Lingting 2020 丨 Meng Yan: Digital assets help China win the digital economy in the next decade

On December 27, 2019, the world's first block chain new year speech "Ling Listening 2020" was held in Hangzhou. Ms. Yan, vice president of CSDN and vice president of the Digital Asset Research Institute, delivered a keynote speech entitled "Upgrading and Challenges of the Digital Economy." Meng Yan pointed out that around the digital economy, the world is playing a big game. Chinese policy makers are fully prepared for the upcoming battle for the digital economy upgrade by raising the blockchain to a national strategy and listing data as new production factors.

The following is the full text of the speech, organized by Babbitt:

Thank you Xia Ling. When I was preparing for today's speech with Xia Ling, she said it was a New Year's Eve speech. I think it's too small. Why? Because this new year is very special, 2019 to 2020, this is not only a new year, but also an era, after the past is the third decade of the 21st century, called the 1920s. Time flies too fast!

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Recalling the last ten years, from 2010 to 2019, we Chinese have done a big thing. Our mobile Internet is doing very well, and it is simply the number one in the world. In a sense, with the development of the mobile Internet, our digital economy has come back. Today we have traveled all over the world and are often proud. Their mobile Internet level, especially mobile payment, is incomparable with China. Mobile payment has become one of the "four new inventions". China has achieved a counter-attack in the digital economy in the past decade and the second decade of the 21st century.

But digital technology continues to advance, and there is a continuous iteration of 5G, artificial intelligence, big data, and the Internet of Things technology. A new round of competition has begun.

Since you have been able to counterattack others in the past decade, they certainly want to counterattack you in the next ten years.

Digital Economy Upgrade: The World is in the Next Big Game

We look at the digital economy. Now it is no longer our national strategy. The world attaches great importance to the digital economy. This is a big game. The United States has the law of the United States, and Germany and France of the European Union have formulated strategies for the digital economy. Britain has just left the European Union, but it has a digital charter, and it is particularly interesting that it has a national digital metering implementation plan. It has to digitize many things. Not to mention Japan, next to us, they all have very good and macro strategies in the digital economy. This is no longer a national issue, it is a global issue.

So in this case, many of us are very concerned. We Chinese policymakers, what do they think? How do we plan to win this round of digital economy upgrade competition?

China's Choice: Take Blockchain to Strategic Heights

Of course, we know that Chinese leaders are far-sighted in this regard. On October 24, 2019, General Secretary Xi took the blockchain as an important breakthrough in independent innovation of core technology and promoted the blockchain to a national strategy overnight.

You may not know that the Political Bureau of the 18th Central Committee of the Communist Party of China held a total of 43 studies, of which 0 were related to the digital economy; the 19th Political Bureau of the 19th Central Committee conducted 19 studies, and three of them included the topic of the digital economy. , Artificial intelligence and blockchain, especially the positioning of blockchain is the highest. This illustrates the problem.

The Fourth Plenary Session of the 19th Central Committee: Data as a New Factor of Production

This speech was on October 24, 2019, and one week later, China held the 19th Fourth Plenary Session of the Central Committee. The Fourth Plenary Session of the 19th CPC Central Committee has a long "Resolution" with tens of thousands of words, some of which are called "adhering to and improving the basic socialist economic system". There is a sentence in it that is important. New factors of production.

This "Resolution" is too long, and most people will not read it carefully, so I am afraid that everyone did not notice it. Vice Premier Liu He published an article in the "People's Daily" on November 22, entitled "To improve and improve the basic socialist economic system" is to remind everyone to pay attention to a problem: the data has been established as a new factor of production by the CPC Central Committee.

Data will change the logic of economic growth

The factor of production is a very important word, which has a very significant meaning in economics. And Vice Premier Liu He is a top economist, so he uses economics terms. He said that data must become an independent new production factor; data has the most contemporary characteristics, and data has a "multiplier" role, which helps to realize the value of other factors; data must be contributed by market evaluation and the contribution is determined by the contribution. All kinds of conclusions, in the end, he added one of the most important "data to confirm the right" in order to open, share, and trade.

This is equivalent to the leadership of our government in such a way to show us what China's strategic focus and main attack direction will be in the next round of digital economy competition. We treat data as a new factor of production. This will have a huge impact on you, and on our country's economic and industrial development in the next ten or two decades.

In order to understand exactly what the word leadership means, we have to drop the book bag, study economics, and understand what are the factors of production.

The classical economy doesn't care how the company organizes production, but instead treats the company as a black box. Suppose a group of magical people hide in a black box, as if this company is a mathematical function. I will provide you with some input products, and you will Magically creates a bunch of output, which is the commodity that ordinary people need. But in order for you to be able to produce these goods, I must provide companies with many different inputs or inputs, which are economically called factors of production.

The father of economics, Adam Smith, mentioned the factors of production. Adam Smith has three factors of production: land (natural resources), labor, and capital. But different economists have different views on the factors of production. Different views actually deeply reflect the profound insights of different economists about the world and the mode of economic development.

For example, Marx thought that the factors of production were labor, objects of labor, and labor tools, reflecting the ideology of the proletariat; neoliberalism, they believe that all factors of production are related to capital, so to them, the factors of production are variable capital. Also called liquid capital, fixed capital, financial capital, human capital, everything is capital.

So cognition of factors of production is a very important thing in economics, it determines how you think about production and how to manage your economy. More importantly, what does it have to do with us? There is a model in microeconomics. You can see clearly in that model. How do you get your income? It depends on your contribution to the factor of production, and it is your ability to sell the factor in the factor market to earn income. In other words, first of all, we need to know what are the factors of production, and then you can provide the factors of production to the manufacturer, and you can get more income.

After reform and opening up, our country ’s understanding of factors of production has undergone a process of improvement. Before the Fourth Plenary Session of the 19th Central Committee, there were six such items: land, labor, capital plus knowledge, technology, and management. A very high level of awareness. For our people, if you can own these factors of production and sell them to companies, you will make more money.

Then, at the Fourth Plenary Session of the 19th Central Committee, data was added as the latest production factor, which is a very important matter.

Keynes said that those who think they are only concerned with practice and not led by any economic theory are just captives of a mediocre economist. We listen to this in turn . A small adjustment in economics and cognition will bring about drastic changes to our economy and income distribution in five, ten, and twenty years . I can boldly predict that the central government will make this decision, and data will become the new factor of production. After ten years, there will be two consequences: first, the logic of our economic growth will change; second, who will have more data in the future? The more people who can make better use of data, the more money they have, and the more wealth they have, it's that simple.

Generally speaking, there are two types of allocation of production factors: one is planned allocation, and the other is market allocation. And our country has clearly stated that all production factors (including data) must be allocated by the market.

Marketization of production factors will lead to data assetization

Data is a factor of production, and the factors of production must be allocated by the market. Combining these two points, we can immediately draw a clear conclusion that data must become an asset. What do I want to say? We have discussed many blockchains here, and many people are concerned about whether we will have digital assets in the future. See what the resolution of our Central Plenary says and what our leaders say. Do you still have questions about this issue?

Why do I say that data must be an asset, we must first know what an asset is. Mr. Wang Zejian wrote in the General Principles of Civil Law that "assets are aggregates of rights with monetary value." Does the data have monetary value? Of course, is it an asset? Assets, of course, are defined by our Ministry of Finance Order No. 76. Assets are formed by past transactions or events of the enterprise. Resources controlled or owned by the enterprise are expected to bring economic benefits to the enterprise. Does the data meet this definition? Of course, it is consistent, so once data becomes a factor of production, it must become an asset.

Data becomes an asset. What kind of asset is it? It's the digital asset that many of us love.

The conclusion came out: In the next round of digital economy competition in our country, leaders are concerned about turning data into a factor of production, and this change will inevitably lead to a big explosion of digital assets. A basic judgment.

There are two types of sources of digital assets: the left is what we are more familiar with, called asset digitization, such as currency, stocks, claims, real estate, ABS, and warehouse receipts. It is easier for everyone to understand and familiar with; there is also a wonderful type of digital assets. It is not digital assets, but digital assets. As a group of us, whether it is an enterprise or a community, through consensus, some figures generated in practice are given value and asset attributes. Such assets are formed by digital assetization, they are more interesting, and there will be a large number of new commercial species and a large number of new models. I believe it will become the most active part, and this is the part we care about the most.

Challenges for data to become a factor of production

We think very well that data is going to be an asset, but in fact digital assetization still faces many challenges. This is not to say that the central leadership can write an article and this can be done. Leadership decision-making is a very important start, but it will take a long time for many of us to see what challenges we have.

First, to become data, data must first become a commodity. But think about it. Data has a huge feature. It can be copied around the world at almost no cost. A low-cost thing that can be copied at will. There is no scarcity. The supply can be enlarged at will. Who will buy it?

The second question, a piece of data is in front of you, and you tell me, who is its owner? Two identical data are placed in front of you. Tell me who is the original and who is the duplicate? Data does not have a natural ownership mechanism and labels, and it is not clear who owns the data. How to trade a thing without ownership?

Third, we are all familiar with the free internet model. What is the essence of this model? We use internet products for free, and internet companies collect our data for free. But when we want to commoditize and capitalize data, we need to define and price the data. But how does the data price it accurately? This is a difficult question. My monthly income is 10,000, and Wang's total monthly income is 1 million. Should our data be equivalent? this is a problem.

Fourth, the data is too easy to falsify. Recently, there was a news. An influencer advertised for others. This influencer had 3.8 million followers and helped others advertise 3.53 million clicks. The final transaction volume was zero. why? His fans are all robots, and clicks are made by robots. It is conceivable that the data is too easy to falsify.

The last is the application of data integration. Data must be integrated before it can play a role. However, when integrating, do you integrate me or me. Why should I integrate with you, what if you look at my privacy?

Data assetization faces so many problems, and hastily engage in data assetization without solving it. The result will be whoever can counterfeit, who is more overbearing, who is more opportunistic and who has more money. These issues must therefore be addressed.

Traditionally, we have solved some problems in a centralized way. Whoever has the ability to process data, we give it all the data and let it solve the problem. Many giants were born in this way, including Ali and Tencent in China and Facebook, Amazon, and Google in foreign countries. This approach is not bad, because more people can work harder, you can get more data if you have the ability, which is also in line with the principle of optimal data configuration. So many people say that when the blockchain era comes, giants will disappear. No, they represent efficiency, and they will continue to exist and continue to develop.

The problem is that it also brings data to the fifth issue of production factors. Giants often take the initiative to engage in closure and monopoly. This is not a criticism or responsibility, but a rational choice of enterprises under market competition. As a result, intentional ambiguity of data property rights and distortion of data value are brought about. This method also has high risks. Logically, if the data is concentrated in one place, there is a single point of risk.

In summary, the above five challenges have prompted us to consider whether there is a better way to solve the problem of digital assetization.

How to do? Let's go back to the source and think about what an asset is and how to generate it? Mr. Wang Zejian said that assets come from rights, and rights are defined by contracts. The contract contains three elements: the right holder, the contract voucher, and the contract constraint system. Together, these elements sign a contract, which results in rights and, in turn, assets. So everyone must understand that the contract is a basic element for generating assets.

"Contract" is "contract" in English. In addition to the definition of "contract", it also has a word meaning "contract". I don't know if anyone knows. Many people don't understand why contract and contraction are a word. From the perspective of etymology, these two interpretations come from different sources, that is to say, they are two words at all, but they look the same. It is very interesting that the study of modern economics shows that assets and rights are contracted.

Contract Analysis: A Common Framework for Asset Analysis

Homestrom and Hart, the 2016 Nobel Laureate in Economics, created "Modern Contract Theory." I suggest that people who care about economics, digital assets, and blockchain understand this theory, which is directly related to the problem we are studying.

This is how it thinks about the generation of assets. First, suppose that now there is a company that has just been established. All the rights of this company are complete and fully vested in equity. If this company starts to recruit employees and sign labor contracts with employees, it means that he has to shrink his rights. Because the labor contract stipulates that his rights are cut out and transferred to his employees, the proof of this contract is options, currency or equity. Do you understand what I mean? By signing a contract, the business owner shrinks his rights, transfers some of them, and turns them into assets.

After that, the company signed a business contract with partners, upstream and downstream, essentially shrinking some rights and letting out some assets. Later, sign a financial services contract, shrink some rights, and surrender some assets. This is how assets come. In the end, because of the incompleteness of the contract, no matter how you cut it, there is still a large piece of unclear right that still belongs to equity. This is the modern contract theory's interpretation of assets and rights.

Digital Asset Analysis Framework in the Blockchain Era

So, what problems does blockchain solve? Along with the theory just now, blockchain is an infrastructure for signing contracts and a technology for signing contracts . With blockchain technology, and based on digital assets on the blockchain, data on the blockchain, and automated code execution, we can sign an algorithmic contract (many people call it a smart contract. I actually Disagree), as a result, an important change has occurred in the process of contracting rights and generating assets as we just mentioned.

What is this change? When you are going to sign a contract with someone, if it can be described by an algorithmic contract, you should give priority to signing an algorithmic contract. why? Because the blockchain algorithm contract is very powerful, it provides a restraint system and guarantee mechanism that is fair, transparent, automated, can be tested by third parties, and can be self-certified and innocent. It doesn't need anyone, and it doesn't need to stare at your contract for execution all day, because algorithmic contracts can be executed automatically and deterministically.

Therefore, the blockchain has become a new mechanism for defining and generating assets through such a mechanism. This is my logic: The blockchain is a new mechanism for defining, generating, and running digital assets . With the mechanism of the blockchain, you can extract algorithmic equity as assets, which is called digital assets. Algorithmic law is not easy to implement, and courts and arbitration institutions must exist because not everything can be described by algorithms. Finally, the remaining rights are expressed by equity. This is the change brought to us by the blockchain, so we call the blockchain a technical system. It is for this reason that The Economist called the blockchain a "trust machine" in the cover report.

Blockchain technology will help us build a "trustworthy special zone" in which everyone signs a contract with the blockchain. The contract is executed automatically to ensure that everyone's rights are fully protected. Everyone's digital assets naturally have a strong, fair, transparent, selfless, penny-free mechanism to protect, which is unprecedented in human history.

Of course, in addition to being a system, blockchain is more importantly a set of ideas, a method of solving problems, and a mechanism for creating digital assets. In addition to signing contracts, facts need to be generated on the blockchain. At this time, the blockchain has a special set of application models that confirm the off-chain data as fact. It is necessary to achieve a leap when the data is on the chain through a consensus mechanism, from a data that may be false and wrong to a fact that is free of defects, no errors, and represents the consensus of everyone at this moment. With the facts, we can achieve it. Generate digital assets.

Application model of blockchain

In practice, we visited many cases and summarized several key points of the blockchain application model:

1. First, blockchain nodes need to be deployed across the border of interests, and cannot be concentrated in the hands of a single stakeholder; 2. Cross-validation allows the de facto chain; 3. Digital assets, and tokenization after assetization Capitalization means assetization of a large room. Tokenization means breaking it down into one square meter. 4. There must be an incentive mechanism for everyone to work together. 5. Tokens can be allowed to circulate on behalf of assets so that assets can be transferred. Can play the real value of circulation and incentives; 6. To act based on facts, who will take action? It may be a smart contract, or it may be us; 7. Finally, there must be insurance and error correction mechanisms, what if something goes wrong? You must also have insurance reimbursement and trace back to the responsible person to correct it.

This set of solutions is the real process that you will encounter when doing blockchain in practice. When we have such a real process, we have realized digital asset generation in the blockchain era. In the blockchain era, you can use algorithms to sign labor contracts, commercial contracts, and financial service contracts with others. Of course, an enterprise or organization will still have residual rights and interests due to incompleteness of the contract. This part of the rights will also be attributed to equity. This is our theoretical system.

Digital assets have many advantages, such as flexibility, certainty, penetration, high accuracy, real-time, global, innovative, transparent, and ecological. I will not start to say that such assets have never been seen in human history. Any enterprise is dreaming of such assets. Ten or two decades later, whoever owns such assets will be the representative of future wealth.

How is the blockchain application model implemented in actual cases? How to generate digital assets? We use examples to illustrate.

Industry chain: Tencent to letter chain

Because I have cooperated more with Tencent, I think they are worth studying. Tencent has many original copyrights, such as original cartoons, original novels, original short videos, and so on. In the past, such content was easily infringed, and people were unwilling to trade copyright data. why? A very important reason is that the cost of safeguarding rights is too high. Since copyright is not registered, infringers can easily plagiarize. And who will buy the right to use the copyright?

Let me tell you, if the copyright is infringed without using the blockchain, do you have to file a complaint with the court that someone infringed my copyright? The defendant will most likely deny the infringement. So you have to prove that the copyright belongs to you first. If you want to prove from the beginning that the copyright belongs to you, you need to do a lot of data collection. You have to ask a professional legal team to help you do this.

The data given to me by Mr. Wu Pingping, who is responsible for copyright at Tencent, is very surprising: How much does it cost to get a legal confirmation of copyright? The lowest case he ever made was 8,000 yuan, and the highest case was 400,000 yuan, with an average of 50,000-100,000 yuan.

It takes 50,000 to 100,000 yuan to make such a legal appraisal, and then it is generally compensated by tens of thousands of yuan if the infringement is confirmed. Definitely not willing to do it.

The result is that you have created any copyright or created anything, and you are reluctant to register for copyright. Since you are not willing to register for copyright, it is tantamount to plagiarism. Please come and copy it. Since everyone can come here to copy, who will buy your copyright? Therefore, copyright data transactions will not be very active.

How does Tencent solve this problem? Tencent itself has a large amount of original content. They first made a cross-stakeholder node deployment. He combined the Copyright Bureau, his own original platform, a third-party copyright inspection center, and a judicial institution, and linked them on a chain. After these institutions are linked together, according to the rules provided by the Judiciary and the Copyright Office, once you create a picture, an article, a video, you can immediately apply a small amount of money to apply for copyright certification. This copyright certification must provide you with evidence at the same time. These evidences are combined to prove that your work is original.

Uploading the work to the blockchain has achieved a transformation from an ordinary copyright data to a digital asset. Why can it be turned into a digital asset? Because there are many different people and different stakeholders provide evidence for it, make consensus on it, and make it a digital asset. This is the cross-validation data on-chain and digital asset I just said. Since everyone confirms this, this simple data copyright has truly become a data asset on the blockchain.

OK, what is the result? The result is that if someone dares to infringe your copyright at this time, everyone knows, how much does it cost for you to issue a legal certification? Remember the cost I said just now? The lowest is 8000 and the highest is 400,000, which is usually tens of thousands of dollars. And this cost can be reduced to less than 10 yuan, which is a reduction of hundreds to tens of thousands.

Quantitative changes lead to qualitative changes. If the cost of identifying copyright or applying for a legal opinion drops below 10 yuan, it means that you will almost always sue and complain if you see someone infringing your copyright. In this case, the pressure on the copyright infringer is great, because you only need to pay 10 yuan to get him to pay 20,000, and he may not be willing to pay such costs. Instead, he might as well trade. Buy your copyright on the platform. This has led to a market for digital rights.

This is the overall logic of Zhixin Chain, the most important of which is to "dramatically" reduce the cost of copyright certification, truly convert copyright into digital assets and promote its transactions. Of course, Tencent has the uniqueness of Tencent, and we are not as big as Tencent. However, I think this example is better. It is both a government affairs chain and an industry chain. It better reflects a paradigm for blockchain to solve problems. Please think for a moment.

Supply chain + blockchain: re-export trade blockchain finance

Take another example: re-export trade. It is a project led by Agricultural Bank of China Shanghai Pudong Branch and released on December 7, 2019, which applies blockchain technology to re-export trade. Why did this project? The president of Agricultural Bank of China Shanghai Branch is Chen Tao, a friend of mine. After examining many blockchain projects, he concluded that most of the applications were pseudo applications, which did not conform to the "three-do, three-do" principle mentioned by Ant Financial, Guo Guofei.

Obviously, it can be solved well with a centralized system, and it is necessary to use a blockchain. He thought, is there a scenario where you absolutely need to use the blockchain, and you can't do it without the blockchain? In the end, he found such a scene, that is, re-export trade.

Let me introduce the background of re-export trade. What is re-export trade? Suppose you have a company in Shenzhen, and now a company in Jakarta, Indonesia wants to buy 10,000 tons of coal, and a company in Darwin, Australia can supply 10,000 tons of coal. In theory, the two companies trade on their own, but the problem is that the two of them don't know each other. Even if they know each other, they don't trust each other, especially if Darwin does not trust Indonesia. But if both companies trust the Shenzhen company, re-export products appear.

Specifically, a Jakarta company imports 10,000 tons of coal to a company in Shenzhen, and a Shenzhen company buys 10,000 tons of coal from a Darwin company and then ships this coal directly to Jakarta.

As shown in the figure, the red line is the currency flow, first from Jakarta to Shenzhen, and then from Shenzhen to Irvine. In the process, Shenzhen companies can pluck hair and earn intermediate fees. But this is not the case with cargo flow, which will go directly from Darwin to Jakarta. You can see that there are three flows in it: the flow of funds, the flow of bills, and the flow of goods.

At this time, a problem arises. Our customs and warehousing in China cannot see the actual logistics of such transactions. All they can see is this trade document. You imagine, what is the real pain point of this matter? The country strongly encouraged everyone to do re-export trade many years ago, because re-export trade has two advantages. The first is to help cities such as Shenzhen and Shanghai become trade centers. The second benefit is the internationalization of the RMB. After you have been doing it for a long time, everyone believes that when you can completely ask the other party to pay in Renminbi, the trade income in it is secondary. It is important to help the internationalization of the Renminbi. So from about 2009, our country encouraged banks to provide financial support to companies engaged in re-export trade on a large scale. Since our country wants to support enterprises such as Shenzhen companies for re-export trade, we must give him a special power, that is, "the right to receive and pay foreign exchange", allowing the company to collect foreign exchange and pay foreign exchange. So the Shenzhen company can get a lot of dollars, and thus get a unique opportunity to arbitrage.

What is arbitrage? There are many methods of arbitrage and arbitrage. Some methods, you will admire this group of people after you figure it out. They are artists, but they are used in the wrong place.

Here I introduce a relatively rough one, which is to use the difference between onshore and offshore RMB arbitrage.

Across the coast of Shenzhen is Hong Kong. Hong Kong has an offshore RMB market. The price of offshore RMB is different from the price of onshore RMB. Generally speaking, if the onshore RMB is 7 yuan against the US dollar, the offshore RMB price is generally lower than the onshore RMB, which may be 7 yuan and 2 cents.

I also have US $ 10,000. When I want to convert it into RMB, do I choose to pay onshore or offshore? Obviously, I will buy it offshore, and then transfer it to China after the purchase. The difference between these two cents is the space for arbitrage and arbitrage. At this time, if you can also cooperate with some US dollar futures, you can earn US dollars.

This arbitrage space is the incentive given by our country to encourage re-export trade. In other words, in addition to agency fees, re-export trades can also earn this spread. The premise is that this trade background must be real. You really acted as an intermediary between Darwin and Jakarta. From a domestic perspective, re-export trade can only look at the documents, and it is difficult to track whether the two overseas companies have actual logistics.

So someone would do this, set up a company in Jakarta, a company in Darwin, with two left and right pockets, left hand to right hand. Then buy local officials, of course, it is more difficult to buy Australian officials, but it is easier to buy Indonesian officials. Then forge all the documents, and get a loan through this document, then take this loan overseas to turn it into offshore RMB, then transfer it to China, and return the loan, so the turnover.

This is a quick way to make money. Don't look at the spread you can make only a few tenths of a percent each time. You trade quickly and turn around quickly. This is a huge sum of money. By the beginning of 2014, China's total re-export trade was 4.6 trillion yuan, and the re-export trade brought a trade surplus of up to 18% of the total surplus, which was obviously abnormal. At that time, some of our so-called re-export companies used Hong Kong's bonded area and special status to enter and leave the bonded area dozens of times a day just to arbitrage and arbitrage.

In March 2014, the People's Bank of China directly issued a notice that all commercial banks should strictly investigate arbitrage and arbitrage. As a result, most commercial banks have stopped this business. Starting from 2014, China's re-export trade can be called a cliff-like decline, from 4:00 trillion to hundreds of billions.

What is the solution for Agricultural Bank? In fact, the core is very simple. It is to determine the real trade background. Here, I still use the cross-validation and responsive data integration I just described to condense everyone's consensus to the chain, so as to achieve the de facto application model of the chain. This matter is the most important, as long as we pass the cross-validation and inspection by everyone, let this matter as a de facto chain, and there are ready-made solutions for the subsequent problems.

Specifically, the Agricultural Bank of China can establish alliances with many cooperative banks, commercial and trading companies, government agencies, and warehousing companies along the Belt and Road. If you want to prove that a shipment from Darwin shipped to Jakarta, the warehouse receipt provided by the Shenzhen company is not fully calculated, and all these documents related to storage, logistics, banking, and customs must be submitted. Note, how do we determine the authenticity of this document in the blockchain? Relevant nodes need to provide evidence.

When all relevant institutions have provided corresponding evidence, it is equivalent to different nodes from different perspectives providing proof of this matter, thereby completing the data on-chain. If this thing becomes a fact, in fact, the chain becomes a digital asset, and the latter things will become logical. Including cutting this digital asset into multiples, trading it on the exchange, and helping companies raise funds in advance, this is a matter of course. To provide our ordinary people with a financial product with an annualized return of more than 10%, and allow these companies to obtain financing in advance. Why not do such a good thing? This project is now in the country and has a great impact in the banking world.

I want to let you know through some examples that blockchain provides us with a different solution. Its basic characteristics are the ones I have just mentioned: distributed ledgers, cross-data verification, responsive data integration, digital asset generation, incentive mechanism, error correction mechanism, etc. This kind of feature has indeed not existed in the past history. Encountered. In the past, we basically entrusted it to a center that everyone trusted. I personally feel that this is a change of paradigm and a change of scientific thinking mode. I also hope to explore and cooperate with you to advance this matter and make the blockchain methodology more mature.

In conclusion, I want to tell you one thing: Blockchain is, in my opinion, used to support digital assets, and digital assets help Chinese people win another one in the third decade of the 21st century. A winning weapon for the digital economy war.

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