[News] Croschain and ‘Delio’ in Pursuit of Positive Social Changes through Blockchain
In last June, we had the chance to sit down with CCTV News as they interviewed Croschain’s CEO James Jung about Delio as a blockchain and as a service. Here is the English translation of the article.
[News] Croschain and ‘Delio’ in Pursuit of Positive Social Changes through Blockchain
[CCTV News = Jo Jung-Hwan Reporter, 26.06.2018] “Cryptocurrency”, “ICO”, “presale”, “Bitcoin”, “tokens”, “crypto exchanges”… If you hear “blockchain”, there is the certain words that will come up to your head for sure. It might be a coincidence, but usually most of them are connected to the investment field.
The cryptocurrency wave, that seemed to be out of control just a few months ago, allowed office workers to have a good night’s sleep — but also the youth whose future is still uncertain and even the housewives were affected by the wave. It is the truth that the media had been reporting on the various social problems that have occurred due to the “don’t ask about it”-investments. At that time, the people working in the blockchain industry, were worried that the industry will not be able to secure its place and might thus just disappear after the heated phase of blockchain phenomenom is over.
In fact, the current phenomenon remind me of the dot-com bubble in the early 2000’s. With the rise of the Internet and the popularization of communication networks, regardless of business items or contents, adding just a name like ”OOO.com” brought the business a sudden rise in investments — similarly to the ”OOO coin” phenomenon right now. When I look at ”Wikipedia”, the phenomenon of dot-com bubble was recorded at the time as an example of ”the case where Internet services tried to assimilate too many things from the transitional Internet technology, so they went too far ahead of the current time and thus failed”.
But what are the results of over 20 years now? Various Internet-based services have changed the terrain of our lives and lifestyles, and we can not even list all the forward-looking social phenomena that have been affected by it. In conclusion, it is true that they were ahead of their time but Internet definitely was not a failed case.
CEO James Jung from Croschain Technology calls blockchain technology “the second Internet”, and says it is indeed the optimal technology for solving social problems. He emphasizes that at least from now on we should get rid of the prejudice associated with blockchain, and acknowledge the true value of it and its potential to make social impact.
In this article, we interviewed CEO James Jung, who is working on various areas on blockchain industrial development and ecosystem creation and heard about the difficulties and problems in the field.
Q. Please introduce Croschain Technology to us.
Croschain is a company which provides a service that develops Dapps and Blockchain protocols. In recent years, we have been doing a variety of different businesses: CryptoLabs, a crypto fund that invests professionally in blockchain start-ups, Blockchain Center Seoul, which provides work space for blockchain companies, Blockchain Society for meet-ups associated with blockchain, and so on. In particular, the Blockchain Center is not only in Seoul, but it is being established also in the UK and other countries in Asia.
Q. How did you come across blockchain and decided to commercialize it?
I have been engaged in ICT business for 18 years. Then, in 2016, I got to know about blockchain for the first time. I was fascinated by decentralization and token economy, and started a full-scale business in 2017. The preexisting ICT business has also made a transition to the blockchain field.
Q. What kind of business model is Croschain’s “Delio”?
Although we can not disclose all the business details yet, ‘Delio’ is a ‘Token Economy’ ecosystem that compensates the value of housework and child care with tokens. The business model, which fits well with the blockchain, was launched because of the certainity that it is a socially responsible model. According to the results of a study, the value of household labor is equivalent to an annual salary of 37 million won (~33 000 USD). However, it is the reality that the value of housework and child care is not compensated at all. I am hoping that Delio will be able to provide actual compensation and benefits to those who work in household and child care in the future.
Q. What is the “Token Economy”?
“Token Economy” is reinforcing certain actions and values by rewarding those actions with “tokens” and furthermore continuosly strenghtening and inducing those actions and values to get specific goal behaviors. Users who participate in the blockchain ecosystem can be given ‘tokens’, and as actual acitivity enhancers they can be changed into cash or services.
Of course at first it is important to gather users to create the ecosystem, and in the case of ‘Delio’, users who think that domestic labor and child care are valuable will come together in large-scale and use tokens to reward the value given. Furthermore, this will lead to a consensus of a goal behavior with social impact. This is how the token economy is created.
For example, in a similar concept, even if ‘local currency’ is not “real money”, when people in the area agree that it is ‘money,’ then local currency can be used to buy and sell intangible assets within the region, thus being able to achieve the goal behavior of vitalizing the regional economy. Simply said, the concept is similar to when local currency is accepted in a certain area, tangible and intangible goods can be bought and sold with it.
Q. What are Croschain’s specialized skills and competitive edge?
Croschain is developing a separate mainnet for the ongoing project as well as a Dapp based on ERC20 which can be commercialized quickly. Croschain has a lot of experience and know-how about excellent workforce pool and online&offline business. Additionally, our competitiveness comes from the accumulated experience and business network that has built by operating various online and offline platforms for 18 years. Furthermore, the various experiences of consulting, building, operating and cooperating with the on-line and off-line businesses of major domestic companies and brand companies are also Croschain’s valuable assets.
Q. What is Croschain trying to pursue through blockchain?
I think that blockchain is the best technology to help with solving the social problems we are currently facing — including efforts to help the poor.
Croschain takes a social role more than anything else. We hope that many people will be able to get compensation for their efforts and become happier as an outcome of projects such as ‘Delio’ introduced above. In the future, Croschain can be expected to showcase more projects that will bring positive social change.
Q. I know that National Assembly launched the ‘Blockchain Summit Korea’ last May. What activities are planned to be done for the blockchain industrial ecosystem?
The main activity of the “Blockchain Summit Korea”, which consists of 76 blockchain business companies, is the contribution to creating a social system connected to blockchain. To achieve this, it has supported legislative activities by communicating with various members of parliament and legislative bodies. Recently, it has participated in activities such as establishing the Blockchain Industry Promotion Act and supporting blockchain conferences.
Q. You took the initiative to take the lead to establish the ‘Blockchain Summit Korea’, but why was it launched as a registered company of the National Assembly, unlike other corporations?
First of all, I think being registered under National Assembly is very useful in making social system related to blockchain. We are currently in discussions with other Korean blockchain associations to form a union. I think it is more important than ever before, that blockchain associations gather strenght together.
Q. I know that you are also taking the lead in ‘Blockchain Society’, which is a meet-up community focusing on blockchain technology. Why do you think it is important to have regular meet-ups like this?
I think it is necessary to have place to discuss various blockchain agendas and issues as well as technology with the participants and network. For that reason, we are not only having technical presentations like in other meet-ups, but we are selecting specific topics or themes to make it possible for the audience to also take part in the discussions and debates with the invited speakers.
Q. A variety of services based on blockchain and not the preexisting legacy system, are emerging from start-ups to large enterprises. Why do you think that blockchain is getting so much attention in the industry?
Blockchain is completely new in terms of aggregation technology, business model and ecosystem. The industry sees new opportunities here. Additionally, blockchain offers alternatives to solve many problems, including problems concerning monopoly/oligopoly and distribution, capital and profit, introduction of community economy, the concept of ownership and economies of scale and the problem with enterprises and employment.
And more than anything, I think the main appeal of blockchain might be its ability to create new values that we could not have seen before.
Q. In response to industry expectations for the possibilities of blockchain, the government’s efforts to support it are not very enthusiastic. What do you think is the reason?
Recently, when meeting senior officials of the policy authorities I have felt that that they do trust the blockchain technology, but still have a negative view on the cryptocurrency concept. Thus, it is likely that the government’s movements are not so enthusiastic because of the negative perception of cryptocurrencies.
This negative perception seems to be due to the difficulty in predicting the socio-economic impacts cryptocurrencies might bring. In other words, I think that since it is hard to judge whether this change will be beneficial or harmful, they are holding back. Fear and hesitation occur because of lack of experience or knowledge. Since it is the first time for all of us to learn about cryptocurrencies, it can be seen as a natural process to be hesitant.
Q. Are there any difficulties in operating a blockchain company?
It is fun to work with the blockchain technology and the token economy. However, right now the greatest difficulty seems to be the risk produced by the uncertain policies.
Q. ICO is a typical issue on ‘policy-level uncertainty’. The opinions on the necessity of ICO in Korea are very different between the industry and the government. What is your position?
In the end, ICO should be allowed. ICO provides many opportunities for blockchain companies, and many people voluntarily participate in the ecosystem. Therefore, the ICO should not be understood simply as a way to collect capital. ICO is a way of participating as an owner and a user in the participatory ecosystem of blockchain. In addition, ICO can prevent moral hazards by creating mechanisms for joint participation and co-monitoring of many people in the ecosystem.
However, it is also true that ICOs which have impure intentions from the beginning can cause a lot of damage to the investors and other participants. I think we should take thorough responsibility for this. Furthermore, I think that we should take action as soon as possible to make smart ways to protect investors without shrinking the blockchain industry.
Q. ICO is still going on through the establishment of overseas subsidiaries, even when it is not really legal or illegal but its still on the lawless area. In this regard, there have been rumors about the judiciary authorities making claims on basis of violating the Foreign Exchange Transactions Law and other similar lawsuits against companies that have conducted ICOs. What is the industry’s look on this?
It is true that the law enforcement authorities’ internal investigations on ICO companies are seriously shrinking the industry. Also, management activities and investments of healthy blockchain companies are shrinking. If this condition continues for a long time, the blockchain industry will be hit and the growth engine will be lost. For now, the only way to break this vicious circle seems to be mutual trust.
Q. What are your suggestions to make a healthy blockchain ecosystem and industrial revitalization possible?
Blockchain is still in its infancy phase. All blockchain companies and workers are walking a road that no-one else has walked before. Therefore, there are many people who are overcoming difficulties with responsibility and sense of duty. If there would be a useful suggestion for industrial revitalization, it would be that you have to believe in the positive possibilities of blockchain and just wait.
Of course, there can also be some side effects. However, the blockchain itself fundamentally contains the mechanisms of auditing and management, so we believe that blockchain can solve those side effects by itself through the mechanisms of joint ownership, joint management, joint participation and openness. The government thinks that instead of being impatient and trying to solve problems in advance, it is important to wait and watch.
#blockchainsummitkorea #cryptolabs #blockchaincenterseoul #blockchainsociety #delio #JamesJung #tokeneconomy
Jo Jung-Hwan reporter email@example.com
[This article was originally published in CCTV news.
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