Viewpoint | Blockchain application explosion, but still trial and error

On November 27, the “2019 Qingdao Summit on Science and Technology Innovation and Industrial Upgrade” hosted by the Qingdao Municipal People ’s Government and the Council of the Baicheng Mayor ’s Charity Forum was held. At the afternoon ’s forum on the steering of blockchain, the editor of Mutual Chain Pulse was invited to participate. Round table forum. The following is a summary of the answers in the round table.

Moderator: The guests briefly introduce themselves and their undertakings.

Interchain Pulse: Interchain Pulse is a media focused on blockchain technology and applications. Our characteristic is that the team comes from traditional media and is good at in-depth reports and investigation reports.

We have established the Interchain Pulse Academy, which specializes in blockchain research. It produces monthly reports every month. This year, we released the 2019 China Blockchain Industry Talent Supply and Demand Research Report "Industrial Park Development Report", on December 14, we will also release the "2019 China Technology Team Public Chain Technology Development Report" and "2019 China Blockchain Underlying Technology Platform Development Report" at a conference hosted by Beijing. Everyone is welcome to participate.

Moderator: After October 24th, the blockchain has risen to the national strategic level. Can you talk about why the blockchain has risen to such a high level at this time? Guests will talk about their views.

Inter-chain pulse: It means three major aspects: First, it means that national leaders have a very deep understanding of blockchain technology. In the past, the status of the blockchain was not so high. For example, in the 13th Five-Year Plan, the blockchain is a technology behind the Internet of Things, cloud computing, big data, artificial intelligence, and machine deep learning. However, with the deepening of understanding of the blockchain, it is increasingly found that the blockchain is fundamentally different from other technologies. In the words of the blockchain world, "Blockchain is a technology that changes production relations", while most other technologies are technologies that increase productivity. There are not many key technologies that change the production relationship in history. For example, the double-entry bookkeeping method, which has established the production relationship in the modern commercial society, has produced a corporate system, a joint-stock system, a modern bank, and a modern financial system. Collaboration has grown from family workshops to large enterprise groups formed by hundreds of thousands of people today. It has been 500 years since the invention of the double entry bookkeeping method. Blockchain is a technology that can form larger-scale collaborations or more niche market collaborations. It is based on a mutual trust mechanism and extends the boundaries of human collaboration. This technology has a longer-term impact on humans than any other single technology.

Second, it means that blockchain can help improve the competitiveness of the entire country. With China's economic development nowadays, technological problems can be overcome, but accumulated trust cannot be overcome. For example, the Huawei incident has the best technology, but it cannot be trusted in many parts of the world.

For the country, blockchain is expected to make up for the shortcomings of China's excessive trust costs. Internally, the cost of trust in China's economic activity is too high. For example, the profits of more than 100 listed financial institutions accounted for 54% of the profits of 3700 listed companies, which is significantly higher than that of developed countries (the United States accounts for 24%). The reason is that financial institutions are the largest credit intermediaries, and many economic activities depend on these financial institutions. Food safety, vaccine safety, and shady bidding and waiting for social problems have all raised the cost of trust. Externally, Chinese companies go global because of different systems and cultures, and the control of dialogue power in Western countries, and China ’s external trust costs are also huge. . Blockchain can help China's economic development, social stability, and break through the unnecessary mistrust fence by reducing the internal and external trust costs.

The "meaning" of the above two aspects is straightforward.

The third aspect means that China is willing to share more achievements with the coming digital world. In the second half of the Internet, China has achieved overtaking in many places. China's level of digitization is also world-leading. UNCTAD released the Digital Economy Report 2019 in September, stating that the United States and China are leading the digital economy. But the biggest problem of the digital economy is the security and protection of digital assets. The security of physical assets is protected by a whole social system, but the cost of copying (theft) of digital assets is almost zero. Blockchain provides a way to secure digital assets. But China also realizes that the digital economy rules based on blockchain are being established. Many western blockchain projects are based on absolute freedom and absolute decentralization, which sometimes hurts innocent people. The proliferation of ICOs is an example. China proposes the development of blockchain, which will help China to contribute its own wisdom to human society in the digital economy. The recent open alliance chain proposed by Ant Blockchain and the open license chain proposed by Zhang Yifeng, the head of the China Banknotes Blockchain Research Center, are examples of Chinese wisdom.

Moderator: Some people consider October 24th as a watershed in China's blockchain industry. They believe that after October 24th, China's blockchain will generate new industrial logic. Guests are invited to talk about the obvious industry changes they feel.

Interchain pulse: The most obvious change is the substantial increase in landing applications. Prior to the 1024 meeting, the Interlink Pulse Institute statistics showed that there were about 7 or 8 landing applications per week, and in the last two weeks, there were more than 20 landing applications.

The second is that the blockchain has entered the mainstream from the edge. The mainstream media began to learn about blockchain, including that we have launched content cooperation with some official media.

The third is the entrance of the regular army, and the intensity of cracking down on illegal acts has been strengthened. Recently, Beijing, Shanghai, Shenzhen, Dongguan and other places have issued documents to crack down on illegal "virtual currencies."

Moderator: In the past month, the wave of learning blockchain and application of blockchain has been set off from the central to the local. New news about the blockchain + industry direction has been issued every day. Can you talk about your contacts or yourself? Participating in the case of the blockchain + industry direction, talk about your preferred blockchain + industry direction.

Inter-chain pulse: The recent direction can be seen from three dimensions.

The first latitude: the degree of informatization. In the past, whether in the industry or the government, China focused on information and digital construction. The blockchain cannot hold physical things, and the chains are digital. Therefore, financial and government affairs with high informatization will give priority to development;

Second Latitude: Degree of Attention. Central enterprises and government departments will give priority to action;

The third latitude: industrial pain points. Other technologies are uncertain or costly. We see that the financial cost of the whole society is very large, and the cost of going out is very large.

There is actually an intersection of the three dimensions, which is finance.

Moderator: Some people say that the real application scenario of blockchain will be in the era of 5G and the Internet of Things. Now, traceability, certificate storage and other things are relatively superficial blockchain applications. What do you think of this? When do you think blockchain applications will erupt?

Inter-chain pulse: The first point: traceability and certification cannot be said to be a superficial application, but a realistic technical choice. Everyone who studies the blockchain knows that the blockchain is based on the mutual trust and traceability technology of distributed bookkeeping, which solves the problem of confirming, using, and transferring digital assets. At present, traceability and storage of certificates are still using some of the characteristics of the blockchain, which cannot yet solve the circulation of digital assets and achieve better asset allocation.

There are several aspects of the problem that have not been resolved. One is the supporting technology. The maturity of technologies including 5G, the Internet of Things, edge computing, and artificial intelligence will provide technical support for the generation of digital assets; the second is laws and regulations. These laws and regulations are incomplete for new types of asset forms—how to define, protect, and supervise digital assets.

As for when it will break out, I think it will break out now. We see that the application of blockchain is expanding on a large scale, but we also need to keep calm. Most of the applications may be trial and error, and how the blockchain can be used.

Only when the supporting technology and laws and regulations are perfected can the true large-scale application of the blockchain begin.