richness of games; on the other hand, they can set the game Token reasonably, so as to improve liquidity and incentives. Huang Hua made the following plan according to the above principles:
Enhanced technical configuration for faster transaction confirmation: Compared to Bitcoin or Ethereum, BGC improves the consensus mechanism and performance indicators such as trading TPS through fragmentation technology, so that the network can process one block every 10 seconds instead of 10 minutes, making the transaction confirmation faster than before.
Reasonable commissions: In Mr. Huang’s opinion, the platform should not cause excessive consumption by the user because it does not generate corresponding value when it is running. Therefore, in the BGC game ecology, there is no need for merchants to pay the commission to the distribution platform after the payment of token listing.
Continuously profitability: possess a wide range of applications
In the field of blockchain, a basic development logic is “underlying public chain—solutions–project applications.” The underlying public chain is the infrastructure of the blockchain world, and the solution is to extend the performance of the underlying public chain or provide service support for commercial applications. Only based on solid, stable and efficient operation of the underlying public chain, the commercial application of blockchain can develop and put into use.
Unlike other public projects that first undertake and later claim to have physical applications, Huang Hua’s team has already had related entities as support at the beginning of the project. This is also the foundation for the BGC project to start in 2017 and grow steadily through the bull and bear market. Below, we introduce several key business entities as examples.
1.Industrial Park: Digital Entertainment Industrial Park in the greater bay area of Guangzhou
Digital Entertainment Industrial Park in the greater bay area of Guangzhou was built by Huangpu Culture Group Joint Venture Company. Guangdong Langqi Culture Development Co., Ltd., founded by Huang Hua, is the investor and main operator of the Industrial Park. According to the plan of Huang Hua and Huangpu Group, the Digital Entertainment Industrial Park will focus on creating e-sports industry chain such as content development, event operation, experience venue, training center and live broadcast platform, so as to accelerate the nurturing of new culture forms such as e-sports, animation online games, blockchain technology incubation, digital film and television. The industrial park and its settled pan-entertainment enterprises will provide support for the BGC.
2.Hardware terminal: blockchain mobile
Well-known manufacturers such as Black Shark and VIVO are all BGC hardware manufacturers. The first generation of blockchain mobile Black Shark (黑鲨) are produced by Daily E-sports(天天电竞) and Xiaomi Black Shark. Unlike other blockchain mobiles that are limited to digital currency mining, Black Shark mobiles use POT time value algorithm, which makes the mining process takes less than 1% of hardware performance and network bandwidth, so as to guarantee that the hardware can ensure the best operating experience of other functions.
In view of the excellent performance, the first generation of black shark mobile has achieved mass production of 10,000 units through pre-customization. The second-generation that cooperates with Vivo is also in the stage of mass production. Blockchain mobile is also an important contractor for the BGC application ecosystem while ensuring a stable capital flow for BGC.
3.Online application: AIDOU BOX
AIDOU BOX is the first DApp on pan-entertainment public chain BGC. As of February 2019, more than 80 game merchants have cooperated with BGC and launched their games on AIDOU BOX, the features of which include mobile games, news, social connections and mining.
4. Create the first offline CMEL e-sports hall
As of 2017, the number of e-sports users in China reached 250 million, and the market scale exceeded 5 billion. For the first time, there were competition events that exceeded 10 billion spectators. In addition to the events, China E-sports has continued to explore in the education system, the pan-entertainment e-sports industrial park, and industry norms.
In April, BGC pan-entertainment public chain launched the first CMEL City Tournament, and led the establishment of the first offline CMEL e-sports hall with more than 100,000 participants, releasing the unique charm of user value and business value to the extreme. Before BGC, there was no blockchain company that could hold such an event.
Based on the all-round e-sports business ecosystem of “E-sports Competition Events + Blockchain + E-sports Mobile + Game Applications”, the value-in-use of BGC Token can be improved.
At present, there are a large number of investment categories in the field of digital currency. More than 2,500 projects are shown on CoinMarketCap alone, not to mention loads of others that are not included. At the same time, due to such a large number of crypto projects, on the one hand, investors have groaned inwardly a lot. They may have poured a huge amount of money into air projects but suffered huge losses at the end. Or they may intend to invest great projects but totally have no idea about it; On the other hand, project operators have been very anxious as well. They may have great projects but have no idea or money to promote them in the market. Ultimately, the projects have to vanish in the industry, making it even tougher for the project operators to get investors and financial support.
Cookie hopes to act as a bridge between investors and project parties. Through the on-the-spot visit to and face-to-face interviews with various corporates, we can introduce more truly outstanding projects to the public.
At the same time, we sincerely welcome good projects to contact our official customer service to join our “Seek and Visit Great Projects” activity to discuss the way of development in the industry together with us.