Dean of CCID Blockchain Research Institute: Blockchain is about to erupt in the field of e-government, and ordinary people will eventually get used to the existence of blockchain

Author: Durian brother

Source: Huoxun Financial Information

Editor's Note: The original title was "Liu Quan, Dean of CCID Blockchain Research Institute: Blockchain applications are about to erupt in the field of e-government"

Introduction: On October 25th, during the 18th collective study of the Political Bureau of the CPC Central Committee, General Secretary Xi Jinping emphasized the use of blockchain as an important breakthrough in independent innovation of core technologies and accelerated the development of blockchain technology and industrial innovation. For a time, blockchain became a hot topic among many government departments, major listed companies, and scholars. On the evening of November 4, Liu Quan, Dean of CCID Blockchain Research Institute, was the guest of the second phase of TALK. The following is a record of the interview.

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Liu Quan, Dean of CCID Blockchain Research Institute:

• Blockchain is not equal to digital currency. Digital currency is only one application of blockchain.
• Blockchain is a "C-side non-sense" technology, and ordinary people will eventually get used to its existence.
• People engaged in the industry are now pioneers and active promoters of the industry.
• Compared with the public chain, the alliance chain can better meet the regulatory needs.
• Enterprises engaged in the research and development and application design of the underlying technology of the blockchain will have better survival space.
• At present, blockchain is the most widely used and the application effect is better in the financial field. The social benefit is better in the field of electronic certificate. The area that is about to erupt is e-government.
• Establishing a regulatory framework for cryptocurrency trading and cross-border payment markets with Chinese characteristics
• The main domestic field is technology innovation at the application layer and protocol layer, while the innovation of the underlying technology and original theory still needs to be strengthened.

01

"Blockchain is not equal to digital currency, digital currency is only one application of blockchain"

The first question: what exactly is a blockchain? Overnight, alleys were talking about blockchain. But for many ordinary people and even social elites, there is still a misunderstanding of blockchain = virtual currency. So, in simple terms, how do you understand the seemingly mysterious blockchain technology? How to carry out effective market popularization education?

Liu Quan: Structurally, the blockchain encrypts and packs data information that occurs over a period of time into a "block". Each "block" is similar to a small box, connected end to end in chronological order to form a chain. shape. The confirmation of each "block" requires the joint voting of all participants, that is, "nodes". The generated chain is stored in all nodes in the form of a copy to form a "distributed ledger". Modification of the ledger of a single node cannot change the records of all employees. As a result, the characteristics of "immutable and non-repudiation" are finally realized.

In terms of popularity, the biggest problem at present is that ordinary people do not understand what is "blockchain", because this emerging vocabulary is quite abstract and cannot be compared by existing technologies or solutions. Therefore, on the one hand, there is a need for higher-level promotion from the government and regulators, such as the recent important spirit of General Secretary Xi, which has instantly ignited the enthusiasm of everyone for learning the blockchain; on the other hand, it requires killer applications in the market, such as WeChat Alipay In the same way, it is necessary for everyone to participate in the national application and understand the blockchain technology in the process of use. Therefore, by combining "top-down" and "bottom-up", blockchain technology can be quickly popularized by society.

02

"Blockchain is a 'C-end insensitive' technology, and ordinary people will eventually get used to its existence"

Second question: Since the advent of blockchain technology, it has faced huge controversy. Believers see it as the future, and opponents see it as grass. What are the underlying reasons behind it?

Liu Quan: Actually, the biggest problem facing the current blockchain is the lack of "necessity" of applications. The main reason is that the technology is incomplete. On the one hand, it is impossible to implement large-scale data operations. On the other hand, the data processing efficiency is relatively low. The above reasons have led to the fact that many current blockchain applications cannot be applied on a large scale. This makes it difficult to convince users to use the blockchain.

To many opponents, blockchain technology belongs to a "pseudo-requirement", that is, the architecture of many application blockchains is not necessarily better than the traditional model in terms of efficiency and other aspects. Many people will ask, why should I use the blockchain since the traditional structure can fulfill my needs?

In fact, blockchain has strong applications in solving practical problems. Blockchain is the infrastructure to resolve trust and association relationships. At present, the bottlenecks encountered in informatization can be solved by blockchain, such as the opening and sharing of data resources.

In fact, in my opinion, the birth of any new technology always faces a technical bottleneck. When the train was invented, it was not as fast as a horse, and the early speed of the Internet was comparable to the "turtle speed", but after a period of development With our current high-speed rail and 5G or even 6G.

The future of blockchain is bright, and I am very optimistic about blockchain. So I believe that believers are the ones who see the light through the mist, and I am one of them. I believe that as technology advances, opponents will gradually change their views.

Third question: From the perspective of the people, the new generation of information technology such as artificial intelligence has gradually entered the home work and is gradually changing the way of life. For the blockchain, it feels far from ordinary people's lives. In your opinion, how far is the blockchain from entering ordinary people's lives?

Liu Quan: In fact, blockchain technology has come to us to a certain extent. Many companies have launched blockchain applications that people can use, such as the blockchain invoice launched by Tencent in Shenzhen. According to official Tencent data, As of October 30, the number of blockchain electronic invoices exceeded 10 million, the number of connected enterprises exceeded 7,600, and the invoiced value exceeded 7 billion yuan. Application scenarios include banks, supermarkets, pharmacies, properties, subway taxis, etc. There are many similar applications, such as the traceability of fresh products launched by JD. Seafood, fruits, and meat products can all be used to implement blockchain traceability and anti-counterfeiting. There are also the blockchain exploration of Beijing Internet Court, the solidification and evidence collection of blockchain evidence.

It can be said that the blockchain has slowly integrated into our society. However, blockchain is a "C-side non-inductive" technology, because it is at the bottom, and from the application layer, it is difficult for users to intuitively feel the changes brought by the blockchain. But I believe that with the rapid popularization of blockchain technology, ordinary people will eventually get used to its existence and will become one of the essential infrastructures.

03

"People in the industry are now pioneers and active promoters of the industry."

Fourth question: The blockchain industry has obvious contradictory characteristics of its own industry. On the one hand, the treatment of talents is much higher than the average level of the Internet industry. Scale is inversely proportional. In your opinion, what are the reasons for the contradiction?

Liu Quan: The main reason is that the blockchain industry is an emerging industry. When any new technology is applied, there is a similar phenomenon. Talent requirements are high and the market is not up. The market needs to be cultivated. It can be said that the people engaged in the industry are the pioneers and active promoters of the industry.

Blockchain is a fusion technology, so blockchain practitioners must also be "composite" high-end talents. The requirements are not only to master the principles and technologies of computers, but also to have interdisciplinary experience, such as "tokens "The economic principles of the model, understanding the pain points of different industries in the business, etc. Therefore, it can be said that the salary level of the blockchain industry explains the knowledge reserve and skill level of practitioners to a certain extent.

In terms of industrial scale, I think it is related to the stage of development of the blockchain. At present, it is still very early. We compare the Internet. Twenty years ago, IT was an emerging sunrise industry with a salary level much higher than other industries. It is also a state of "fire of stars". Those who dare to cross the border and dare to try are the believers we mentioned above. With the development of technology, issues such as industrial scale and income-to-income ratio will change because Any industry will go through this process.

04

"Compared with the public chain, the alliance chain can better meet the regulatory requirements"

Fifth question: Many well-known, CCID Blockchain Research Institute has repeatedly evaluated the public chain and the alliance chain. Please briefly introduce the results. In combination with domestic actual conditions, many people in the industry believe that the alliance chain is the development direction of China's blockchain. How do you look at this?

Liu Quan: At present, we mainly carry out the evaluation of public and alliance chains. Public chain technology assessment is a non-profit, non-market activity. CCID Global Public Chain Technology Evaluation Index started in April 2018, and has now issued 14 issues, and will issue the 15th issue in mid-to-late November. The main purpose of the index is to "concern the progress of global public chain technology innovation and provide a basis for China to formulate relevant policies for the development of blockchain, so as to improve China's influence in the global blockchain field and master the right to speak on the evaluation of blockchain technology innovation . "

At present, the blockchain of more than 20 units including the Beijing Internet Court's Tianping Chain and Huawei are all evaluated by us. In addition, we are also a third-party evaluation agency designated by the Beijing Internet Court. Enterprises that need to access the balance chain need to go through our evaluation.

Regarding the choice of public chain and alliance chain, I think the alliance chain has more advantages, because the alliance chain can be decentralized, and the security of the data on the chain is guaranteed. In the current era, privacy protection and data supervision are two points that governments of all countries focus on. Although public chains can participate in full names, the security of data cannot be guaranteed, and there is a possibility of serious data theft and abuse. Regulators are also reluctant to see it. The alliance chain can realize the supervision of data flow to a certain extent, so as to meet the needs of regulators.

05

"Enterprises engaged in the research and development and application design of the underlying technology of the blockchain will have better living space"

Question 6: Blockchain technology has been promoted to national strategic technology. The national policy-makers have proposed to deeply integrate with the real economy and face many challenges in the development of the task. In your opinion, the current large-scale development of blockchain faces the most urgent difficulties that need to be resolved. which one?

Liu Quan: In fact, there are many problems that the blockchain needs to solve, such as social cognition, blockchain technology to enable the business model and business logic of the physical industry, and blockchain talent training. Only considering any single issue cannot promote the rapid development of the entire industry. Only by taking a multi-pronged approach can we truly promote China's "curve overtaking" in this technology. If you have to pick one, there is an urgent need for applications with better results to let society see the value of the blockchain.

Question 7: According to the data provided by CCID Research Institute, the number of blockchain patents disclosed in China in the first half of 2019 was 3547. Alibaba, Ping An and other companies are the main force of patent contribution. Now that blockchain has risen to the national strategy, what changes will happen to the blockchain industry after more regular troops enter the market?

Liu Quan: The early development of the blockchain also showed a "barbaric growth" model. In the absence of national top-level design and planning, blockchain explorers tried from various angles, such as the underlying technology, solutions The plan, of course, also includes "coin issuance." But overall, the model is chaotic and good and bad. New companies have sprung up as fast as possible, but they have also died quickly.

Now, with the important instructions of General Secretary Xi, the development of China's blockchain has a direction, and the joining of the regular army has gradually put the development of the industry on the right track, relying more on their strong ecology to explore "blocks" The practical application of "Chain +" will "de-emerge" from this technology and be truly used by society and the people.

Enterprises engaged in the research and development and application design of the underlying technology of the blockchain will have better survival space. Blockchain will be more closely integrated with the real economy.

06

"Blockchain applications are about to erupt in the field of e-government"

Question 8: In which industries do you think the blockchain is expected to take the lead in industrialization?

Liu Quan: At present, blockchain is the most widely used and effective application in the financial field. The field of good social benefits is in the field of electronic certification. The area that is about to erupt is e-government.

First of all, the financial industry is the industry with the most frequent application of blockchain technology and the one with the highest demand. In recent years, various types of blockchain financial applications have landed in China. Blockchain-based fintech has become the main direction of product and business innovation in the financial sector. Major banks and enterprises have begun extensive exploration and attempts in the field of financial services. Many application cases have emerged in the fields of chain finance, asset management, cross-border payment, and cross-border trade.

The use of blockchain technology can establish a reliable electronic certificate. In the field of digital copyright, intellectual property, and certificates, a new authentication mechanism can be established to improve the management level in the public service field. Through blockchain technology, property rights are authenticated, such as verifying the existence of works such as text, video, audio, etc., to ensure the authenticity and uniqueness of the ownership. At present, major enterprises are exploring solutions in the field of property rights protection, laying a solid foundation for the development of the industry. The practice of Beijing Internet Court, Hangzhou Internet Court and Guangzhou Internet Court can prove this.

Because the concept of the blockchain is based on data, it will help achieve the sharing and opening up of government data, truly release the value of data, promote the transition of government agencies to service-oriented, and realize the optimization and upgrade of "Internet + government affairs." E-government will be an area where blockchain applications will explode.

07

  "Building a regulatory framework for cryptocurrency trading and cross-border payment markets with Chinese characteristics"

Ninth question: There are a lot of chaos in the current blockchain and digital currency industries. What are your suggestions on the regulatory policies of blockchain and digital currency? Which countries in the world can we use for reference?

Liu Quan: Countries around the world have a positive attitude towards blockchain, and have issued policies to vigorously promote blockchain applications. At present, many countries have promulgated blockchain-related policies. For example, the United States approved the "Blockchain Promotion Act" to formulate a regulatory framework for blockchain technology. The German government has issued a blockchain strategy to dig out its promotion of digital transformation of the economy and society potential. The International Organization for Standardization also actively conducts research and development of blockchain standardization, and continuously advances the development of key standards in blockchain smart contracts, security privacy, and identity authentication.

China should actively explore and formulate industry management methods and safety supervision mechanism systems for blockchain technology and applications, strengthen financial security precautions and supervision, organize industry application security risk assessments, and strengthen supervision and management of sensitive industry applications. Accelerate the construction of China's digital currency regulatory policy and framework, and accelerate the formulation of relevant laws and regulatory policies for digital identity management, digital asset storage and exchange rules, business licenses, business scope, information disclosure, and cross-border capital management in digital currencies. Regulatory framework for cryptocurrency trading with Chinese characteristics and cross-border payment market.

08

"The main domestic field is technology innovation at the application layer and protocol level, while the innovation of the underlying technology and original theory still needs to be innovated."

Question 10: At present, many domestic blockchain companies have an international layout. What do you think about the brain drain? How to solve it?

Liu Quan: Due to the earlier foreign exploration of blockchain technology, it has attracted many domestic blockchain talents. However, the current development of China's blockchain industry is very good. With the support of national policies, it will further promote the growth and return of China's blockchain talents.

China also needs to innovate the talent training mechanism, accelerate the construction of talent teams, and build a deep, multi-channel, three-dimensional introduction network of blockchain talents around the development and application requirements of blockchain technology to support universities and vocational colleges to set up blockchain technology applications Relevant majors rely on blockchain laboratories and talent training bases to accelerate the cultivation of blockchain technology professionals.

Eleventh Q: Seize the commanding heights of innovation, and the core competitiveness is talent. Do you think there are differences and gaps in business capabilities and technology between domestic blockchain teams and international blockchain teams? How to adjust if there is a gap?

Liu Quan: At present, China's blockchain technology innovation and industry applications are at the forefront of the world. The number of patent applications in the blockchain field is leading internationally. A group of excellent technology research and development teams and research institutions have been formed, and a number of independent research and development products and Excellent application case. However, the main domestic field is technology innovation at the application layer and the protocol layer, while the innovation of the underlying technology and original theory still needs to be strengthened, especially in the field of the underlying architecture of the blockchain and smart contracts.

In the future, China will gather resources such as "industry, research and research funding", support universities and research institutes to build blockchain innovation laboratories and research centers, closely track the development of international blockchain technology, and build a basic blockchain The technology research and development platform accelerates the evolution and upgrade of core technologies such as cryptography, consensus algorithms, security, performance, distributed systems and storage, and promotes the transformation of technology research and development results.

Editor's note: This article has been deleted without changing the original intention of the author.

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