The value recognition and market prospects of Yuelian POA

The POA token issued by Yuelian has attracted much attention due to its universal reading scenario. With the acceleration of the development of the Yuelian system and the increase in the expectation of POA 's listing, the topic of value estimation and market expectations of POA has gradually heated up. Although the token market is affected by the overall trend of the digital currency market and is substantially affected by the expected policy changes, there is no doubt that each token has its own unique value foundation setting and the uniqueness of the related corporate form changes. So what exactly is the uniqueness of Yuelian POA ?

In general assessments of the digital currency and blockchain fields, there is a clear consensus that the early conceptual digital currency dominated the market, and has gradually transitioned to the conceptual application stage, and the most mainstream conceptual application in the latter stage is blockchain. Obviously, most mainstream digital assets rely on the blockchain architecture, but the main application concepts have obvious differences in application positioning. According to a recent research report by Huobi.com, among the top 20 digital asset types in the world by market value,

There are still many pure digital currencies that have been developed in the previous stage. Application-based digital currencies are basically vertical concept-based types. Only a few types have achieved scene-level impact in terms of application expansion, including Ethereum and Ripple (non-blockchain type). The most sensational information in the digital currency industry in January 2016 was that the People's Bank of China announced that it would develop RMB digital currency, which led to a long period of digital currency bull market and the subsequent blockchain boom. Many people attribute this wave of effects to the mainstreaming of the concept of blockchain, but fundamentally, the significance of the legal digital currency of the People's Bank of China lies in the fact that the blockbuster applications in the blockchain industry have been tried for the first time based on scene parallel applications. The two blockchain application projects released at the blockchain project conference of Tongji University in January 2017 did not attract much attention from the industry at the time, but including the Yuelian project and the Tongji Campus Tongxin Cloud project, they are already scene application projects, which are very different from the previous concept vertical projects.

Although no one has strictly distinguished between vertical applications and scenario-parallel applications of the blockchain application concept, in simple terms, if the application directly targets a certain type of real-life scenario or business scenario, and implants blockchain technology into functional nodes, causing changes or upgrades to the original scenario, and expands in parallel to substantial changes in the scenario ecology, this can probably be called a scenario application.

Naturally, scenario applications are closely related to real life, and all aspects of the application or attempts to change involve all aspects of society. The reason why it is considered the trend of blockchain development is precisely because of the parallel extension space of the scenario. The overall significance and commercial significance of the blockchain function can be fully demonstrated. If a project succeeds, it will have a great influence, but it is not easy. The central bank's digital currency scenario uses official power, and Tongji Tongxin Cloud at least has the official support of Tongji, so what is the basis for the Yuelian project?

Yuelian is a blockchain application project for the national reading scene. As a major strategic project in the field of national culture and education, the real scene of national reading is not simply set up. It is a life scene that has experienced more than ten years of development and is still developing rapidly. Its parallel correlation involves almost all aspects of every person and every institution. What is important is that national reading is a field with a high degree of fit between official and private behavior and will, and therefore it is also a field with a large space for resource integration. Taking Yuewen Group, which has the largest number of customers in the online literature reading industry, as an example, the core of its successful operation model is the model of mechanism-based resource integration.

According to the "YueChain White Paper" and the concept of POA's setting structure, it can be seen that YueChain is using the functional characteristics of blockchain applications to create a new resource integration path. This path includes two aspects: general means for short- and medium-term effects and strategic means for long-term effects. The actual effects of these two aspects can almost accurately judge the value and market prospects of POA .

The resource integration of the short- and medium-term effects is actually the integration of the original resources of the Yuechain team, among which the related resources of the Jilin Province National Reading Association are the most obvious resources. In other words, the project introduces existing early resources through targeted products in the early stage, strives to have a large number of users in a relatively short period of time, and opens up expansion space for the application end of the system; and the development of the application end is the core area of ​​POA operation. The basic path to achieve the long-term effect of Yuechain is to load the social application of "crowdfunding" on the side chain, and gradually expand the market depth and breadth, so as to achieve the scale operation of the system from product to customer. Obviously, the use of blockchain architecture will play a role at two levels. One is the basic functional level, including reading points, product functions, creative copyright protection, content crowdfunding and digital assetization; the other level is the side chain application and POA function.

Since POA is set in the operating structure of the sidechain application, the value of POA is fundamentally positively correlated with the scale of the sidechain application, that is, the larger the scale of the sidechain application, the greater the demand for POA , and the higher the expected value of POA ; conversely, if the development scale of the sidechain application is small, the demand for POA is suppressed, and its value will also be suppressed. There are several key points worth noting:

First, the basic positioning of POA is as follows:

Secondly, Yuechain will set up a method similar to Ethereum's GAS mechanism in the form of POA operation, with application-side data flow as a parameter, and a built-in automatic metering mechanism for application-side POA consumption. The only difference from the GAS mechanism is that POA is not consumed, but collected and circulated to incentivize high-quality applications. This corresponds to the constant total amount of POA and the absence of new additions. At the same time, Yuechain has other flexible operating methods for POA collection and incentive counter-subsidy. On the one hand, this can quickly attract high-quality social applications to join at low cost in terms of Yuechain scene construction, and on the other hand, it ensures that the POA mechanism is always effective in the long run without being affected by the flexibility of system operation. At this point, Yuechain's resource integration and resource utilization methods have been more fully demonstrated.

Finally, the POA value relationship analyzed by the Fisher model in the YueChain White Paper is as follows:

The direction of the quantitative model depends on several factors such as the speed of POA circulation, service volume (which can be simplified into data traffic), and service price. By comparing with the market price of POA, the expected change in the market value of POA can be judged. Among them, whether Yuelian expands or reduces the scope of POA use, in addition to the selectivity of Yuelian's own operating methods, has a direct or indirect impact on the demand for POA, and is also an external variable. For example, the sale and exchange of Yuelian China's advertising resources may be highly correlated with side chain applications. POA, as a compensation tool, can improve the efficiency of similar transactions. Therefore, simply looking at the market value of POA depends on the scale and market depth of Yuelian's side chain applications. In theory, as long as the application layer and user scale of Yuelian continue to develop, the value expectation of POA should also continue to rise. Naturally, the dynamic risk of Yuelian as a project certainly exists. As a special analysis of Yuelian and POA, we also remind relevant investors and analysts to be rational and cautious.