Interpretation of the head of China Telecom's blockchain business R & D: Why do telecom operators do blockchain?

Editor's note: The original title was "China Telecom Liang Wei: Interpreting the 4 Most Important Issues in the Blockchain World"

"If the chip is stuck by someone else, then we are indistinguishable from the United States in the field of blockchain." Liang Wei, head of R & D of China Telecom's blockchain business, said.

Recently, in the "Intelligence + Academy" blockchain training organized by the China Academy of Information and Communications Technology, Liang Wei, the head of China Telecom's blockchain business R & D, announced his understanding of the blockchain.

Liang Wei introduced the development status of blockchain at home and abroad, and elaborated from four aspects: the characteristics and similarities and differences of Libra and DCEP; the next "wind outlet city" of blockchain; policy interpretation of blockchain; China It is becoming the "Yuasa Center" of world technology.

It is reported that China's three major operators began the blockchain experiment in 2018, and the China Mobile, China Telecom, and China Unicom jointly led a trusted blockchain telecommunications application group was officially established. "The output value of blockchain technology in the telecommunications field will surge from USD 4.66 million in 2018 to USD 993.8 billion in 2023." Liang Wei emphasized in this training.

In China, China Telecom has proposed the first ITU-T international standard for blockchain, and in the blockchain SIM card (BSIM), electronic bidding based on blockchain, inter-provincial settlement based on blockchain, Exploration and practice of innovative business aspects such as the trusted traceability of the blockchain.

Liang Wei divided the application of blockchain in the telecommunications industry into eight categories, and explained the pain points and solutions in turn.

The following is the original text of Liang Wei ’s speech. Lei Feng.com ’s AI Financial Review has edited and arranged without changing its original meaning.

We are now in the era of 5G and 6G. In the 3G and 4G era, smartphones are the new organs of humanity. In the 5G and 6G era, everything will be connected.

Now the new economic model is different from the traditional economic model. For example, when we do "Double 11", there is a driving force behind technology. The peak of "Double 11" in 2019 was $ 544,000.

We are talking about the blockchain in the context of promoting the development of the digital economy. If other technologies are an accelerator, the technology of the blockchain is more of a brake. To achieve large-scale collaboration of value transfer, it must be slowed down.

We talk about fusion technology, such as the integration of 5G, blockchain, and the Internet of Things. This is an important iron triangle fusion. The triangular structure is the most stable, each corner is an independent technology, and the enhancement of each corner will affect the other two corners. 5G + Blockchain will help us to reverse the interconnection of all things; 5G + Internet of Things can break through industrial applications; Blockchain + Internet of Things can bring the next sharing economy.

5G + blockchain + artificial intelligence is spawning new business models.

In this training, I will ask four questions and interpret them.

First question, what is your opinion on Libra and DC / EP?

I think the two are completely different. Libra has three characteristics worthy of attention:

1: Technology. Everyone cares about Libra's coin and rarely cares about its chain. Libra is built on features such as security and scalability.

2: Finance. Every Libra is backed by currency or bonds.

3: mode. Libra is a blockchain model, although it was initiated by Facebook. Now there is a problem. Facebook is an Internet company. In 2018, it had revenues of $ 38.1 billion and profits of $ 25 billion. Why don't such Internet companies do Internet business, but do blockchain business?

There are 1.7 billion adults worldwide who do not have access to the financial system and cannot enjoy the financial services provided by traditional banks. Of these, 1 billion have mobile phones and nearly 500 million have Internet access. Due to big data, authorization, and privacy reasons, the Internet has come to an end and cut into Internet payment. Libra can achieve the field of Internet payments. In 2018, China's Internet payment has 28 trillion transaction volume. Libra can do cross-border payment market. Global payment was 12.8 billion in 2018, and he had 700 million users. There are more considerations behind this.

Speaking of cross-border payments, not only Libra is doing it, for example, Morgan's Qucrum is also doing cross-border payment business, VISA is also doing cross-border payment, UBS (UBS) and 14 banks USC are doing cross-border payment.

DC / EP is not the same as Libra. It has four characteristics to focus on.

One: MC replacement. DC / EP not only maintains the attributes and main characteristics of cash, but also meets the needs of writing and anonymity.

Second: accounts are loosely coupled. Different from electronic payment, DC / EP is separated from traditional bank accounts to realize value transfer, which is beneficial to the circulation and internationalization of RMB.

Three: Two-tier operation system. Commercial institutions pay reserve funds to the central bank in full and at 100% without overspending and without affecting the existing monetary policy transmission mechanism.

Four: The technical line is neutral. Meet 300,000 retransmissions per second.

The second question, Hainan and Xiong'an, who is the next outlet of the blockchain?

Technology and capital are the development of a double bond. Nasdaq in the United States has created Silicon Valley and Stanford. The Shanghai Stock Exchange has brought prosperity to the Science and Technology Board, the Shenzhen GEM has brought prosperity to the Shenzhen New District, and the New Third Board has brought innovation and entrepreneurship to Zhongguancun.

Digital assets will form the next exchange. Is this exchange in Hainan or Xiong'an?

The blockchain will one day rise to the level of social superstructure, at this time the advantages of the socialist system can be more manifested. When we study the blockchain, we should insist on institutional self-confidence and cultural self-confidence.

The third question, what is the relationship between the Fourth Plenary Session of the 19th Central Committee and the blockchain?

In the first relationship, data is incorporated into the basic economic system as the seventh factor of production. The first six factors of production are labor capital, land, knowledge management, and technology. Incorporating the digital economy into the system has laid the foundation for the blockchain. Blockchain is a commonality and equality. Blockchain can lay an important foundation on the distribution mechanism.

The second relationship, the modernization of national governance system and governance capacity is the "fifth modernization" following the four modernizations of agriculture, industry, science and technology, and national defense.

These two points are the focus of the Fourth Plenary Session of the 19th CPC Central Committee and have a certain relationship with the blockchain.

The fourth question is, is China becoming the "Yuasa Center" of world technology?

In the 70 years since the founding of the PRC, China's science and technology have developed rapidly. In terms of intellectual property rights, China has surpassed the United States in number.

Blockchain has an important relationship to national competition at this point in time. The development of China's and the United States' blockchain is indistinguishable. If we say that we are stuck in the chip by others, then we are indistinguishable from the United States in the field of blockchain.

"The Yuasa Phenomenon" (Note: The Yuasa Phenomenon is a phenomenon in which scientific activity centers have periodically shifted around the world since modern times.) Galileo is the first and Newton is the second. Galileo was born in Italy in 1540. In addition to Galileo, scientists such as Bruno and Copernicus were also in the same era.

At the time of Newton's era, the world's first industrial revolution occurred. His research in astronomy, geography and biology dominated by gravitation made Britain a science and technology center at the time.

The third is Laplace, France, when French scientists gathered.

The fourth Einstein was a German scientist. At that time, besides Einstein, Germany also had scientists such as Bronck and Liebich.

Fifth place is American Linus Pauling. From 1930 to now half of the Nobel Prizes have been won by Americans.

The sixth place is Tu Xun. General Secretary Xi mentioned "a big change that hasn't happened in a century". This big change has three characteristics, one is big development, the second is big change, and the third is big adjustment.

On September 27, the Information Office of the State Council of China released the white paper "China and the World in the New Era". After reading it, I had a kind of self-confidence. We are in the best period of development since modern times. The world is in a state of unprecedented change in a century. The two are intertwined and turbulent. The opportunity of the digital economy belongs to the Chinese. We are on the same starting line, especially the US and China on the blockchain. China and the United States each share the top 10 blockchain companies in the world, and it is not an exaggeration for China to become the center of Yuasa.

Why do telecom operators do blockchain?

Teacher Wu Jun said that the world is divided, and the network world is the earliest. Now that Internet companies have established a high-profile wall of data channels, they have monopolized data resources and formed oligarchs. In the next stage, the blockchain will bring value to the Internet, a new personal economy, and it will be a stage. How will the historical opportunity be divided? Economic opportunities are important.

Advantages of the blockchain in the communications industry: At the bottom is a wide range of infrastructure, including network communication storage calculations, where there will be massive users and data to provide exchange.

Further up is the application scenario of government and enterprise resources. Two projects are more famous.

The first is BSN, which is promoted by China UnionPay and China Mobile. Now more enterprise alliances are joining. The future is the "inter-chain network", which is to help modernize the national governance system, and to build a blockchain infrastructure across public networks, regions, and institutions. At present, node deployment in 55 cities has been completed.

The second project is a 5G collaborative economy. China Unicom and China Telecom share that, because it is in the 5G phase, 5G construction is four times that of 4G, and the energy consumption of a base station is three times that of 4G. The construction cost of the operator is very high.

There are eight categories of blockchain applications in the telecommunications industry

Scenario 1: Telecom equipment management

Pain points: There are many telecommunications equipment, many types, many manufacturers, and many batches. It is a top-down transparent and penetrating management. The technology of automatic collection, trusted storage, record tracing, and intelligent sub-process of the number of inspections is incomplete, and the data analysis is not accurate.

Development strategy: On-chain construction, automation construction, and intelligent construction. In these areas, we have done a lot of work.

Scenario 2: Dynamic spectrum management and sharing

If static management is adopted, the utilization rate is relatively low.

The use of blockchain for dynamic spectrum management and sharing is an important scenario for the communications industry.

The operator of each spectrum can be authorized as a node, the dynamic spectrum sharing mechanism is determined by the smart contract on the chain, and the billing and settlement is realized according to the sharing mechanism. This is an important application scenario.

Scenario 3: Digital identity authentication

It has two pain points: personal and device. I'm writing a second book now that deals with digital authentication.

Solution: Unified user authentication, protect operators from using real-name authentication user databases to form an authentication alliance chain, and attract third-party companies to join.

Using algorithms to establish a unique digital identity for each user, combined with blockchain technology to ensure that digital identity is not tampered with and authorized for use. Device-based digital identity authentication. The traditional PKI technology centralized certificate application and query is changed to distributed, and the certificate is generated by itself. Blockchain nodes use smart contracts to verify and write the certificate. trust relationship.

Scenario 4: International roaming settlement

The multi-participation scenario is more suitable for blockchain. Because the multi-participation scene is prone to complaints and disputes and disputes, the blockchain is exactly the solution.

In this process, the update and automatic configuration of smart contracts can be put on the blockchain. Each participating operator will do its own agreement documents and processing workload with smart contracts, increasing transparency and automation. Now some manufacturers, such as European operators and Asian operators, are doing roaming settlement based on blockchain. Can be shared by multiple parties.

Scenario 5: Data circulation and sharing

There are similar problems in the circulation and sharing of telecommunications big data as in other industries: insufficient standardization and completeness in data transactions, core issues such as data confirmation and data pricing have not been fully resolved; the requirements for data security and privacy protection have become more prominent Lack of technical means; the existing "centralized" data circulation method lacks credibility in the telecommunications industry.

Build a "decentralized" data circulation and system based on blockchain technology, share data metadata, sample data, data acquisition requirements, data transactions, and ownership transfer information; before data resources are generated or circulated, the right information and Data resources are effectively bound and registered for storage, providing technical guarantees for maintaining data sovereignty; using smart contract rule codes instead of contracts to achieve automatic acquisition of on-chain payments and data access permissions, and improve transaction automation.

Scenario 6: IoT applications

The blockchain is not yet a sharing economy. In the future, we can imagine that blockchain + the Internet of Things will allow everything to be truly shared.

Basically, no one has heard of "Internet of Things +", and usually heard of "Blockchain +". We often say "artificial intelligence +" and "5G +" and rarely hear "cloud computing +" and "big data +". "Blockchain +" and "Internet +" are concepts. In 2014, there was a book called "Nine Books of Internet Thinking Gallery". I am now writing a second book called "Blockchain Thinking".

Everyone no longer talks about Internet thinking, because now Internet thinking has been closely integrated with all walks of life. We use the Internet to buy movies, high-speed rail tickets, pay utility bills, and so on.

This is the time to talk about blockchain thinking. I have formed a very complete theoretical system. After 5 years, everyone will not talk about blockchain thinking anymore, because blockchain thinking has been combined with a hundred industries. It's very tight.

Nor can any centralized system support massive connections between objects. The combination of blockchain and the Internet of Things can reduce and increase revenue.

Scenario 7: Cloud-network integration application

Result scheme: cross-network docking and cloud-network integration, which involves cross-cloud and cross-network docking, which is more suitable for blockchain technology.

Scenario 8: Multi-access edge computing

The blockchain provides edge computing power. MEC + blockchain can realize the sharing of storage computing power, and form idle blockchain resources to provide resources.

In China, the MEC + blockchain is similar to the chain lesson made by Thunder, which contributes idle bandwidth and resources.

In foreign countries, the earliest attempt in the field of telecommunications operators' blockchain was the US telecommunications giant AT & T. AT & T can provide a historical map of social media based on the blockchain and create a blockchain industry solution suite. The COLT operator and the Hong Kong operator PCCW complete the POC, making batch sales of voice assimilation time and settlement between operators more efficient and secure.

summary:

1: According to data from research institution Research and Markets, the output value of blockchain technology in the telecommunications field will surge from USD 4.66 million in 2018 to USD 993.8 billion in 2023.

2: The decentralization of the blockchain, anti-tampering, and the multi-party consensus mechanism determine that the blockchain requires multi-party joint decision-making and the establishment of mutual trust in the telecommunications industry cooperation. This has important value in terms of operator optimization, cooperation and collaboration in the upstream and downstream industry chains.

3: The popularity of 5G technology will accelerate the implementation of blockchain applications. Blockchain lays the foundation of trust for value transfer in the 5G era. Blockchain provides new ideas for 5G security and privacy.