In a landmark 2018 session hosted by ChainNews Community, Tan Yi — former founder of prominent tech platforms like Jifeng.com and Feixiangniao, and ex-operator of Square Enix’s Final Fantasy in China — shared his visionary journey into blockchain entrepreneurship. With nearly 10,000 participants across 31 WeChat groups tuning in, the discussion centered on BAIC, a blockchain project often dubbed the "Chinese IOTA," which aims to revolutionize how personal data is owned, valued, and monetized.
This deep dive explores BAIC’s innovative fusion of blockchain, IoT (Internet of Things), and AI, while uncovering the transformative potential of decentralized data economies.
Redefining Economic Power: From Shareholders to Consumers
“Blockchain isn’t just technology — it’s a key that unlocks a new economic era.”
Tan Yi begins by reframing blockchain not as a technical marvel but as a socioeconomic catalyst. At its core, blockchain enables a redistribution of power — shifting value from centralized institutions back to individuals.
He draws a compelling analogy from history: just as John D. Rockefeller leveraged ownership of production resources to dominate the oil industry and extract surplus value from laborers, today’s digital giants like Google and Facebook exploit consumer data without fair compensation.
But blockchain changes that equation.
Through tokens, users can now own a stake in the ecosystems they help build. Every search, click, or device interaction becomes an act of participation — and investment. This is what Tan Yi calls "consumption as investment" and "participation as investment."
👉 Discover how decentralized platforms are reshaping user value and ownership.
The Core Problem: Who Owns Your Data?
Despite living in a data-driven world, most people remain unaware that their digital footprints — browsing habits, location history, smart device usage — are harvested daily by corporations for profit.
“Your lifestyle data paints a digital portrait of you — and that portrait is worth money. Yet you’re not paid for it.”
BAIC tackles this imbalance head-on by positioning itself as a data value public chain, where:
- Personal data generated by IoT devices is owned by users, not manufacturers.
- Users control storage rights, usage rights, and commercial rights.
- Data can be securely traded with advertisers or AI developers via token-based settlements.
Imagine this: instead of targeted ads funded by corporate profits, you receive direct compensation when your data improves ad relevance. All transactions occur on-chain using BAIC’s native token — cutting out intermediaries and ensuring transparency.
This model doesn’t just empower users; it redefines the internet from a free but exploitative system into a value-based economy where every action has measurable worth.
How BAIC Works: IoT Meets Blockchain
With over 10 billion IoT devices worldwide — from smartwatches to refrigerators — the volume of real-time data is staggering. However, most of these devices operate in isolated silos, unable to communicate or transact autonomously.
BAIC bridges this gap through a purpose-built public chain designed specifically for low-power IoT environments.
Key Innovations:
Dual Consensus Mechanism: Combines DAG (Directed Acyclic Graph) with DPoS (Delegated Proof-of-Stake).
- DAG ensures high throughput and scalability for micro-transactions.
- DPoS introduces elected validators to enhance security and support smart contracts.
- Support for Smart Contracts: Unlike IOTA, BAIC integrates EVM-compatible smart contracts via high-performance nodes.
- Transaction Fees: A minimal fee structure prevents spam attacks — a known vulnerability in feeless systems like IOTA.
- Projected TPS: Up to 10,000 transactions per second, making it viable for mass adoption.
This hybrid architecture allows everyday devices to perform autonomous transactions — such as a smart car paying for fuel or a washing machine ordering detergent — all secured on the blockchain.
Privacy Without Sacrifice: Can You Keep Data Private and Still Monetize It?
A common concern arises: If my data is on a blockchain, isn’t it exposed?
Tan Yi clarifies that blockchain does not mean public exposure. Instead:
- Each user holds a private key (or “seed” in DAG networks) — the only access point to their encrypted data.
- Data is stored off-chain in distributed or personal storage, with only hashes recorded on-chain.
- Access permissions are granted selectively — users decide who sees what, and under what conditions.
Using The Matrix as a metaphor, he explains: "You hold the key to the door. Only you can open it. Behind that door lies your digital wealth."
Thus, privacy and monetization coexist — one strengthens the other.
Why Hardware Makers Should Join BAIC
One might assume device manufacturers resist relinquishing data control. But Tan Yi argues otherwise:
“Data isn’t the manufacturer’s asset — it’s the user’s. And returning it creates mutual benefits.”
Benefits for Device Brands:
- Enhanced User Trust: Transparent data policies reduce privacy concerns.
- Improved Product Development: Access to anonymized behavioral insights helps refine future products.
- New Revenue Models: Brands earn rewards by facilitating data transactions within the ecosystem.
- Customer Loyalty: Users feel valued, increasing brand affinity and retention.
Even giants like Xiaomi could benefit — though Tan Yi humorously notes that their current shareholders might resist profit-sharing models.
Still, the trend is clear: open ecosystems will outpace closed ones in the long run.
👉 See how next-gen hardware brands are embracing user-centric data models.
FAQs: Addressing Common Concerns
Q1: Isn’t token concentration inevitable, leading to centralization?
While many PoW chains suffer from mining pool dominance, BAIC avoids this by tying token utility to real-world usage. Since tokens are earned through participation — not just mining — distribution remains broad. Plus, the DPoS layer ensures governance is community-driven.
Q2: How is BAIC different from IOTA or other IoT blockchains?
BAIC builds upon IOTA’s DAG foundation but adds critical upgrades:
- Fee-based transactions for spam resistance
- DPoS-backed consensus for security
- Full smart contract support via EVM
These enhancements make BAIC more adaptable for complex applications beyond simple payments.
Q3: What stops governments from blocking personal data ownership?
Tan Yi believes regulatory bodies will eventually support user-owned data — especially if misuse is prevented. With blockchain providing audit trails and consent mechanisms, compliance becomes easier than under current opaque systems.
Q4: Is individual data really valuable enough to matter?
Yes. Consider: Baidu earns ~$7 billion annually from ads powered by user data. With ~1 billion users, that’s ~$7 per person yearly — if fully redistributed. Scale this across multiple services and global users, and the collective value becomes immense.
Q5: How does AI fit into this ecosystem?
AI thrives on clean, labeled data — which is scarce today. BAIC enables AI developers to access rich, ethically sourced datasets directly from users. In return, users get paid, and AI becomes more personalized and accurate.
Q6: How can investors identify legitimate blockchain projects?
Tan Yi advises focusing on two things:
- Business Model: Does the project solve a real need? Is there a clear revenue path?
- Value Foundation: Is valuation based on utility, not speculation?
Avoid projects with obscure tech jargon or no income model — they’re likely “air projects.”
The Future Vision: A Global Data Bank
BAIC envisions a future where every person has a personal data bank — a secure repository of behavioral, health, and lifestyle information that grows in value over time.
As AI advances, machines will increasingly need human-generated data to learn empathy, creativity, and intuition — qualities algorithms alone cannot replicate.
In this world, BAIC serves as the settlement layer between humans and AI, enabling fair exchange through tokenized microtransactions.
It’s not just about better ads or smarter homes — it’s about reclaiming agency in the digital age.
👉 Explore how blockchain is creating new wealth opportunities through data ownership.
Final Thoughts: A New Digital Social Contract
Tan Yi’s journey — from selling his Silicon Valley home to buy Bitcoin, to launching BAIC — reflects a deep conviction: technology should serve people, not exploit them.
By aligning incentives across users, developers, and businesses, BAIC exemplifies how blockchain can create inclusive economies where value flows equitably.
As we move toward 2025 and beyond, projects like BAIC won’t just disrupt industries — they’ll redefine what fairness means in the digital economy.
The age of passive consumption is ending. The era of active ownership has begun.