Why do A-share companies prefer IPFS and FILECOIN?

On March 29, Sugon and Lexun Technology reached an IPFS cooperation agreement. Iceberg Laboratory, Sugon, and Lexun Technology held a signing ceremony on site. At the same time, some leaders from the Ya'an Economic and Information Bureau also participated.

If we extend the timeline, A-share listed company Xinyuan Technology also announced its layout in FILECOIN mining. FILECOIN, which was previously considered a scam by the cryptocurrency circle, has been favored by listed companies. So what is the reason behind this?

The current status of A-share listed companies' blockchain layout

As for A-share companies’ layout of blockchain industry, in fact, many companies are still relatively low-key. Due to the relevant regulations of 1994, domestic listed companies are still relatively far away from cryptocurrencies (that is, the currency circle), and most of them are layout of blockchain (mostly alliance chain). Of course, the specific situation is actually the application of patents, and the actual application is relatively small.

A-share companies related to cryptocurrency, such as Feitian Chengxin developing a cryptocurrency wallet, may be something more related to cryptocurrency before 2021.

As for other companies, they are mainly divided into several categories:

Government-enterprise cooperation to design and develop relevant government affairs functions for government units.

Relevant explorations are being carried out in areas such as taxation, traceability, and copyright.

Blockchain technology is used in industrial fields, such as exploration of electricity and energy . This part is mainly based on state-owned units, such as central enterprises, and listed companies provide technology to participate.

From the overall situation, in fact, most listed companies have previously laid out the blockchain industry, but judging from their annual reports, it did not bring much profit to the company. This part is just a kind of publicity. In addition, some A-share listed companies still do not have a deep understanding of blockchain, and some companies regard distributed technology as blockchain technology and the function of blockchain as a database for recording data.

In other words, as long as there is a database application scenario in the previous scenario, then basically in their view, blockchain can be used. This will naturally prevent A-share listed companies from exploring too much, because if they explore more, they basically rely on resources, such as power and energy, which are difficult for ordinary listed companies to do alone, and they still need government support in terms of government affairs. Of course, this is not their reason, but mainly because of the overall policy of the country. If listed companies take some controversial actions, they will easily be questioned by the China Securities Regulatory Commission. They are basically in a more cautious state, rather than taking some bold actions like companies listed in the United States or Hong Kong.

Why do A-share companies prefer FILECOIN?

This time we have seen that A-share listed companies have begun to lay out the cryptocurrency circle, and we can see some clues from FILECOIN. If we observe the current cryptocurrency circle, what aspects can enable listed companies to actively lay out?

In fact, there are not many, such as the production of mining machines, digital currency hardware wallets, etc. Bitcoin and Ethereum mining are also easily criticized for high energy consumption. Therefore, before this, listed companies can only "explore" blockchains instead of really spending money on them, because those who have done it basically know that alliance chains can be used to demonstrate the company's scientific research capabilities by applying for patents, but in terms of actual money, alliance chains are basically difficult to make money. After FILECOIN came out, more companies can actually use data centers or big data to carry out this business, so that blockchain can be put into practical use, that is, to store data.

Anyone who has learned about FILECOIN mining knows that high-end servers are needed (note: this does not mean using dedicated mining machines), so listed companies can also use their resources to lay out big data centers. The more critical point is that FILECOIN mining has gotten rid of the unfavorable view that Bitcoin and Ethereum mining is bad for ordinary people, such as high energy consumption. At present, some FILECOIN mines are still built in the center of big cities. In fact, this also shows to a certain extent that the user demand for decentralized data is still recognized by these listed companies, so some data centers are built around big cities.

Is the layout of A-share company FILECOIN right or wrong?

For A-share companies, the layout of FILECOIN is a helpless move. After all, foreign companies such as Tesla and Microstrategy bought Bitcoin, which led to a rise in stock prices. At least FILECOIN is also a coin. For this layout, I think it is still reasonable, that is to say, the approach is basically right. Compared with the currency circle, it is relatively conservative, but it is also normal.

From the current perspective, IPFS technology does have great application prospects, including the process of uploading more valuable data to the chain in the future. Even if the project fails in the later stage, the data center built with hardware can be directly transformed into an industry similar to Amazon or Baidu Cloud. Therefore, in this way, the transformation can be carried out quickly, and the risk will naturally be much smaller.

However, there are still some risks here. Domestic enterprises are actively deploying FILECOIN projects, which have occupied most of the storage space in the entire network. Therefore, this may have certain defects in future development to a certain extent. In the eyes of the currency circle, decentralization is still a key factor. If the centralization of the project is too obvious, then the currency circle capital may have the risk of abandoning the project. For example, EOS is a typical case. Therefore, this may be something that listed companies need to pay attention to. Of course, which traditional capital and currency circle capital can take the initiative at that time is also one of the influencing factors.