Interview with JD.com, Xinxin Lei: Supply Chain Management and Digital Finance are the two development directions of the blockchain in Jingdong District

"Blockchain technology is the underlying technology of the industrial Internet, and it may become a bridge between different clouds. The application of the future blockchain is the direction of data and the direction of digital assets. But the inner and outer circles are not good or bad. Whether it's a drop-in-chain application or an asset-digital application, the blockchain is a very flashy application, and to a certain extent the data can be converted into assets, and the two layers can penetrate each other."

On November 23, the “ 2019 NetEase Future Conference ” jointly hosted by Hangzhou Municipal People's Government and Netease Company was opened at Hangzhou International Expo Center. In the afternoon of the " blockchain + real economy" forum, the person in charge of the blockchain department of the innovation technology business department of Jingdong Digital Technology Group, Yan Xinlei said in the speech.

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Jingdong Digital Technology Group, formerly known as Jingdong Finance, is now an important part of the three major segments of Jingdong Group's logistics, retail and digital divisions. “Zhizhi Chain” is the blockchain technology brand of Jingdong Digital Technology Group. Since the formation of the blockchain team on October 8, 2016, “Qiyu Chain” has been in the bottom of the blockchain technology platform, supply chain traceability, digital storage. The application in the fields of securities and asset securitization has been realized.

Prototype verification: On June 8, 2017, the blockchain anti-counterfeiting traceability platform was officially launched.

Infant matching benchmark: On October 17, 2017, the “Anti-counterfeiting traceability platform” docked the Ministry of Industry and Information Technology Department to “seek truth from facts” infant milk powder traceability platform.

Cooperation between government and enterprises: On November 20, 2017, the Ministry of Commerce signed the "Cooperation Agreement on Promoting the Development of Digital Commerce."

White Paper Debut: On March 22, 2018, the first edition of the "Jingdong Blockchain Practice White Paper" was released.

BaaS launched: On August 17, 2018, JD BaaS V1.0 was officially released, and the “Jingdong Zhiyi Chain” technology brand was confirmed.

The underlying open source: March 28, 2019, JD Chain official open source second edition technical white paper released.

Entering the financial industry: On June 6, 2019, the first application of the ABS blockchain cloud network digital finance field was completed.

SaaS is online: July 17, 2019, fully integrated with Jingdong Cloud, officially providing blockchain SaaS services.

The new strategy set sail: On November 19, 2019, Jingdong Zhiyi Chain released the Jingdong Blockchain 2020 strategy – “from a trusted supply chain to digital financial innovation”. After the speech, Yan Xinlei accepted interviews from many media.

The following is a selection of interviews:

Reporter: The central part of the blockchain emphasizes the important content of independent innovation as a core technology. How do you understand the contents announced by the central government?

Yan Xinlei: I personally understand that, first of all, the Economic Affairs of the Central Political Bureau regards it as an important breakthrough for independent innovation, and emphasizes the construction of the core underlying technology. This is also a very positive encouragement for us, because this is the Jingdong Science I have been doing it for the past three years, because we have done the underlying open source and also served as a networking platform for the enterprise. The industry is still in accordance with the requirements of the Economic Affairs Bureau of the Central Political Bureau. It is necessary to encourage more integration of blockchains and industries in the next step, integration with the real economy, and integration with the national economy. We must Firmly in line with the country's strategy and direction, around this industry and the national economy, we must find the application of the actual blockchain that can serve the industrial application, and try to reduce some unrealistic applications. I think it is still To cooperate with more companies in the industry.

Reporter: Compared with other Internet giants, what is the difference in the layout of the blockchain in Jingdong Science?

Yan Xinlei: Technically, we have developed the underlying framework open source engine, which can completely replace some international open source engines to ensure the independent control and independent research and development of our technology. Secondly, we have always adhered to the cross-cloud strategy, so that our network can support a number of cloud bottom layers, of course, its cooperation and coordination with JD.com must be the best.

In application, we still pay attention to the two areas of supply chain management and digital finance. Because the Central Politics Bureau mentioned five major areas in economic learning, I think supply chain management and digital finance are still good things for Jingdong. We will do what we are good at. Jingdong Group is a service provider that provides supply chain infrastructure for enterprises. So we can trace the supply chain. We are actually building a credible supply chain and then doing digital financial innovation on this basis. Because there are many areas in the supply chain that need financial co-construction. Therefore, these two fields can be naturally integrated or interact with each other, and it is also the direction in which Jingdong Zhizhi Chain focuses. Reporter: How to control the risks of the combination of blockchain and finance?

Yan Xinlei: Finance must be an industry that affects the national economy and the people's livelihood. Therefore, we emphasize that the blockchain must introduce regulatory technology when it is combined in the financial industry. When “blockchain+finance”, there must be regulatory technology to ensure the safety of the financial system, which can be regulated, traceable and healthy. Jingdong also pioneered a translatable cryptographic algorithm this year, which allows the government's regulatory authorities to audit and transparently monitor data in a special way while ensuring anonymity and privacy in the daily state. I think this is a big premise for the application of blockchain in the financial sector, and it is necessary to merge with regulatory technology to move forward.

Reporter: Supply chain management and digital finance are two important strategic directions of Jingdong Digital Science. What is digital finance here?

Yan Xinlei: In the process of digital finance still being defined, Jingdong Digital uses digital frontier technology to serve the financial industry and join hands with financial institutions to develop applications. This is the integration of digital technology and industry that we insist on. The core of digital finance is A digital system serves the financial industry. At present it is a brand new concept. The above is just my personal understanding.

Reporter: In the future, if the digital currency of the People's Bank of China is launched, what will happen to Jingdong's digital business?

Yan Xinlei: This will wait until the central bank's digital currency comes out. After the policy is confirmed, we can answer your question. We are always technically prepared and keep close communication with relevant central authorities.

Reporter: Which of the blockchain financial applications in Jingdong District has achieved profitability? What did not achieve profitability? How to evaluate the application effect of blockchain?

Yan Xinlei: Jingdong Digital Technology Group will not simply assess the profitability of one of our departments. We actually regard the blockchain as a connector for the ecology and capabilities of Jingdong Digital. Of course, as an enterprise-level service, we want to make the district The product of the blockchain department is subject to market-based testing, but I understand that the group will not simply assess the amount of revenue it brings, because it is an ecosystem that connects everyone and is a technology that helps partners and partners promote digital technology applications. The exact number is temporarily unable to answer you accurately. The evaluation of results comes from our business department. The value of the blockchain application at this stage is mainly to reduce costs and increase efficiency. For example, the application of ABS, we can make its release time shorter and reduce its operation and maintenance costs. Can be quantified. We see that the application value of the blockchain needs to be comprehensively looked at in the industrial scene.

Reporter: In terms of digital finance, apart from your mention of ABS and electronic warehouse receipts, are there other applications?

Yan Xinlei: Jingdong Science and Technology will open up the proven solutions and application experience, and some cases are in the incubation and verification phase, so there is no special mention now. From credibility to supply chain, to digital financial innovation, this is the decision of Cao Peng, vice president of Jingdong Digital Division at JDD Conference of Jingdong Group. We will be the strategic direction of blockchain in the next year or even three years. This strategic positioning stems from our belief that moving from a trusted supply chain to digital financial innovation is a natural process, because application innovation in the digital finance field often requires credible data in the supply chain.

Reporter: The ant blockchain has launched an open alliance chain. What new layout will there be in the alliance chain after JD?

Yan Xinlei: We Jingdong has always been customer-centric, so we are looking at the needs of customers and the market when we think about the next step. Jingdong is considering the preparation of cross-chain technology with other open source ecosystems, which is limited by the fact that it has not been approved by the partners. However, we firmly believe that the customer's needs are there. In the future, the blockchain must be integrated, connected, and done together, and not one can do it well. Therefore, Jingdong Digital has a special open mind, that is, we are willing to cooperate with any enterprise that provides blockchain technology services.

Reporter: In your opinion, what are the three most important things in the blockchain to empower the real economy?

Yan Xinlei: First of all, in accordance with the instructions of the Central Political Bureau's collective learning, we must continuously promote the breakthrough of the underlying core technologies and independent innovation, and increase investment; secondly, we must pay attention to the digitization of the industry, because there is no way to apply the blockchain because digitalization cannot be achieved; The third is what I said in my speech. To truly create industrial value, we have to evaluate what kind of industrial value it can bring in project or project, and there is a tracking and evaluation mechanism in this process. Projects that cannot produce industrial value, I think there is no way to promote the better application of blockchain technology.