Babbitt, on December 25, the Du Xiaoman Blockchain Lab and Peking University School of Management released the "Du Xiaoman Financial Blockchain Research and Application White Paper (2019)" (hereinafter referred to as the "White Paper"). Click to download: "Du Xiaoman Financial Blockchain Research and Application White Paper (2019)"
The white paper focuses on DeFi (Decentralized Finance). Starting from the basic concepts of DeFi, it analyzes the current opportunities and challenges of the DeFi industry and innovatively proposes the industry's first standard architecture for distributed finance in the blockchain industry. Solution DOTA (DeFi-Oriented Technical Architecture), with a view to playing a guiding role in the application and implementation of DeFi.
DeFi basic concepts, opportunities and challenges
DeFi is one of the biggest highlights of blockchain technology in the application field in 2019, and promotes the exploration of the application of blockchain technology in the financial field. The definition of DeFi in the white paper is Decentralized Technology to explore some financial applications and scenarios. include:
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Traditional distributed finance refers to the use of technologies such as distributed network technology, distributed cluster technology, and distributed computing storage to support traditional financial services, or to carry out distributed technical transformation of financial services.
DeFi in the narrow sense refers to financial activities and services based on digital currencies or tokens. For example, token-based lending services, exchanges, payments, insurance, investment, and even wealth management services. Among them, Ethereum-based DeFi services and products are the most prosperous in the current stage.
DeFi in a broad sense refers to financial businesses and services built around decentralized technologies, including businesses and services built entirely on decentralized technologies (such as mortgages and transactions based on blockchain decentralized technology and smart contracts) , Loans), and services themselves are not decentralized technologies, but the objects of services are digital assets and other objects based on decentralized technologies (such as digital currency exchanges). Because of its decentralized underlying technology and its open and inclusive technology concept, DeFi has distinct advantages over traditional models in terms of transparency and openness, review, and efficiency and cost reduction in some scenarios.
The white paper believes that there are two opportunities for DeFi in the future.
The first is the distributed improvement and upgrade of existing financial services or services. The use of blockchain technology to build trust, transparency, openness, and tamper-resistance will generate demand for upgrading and transformation of some existing financial services and businesses.
The second is to become a distributed basic support under emerging financial scenarios and needs. Blockchain technology has the advantage of being suitable for digital scenarios. DeFi based on blockchain technology is fully capable of becoming the underlying financial infrastructure in the digital and Internet of Things era. At the same time, there are still many challenges: fundamental technological constraints, large business constraints and transformation costs, the issue of collaborative advancement of the overall blockchain industry, and supervision that cannot be ignored.
DeFi-oriented technical architecture solution DOTA
In order to further explore the application of "digitalization, assetization and new finance" in the future. The white paper proposes a Defi-Oriented Technical Architecture (DOTA) -oriented technical architecture solution . As shown below,
The white paper emphasizes that DOTA is not a software or a tool. It is a set of proposed technical architecture for distributed financial scenarios and applications, and it is also a set of specifications and standards for DeFi applications and scenarios.
Under this reference architecture, the Du Xiaoman blockchain team designed and implemented the Dota-Core core framework, a complete and extensible implementation of the Decentralized Protocol. The architecture diagram is as follows,
The white paper also mentions the implementation of a financial DID under the DOTA architecture, namely Dota-Passport. DID is a new identity system that is more suitable for the digital world and digital financial scenarios. The implementation of DID is based on Dota-Core, so the DID information itself is hosted in an initial DID universe. Like other business domains, DID data also guarantees the credibility of data through decentralized protocols, transactions, and consensus.
In addition, in the potential application scenario of DOTA, the white paper introduces the unified distributed financial identity (e-DID), digital asset management (DAM), and IoT distributed settlement network (DDPN).
Finally, the white paper makes the following predictions for future blockchain technology and distributed finance:
1. The first blockchain application that is truly applied to people's lives on a large scale is likely to happen in the direction of "finance + digitalization + Internet of things".
2. The underlying decentralized technology needs to be driven by actual scenarios in order to produce qualitative progress, and these scenarios may be the cross domains of finance, digitalization, and the Internet of Things.
3. In the purely virtualized digital financial scene, there may be widely accepted benchmarking applications that are not widely used.
4. Various types of cases (including finance-related cases) to to G (for government) have blossomed everywhere, but the effect levels are uneven.
Li Feng: always focused on the exploration and landing of "blockchain + finance"
In the opinion of Babbitt, the "Du Xiaoman Financial Blockchain Research and Application White Paper (2019)" is one of the most exciting blockchain white papers this year. The white paper innovatively proposes the DOTA technology architecture, and explores and analyzes its application. From the textual expression of the white paper, we can also feel the author's enthusiasm and pragmatic attitude towards blockchain technology and DeFi.
This afternoon, around the white paper, a reporter from Babbitt conducted a brief interview with Li Feng , the head of Du Xiaoman 's blockchain.
Babbitt: What would you say if you summarized the content of the white paper in one sentence?
Li Feng: Research and innovation of distributed financial infrastructure.
Babbitt: How long did it take to write the white paper?
Li Feng: There was a plan at the beginning of the year. Apart from doing some blockchain implementation projects with financial business this year, most of the remaining time was spent on the research and implementation of distributed financial solutions, and the transcription of the white paper was intermittent. 2 Time of month. Like the 2018 white paper , our positioning is to do a valuable work that is beneficial to the industry. Therefore, each section in it is formed after discussion and deep understanding. The entire process of transcription is repeated continuously. Modified, very painful. Fortunately, we persevered and were satisfied with the description of our work.
Babbitt Reporter: Is DOTA a brand new technical architecture or a combination of other technical architectures?
Li Feng: We have always focused on the exploration and implementation of "blockchain + finance", but we have observed that the current development direction of DeFi is somewhat wrong, some are too narrow and narrow, and we think this is not good for the subsequent development of the industry . Therefore, combined with our understanding of "blockchain + finance" and the derivation of the evolution of future financial models, we propose how to explore the technology and scenarios for generalized DeFi. The premise of these explorations is the need for a complete infrastructure, which is currently a blank. Therefore, we have spent a lot of time on research, and thus concluded the DOTA technology reference architecture. It can be said that it is a brand-new framework or a landing guideline, hoping to allow the industry to be broader and support the exploration of "blockchain + finance".
Babbitt: How is the actual application of DOTA?
Li Feng: The three scenarios discussed in the discussion are all very valuable scenarios: they reflect the value of distributed technology and bring business value. We are currently working on the implementation of e-DID, and DAM is also researching suitable entry. DDPN is currently mainly in the discussion stage, and he relies on the maturity of IoT technology.
Babbitt reporter: In the past year, the application of blockchain is not optimistic. How did you stay enthusiastic and persist in this environment?
Li Feng: To quote a saying: Because I believe, I see it. Our current blockchain exploration, commercialization or profitability is not our primary purpose. As mentioned in the preface, we recognize the huge future of "digitalization + assetization + new finance", so we have been relentlessly exploring technology and application scenarios. The coming of this future may not be so fast, but we believe that it will definitely come, and the changes or opportunities brought by that time are beyond our imagination now. This is the source of our continued adherence, whether at the peak or the trough. Of course, the company's strong technological genes and strong support for the exploration of fintech, especially cutting-edge technologies, are also the strong backing for our exploration.