The design concept of Ruitai Coin: the value of digital assets and TOKEN2

The Ruitai Coin launched by Xigu recently has begun to attract attention from all parties. It uses physical asset packages as collateral for value injection, and according to the application of Bitcoin architecture and blockchain system, it is still a "pioneering" attempt in China.

The basic features of decentralized encrypted digital currencies represented by Bitcoin include decentralized characteristics of distributed transmission, automatic credit supply under the POW mechanism, and blockchain structure. These include both conceptual features and technical features. The huge impact of Bitcoin since its birth is not only due to a certain concept represented by technology, but also to a complete and effective technical system, that is, blockchain.

The blockchain structure of Bitcoin not only effectively supports the credit provision under the POW mechanism, but also its credit self-supply feature completely changes the credit system of traditional finance and shields the drawbacks of the traditional financial credit system to a large extent. It is also the effectiveness of Bitcoin blockchain that finally makes the concept of blockchain and blockchain technology stand out and become an emerging hot spot in 2015. We know that the application prospects of blockchain have been widely explored, despite the controversy. Discussions on digital currencies such as Bitcoin have also reached many conclusions. In this way, digital currencies and blockchain technology have left huge development prospects and imagination space in terms of concepts, technologies and practices. The birth of Ruitai Coin is directly related to this background.

As for Ruitai Coin, its official name is "Ruitai Digital Asset Certificate". Although it adopts many new practices and new standards in the field of digital currency, in terms of nature, it is still a path for asset securitization and is obviously not positioned as a "private currency". According to the information that has been published, Ruitai Coin has at least the following characteristics:

First, the physical asset package was injected into the basic value of Ruitai Coin in the form of mortgage. This mortgage asset package includes all the fixed assets and additional assets of the German Ruien Cell Mitochondrial Repair Technology Rehabilitation Project settled in a hospital in Xi'an, plus 27.54% of the equity of the Shaqiantong Project. Putting aside the evaluation of the asset package itself, we should note that this is at least the first project in China to truly realize the digitization of physical assets. In terms of currency, this is equivalent to establishing a value standard based on physical assets for the currency, which is closer to the traditional "private currency" structure of currency.

Second, except for the POW mechanism, the technical settings of Ruitai Coin itself are not much different from Bitcoin. Due to the value injection of the asset package, Ruitai Coin abandoned the POW mechanism based on mining and adopted a one-time issuance method. In form, this is the biggest difference between Ruitai Coin and Bitcoin architecture. But we know that the purpose of setting up the POW mechanism is mainly to form an unchangeable credit content in the supply of coins, and the value injection of Ruitai Coin and the initial quantity of no more than 28 million have actually finally achieved the purpose of the POW mechanism. Moreover, the Ruitai Coin method has actually provided a value credit method. Therefore, setting up POW again is both contradictory and unnecessary.

Third, I think the most important practical attempt of Ruitai Coin is the setting of its TOKEN2. In theory, it is not really difficult to achieve public financing, asset securitization, or even the docking of physical assets and digital assets like Ruitai Coin in some way. The key is how to make good use of blockchain technology to truly realize the concept of openness, transparency, freedom and fairness that digital currency has always shown. In layman's terms, how to supervise and ensure that the value of Ruitai Coin is truly complete. Ruitai Coin's way is to set up TOKEN2, a blockchain dedicated to recording supervision information, including asset dynamic information, corresponding project information, and even business information and financial information about the dynamic status of the mortgage asset package. This blockchain is equivalent to an automatic supervision system, intending to achieve an effective supervision setting on a certain financial architecture, which is also the development direction of blockchain technology that is widely expected and optimistic. As for Ruitai Coin, once the efficacy of its TOKEN2 is proven to be effective, its significance cannot be overstated. This is not only the ultimate significance of Ruitai Coin, but also a demonstration effect on the promotion of certain institutional reforms by blockchain technology.

It is not difficult to find that there is an "issuer" Baochen Company in the Ruitai Coin system. In the orthodox cognition of the existing digital currency community in China, this is almost the setting of a centralized organization. It is no secret that in all asset securitization and financing project structures, there must be such a role, otherwise all digital asset issues are out of the question. In fact, there have long been some cognitive disputes about the decentralization problem in the concept of digital currency. From an economic perspective, the behavior standards of enterprises (organizations) are often abstractly classified as the most basic personal behavior, and then the specific characteristics of the behavior of enterprises (organizations) are analyzed at a more realistic level. That is to say, in a transaction structure, the existence of an enterprise (organization) does not mean that it is a centralized structure; in the same transaction structure where an individual identity exists, there may also be complete corporate or organizational characteristics behind it, and it is also impossible to determine whether it is decentralized. Simply put, the identity nature of the transaction subject in a transaction system has nothing to do with the degree of centralization of the structure.

The potential and effectiveness of the blockchain technology system lies to a large extent in that it can transform the centralized characteristics of the traditional behavioral structure into a behavioral structure without centralized functions. The single cognitive standard of the blockchain and the irreversibility of its data transmission actually eliminate the influence of any additional parameters of the transaction. In the behavioral structure, it only recognizes the role of the established parameters, but does not recognize the influence of the uncertain parameters. Based on this, the transaction results and behavioral structure are actually excluded from system evaluation. In other words, the blockchain only gives results, and it itself excludes self-evaluation. From the perspective of realistic standards, the essence of decentralization is de-powering, that is, in the transaction and behavioral structure of the blockchain system, only certain property rights are recognized, and no additional and external power influence is recognized. The behavior of any institution or individual in the blockchain system is locked within the framework of a certain established infrastructure, and there will be no centralized form.

The role of Baochen Company in the Ruitai Coin structure is actually the custodian of the mortgaged assets. Its future operation and asset management of Ruitai Coin are based on established principles, and there is no longer any uncertain power influence. It is restored to a trader in the Ruitai Coin structure. Whether the specific content set in the Ruitai Coin is reasonable and effective is completely reflected by the market through the transaction price of Ruitai Coin. This is probably the original appearance of the design concept of Ruitai Coin.