Source: Bank of China Insurance
Original title: "All financial enterprises in the future are blockchain enterprises" – Interview with Zhu Youping, a well-known blockchain economist and researcher of China National Economic Information Network
Reporter Zhao Hui
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"The blockchain is a new century-old wealth logic. It will fundamentally change the problem of overcapacity matching with the financial and real economy, thus eliminating the economic crisis." Here, Zhu Youping's eyes brightened and he almost stood up excitedly. The famous blockchain economist, the researcher of the China Information Network Management Center of the National Information Center, took his iconic hat and sat in front of me. When it comes to the hustle and bustle, the sound is loud, and a simple scholar's feelings flow naturally in front of me.
For him, the charm of the blockchain is endless. It has long been his future love and faith. In 2013, he discovered some difficult problems when he studied global policy governance after the financial crisis since 2008. These problems are lingering in his mind. In 2015, he found a suitable technology in the cooperation between the representative unit and the China Copyright Protection Center on the digital copyright public service platform, and the blockchain entered his field of vision. Later, when attending a blockchain meeting. He was surprised to find that well-known enterprises including Weizhong Bank, Taobao, Wanxiang and so on have already had in-depth research and application in the blockchain. Why is the blockchain so magical? He was greatly touched and began to study in depth. In 2016, he published his first article on the blockchain: "Welcome to the Era of Digital Resources", and proposed assetization, asset data, and data certification, which caused strong repercussions in the industry. Since then, his persistence and enthusiasm for this field has been out of control.
From 2017 to 2018, when Bitcoin skyrocketed, speculation prevailed, and when it was regulated. He fell into thinking: whether the blockchain is a bubble or the power to transform the world. He found that bitcoin and blockchain are not the same thing, and the blockchain fundamentally brings about a revolution in production relations. On July 3, 2018, he first proposed the concept of "chain reform". In his view, the blockchain is not only a technological revolution, but also a governance revolution for enterprises and economic organizations. "Chain change creates a new and efficient economic system; future chain reform plus blockchain distributed ledger and financing functions will also replace industrialization + corporate + IPO, which is a new hope for digital technology and digital economic growth. The blockchain will really solve the problem of industrial age, overcapacity and excess capital." He firmly believes this.
“In the future, all financial enterprises are blockchain enterprises, and the code credit of the blockchain will subvert everything in the financial sector.” Zhu Youping talked about the impact of the blockchain on the financial industry. So how will the blockchain transform the society and how to transform the financial enterprise? Recently, the Bank of China Insurance News interviewed him.
Blockchain transformation world
"Bank of China Insurance News" : Please talk about your chain reform thinking?
Zhu Youping : In my opinion, the so-called chain reform is the block logic to transform the world and comprehensively upgrade the underlying logic of the economy, society and enterprises. Blockchain is not only a technology, but also a governance revolution. The chain reform I proposed has three logical fulcrums: the technological revolution, the financial revolution, and the organizational revolution.
I think the blockchain is a new century-old wealth logic. According to this logic, reshaping the corporate economy and social organization can truly free the entire human race from the financial and economic crisis and realize the path of wealth growth in the digital age.
The blockchain brings a technological revolution. I believe that the blockchain is the second generation of the Internet. The blockchain is parallel with contemporary big data, AI, 5G, Internet of Things, mobile terminals, life sciences, aerospace technology, etc. It is an integral part of digital technology. . Blockchain's chain ledger, collective consensus, asymmetric encryption, distributed storage and computing, peer-to-peer communication, intelligent cooperation, cross-chain and other technologies are anti-counterfeiting and anti-tampering de-intermediation credit machines that can solve economic and social development. A lot of technical pain points.
The blockchain brings a financial revolution. The blockchain truly subverts and changes the underlying logic of the traditional financial industry. It replaces the credit of the authority with code credit: the traditional financial industry relies on institutional credit, behind the people; the future financial industry relies on code credit, behind the powerful asymmetric encryption and collective consensus mechanism of the blockchain, this mechanism is the most clear Hackers can't tamper with it. The financial industry is based on risk control and credit, and the blockchain code credit mechanism reshapes its logic system, which will redefine the form and efficiency of financial markets. For example, if you have done a trade before, you may need various kinds of proofs and various settlements, which will take several months. After the blockchain becomes the bottom layer, relying on the code credit records it accumulates, it can be completed in a few minutes.
Such a blockchain can overcome the shortcomings of traditional financial information asymmetry, lack of credit, and low speed efficiency. It comprehensively transforms and upgrades and even subverts traditional financial systems such as currencies, banks, securities, insurance, and investment to meet the needs of the digital age.
The blockchain brings an organizational revolution. The blockchain has created a DAO community through anti-counterfeiting and tamper-resistant data, strangers' mutual trust, evidence-based incentives, and smart contracts. It is a shared, shared, co-constructed, shared, and shared organizational model. This is a subversion of the traditional organizational system. In traditional enterprises, leaders and employees are in a sense of a game. The former wants employees to work harder and less wages. The employees hope that they will work less and get more wages. But the blockchain breaks this game relationship. Through its intelligent contract mechanism, the target is set up, the benefit distribution mechanism and the incentive mechanism are set up, and self-organization cooperation can be realized. This has become a new production model of a new wealth organization, bringing about an organizational revolution.
In this mode, personalized production is also achieved. The traditional production line is built on a batch basis, connected in series from upstream to downstream. But we have entered the digital age. Everyone's needs are personalized, production is unified, mechanical, and individualized needs are not met, which often leads to overcapacity. The Internet and big data allow customers to express their individual needs, but due to the lack of flexibility in the production process, it is difficult to fully meet such needs. The "Internet + blockchain" can solve the above problems. The Internet solves the problem of information asymmetry, and the blockchain solves the incentive problem for everyone in the chain of production, supply, and consumption. On this basis, personalized customization can be achieved without sacrificing mass production efficiency. Our economy will enter a new round of wealth growth model.
Blockchain brings change to financial companies
"Bank of China Insurance News" : What changes will the blockchain bring to financial enterprises?
Zhu Youping : In the future, all banks will become blockchain banks, insurance companies will become blockchain insurance companies, and stocks will become blockchain stocks. The core of the blockchain is code credit, which is more advanced than traditional financial institutions. On the one hand it is a new, more reliable credit. On the other hand, its risk prevention and control mechanism is much stronger than it is now, because all its data is running on the chain and cannot be tampered with, avoiding information asymmetry, fraud, and fraud. In addition, its speed and efficiency are much higher than it is now.
All financial institutions used before were authoritative institutions. There are many artificial factors in this credit. They may aggravate risks and reduce efficiency. However, this pain point cannot be solved by traditional methods. But code credit solves this problem. It turns out that banks lending money require complex credit endorsements. But making loans on the blockchain, because the credit history of the blockchain cannot be falsified, so many credit endorsements are not needed. Another example is cross-border payment, which requires a power of attorney and many supporting documents. Since the blockchain is a non-tamperable credit, there is no need for complicated procedures after applying the blockchain. Another example is that under traditional financial intermediation, due to information asymmetry and the profitability of financial institutions and strong risk aversion, many areas that need financing cannot be matched with matching funds, but under the code credit of blockchain, capital can In the chain, the financing flows to the land without worrying about credit and risk issues.
All financial companies will be transformed by the blockchain in the future, otherwise they will be eliminated. Now everyone sees a bank, all of which are beautiful buildings, central locations, employees' suits, and a large number of outlets, all of which are costly behind them. The blockchain can replace these costs. It connects all the data centers in series and uses the encrypted consensus code credit to form a new type of business system.
The speed and efficiency of the blockchain is unmatched by traditional financial institutions. For example, under the Internet, it takes several months to make a loan, and it may take several minutes to use the blockchain. In this case, using blockchains for financing, depositing and lending, doing trade finance, making payment settlements, etc., is becoming a global trend.
"Bank of China Insurance News" : What changes will the blockchain bring to insurance companies in the financial industry?
Zhu Youping : For insurance companies, the blockchain will bring about subversive changes from the entire process of underwriting, claims, claims, surveys, and damages. For example, the biggest pain point facing insurance companies before is the fraud. If a blockchain is used, all data of the insured is irreversible and traceable. In this case, fraudulent insurance is impossible.
For another example, the chain of insurance companies operates for a long time, and effective coordination is required between each link. The reason for the poor coordination in the past is that the data is isolated from each link, and the data cannot be trusted by each other, so the efficiency of the business chain processing is relatively low. But now you can use the blockchain to manage the data so that they can trust each other, so that the processing efficiency of the business is rapidly improved.
In addition, the blockchain enables automatic recording of the contributions of business partners through the use of encrypted accounting and smart contracts, and incentives are automatically assigned, which greatly enhances the efficiency of collaboration. Therefore, many insurance companies have already used the blockchain as their platform for business management and operation.