 Let's start five people good Including one for my colleagues So first before I start let me make a very small step In China and also, you know in the BIS in ecosystem It's kind of well-known. I'm a very very against Cryptocurrency so hopefully fall for you guys. No one is from a cryptocurrency industry You know because I saw the hyper ledger conference. It's like home a Little bit away from cryptocurrency So doing today's presentation is a little bit, you know, sometimes I can see some negative things a bit about the cryptocurrency and FT's so Okay, let's get started So first I want to make a you know Basically explanation in definitions Many you know people from a crypto industry they intend to mess up the definitions, you know messed up with confused people between cryptocurrency and the blockchain technology and You know mess up the definition between FT which actually is the digital collectables you can sell and trade on open sea and FT technology or you can call that tokenization so so those those things are totally different, okay? Cryptocurrency is basically a small application build based on blockchain technology and the digital Collectables basically the build on the technology of tokenization or FT's so basically Because why I talk, you know first to talk about the definitions because we talk about the you know the laws and the regulations You're in your late law laws and the regulations they governor the applications You know when you know how to make a bomb you don't get arrested Okay, you can draw on the you know draw all the diagram everything. It's fine But when you begin to make a bomb It's regulated. Okay, you can gather a raster. So we need the differentiate between technology and applications, okay, if we don't differentiate those People will say, okay, China banned the crypto currency. Why it doesn't ban Blockchain technology and FT technology because one is the pure technology another one is the application Which is against the law? this is FT Here FT is digital collectables market It's very small compared to the whole world. Okay, it's less than I Think less than 2% Okay, and I totally don't agree with the charts Here here here, I think they will like this In three years probably reach zero Okay, I totally don't agree with this one. So why? Because FT digital collectables consider something just like Cryptocurrency and we all know cryptocurrency is a band in China. So I will you know that Give you guys some you know explanation why So the black chain Legal landscape in China. Okay, I will talk about a little bit longer here So first everybody knows the cryptocurrency is a band and this ban Is forever. Okay, don't think about the you know after five years they will be unbanned From what I can see as long as the China is the government by the same government It will stay the same way for next 100 years. Okay, and then the second one actually not many people understand this is the public chain Cannot be legally operated in China due to internet regulations. There's a bunch of laws You know how internet should operate in China for any IT system connect to the internet require KSS and Content controls, which means any content if you know it breaks the law It can it can be deleted or banned from the system So those things basically against the nature of public chains. So public chain cannot legally operate in China So people usually say, okay, there's no cryptocurrency. Can we run the public chain nodes in China? You can't okay. You can't legally and Some people say, okay, I can run a public chain permission to change and I will issue something You know cryptocurrency, but I renamed that as membership points Say then I can use membership points to you know Buy and sell stuff, you know trading to each other, you know, how smart I am And there's a PBOC, you know people's Bank of China basically 15 years ago they have a regulation of how to regulate membership points There's a tool right lines, which means if you cross your breaks the law, you can get arrested. Okay, too first the membership points Cannot trade to each other For example, if you have a China mobile Membership points right China mobile has like a 20 billion each year R&B membership points worth of membership of points, and then you cannot give to each other Okay, the system doesn't even support that And the second right line you cannot change the membership point back to cash Okay, if you do that you run a illegal operation So if you are a customer of China mobile somehow and then you'll get the membership points What you can do you go to China mobile give the website and the change tool You know phones and they and they even pay Pay bill you actually can use a membership point to pay your bill from the same vendor. It's fine So which means you cannot run a crypto currency operation Just rename that into membership points. This is a very very important and but so far by all the regulations Holding for individual holding crypto currency is it is legal? okay, so so basically and Trading between two individuals so far it's also legal Okay, which means don't go to a platform or change your call your friends. See give me cash I you know transfer some Bitcoin to you. It's totally fine Okay, it doesn't break the law and the police knows that you know, they probably join you and Do some trading individuals, but okay, there's big catch since last September crypto currency no longer is a Property protected by law. Okay, this is big before that if you if someone rob you of your Bitcoin You go to police police can you know register the case and move on But right now for example, I you know Me the team I said, okay, I have one Bitcoin. You give me cash No, he has one Bitcoin. I say, okay I pay you cash, you know 10% over the market Transfer the Bitcoin to me first. I will give you cash, you know face-to-face after the transfer I run away Then team goes to the police station say I just got robbed The they ask of what Bitcoin they say, okay There's nothing we can do. We consider them not even legal property. You just got robbed of air Okay, basically so so right now after September last year All the digital currency disputes and the crimes don't get, you know, you know Basically the local courts won't take any dispute case on cryptocurrency and the police won't act on any crime involve cryptocurrency Of course, if you kill someone and rob them, they will do that. They will solve the murder case So that this is actually very very Important because you know even holding and and and you know selling between individuals is legal But it's no longer protected by the law Okay, then it become a risk You know and actually two weeks ago, there's a case. It's it's like someone use digital currency to buy the USD DT basically do a trading right and and the they all got in a room The guy who actually stole everything they set up a bunch of cameras So basically is you know shoot on your phone to get your private keys And And after the trading this guy go home and find the virus is gone Then he went to the police station and you know, basically that guy sent him a message. So what I just robbed you so what? Real case two weeks ago. Okay so Then that next question is how about FTS Actually, this is a little bit tricky, but also it's really really shows how you know Regulators in China think about the blockchain technology and the FT technology right now Meaning and the selling first-hand NFT are totally legal Okay, there's like a 2000 plus platforms marketplaces are doing that and And and even some big stay-owned entities and the big corporations are doing that early Tencent are doing that Tencent just shut it down. Okay, Tencent just shut down, but all the major companies are doing a piece But not encouraged by authorities Okay, the regulators because what because you know, they They they don't really want to shut down the empty market because they think it's as a technology It will be very powerful format worse industry. Okay, they consider In the virtual world in 10 years every single thing could be billed actually based on an FT technology So that's why they don't want to shut it down. They actually just want to shut down the digital collectable Markets, but it's really hard to differentiate those two right now But what they can do they actually talk to all those payment service companies, you know Like Tencent pay Ali pay union pay, you know Because if you set up marketplace online, you need the payment services, you know They're to do all the selling collecting money. They actually tell those guys if there's an FT related Website don't give them access So that's basically how they control it, but there's always smaller players so you can still, you know Do the business But so far the second hand trading No plan from there to do it Second time secondary trading basically is you know after you buy then you can sell it But by law by regulation is legal now. Okay, because there are nothing said you cannot do it Okay, because in China if it's not prohibited by law You're supposed to do it legally. Okay, that's that's the nature of the law But nobody dare to do it. Okay. It's they just scared, you know could be you know So but but Why it's it's not legally prohibited by the practically banned Which means if you know some platform because many of our customers are actually doing the platforms Some of them initialized some second hand trading testing And there's our 30 basically call them to have a chat and After chatting they shut it down So so basically, you know, you cannot do that So why? Okay, I just want to spend a little bit more time to explain why the Chinese government authorities don't Don't care about and and don't allow cryptocurrency and FT trading. Okay Because they consider them of a form of securities Just like a US right US they have very You know definition if the cryptocurrency I say oh, they do some kind activity, you know the money coming into something You know, it will be labeled as security then governed by the security act So same thing in China they actually consider is a security and in China remember for stock market It's it's the largest financial market, you know, mostly open, you know There's no T plus zero trading in China You know since star the stock market started 30 years ago until today There's no same-day trading which means if you buy a stock shares the share and the money will be locked up You can only do that's deduce the frequencies of trading Okay, so so why remember a funding fundamental fact in China 70% investors are individuals and And among them the college educated individual investors Probably only like 15% Which means nobody really understand this kind of thing. So it's very easy to be Manipulated, you know, and and many many people lose a lot of money. I mean everything in China can be Speculated on you know the real estate I think half of the real estate in China right now is empty and waiting the price to go up and and you know as long as there's a imbalance of supply and the demand people try to speculate and I remember it's like seven years or eight years the garlic You know, there's a shortage of garlic. There's a lot of money go into garlic You know just speculate someone store a lot of garlic under and try to you know do that So that's why you remember Let's say garlic if you want to trade on that speculated on that It actually take the recycle takes days. You need a shipping handling storage everything, you know It probably you trades, you know, once a week, you know, all once a day tops FTS and the cryptocurrency can be traded one thousand times a day Very dangerous from the trans government. It's too dangerous. Okay, especially for people who don't really understand this kind of security So that's why it's bad. I totally agree with that. Okay. I'm totally support this But just remember Also, actually, you know, we always talk with the regulators or sort is, you know, the you know I'm gonna try to educate, you know, some of them They actually consider the FTS it's more dangerous than crypto currency Because it's for the for for the FTS for the Digital currency, you know for the cryptocurrency, you know, you can issue 100 million of them It's the same name when market is under the same name. If they they want to buy it's very easy and if you mean 100 million FTS it represents 100 million differences and When there's like a 10,000 companies promoting different it's practically You cannot bang technically, you know, even you in the market. Don't buy it. You have no idea what they are So it's actually considered even more dangerous in China for FTS But they can shut down cryptocurrency because it has very very clear definition But why they don't shut down FTS? They can just issue something. I will say FT is it's gone Then it's gone Why? Because they really really understand how powerful NFT technology will be and the black chain technology will be in the next 10 years So that's why everybody also knows the central government of China really really supportive of black chain technology and Actually NFT technology, that's why and right now because the NFT and the digital credit policy the name is really mess up If nobody can differentiate it, so that's why they don't shut down it completely. It's also a signal You know the government it's actually very very supportive of black chain technology and NFTs So what's the future of NFT in China? It's actually use our cases real real life user cases and the utility of NFT technology in the future Why I think it's it's actually the digital merchandise digital accounts There's a lot of utility because in China you cannot treat this second hand and also you cannot use cryptocurrency That's why the stops and the big corporations in China They actually think a lot of ways to Use NFT technology, so I will give you some example, but first remember because you cannot use Public chains and the cryptocurrency so How they even build NFT applications? That's why we launched BSM DDC network under BSM flag In January, okay, basically seven months ago The BSM DDC network is it's not a black chain. It's a it's a decentralized. We call that decentralized the cost of this is now Okay, you set up a data centers or the data center link together Become one big network and within each data center. You can actually install Over ten open permission nodes You can you can install as many nodes you want, you know ten nodes of a certain chain or one nodes of each chain So and all those open permission the black chain All modified from public chains Okay, we take out the cryptocurrency and put some control make sure all those black chains 100% in compliance with Chinese internet regulations. There's KYC. There's content control. There's you know account control So that's why you know the DDC now, but we still keep all those chains as transparent As public chain so each of them has browsers who can check all the you know hourly transactions or the smart contracts everything just like public chain so and Because there's no cryptocurrency. So the transaction price is fixed at five cents RMB, it's basically less than one cent US dollar. Okay, because each transaction is a different price a little bit different This is basically a benchmark is ERC 721 Ft minting, okay, so it's a five cents fix basically fix And also we offer some services like we call that BSN official DDC First, let me I forgot to mention why we call this DDC DDC means NFT Okay Before we launch we talked to different people they suggest to change the NFT name. So don't you know confuse people So we actually so when I mentioned DDC it means Ft So this network actually is the BSN like black chain and the FT like DDC So it's black chain plus DDC Technology network, okay So we also offer some services like DID interchain tree trust actually from a Singapore government It's a it's a war war why documentation sharing, you know kind of kind of kind of application So we basically integrate them into it So just for roughly seven seven months since launch we actually got a lot of transactions in China So by end of August we have like 1300 registered platforms So it's and and like 400 500 of them already connecting Connected to the network and and the doing business every day and the DDC transaction right now is constantly Over one million transactions per day. Okay, and then the two-third of the time It's bypass the Ethereum Okay, every single day. So a lot of transactions and we have a wallet address because when you execute a Transaction deploy smart contract everything you still need a wallet address, right with your own private keys We have registered 20 million wallets. So which means our customer at them They actually manage their end users wallets through them So if you need to do KVSE is it's done right here. We only have the KVSE of them so and There's a three million official DDC means. Okay, so because it's more expensive It's like a one RMB per DDC transfer stuff. So that's where we make some money and the user cases Right now 60% of them still digital collect boss Okay, and the 40 other user cases So why want to give you guys a little bit explanation on other user cases? Okay, not really so. So the first one we can officially talk about now. We just send us the Agreement is public lottery Because this is actually a major concept that we are pushing because we consider the blockchain as Kind of for the public IT system, you know, it's owned and not by one entity. It's by you know a bunch of guys We can monitor that together Together so it become kind of a public environment, you know compared to the Private environment, you know of almost all the IT systems today so Very few people trust the public lottery system in China, you know When I talk to them, they say oh damn right now 80% of the buyers is a 60 year old or above because young people don't trust them because every single thing is Actually in their backend system, you know, you don't even know how that random number is generated You know, it could be generated compared to, you know, his uncle's taking number Something like that. So nobody trust it. So we actually push for, you know talk with the administrator of the supports You know ministry of sports they manage the sports lottery So they actually convinced and to have a POC with us China mobile and also some other government We try to actually move the entire lottery system and redesign into a public environment Which means, you know for for each lot a lottery ticket is an empty So and use actually boy with their private key So because right now in the back end system you buy a ticket You probably don't own anything in their back end system. It's fake but this you use your own private key basically buy and How to select the winner through a smart contract open source or your country worse engineering say how that Operates, you know truth that and how the reward goes it goes to your digital, you know, your lines wallet So nobody know who you are, but they say, okay, you bought that You are the winner and you got rewarded. So everything Move from the private system into a public IT system and solve the entire trust issue So so they actually very open to this. We just you know set up the POC, you know Work group and then the begin work on that. This is actually very complicated. They need to modify the law In order to implement this into production, okay They need to you know pass that in in Congress of the law Okay, and also I want to give you one more example is carbon credit It's also a government related project. It's a small city in Northeast China You know, it 60% of That of that city, you know covered by forest So so they had they actually have a big issue is how to calculate the carbon credits of their forest So the so they can make a additional money So right now they actually use NFTs And under to record the growth of each tree It's a long process right now. We already see So so they actually record because they actually use empty as a small database technology Okay, they actually record the coordinator, you know, where the trees what type of trees each year how big the tree grows and For ten years then they and remember all those amputees in a public environment Okay, everybody can verify and and access So I actually can the best the data for auditing Because you can go there to verify the tree and go through the ten years date So this is also a benefit of the public ITC's So actually one one weeks ago, you know, because we see the success of the DDC network We actually launched the essence Spartan network one week ago in in Hong Kong The it's basically the Equivalent network of the DDC network outside China This is only for outside China Chinese IP address couldn't even set up with the data centers Okay, so it made up all the made of all the data centers multiple multiple data centers So and the data center is the 100% open source. You can download them You can check the codes wherever you do free to install and all the information we collect because this is outside China There's no KVSA requirement. So all the information what we collect is the email address so so basically your your stream you register and the Anomaly Okay, and The black chain remember this is we call that decentralized the class of this is never it's not a black chain we actually You know integrated first the three This is a catch non-cryptocurrency public chains Ethereum Cosmos and the polygon edge So Why non-cryptocurrency? Because we think the cryptocurrency is killing the public chains and the narrows are only serving cryptocurrency industry No one can name one major traditional IT Industry user cases on any public chains. Okay, some Abund there only with ten transactions Just for sure. So there's no major tradition our job. The BSN's mission is bring black black chain technology to traditional IT systems Okay, that's our job actually So that's why we build the non-cryptocurrency public chains working with our partners and And put it on the Spartan network so everybody can access and use them as a traditional decentralized call Please always think about this. This is not crypto. Okay, and because you know All my friends from the crypto industry knows I'm against the crypto. They think it's a personal project It's not okay, because when they ask me who use this kind of non-crypto Public chain I always Answer ask them a question. I say, okay, if you answer my question, your answer is the question You know the answer to your question is why don't 99.99% of all IT systems in the world I will use cryptocurrency based Public chains Because the cryptocurrency is only your one, you know, whatever you do on public chain, you'll have to hold That speculative assets, you know, very very fragile price. There's no way they can even control the The cost, you know, some of my friends they run, you know, pretty large operations And I always joke with them you'll say for your personal asset, right? You put on chain in your wallet, you know, Bitcoin stuff like that, but hey, you're coming You know all the IT system your website is serving your your customers everything is on AWS And it's a centralized system Are you valuing your personal asset over your customer? Why why you even trust AWS? It's the one company control the environment. Why? So it's not really about the decentralization, you know stuff like that So, you know, that's our job non-crypto public chains And this is basically answer a question the elephant in the room because BSI is originated in China It's a Chinese project, you know, can we trust them? So when we build the Spartan network, we want that to be International standard not only international international standard. We actually go beyond International standard first open source is 100% open source All the non-crypto public chain are open source You can download them you can download original codes compare and the war are changed. Okay, and total anonymous Okay, and and when you pay for the gas you use fair money to pay and the way even in able you use USDC to pay Which is anonymous don't use credit card if you don't trust the project. So it's a 100% anonymously and Also transparent there are public chains And and just I just give you an extreme case when you buy the gas credit we call that gas credit Okay, you buy the gas credit and and the gas credit is non-transformable. Okay, you cannot transfer just like a membership You know points in China you cannot transfer you can only pay for the gas. You use fair money By the gas credit then use the gas credit to pay for the gas and it's not transport There's a master account so when you buy, you know, it goes to record all the activity We actually make that master account open to public So can you name another commercial project in the world? They open their balance sheet to you Real time and then you can check their daily income Okay, so so this is how transparent we are Okay, and another question. This is actually whoever understand public chain always ask me, okay How decentralized the Spartan network is because it's so cheap to use the price three cents us dollar to mean to Ft okay, three cents and it will drop by end of next year is less than one cents and and fixed okay fixed So then people say because the gas phase so cheap how you provide the 51 percent attack that's why The validator know are controlled Okay, then people say oh it's become permission So right now in the beginning Only PSM foundation members can set up a validator data data center So there will be five in one month by end of this year 10 members and next year 20 members So this network by end of next year is the 20 validator know data center will guard the entire network But we will open, you know when some Regular data centers, you know the daily spending Over a certain level because they care about the become begin to care about the networks So they will have voting powers too. So we will make this as Decentralized as possible, but I want to emphasize one thing. It's basically why you need a universal consensus The true decentralization You know AWS is a centralized system and you go there and pay for it Why because cryptocurrency is a big ledger and all the you know wallets within this ledger and That's why it requires a universal consensus and the true decentralization to govern the ledger together There are so many IT process and the business scenarios that doesn't even require consensus at all Okay, I always make a joke about the marriage That's two people equalize essentialize no, it's decentralized and It doesn't need a universal consensus. It doesn't need you to prove I get married. It's two of us That's enough for this transaction if you consider marriage is the business transaction. Okay So that's that means decentralization is more than two more than one party Including two is decentralized. It's really depends on what kind of business scenario Requires what kind? Decentralization that's why you can use AWS without any problem When we have 20 validator nodes on this remember, this is a traditional Decentralized the cloud services network when we have like 20 Equal partner on the network to make votes on almost everything including adjusting the price You know setting up a new data center new members even you know It's already the largest Decentralized network for traditional IT says, you know, okay, you cannot name a second one Okay, so there's a foundation in Singapore. So we basically, you know, five members September end of this month End of this year team members and and all those members only right day will be from China and Other members will be, you know, recognized by international companies while working on that so we will release the name and you know think about The largest companies in the world will become part of the foundation and We vote on everything. Okay equal partners Also, when we launched the Spartan network in Hong Kong, you know before we launched because the non-cryptocurrency Public China so new we actually, you know working with some Communities large companies from Hong Kong. We got overwhelming, you know Like of especially from the CIO CTOs of the traditional large company, you know, they understand our concept immediately People from crypto industry. They couldn't understand this very well, you know, it's it's real So we got HSBC, you know, largest retailer, you know largest Land developers the largest, you know, restaurant chains all, you know, they all joined Then the launch and the build the user cases before the launch all those names They have smart contract on the spark Spartan network right now Okay, there's another 20 is working on their user cases including some a very large company so Because of this and also our success of the DDC network We really really think the Spartan network will change the landscape of blockchain industry in the world. Okay slowly This is a Spartan network official site. It's a Spartan dot BSM foundation anything related to Spartan network will be Build under the BSM foundation and you can read the white paper. Okay. It's the pretty detailed quick start Click on it. You can today to install The data center software and all the non-cryptocurrency nodes, you know, everything on the g hub You can download the source code. You can download the binary code And if you say, okay, I don't want to install, you know, a software locally, you know I don't have that resources you can click the quick testing Basically, you can use MetaMask to create a wallet and You know go the website Receive some anonymously receive some free gas credit and connect to the changes do whatever you want to do Deploy smart contract call smart contract. Do any transaction meeting meeting FTS wherever you do. Okay, so it's a out there So I actually passed a time so I will use this as a last slide So what's a goal for BSM entire project? Short-term lay is the brains of blockchain technology to all the traditional IT industries That's our goal actually to bring Blockchain technology as a fundamental technology beyond cryptocurrency. Okay, long-term lay We really want to enforce the idea and the promote the idea of public IT systems Okay, compared to all the IT system today. We call private IT systems like like AWS like Facebook like a Google All controlled by one single company we think you know the the beautiful part of the blockchain technology It's actually build a new environment It's not controlled by one company, but controlled by a group of people with equal rights Okay, that's actually the beautiful part of the blockchain technology so it's you know, that's basically the public IT system concept and That's basically one of our ideas. It's the internet will become two layers One layer called basically is today's internet and there will be another layer It's it's called the public layer. It's for any company to build in the public IT systems Okay, then in 10 years any IT developer they Actually can choose where their data goes some data goes to a private IT system some data goes to a you know, basically is that you want to run your operation Some data goes to your home some data goes to a public park Right be transparent either to for your customer to get to control or some data goes It's not really that's why we don't use a word web 3. We think it's the two crypto currency controlled under Always emphasize the value Sometimes just data. There's no value. It's just pure data. Okay, just like you know I read a letter to my mother. So it's it's just a letter You know, that's passing the data processing data is not about the value at all. It's just one special case So we think this is the future Okay, and trust me in 50 years the majority of the data still in the private layer Okay, so it's not like the web 3 replacing the web 2 they are in parallel Just give you two choices to build your IT systems So this is actually the benefits of public IT system. I don't Spend too much time. So BSN technology stack. We have enterprise BSN. It's very complicated It's actually our main focus. So basically it's an enterprise software. You can install into any claw services public claw intranets and convert a big space into a black chain friendly space then you can install Any permission the framework in the world like Benzoo fabric a program anything and you can also manage the notes of 30 public chains Including non-crypto public chains. Okay into it Basically, why who need the enterprise BSN if you want to compete with black demon Compute with all those no operators use our software. You can easily to build the operation So public BSN public network either so we have one for China DDC and Outside China BS part. So that's basically our stack Thank you Passed like a five minutes. Sorry quickly. Any questions you guys want to ask Okay, so first of the DDC is not controlled by the government It's actually managed by the BSN development Association just like a foundation. Of course, there's the SOE involved But it's all commercial company under the DDC network actually profitable right now Okay, because people just remember it's like a five cents like one million You know, it's it's it doesn't even include the services we provide So actually the DDC network alone with the manpower Remember the resources actually contributed by our customers We don't even build data centers. They actually contribute. So I know we charge them So that's why it's it's profitable and all SOE is because in China the mall, you know SOE involved that they actually secure them, you know, give back in the network and outside China is the BSN foundation Like I said, the ready will be the only chance company involved Okay, there's the other nine to 19 companies will be Recognizable international companies when we release the name you guys will know it Okay, and they basically have equal rights with ready. So we manage the BSN Spartan network together And the other questions Yes, yes, we we actually we want to build the traction first Because we we basically know, you know All the major public chains out there we keep always keep a dialogue with them and When when they say there's the big demand in next three years From the traditional IT industry, I think most of the public chains community will fork a non-cryptocurrency Public chains to serving that kind of customers And then other questions We actually expect by end of next year. There will be like a 10 to 15 at least But we only allow a non-cryptocurrency version of a specific changes one We don't want you know to exactly same chain, you know competing with each other And and who can become a new chain will be voted by the BSN foundation members Any other questions? Okay. Thank you. Thank you