Pang Yinming: blockchain bubble fades, return to application value

Guest introduction

Pang Yinming: Member of the China Electronic Technology Standardization Blockchain Standard Writing Team of the Ministry of Industry and Information Technology. Chairman and President of Chain Smart Technology Co., Ltd.

Core point

Blockchain computing power to be solved, technological breakthroughs require time and talent

Blockchain applications are extensive, and cost reduction is an advantage

Blockchain solves credit problems and simplifies business models

The future society is de-intermediation, and the blockchain plays a huge role.


Blockchain computing power to be solved, technological breakthroughs require time and talent

The financial community: Many people say that the actual computing power in the blockchain field does not match the ideal demand, which leads to a large distance between the blockchain technology and the large-scale entry into the life scene. Do you agree with this statement? When do you think the blockchain can fully enter the life scene?

Pang Yinming : This kind of teaching is not very clear. There are three main problems:

The first is the efficiency issue. Taking the TPS speed as an example, the industry generally has a speed of four to five thousand to eight thousand, which is far from the standard of 100,000 in the financial industry. From a technical point of view, the source of efficiency problems lies in the consensus algorithm. Various solutions and new technologies for consensus algorithms have been proposed in the industry, but these patented technologies are still in the experimental stage. Although the speed of the special algorithm proposed by some blockchain enterprises has reached 200,000, due to the limitation of specific environment and data foundation, such speed does not have the conditions for large-scale application. There are also some technologies in the West that have achieved one-sided speed improvement by sacrificing security and organization, and they are not universal. Everyone is doing technical problems, but the breakthroughs that have been recognized by the market have not yet appeared.

The second is that blockchain applications are hampered when dealing with large-scale data. A large amount of data poses a threat to the speed of the algorithm, and data storage and query are also difficult problems. For example, data storage, if a centralized storage database is established, it deviates from the original intention of blockchain distribution; and the processing technology of distributed storage has not yet appeared. This is a technical challenge for the blockchain.

The third is that the high security of the blockchain can cause some problems. If a bitcoin rich man dies, his related wealth will be blocked forever, and how this wealth black hole should be solved is urgently needed to be explored.

These three challenging problems are currently being solved in the industry, and there are no real measures that can be implemented and they need more time to operate.

The financial world: Is there still a talent gap? What is the current development of blockchain applications?

Pang cited: Obviously there is a gap. Many universities in China have established computer majors, but if graduates of this major can solve the problem of blockchain technology independently, it may take some time for engineering training, and it is not immediately possible to do this work. Over the years, China's IT industry has developed very well, especially the IT construction of the port has been very perfect. Although we are in the forefront of the world in application technology, such as blockchain, database front-end development, and enterprise-level application development, there is still a big gap between the basic and underlying technologies compared with the West.

Many of our underlying database technologies are derived from the West. Most of the computer science students in China go to the application field every year, and the research and development strength of the underlying technology is far from sufficient. From the perspective of talent reserve and actual efficiency, there is a big gap with foreign countries. These original gaps have continued into the blockchain era. When it comes to solving the underlying technology of the blockchain, we will be more backward than the West.

Do any research and development in the field of technology, lack of understanding of the underlying technology, and may encounter some obstacles in the application development of the upper layer. How can our talents solve both the underlying problems and the front-end applications? This is an urgent problem to be solved in China.


Blockchain applications are extensive, and cost reduction is an advantage

The financial world: What are the current application scenarios of blockchain technology in the scene? What are the areas that may be improved in the future?

Pang cited: blockchain technology from the investment point of view, last June had a very high heat. However, in fact, since the beginning of this year, many enterprises and institutions have tried to solve some problems in production, scientific research and business by using blockchain.

The first area is supply chain finance. The General Office of the State Council has issued the “Guiding Opinions on Actively Promoting Supply Chain Innovation and Application” to promote and encourage the use of advanced technologies to solve the problem of excessive cost in the supply chain process. At present, some domestic industries have made great progress in the field of supply chain finance. Traditional enterprises that do supply chain finance have gradually used blockchain technology to solve the problem of accuracy and timeliness of supply chain information. At present, Chain Technology has entered into a cooperative relationship with large enterprises such as Hebei Port Group and Shanghai Coal Exchange, which are involved in port and coal business, and integrates blockchain into commodity trading and other links to promote cost reduction and efficiency of supply chain finance. Help the development of the real economy.

The second area is traceability to the food industry. For example, due to fraud, expiration, melamine and other issues, China's milk industry trust system has been hit hard. We used administrative means to manage these problems, such as increasing penalties. But now it seems that such measures have had little effect. Can we use technology to reduce human intervention?

For example, a brand's milk is said to be 24 hours to the table. Few people believe that the brand can guarantee the promise, but we can use blockchain technology to gain trust by directly transmitting actual data to consumers; for example, Aussie steak, chain Technology also uses this method to trace the whole process. The use of blockchain data traceable and non-tamperable features to protect the food safety of the people. Although we are faced with the occasional centralization in the development of the use of blockchain traceability, the development of anything is spiraling upwards, and blockchain applications will gradually improve in the process of constantly discovering problems and solving problems.

Other areas such as cross-border payment and cross-border customs quarantine have been inconvenient and inefficient. Some foreign companies have used blockchain to solve these problems, and the effect is very good; one day more applications can be formed; Extending the blockchain technology to the industrial and financial fields is an application direction that I currently consider to be more promising.


Blockchain solves credit problems and simplifies business models

The financial community: What are the new business models that can be created by the full application of blockchains?

Pang Yinming: From a commercial point of view, it is first necessary to see that the blockchain solves the problem of completeness, correctness and shortage of the underlying data. Under such a framework, the blockchain can create a credible business system different from the past. This is what Link Technology is doing to make business information more realistic and reliable.

Take the new financial system as an example. On the network, the interpersonal trust achieved through blockchain technology can become the basis of credit; the use of smart contracts for private loans is the future application direction of the banking industry. In addition, future stock exchanges can be de-intermediated through blockchain technology to improve efficiency and security.

There are still many applications for blockchains in the commercial sector. For example, e-commerce shortens the purchase path, and there is no time and space restriction for buying and selling. It is very convenient. In the blockchain era, middlemen do not need it, and consumers directly deal with suppliers. This relationship can save costs and improve efficiency. .

The blockchain not only makes the business model simpler, but also has more application scenarios when the blockchain data has legal effect in the future. For example, P2P, although the model itself has no problems, but under the existing environmental and technical framework, it has caused great harm to business operations. The blockchain can transform P2P to solve credit and other related problems.


The future society is de-intermediation, and the blockchain plays a huge role.

The financial world: Please also outline what is the age of a developed blockchain? You can talk about it from the perspective of supply chain or finance.

Pang cited: The past social and business models are very central and too complex, and the intermediary as a third party mainly plays the role of trust guarantee. Now through the blockchain, both parties can directly structure the trust system, and the future financial, business model and society will become simple.

For example, supply chain finance, now the middle manpower and assets flow too much, wasting time and manpower, bringing too much uncertainty. Blockchain technology can directly connect banks and enterprises in the supply chain, greatly reducing costs and improving capital use efficiency.

Take the securities industry as an example. Since stock direct interaction is the future trend, securities companies and securities regulators attach great importance to the application of blockchain technology. They are exploring the transformation of service methods, integrating securities companies into customer service and becoming part of the new architecture. This change may be far away from us and may happen soon.

(Source: Financial sector)

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