Jiang Guofei, the ant "most burning money": landing 40+ blockchain application, building value Internet

On July 30, at the ants blockchain "Double Chain Link" media meeting, Jiang Guofei, vice president of Ant Financial and director of Dharma Institute of Financial Technology, took "Technology Pratt & Whitney, Blockchain + Supply Chain Finance" Mode is shared for the title.

On the one hand, ants focus on the research and development of core technologies, and are committed to building a financial-grade blockchain platform, investing a lot of financial resources in blockchain technology. Jiang Guofei laughs that he is the "most burned" ant. On the other hand, ants continue to explore how to use blockchain technology to land more commercial applications and serve the real economy. Jiang Guofei revealed that it has now landed the 40+ blockchain application and announced that the world's first financing based on blockchain guarantees has recently landed in Chengdu. He said:

“Alibaba’s blockchain, which was initiated 15 years ago, and now the blockchain that the company’s efforts are investing in, is to solve a social problem: reduce the cost of social trust.”

Building value internet

With the development of the mobile Internet and the popularity of smartphones, we have seen an unprecedented boom in information networks. Information networks are more of a flat, textual or video, multimedia type. With the development of blockchain technology, the flattened information network began to develop into a three-dimensional value network.

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On the value Internet, you can see a large number of production materials of pan-funded attributes, including contracts, invoices, vouchers, and meal orders, which begin to flow in the value Internet. After the transfer, it will increase the efficiency of operations unprecedentedly and provide better financial services.

In the consumption of the Internet, everyone is targeting people and providing credit services. But in the wider value of the Internet, the industry Internet, the object is more of a thing. The circulation of production materials in the value Internet can provide a lot of financial services, while improving the efficiency of the entire industry and building infrastructure. Jiang Guofei believes that the key to the value of the Internet is the “contract” (Read more: “Building a Value Internet, Meeting the New Contract Age” )

Floor 40+ blockchain scene

Jiang Guofei believes that the value of the blockchain is not to issue money or make a fortune. The blockchain without coins is returning to its core value: trust. The ant blockchain has so far landed more than 40 scenes, including blockchain traceability, renting, bills, contracts, logistics, and public welfare. The blockchain increases the average efficiency by 10,000 times. Jiang Guofei, vice president of Ant Financial Service, said:

“Every process is a long and complicated place, and there is a lack of trust. We are destroying such places one by one.”

For example, the application of ant blockchain electronic bills in Taizhou Hospital has reduced the average visit time from 170 minutes to 75 minutes, and the insurance claims have been reduced from half a month to a few minutes. And such a bill, in Taizhou, has already issued 1,000+ million copies.

For example, in June 2018, ants launched the world's first blockchain cross-border remittance project from Hong Kong to the Philippines, which saved an average of 500 Hong Kong dollars per Filipino maid per year. In January 2019, the cross-border payment of blockchain from Pakistan to Malaysia was also opened.

"We have tried very early on cross-border remittances. The vision is to move freely between countries under the premise of obeying supervision, and the second level is completed, just like sending an e-mail today." Jiang Guofei said.

Although many times consumers are not aware of it, the blockchain has served as an infrastructure to coordinate the parties and provide services. Before the blockchain, traditional industries that need to solve the consistency of flow data, such as logistics, bills, supply chain finance, etc., have established corresponding systems, but the problem of fraud in data circulation has not been well solved. The blockchain can be traced through the whole process, can not be tampered with, or the characteristics of tampering with high cost can just solve this problem.

Ant "most burned" people

Behind all these scenes is the two key capabilities of the ant blockchain.

The first is the ability to introduce ecology. There is not enough technology to do blockchain light, and business logic support is needed above. Throughout the Alibaba economy, a large number of basic functional modules have been deposited over the years, and together with partners, a variety of commercial applications can be provided in the fields of finance, people's livelihood, and government affairs. "We are an open ecology. On the Alibaba Cloud, the ant blockchain platform is open to the whole industry. Today we use the same platform with all partners and all developers," said Jiang Guofei.

The second is technical ability. Ant Financial has won the first place in the global blockchain patent application for three consecutive years. Commercial applications require a mature blockchain network, how to improve performance, develop strategies, and support the expansion of 100,000 transactions per second? How to do encryption, develop hardware-based privacy protection, and ensure data security? How to design complex smart contracts to provide efficient and rapid response capabilities? How to provide seamless cross-chaining and convergence of ant blockchains and other platforms? Behind this is a large-scale technical reserve.

Ants have spent a few years investing in this area, spending a lot of manpower, material resources, and financial resources, doing a lot of work. Jiang Guofei laughed and said that he was the "most burned" ant.

How to prevent the radish chapter

At this media meeting, Jiang Guofei focused on the ant "double chain communication" business. As the name suggests, Shuanglink is two chains: blockchain and supply chain. Ants hope to use blockchain technology to improve supply chain finance and help small and micro enterprises to finance. It is often asked, what is the blockchain? Jiang Guofei gave a sentence to answer:

“The blockchain can reorganize production relationships and improve efficiency in a collaborative network.”

Take supply chain finance as an example. The suppliers of small and micro enterprises at the third, fourth and fifth levels are often the first to start production, but they receive the money at the latest. Small and micro enterprises face enormous pressure to survive because they are at the end of the supply chain and have no ability to fight for more. The more difficult it is for the end of small and micro enterprises to prove themselves, the banks also want to give them loans, but there will be many risks, such as the frequent radish chapters and fake contract events in recent years.

What problems can the blockchain solve? The core enterprise purchases from the first-tier supplier to form accounts receivable, which can be credited to the lower-level suppliers and go to the bank for loans. Banks no longer have to worry about whether the voucher for a small business is a radish or fake contract, because it knows where the credit is coming from, which company has an order, and ultimately the core company pays. Therefore, the blockchain solves the problem of credibility of the entire link flow. "We firmly believe that this technology can help bid farewell to the radish chapter and the false contract era," Jiang Guofei said.

On this basis, core enterprises and Tier 1 suppliers, Tier 2 suppliers, small and micro enterprises, financial institutions, and guarantee institutions are the restructured market relationships. They complete the connection, complete the flow, complete the coordination on the blockchain, and improve the strategic efficiency.

For core enterprises, it acquires the ability of penetrating supply chain management and balances management costs and benefits. For chain enterprises, it reduces the cost of supply chain and improves liquidity through the flow of accounts receivable; it is more convenient for the end enterprises. Get low-cost financing; for financial institutions, expand online financial services to reduce risks and costs. As a result, it has served the purpose of serving entities, especially manufacturing and small and micro enterprises.

At the meeting, Jiang Guofei announced that the supply chain cooperation network based on blockchain technology–ant "double-chain" has been fully upgraded and opened. With the cooperation with Chengdu Commercial Bank and Chengdu SME Finance Guarantee Co., Ltd., Double-Link has completed the full-link coverage of supply chain finance, achieving the world's first financing based on blockchain guarantee, and took the lead in Chengdu. (Read more: "The world's first blockchain loan is on the ground, Chengdu enterprises use the ant blockchain to start running" )

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