Jinshan Yun Zhujiang: Layout BaaS Occupy Distributed Financial 4.0 Era

On October 12th, the "2019 CCF Blockchain Technology Conference" hosted by the Chinese Computer Society (CCF) was held in Chengdu.

From the technical point of view, Zhu Jiang, general manager of the block chain department of Jinshan Cloud District, shared how the blockchain BAAS can contribute to the digital financial integration platform. He also issued a recruitment order on the spot: "As a unicorn in the domestic cloud computing, the Jinshan Cloud Blockchain Digital Finance R&D Center called for more friends with business background, operational background and compliance background to join. Currently the team size reaches hundreds of people. Last year, there were only 20 people. I hope to break through 200 people next year, because we are very optimistic about this direction."

What is the direction of Jinshanyun so optimistic? Babbitt compiled Zhu Jiang’s speech and we will find out.

The development of BaaS: from Microsoft, IBM to Jinshan Cloud

BaaS is a model of blockchain service. The first to propose the concept of BaaS platform is Microsoft. In October 2015, Microsoft chose the route based on the architecture route of Ethereum, not the alliance mode. Later, Microsoft tried to introduce a new model, but perhaps because of the lack of a good profit model, their market voice in the BaaS platform strategy gradually weakened.

The second company to propose the BaaS platform is IBM. When IBM officially launched the BaaS service in February 2016, I promoted the blockchain, especially the alliance chain technology, as the chief evangelist in China, and how to use it in the enterprise market. IBM's BaaS platform is based on Hyperledger Fabric. IBM is the manager of major code vendors and technical committees. There are many participating organizations, including Intel and some financial institutions. Currently, there are more than 250 participants and 30% of domestic participation. The alliance chain is becoming more and more popular at the enterprise level, and enterprise services based on the alliance chain are being launched.

I joined Jinshanyun in February 2018. At that time, it was a watershed. Everyone was thinking, can the blockchain be used in the market? What is its application scenario? What is its killer app? The earliest consideration was the game, and the plan was to introduce a combination of the blockchain service platform and the game industry. After half a year in the blockchain game field, we made a transformation and began to turn to the financial sector. Throughout the route, I have always adhered to the technology of the alliance chain. I do not exclude the technology of the public chain. The future blockchain is a big world and a world of interoperability between chains and chains.

BaaS design concept: Where is the value?

Explain first what the BaaS platform is. The BaaS platform is a service. Like cloud computing, each of us can have a server with an account.

On the one hand, for programmers. The cost of building a blockchain network is very high. We have invested a lot of manpower and resources to build a blockchain network service platform, and then give this platform to every developer to make it a Pratt & Whitney service.

On the other hand, BaaS can quickly apply the technical advantages of the blockchain to business processes with minimal effort in a short period of time. This is the core point that the blockchain service platform and application are closely integrated. It's not just a tool, it's also a quick integration with our application business systems.

Let's take a look at the design concept of the BaaS platform, which is divided into three phases: the first one is the basic blockchain service, the cloud platform and the blockchain network can be called the BaaS platform service; the second one is high. The blockchain service platform needs to include the underlying cloud. If it is financial, it needs a financial zone. If it is a multi-tenant public cloud environment, it is very insecure and the data is not isolated. The third is to provide a full-stack financial zone. Blockchain services, which are most closely integrated with our financial-grade applications. The above system can include a fort system and a rental system, and the financial system that can be empowered by the blockchain can provide services through the financial-grade BaaS platform.

Where is the value of the service? In the sub-assembly of complexity, in addition to automated deployment, operation and maintenance, installation, use, you can see that the technology stack basically covers the current mainstream technology. How to package the complex technology stack into BaaS services that each programmer quickly uses in the business scenario is a key issue for our vendors. For example, smart contract testing in the security field, CBP in foreign countries, domestic 360 and Chengdu chain An can do the relevant work of contract testing. For example, the consensus algorithm, PBFT consensus algorithm is the mainstream algorithm in the alliance chain, Libra also released its own alliance algorithm, its consensus algorithm refers to VM2, and on this basis, it has been modified. We can see that even companies like Libra and Facebook don't have their own algorithms in a short time, using algorithms from other companies.

We launched this overall architecture very early, and also participated in the development of the BaaS Alliance standard of the Ministry of Industry and Information Technology. We have 24 major items and 96 small items. Evaluation is just the beginning. We believe that the standards defined by relevant national institutions are the minimum standards. The minimum standards are the industry threshold. We need to build more advanced standards on the standards.

BaaS usage scenarios: business exploration from games to finance

The construction of BaaS is so complicated, where is it used? At the end of 2017, everyone knows that the encrypted cat is very hot in Ethereum. A crypto cat can be fired for hundreds of thousands of dollars. I think the Internet is very profitable. We use blockchain technology on domestic game platforms, and our positioning is ecological. The BaaS platform is the penultimate layer, serving the top three layers, including the blockchain engine company.

In the Internet field, if the virtual assets of the game industry are to be circulated, basically the exchange of industrial circulation and ETH and ETC will have a profit model. If the alliance chain is used as a blockchain game, the profit model is relatively weak, not without. Like Netease Planet is based on blockchain games, their popularity is not because the blockchain is hot, because of the core advantages of the big factory, they bring their own traffic.

We have succeeded at the technical level, but at the commercial level, we are still in the remote areas. In 2018, I mentioned that after two years, the number of game users in the blockchain can reach 100 million. At that time, we held a sharing session in Shanghai. Vendors in the blockchain game field discussed and disclosed the number of transactions actually occurring on the Internet, including virtual assets, and they created new ways of playing. In March of the same year, we defined the evolution of the blockchain game. At the time, we first thought that the game master would have 10 clicks per second, and it would be impossible for each click to be linked. The click-to-second transaction is directly related to the virtual asset transaction. The game must be very sensitive to GPS. The enterprise-level market is not as sensitive to GPS. That's why we think of empowering blockchain games with alliance chain technology.

The game inspired us, the blockchain and digital assets are closely combined, and the digital assets in the financial field are the core elements. According to this idea, we will find the scene again.

Last month I mentioned a point that the Smart Digital Industrial Park is the smallest place where the blockchain has the greatest value . Why do you say this? Because the smart digital industry park contains many enterprises, they share and cooperate, and the bottom layer needs infrastructure. The best infrastructure is the blockchain. Based on this infrastructure. We provide financial services to a number of companies. The authenticity of the trade background is very important. Based on the reliable and reliable record and deposit of blockchain, financial services can be made bigger and play a greater value. The smart industry park is physical, and the future finance is digital. It is the ecology of digital hygiene. Industrial parks are important places where the physical world and the digital world can be integrated and managed in an integrated manner.

Everyone is talking about applications, we are also talking about application and landing. At IBM, we have done international shipping business, Wal-Mart doing food traceability business, and UnionPay doing cross-banking business, but the profit model is not special. Clear, this year we found a very good landing scene: Nanjing's Jiangbei New District just became a national-level free trade zone last month. Nanjing Jiangbei New District will build a city with two cities and one center. The “two cities” are the city for building chips and the city of genes. The “one center” is a new financial center and will become a new financial highland in the Yangtze River Delta region in the future. Under this positioning, there are many service providers in the park, including insurance, bank leasing, suppliers, warehousing companies, etc., all in the industrial park, a large number of infrastructure financing and loan demand are carried out in the park. How to provide the integrated loan business for these enterprises that are currently building the park, we hope to promote the financing loan model faster, so we have built a financial integration service platform.

Building a financial integrated service platform: asset digitalization is the key

In the process of building a financial integrated service platform, we are also thinking about it. Last month, Director Yao said in Shanghai that “the digital economy is the torso, digital finance is the blood, and digital assets are the core.” We have been doing platform integration around these three points. Construction, digital assets in industrial parks are native, digitally transferred assets, including financial, intellectual property rights, real estate beneficiary rights, property rights, to be valued.

To give a simple example, the value of a house is not only the value of the land and the value of the building materials, but also the value of the location of the house. If it is a house where historical celebrities have lived, there is also an important collection value. In the process of doing digital asset modeling, we have done a lot of study work, but there are no specific standards in China at present.

We need to digitize the assets of the physical world, and the process of digitizing the assets from digitalization to digital registration. This system requires not only the participation of enterprises but also the participation of the government. Its confirmation and confirmation require the government to prepare a book. My property does not mean that a real estate license is yours. The government has to prepare a book saying that this house in the region is yours. In the future, legal disputes involve relevant institutions, and the process of asset digitization It is the process of confirming the rights of digital assets.

Asset standardization also needs to be considered in the process of asset digitization, including its severability and tradability. The traversability of severability is reflected in the bottom-line business. The bond can be transferred or split, or the transfer of income rights. Supply chain finance is already in use. This is a type of use in assets. We also do other types of assets.

I just talked about the digitization of assets, the relationship between it and digital currency after the digitization of assets. After we have finished digitizing the assets, what is the relationship between it and the digital currency? There must be a code in the middle. In the real world, we can very clearly define that it is a digital currency. With digital currency, we can standardize digital assets and future digital assets. The circulation, as a medium, the value of digital currency has arisen. Today our physical world can be paid face-to-face based on electronic payment methods. The future world is the digital world, and its payment medium needs to be borne by digital currency. Virtual currency, stable currency, and asset token are the forms that appear on the market. In the future, there is a cryptocurrency MN. What is it? Let's make a question mark. It may be a beneficiary right, possibly a bond, in the form of a new digital currency produced on a monetary basis. After digitizing the original assets into digital assets, they embrace the digital currency.

Our digital financial integration platform built in Nanjing Jiangbei New District is not only a supply chain financial platform, but also a dual platform for trade financing platforms and digital integration platforms. From cloud computing to upper-level open access, both the funder and the asset side can perform related operations on the platform.

Blockchain empowerment application scenarios, occupying the era of distributed finance 4.0

How can the blockchain be applied? Four benefits, the first is to quickly revitalize assets, the second is to improve transaction transparency, the third is to reduce the cost of capital control, and the fourth is to improve efficiency of smart contracts, we always focus on these four points. Whether it's tools or infrastructure, we think it's all just needed.

The development trend of financial technology, in the 1990s, we called financial electronicization. At that time, we were informatizing the financial business of offline finance and accounting. This is financial technology 1.0; the stage of financial technology 2.0 is Internet finance, and the front-end service channel is Internet-based. Use the Internet to dock financial assets, funds, transactions and payment terminals, and realize channel networking. The products represented include online banking and mobile payment; Financial Technology 3.0, which is built using cloud computing, big data, and blockchain technology. Data credits, including the digital currency M0 seen today, including smart investment, are based on the important products of Financial Technology 3.0.

What is the future, there is a cycle here, financial 10 years cycle, 90s, 2000, 2010 to 2020, this is distributed finance, we are very optimistic about this direction, we provide distributed financial integration services It must not be a decentralized financial service. We are a multi-centered financial service. In this context, the BaaS platform can play a role. The first phase of Internet finance has emerged. Based on the Bitcoin-related platform, its main feature is that it is not programmable. The current phase is the second phase, and BaaS can provide interfaces to provide services to the upper layers. Next is 3.0, relying on distributed BaaS and distributed networks to form a large BaaS platform, which is the most basic facilities for service finance, which is our very optimistic direction. I hope that such an evolutionary route can be accompanied by not only the evolution of financial technology or the stage of distributed finance 4.0.

How to occupy the era of distributed finance 4.0? Four core elements: the first is to have core products, the second is to have the ability of the platform, the third is to be close to the customer, to output our products and platform capabilities through solution, and the fourth is to serve various industries. . Just now we talked about the in-depth participation of the game industry and the financial industry. We still have a lot of participating industries, including deposit certificates, including the judicial chain. We believe that the best direction of industrialization is game and finance, which is currently seen. After these two fields are done well, other areas are logical things.