Hackernoon logo"Traditional industries will die under their own pressure." - Byung-Hung Lee, CEO of LCMS COIN by@edward-moon

"Traditional industries will die under their own pressure." - Byung-Hung Lee, CEO of LCMS COIN

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@edward-moonEdward Moon

Senior product designer / cryptocurrency investor

Over the decades, the rules of society have been setting the pace for the global marketplace. The tastes of the public have had a definitive reflection on what producers thought of as the most profitable to manufacture and trade. Earlier on, the preferences of the population were largely shaped by the commonly-held perceptions of beauty standards actively promoted by industry influencers and anchored in the public mind through TV commercials. The unfortunate effect of this is the appearance of many dishonest practices that have been in wide circulation right up to the 21st century.

These days, due to the higher level of awareness but also gradual liberation of the information access, the general public became more conscious of the consumption choices they make as well as the origin of the products they are chasing after. Unsurprisingly, the new Generation Z which is about to become the primary target of sellers in the coming years has become the most value-oriented and ethically-conscious in the whole chain of previous consumer segments. This has an obvious consequence – the producers now have to adapt to the needs of the rapidly changing market environment; it’s either in or out.   

For many, blockchain came as an anticipated but not yet fully explored solution. Providing an infallible track of records, it is able to store the large bulks of information, which may play a crucial role in the ways the information on the origin of products is retrieved. For that, as well as a number of other technical reasons, blockchain is thought to open a new chapter in supply chain management. This opportunity gradually starts being explored by a number of emerging blockchain-powered enterprises – and the LCMS platform is among the first to move forward in the new direction.

The advantage of blockchain technology allows the participants to exchange their opinions directly on the platform and lead discussions on the topics of functional health food.

Now, I’ve got a unique opportunity to interview Byung-Hung Lee, the CEO of LCMS COIN. Together, we brainstormed the topic of ethical awareness and looked at other emerging trends that may play an instrumental role in shaping the industrial landscape in the years to come.

Edward Moon: In the age of increased automation and digitalization backed up by smart technologies, what role would you assign to DeFi in driving forth the Fourth Industrial Revolution (Industry 4.0)?

Byung-Hung Lee: Hi! Thank you for calling me up, and thank you for starting off with a very interesting question. DeFi now attracted a great deal of attention, mostly because of its monstrous growth in a relatively short period of time. What could be the justification behind it? Above all, let us not forget that the whole DeFi is based on blockchain, and the programming language here is as advanced as nowhere else. Probably, that could only succumb in complexity to AI.

If anything, DeFi can be given if not a leading role, then the spot of a single most important and most influential change-maker. Why? DeFi is decentralized, which means, from definition, everyone can have access to it without reference to geographical location, and everyone can build their applications on top of blockchain as long as they have internet access.

DeFi has already simplified the financial system up to the level not imagined a few years ago, so that even lending and borrowing can nowadays be done without provision of the credit score. And this is only a part of it - the automation has allowed to launch staking protocols and take advantage of the yield farming activities for anyone who owns tokens in storage.

These various applications that come with a new value offering have completely transformed the way the money is used, but also brought a wind of change to the traditional industries based on outdated principles modern consumers do not back up. In my opinion, this is already a revolution in itself. And the more is to come yet - the potential of blockchain is tremendous, and the applications built on it are so versatile that I’m surprised only a tiny fraction of businesses have been explored up to now.

Edward Moon: Can you give a few examples of how blockchain has already helped to revise the industry, and what other changes can be expected in the future?

Byung-Hung Lee: I think that won’t be too difficult. We hear about lots of developments, in banking in the first place. It has already helped the industry to become more efficient, cut down the lines in front of the banking branch how it used to be in the past.

Consumers have more power compared to what used to be before, because it’s essentially what blockchain technology is all after. It’s main intention is to give the ownership back in the hands of people, the ownership of something that is intrinsically theirs. Let it be the banking data or the information on how the product was produced - the consumers should have a right to use what belongs to them.

Now, with the growing number of projects - DeFi is the biggest breakthrough, needless to mention, - the businesses start treating blockchain as something common. This is only one step away from becoming a necessity.

I’m sure the day when blockchain will be used by any family restaurants or small vendors on the street is not long to come, ‘cause right now it’s the only rational way of how both consumers and producers may be kept happy. 

Edward Moon: What inspired you to follow the idea of LCMS platform? How do you see the future of the sustainability trend, and what role will LCMS play in its development?

Byung-Hung Lee: If I think of it, my intuitive answer would be this: we wanted to change society for the better with our projects. A necessary way of achieving that is by using the newest technological solutions.

When blockchain appeared on the market and its advantages became obvious, we got captivated by the idea of building a solution to our sustainability problem. This is an especially relevant issue in the Asian region, where so many harmful practices are not prohibited by the law - and the result of it is a damage for a large group of consumers, the damage nobody used to talk about on TV. Thankfully, now the times are changing.

It seems the younger generation is more interested in our planet than their parents. The youngsters will not buy anything of shady origin, especially if it causes harm to nature or local communities. We try to build up on this trend, and what we also do is make more people aware and interested in what’s the real story behind the goods they purchase from the shelves or on the internet. 

Edward Moon: Considering the fact that the generation of new consumers is more tech-savvy and innovation-friendly, how would you describe their stance towards blockchain and cryptocurrency? Would they demonstratively be more willing to, let’s say, store their savings on Binance instead of traditional banks?

Byung-Hung Lee: Haha, ok. First, let us understand what makes Bitcoin different from traditional currency. Decentralization - first, digitalization - second. You don’t need any bank for Bitcoin, it can be stored on your wallet as long as it’s safe. But is it really a proper way of payment? In all honesty, I don’t think so, especially not now.

The number of merchants accepting Bitcoin is growing, but does it actually mean that Bitcoin is closer to becoming a real token for pay? I don’t really think there’s a strict relationship here. Rather, what I observe is the increasing interest towards Bitcoin as an investment, maybe for a month or two, or maybe for a few decades. People see Bitcoin primarily as an investment vehicle - which is, quite true, makes a lot of sense, especially in the situation caused by Covid-19.

Bitcoin is just an alternative solution to the problem, and to a lot of investors it makes a lot of sense. For the young people - I’m not sure, I’m not sure if they should even try delving into it unless they have an education background in finance. It is still quite risky and involves a lot of uncertainty that even not all of the mature investors are not ready to accept.

Bitcoin is not just a game or a fancy word, that is important to remember. For young people it may not always be suitable, but when they become adults and make rational and informed decisions - more than welcome. I do think the future is after Bitcoin and cryptocurrency, and many of those who tried it would agree.

Edward Moon: The trend for sustainability and environmental awareness has become something of a cliche and a central topic of fierce debate. How, in your opinion, that would influence the public image and the perception of the classical industries?

Byung-Hung Lee: Oh, this is it, the question that finally I've been waiting for. You wanna hear my honest answer? I think that traditional industries will die under their own pressure. This day is not long to come. First of all, I think that many industries have become so obsessed with their own materialistic goals that they nearly forgot whom they are doing it for.

Globalisation - now all industries are making advancement on a global scale, not on a local. All cheap labor they are sourcing from poor countries, while they completely disregard health and work ethics that they would necessarily have to follow in advanced economies. For these industries, what has always been the most important is to stay on the surface of the water and not to be sunk under heavy competition.

This is a cut-throat race, and in the center it has a basic desire for power and dominance. Look at these global corporations - they are only thriving by finding ways to cut taxes and source cheap material. Otherwise, they would already be squeezed like a lemon. But I’m sure their last days are coming.

At least with the power of blockchain technology, all dishonesty will be disclosed. People will be able to choose for themselves the products whose origin is fully transparent and not hidden under the millions of labels. This is an enormous breakthrough in any of the fields, and I can give you my honest word, we will see lots of changes coming in the next few years. 

Edward Moon: What are the ways in which blockchain adoption may be fostered at earlier stages? How can more people, especially from older generations, be incentivised to participate in the blockchain-shaped ecosystem?

Byung-Hung Lee: If we think about it, there’s nothing difficult with making blockchain a part of your organization. What is more important is to spread awareness about it - the way it works, what benefits it brings etc. Blockchain will be a game-changer, and this fact should be emphasized.

Not so many people fully know about the properties of blockchain yet, even the ones who have an idea about the concept behind it. Our goal, as well as of any organization, is to give people the complete information that will make them turn their heads towards this new technological trend. As to the older generations, I think their turn will come too.

This is always like this - first adopters are the ones who have the most pressing need for a technology and its core feature, and the ones who come next are the followers, the masses. Perhaps, the older generation will not have a need to the same degree as their younger sons or daughters. But what they will definitely need is to be a part of this system, the part of both the economy and the society.

And if the blockchain becomes our daily necessity, one thing we won’t be able to live without, then there should definitely be a way to make this system open to everyone. First thing, I’m quite sure, their younger family or community members will give them all what’s necessary to know about this topic.

The other way is that the government will become interested in educating all population groups. It seems to me this is not long to come until public institutions will promote education on blockchain and its core properties and will make it accessible to everyone.

Edward Moon: What do you consider as the hottest trend in the blockchain industry for the next few years? Which industries would be the first ones to rebrand themselves under the slogan of decentralization and digital finance?

Byung-Hung Lee: Hm, let me think... My gut feeling says that DeFi is here to stay. DeFi is synonymous with democratization of finance, with the way companies can sponsor themselves or trade a part of it without appealing to banks or any elements of the financial system. I know now it seems insecure and there are even talks of it being a bubble, but I can assure you this will go away as soon as the industry grows and gets up on its legs.

This is just a beginning, but what will happen next is that many regulators and even the government itself will become more interested in making it a stable element of the system, because, just because, right now it cannot be simply cut out. Blockchain is a wide-spread phenomenon. It has appeared and it will not go away.

The only question is, how do we and each of us look at it, and how will the government look at it? It cannot be banned like Bitcoin, it cannot just fade out into nowhere. Once it’s real potential is discovered - and I say this is just a question of time - then the next question will become of how to make it more secure, less fraudulent, more accessible to all. The government itself will be interested in fostering innovation - especially if it may become a key to sustainability, how our project has shown.

As to reframing their businesses under blockchain, I can assume that banks and insurance companies will be the first in the line, especially the start-ups. Next, many governmental institutions may do it too, especially if they decide to adapt their own digital currency. Sooner or later, this wave will cover all of us - it’s just a matter of time.

Edward Moon: Would you be able to break down the scheme of LCMS COIN in a few words?

Byung-Hung Lee: Sure. Our plan was to release 1 billion LCMS COINs, more than half of which, or 60%, will go to the public, 30% to the management and the remaining 10% left for the development of the platform.

By the latter, we mean that LCMS COIN will be used as a tool for expanding our product range with other partners but LCM Science. This also means, our platform is expected to grow and attract more participants globally, which will eventually lead us closer to the goal of listing LCMSCIENCE Co., Ltd. in Korea Stock Market [KOSDAQ].

Other than that, we are planning to launch the round of airdrops, as well as run coin burns, especially in particular cases when LCMS COINs are used for donations. If the burning goes beyond than 10% of total supply, we promise to restore the coins. While the amount of burned coins will grow, the value of our token will increase, which gives a chance to gain an upper hand to anyone who owns LCMS COIN.

Edward Moon: I’ve heard the news that LCMS COIN has reserved a quarter of it for donations for charity. I loved the idea and therefore, I’d like to ask you to share: how can others develop their business practices having sustainability at the core of their organization’s DNA?

Byung-Hung Lee: Again, there’s nothing difficult in it. Once there’s a will, there will be a way. I know the process of restructuring of core operations is difficult and involves a lot of time and resources, but I think, if it gives you a long-term benefit - just go for it. Just do it, because in the future you will not regret starting at the moment we are in now.

Be conscious of the long-term effect of your actions - and this is especially relevant for business leaders - because they will eventually make you the company you are. If you are an unfair business, of which there are many nowadays, you may not expect that the day in the future will not come when the people won’t find out everything that you tried to conceal throughout many years.

Now, the consumers are different, the market is different, the environment is different. The mindset has changed from the old, bottom-oriented one, towards the new, focusing on the effect on the planet and the people around. The earlier leaders understand it, the better. The future is after sustainability, Once the director of the company understands it, it will be easier to set on the new rails of sustainable development and fair practices. 

Edward Moon: What are the main value-creating elements of your blockchain-based ecosystem fostered by LCMS COIN, and how do users benefit from it? 

Byung-Hung Lee: If we break down our value-creating system, we would immediately recognize that our token is based on the promise of making our world more sustainable, transparent and open to customers. They are free to take ownership of their choices, their decisions will now be guided by the data and information on products openly provided on our platform.

This is the core promise. We are willing that the ones who believe in the fair and sustainability-oriented future acquire the stake in the LCMS COIN earlier on, while the price is still at the baby-stage. LCM Science, the parent of our project, helped us to realize our dream of bringing the newest technological solution into the decades-long unsolved problem.

This also means that users will be able to take advantage of payment discounts when making a trade in  LCMS COIN. Our coin is also in a large part driven forward by the idea of charity and donations. The users will be able to support underdeveloped countries and underprivileged groups of the society, this way making LCMS COIN an instrument to benefit the greatest number of all.

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