The Competition in Blockchain Is for Institutional Innovation, Not Tool Innovation

On April 17th, it was reported that on April 16th, Meng Yan published an article titled “Several Opinions on the Situation of Web3 in Hong Kong”, stating that the competition in blockchain is mainly not at the level of equipment, technology, processes, algorithms, and other tools, but rather at the level of how to apply blockchain as a tool to create new structures and mechanisms. It is a competition for institutional innovation, not a competition for tool innovation. The digital asset market is difficult to develop domestically, but it will find a breeding ground in the border areas of major country competition. Therefore, in the border area of competition between China and the United States, there will be an active blockchain digital economy industry, and the Web3 twin cities of Singapore and Hong Kong will continue to be staged. He also pointed out that Hong Kong’s Web3 is transaction oriented and offers more freedom in exchange services for mature mainstream digital assets such as Bitcoin. However, it will still be very cautious and even strict in financing and fundraising activities such as ICO. Web3 in Hong Kong is still in the pilot phase and there is a possibility of recurrence; Singapore’s Web3 strategy is more robust, but has lower tolerance for grey digital finance. In addition, it is not easy for both places to create world-class 2C projects such as Web3 social networking and gaming. Both regions will actively support the development of RWA (real world assets).

Meng Yan: Hong Kong Web3 is transaction oriented and still in the pilot phase

In a recent article by Meng Yan titled “Several Opinions on the Situation of Web3 in Hong Kong,” the author suggests that the competition in blockchain technology is not at the level of equipment, technology, processes, algorithms, and other tools, but rather at the level of how to apply blockchain as a tool to create new structures and mechanisms. This article will explore the topic of institutional innovation versus tool innovation in the blockchain industry, and delve into the current state of Web3 in Hong Kong.

The Importance of Institutional Innovation in Blockchain

Blockchain technology has disrupted countless industries and revolutionized the way we handle data and transactions. However, the technology is not the only important factor in the success of blockchain companies, nor is it the sole factor in competition amongst them. Instead, it is the ability to create new and innovative financial structures and mechanisms that makes a company stand out.
When it comes to institutional innovation, companies must focus on creating new financial tools and models, such as the creation of unique tokens, the exploration of new market niches, and the development of decentralized autonomous organizations (DAOs). The ability to create these new financial structures is what sets successful blockchain companies apart from the competition.

The Current State of Web3 in Hong Kong

According to Meng Yan, Hong Kong’s Web3 is currently transaction-oriented and offers more freedom in exchange services for mature mainstream digital assets such as Bitcoin. However, the country is still cautious and even strict in financing and fundraising activities like ICOs.
While Hong Kong’s Web3 may be in the pilot stage, there is a possibility of recurrence. Singapore’s Web3 strategy, on the other hand, is much more robust, but has lower tolerance for grey digital finance. Neither location is expected to easily create world-class 2C projects such as Web3 social networking and gaming, but both regions are actively supporting the development of RWA (real world assets).

The Future of Blockchain Technology

As blockchain technology continues to evolve, it is certain that there will be more innovations in both institutional and tool innovation. While the technology is essential to the industry, it is the ability to create new financial structures and mechanisms that will give companies a competitive edge.
In the border areas of competition between China and the United States, there will be an active blockchain digital economy industry, and the Web3 twin cities of Singapore and Hong Kong will continue to be staged.

Conclusion

The competition in blockchain technology is one of institutional innovation, not tool innovation. As companies continue to explore new financial structures and mechanisms, it is certain that the industry will continue to grow and flourish.

FAQs

1. What is institutional innovation in blockchain technology?
Institutional innovation in blockchain technology involves the creation of new financial tools and models, such as unique tokens, decentralized autonomous organizations (DAOs), and new market niches.
2. What is Web3 in Hong Kong?
Web3 in Hong Kong is currently transaction-oriented and offers more freedom in exchange services for mature mainstream digital assets such as Bitcoin. However, Hong Kong is still cautious and even strict in financing and fundraising activities like ICOs.
3. What is the future of blockchain technology?
As blockchain technology continues to evolve, there will be more innovations in both institutional and tool innovation. As companies continue to explore new financial structures and mechanisms, it is certain that the industry will continue to grow and flourish.
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