China UnionPay Zhou Wei: Blockchain is infrastructure rather than tools, UnionPay will release heavy projects in the near future

On October 12th, the "2019 CCF Blockchain Technology Conference" hosted by the Chinese Computer Society (CCF) was held in Chengdu, and Babbitt was invited to participate. On the afternoon of the “blockchain technology and financial innovation” theme sub-forum, Zhou Yin, head of the blockchain of China UnionPay Electronic Payments Research Institute, delivered a keynote speech entitled “Blockchain: IT Tools or Infrastructure”.

Zhou Wei said that the reason why some people think that the current blockchain environment is cold is because people use it as a tool, so they can't see the application value. The correct approach is to treat the blockchain as an infrastructure. The infrastructure should establish the value of “eco-integration” for equal collaboration, business sharing, and business autonomy, and new innovative business models will emerge.

Zhou Wei also revealed that UnionPay will release a global infrastructure network for blockchain enterprise applications in the near future, aiming to change the high cost of the current alliance chain application, and provide the public blockchain resource environment for developers with the Internet concept. Reducing the development, deployment, operation and maintenance, interoperability and regulatory costs of blockchain applications will facilitate the rapid adoption and development of blockchain technology.

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The following is the content of Zhou Wei’s speech, Babbitt finishing:

I am very happy to be here to share with you. The topic I want to share today is "blockchain: IT tools or infrastructure."

Some teachers mentioned that the blockchain is relatively cold this year. I think this year is better than last year. It was very cold last year. This year, the temperature is uneven. Some people think it is cold. Some people think it is hot.

Why are some cold and some hot? Two directions, one direction is that if you use it as a tool, you will feel very cold. If the blockchain is a tool, many people will question where the value is. Blockchains can be very hot as an infrastructure. Cold and hot are things that you need to go deep into.

Block chain cold status

Let me talk about "cold" first. Many people say that the core application of the blockchain is lacking, and the blockchain has no explosive application. Let us look at the development bottleneck of the current blockchain:

First, the technology is not mature.

There are technical difficulties in the performance, capacity, and scalability of blockchain systems.

Second, there is almost no infrastructure.

There is no blockchain technology platform that is consistently recognized and used by the industry. The Internet is now an infrastructure, and what applications can be applied to it. The end result is that users are not interested in these infrastructures. There are a lot of people doing it, but it’s hard to do.

Third, the core application is lacking.

The application scenario has not changed in the past year. Mainly used in data information sharing business, there is no iconic application with industrial influence. The alliance chain is not mentioned, and the most famous ones in cross-border business are not done. Electronic invoices are special, which is a combination of government affairs and bills. The State Administration of Taxation has a very high level of attention to this piece, and will later promote standards in the national system.

Fourth, the industry standards are missing .

Each blockchain platform lacks interoperability, compatibility, and business data cannot interact, which restricts the technology transformation, application of results and industrial layout of blockchain. Now everyone is working hard, and the standards of some subdivisions have to be formulated. The timing for setting big standards is not very mature. Because of the definition of the blockchain, we have not reached a consensus. So the standard is fixed, each has its own statement.

The most influential projects in the blockchain come from infrastructure

The application level of the blockchain is from top to bottom: tools, platforms, and infrastructure.

Most people do tools, so they feel cold now.

The platform is based on a certain core enterprise or a strong enterprise. After the ability is empowered, the players here are not equal. Generally, there are powerful units with centralization. Some of them may be easier to form. platform. The platform relies mainly on the industry to see if the industry allows you to do so.

Infrastructure is a relatively equal unit, and everyone builds it. Infrastructure construction is more difficult and there will be more problems.

IT tools are now not profitable. We use the blockchain as a tool to solve some pain points or small technical difficulties in the existing business within the enterprise, but it does not bring new business growth points to the company. Solving small technology points and business points will face many technical challenges, others will question why they must use blockchain.

The infrastructure should establish the value of “eco-integration” for equal collaboration, business sharing, and business autonomy, and new innovative business models will emerge.

Influential are infrastructure projects, such as Libra's project, China Construction Bank's "BCTrade2.0 blockchain trade finance platform", including SWIFT's business is also aimed at cross-border scenarios. These projects are more valuable than the scenario in which a single blockchain that many of us do now is used by tools. Especially like Libra, it is a cross-institutional, cross-international, cross-industry network that is truly infrastructure. The imagination space for everyone here is very large.

In summary, the current blockchain infrastructure projects have the following characteristics:

First, relying on its own ecology, such as Facebook has a large number of users, SWIFT has banking resources, they do things around their own resources.

Second, there are strong centralization promoters, such as Facebook and SWIFT, which are powerful central organizations, and domestic construction banks are the same.

Third, there are many applications focusing on cross-border areas, and internationally influential and capable companies are eyeing this one.

Fourth, there is strong technical support behind the project, which solves technical problems such as performance, privacy and scalability.

UnionPay will jointly launch Blockchain Service Network (BSN)

Next week (October 15th), led by the National Information Center, China UnionPay and China Mobile will jointly release the Blockchain Service Network (BSN). The aim is to make a national-level blockchain service infrastructure that is unanimously recognized, open, inclusive, business-innovated, technologically advanced, and well-standardized throughout the industry.

This platform does not focus on the business itself, it is focused on the bottom of technology to provide everyone with real infrastructure. Its composition is relatively simple, and the cloud resources of China Mobile across the country are chained together to provide low-cost infrastructure services to the service providers, application parties and developers who want to use the blockchain.

The corresponding developer can publish his own application on the network, and the business party can use such a network in theory.

The Blockchain Service Network (BSN) project also faces difficulties and challenges.

The governance model is currently led by three national background units, with a multi-distributed cooperation model. In this blockchain environment, we have very large units and institutions to do this, and they are more equal. The governance model will be explored while doing, and even other services will be introduced later. The operation and maintenance model inside is more complicated and the governance model is more complicated.

The trust mechanism is related to the governance model in a certain sense. The trust mechanism is how we can trust these parties. It is very difficult. It is not the operator who does not believe that the company has not reached a legal joint venture to establish a company. The internal process of the company is a hindrance to the development of this matter. . When we cooperated, everyone said a simple process. Everyone should go on the platform. When the process gets inside the company, it may not work. Although it is very small, it is very likely that this thing will be stagnant.

Technical operations . At present, we rely on mobile, and China Unicom and Telecom may join in the future, relying on the nationwide resources of operators to turn it into a nationwide network. Here we use the blockchain to do the combination, we have some initial attempts, but to achieve the latter effect, it really takes half a year.

We are not officially released at the press conference next week. It is a press conference for the internal test version. Everyone can apply for an account to do the internal test to help us find the problem perfect. This is the way we solve the problem, not the behavior of closing the door.

I hope that all walks of life, including industry colleagues, will participate in this project. We have the obligation to help it with any innovative and influential projects in the industry. This is a support and promotion for our entire industry. Otherwise, everyone will go it alone. The industry is hard to make at the end.

The blockchain is about cooperation and cooperation. I hope that through all aspects of cooperation, we will work together to build the blockchain network and blockchain infrastructure into a truly valuable Internet. thank you all!

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