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Abstract: what is the relationship between blockchain technology and finance and other real economy? What are the case scenarios in which blockchain technology is used in Citic's actual business?

On the afternoon of December 6th, the monthly CEO symposium was held in Beijing as scheduled and attended by nearly 100 colleagues. This issue invited Jiang Xu, Chief Technology Officer of Yixin, Director of Block chain Laboratory of Yixin, Yu Mingyang, Business Director of Block chain of Yiqiyun Service, and Qin Qin, partner of CITIC Financial Technology Industry Fund. together with Tang Ning on the issues of concern to colleagues to talk about the block chain practice.

How to introduce the blockchain in a very easy-to-understand language? What is the relationship between blockchain technology and finance and other real economy? What are the case scenarios in which blockchain technology is used in Citic's actual business? What is the layout of Citic Financial Technology Industry Fund in the direction of block chain at home and abroad? What is the overview of the reliable block chain platform? What is the course of the development of Yixin block chain business?

1. How to introduce the blockchain in very easy-to-understand language?

Xiang Jiangxu: let's take a mining example. For example, in a mine, 1000 miners dig hard every day. Every day, he has to declare how many mines I have dug today and how much I will be paid accordingly. According to the previous way, the mine manager has to keep records, but it is difficult to guarantee that the mine manager will not tamper with the mining records for personal gain, or even completely erase the achievements of a certain miner. How do you record it in another way? That is, let each of the 1000 miners have an account book, and how many mines each have dug is recorded on these 1000 account books, and the distributed record is clear that the mine manager cannot tamper with it unless more than half of the miners are bribed to change the account. But if it is not 1000 miners, but 1 million miners, if the number of nodes becomes larger and larger, it ensures that any transaction or block written in the book is traceable and untamperable. This is the blockchain, which is a distributed ledger where any transactions recorded in the ledger are recorded on a block.

(Xiang Jiangxu, Chief Technology Officer of Yixin)

2. what kind of relationship will there be between blockchain technology and finance and other real economy?

Yu Mingyang: blockchain is a distributed ledger, its core content is decentralized, the data can not be tampered with, all the data in the blockchain is encrypted. For example, in the financial industry, transactions between two people often have a relationship of mutual mistrust. I lent you the money. Are you misusing the money? We want to supervise in a way that only banks do this, but banks are often not involved in many transactions. The best way is to establish a decentralized way, everyone put their transactions on the blockchain, more people supervise your transactions on the blockchain, and establish a trust mechanism on the blockchain trading. in this way, we can ensure that the whole society establishes a credit system, which can be extended to all aspects of life in the future. This is that in the financial field, we can use blockchain technology to re-create a new value credit system.

In addition, we can take advantage of the untamperable data on the blockchain to ensure that some of the records you made earlier are reliable when you finally need it to play a role. If there is a dispute, it can be used as a certificate, and the authenticity of the data is recognized by the whole industry. In the future, for example, when disputes are resolved in this way in the judiciary, the authenticity of the data can help you win lawsuits and arbitration more easily, or use such records as proof of financing from third-party institutions in the future, which will also be convinced by third-party organizations. reduce the cost of additional disputes.

Of course, blockchain can not be said to be omnipotent, we consider using blockchain distributed technology to achieve a new credit system. Under the condition that the centralized credit system can not meet everyone's needs, we use blockchain to create a new distributed credit system, so that more people can participate in such credit construction, and in the future, everyone will have credit in our society, so that everyone can use credit on any occasion, which is also an important starting point for the country to vigorously promote blockchain technology.

(Yu Mingyang, Director of Yixin Block chain Laboratory and Director of Block chain Business of Yiqiyun Service)

3. What are the case scenarios in which blockchain technology is used in our trustworthy actual business?

Yu Mingyang: one of the scenarios where we are the first to apply blockchain technology to the ground is supply chain finance. As early as the beginning of 2017, we deployed a blockchain on his platform for a steel trading customer of Yixin. We provided supply chain financial services to our customers, and recorded all the whole processes of trading services, including simple goods in and out, source, contract, logistics, dealer sales, and arriving at the hands of customers, on the chain. In addition, we recorded the flow of funds in intermediate transactions and cross-validated them in this way. Prove that this is a real, authentic transaction. In this way, if any of the customers need financial support, they can submit this information to the third party who provides them with credit and funds. After seeing it, the other party will believe that the transaction is real, and will assess the capital needs according to the situation of the transaction, provide credit to the customer, and provide financial support for his normal business.

Of course, this scenario is now a very small use case, through which we can expand to other areas, including not only supply chain finance, but also how to guarantee public welfare, and so on. We will also try to extend blockchain technology to other areas of finance in the future.

4. Finance is one of the areas most closely related to the blockchain. In the process of financial science and technology investment, what frontier areas will we pay more attention to if we look at the development of the global and Chinese blockchain?

Qin Qin: logically speaking, the emergence of a new technology starts from the bottom. Services and applications are derived only after the underlying infrastructure, and hundreds of billions of dollars of companies will emerge. Now we are thinking, at what stage is blockchain technology? Is there a universal underlying protocol standard? In the past two or three years, we have been paying attention to the development of the underlying technical standards, such as some IBM launched the Hyperledger Fabric work platform, Microsoft released the Azure blockchain work platform, and engineers launched the ethernet work platform. Our country clearly proposes to attack the block chain technology as the core technological frontier of the country. At the core technical level of blockchain, we were very concerned about performance and security at that time, but now performance is not a big problem, because in terms of current applications, applications that can exceed trillion-level TPS have not been launched yet. Now it seems that at the technical level, security and privacy protection have become difficulties in landing.

People are very concerned about what areas have a rigid demand for blockchain. We can take a look at cross-border logistics. The whole transaction involves more than 200 interactions, which involve the flow of more than a dozen parties' data. If these dozens of parties use block chain technology, what kind of revolutionary change will it produce? This is an important breakthrough for the productive forces to change the relations of production, according to which the block chain is likely to be the cornerstone of the next generation of productive forces, which may bring about major changes to the entire relations of production, including international relations. Therefore, we believe that the value Internet, the new generation Internet based on blockchain, should be the Internet that fits infinitely with the real society, and there is no big gap between online and offline. The problems of false transactions and trust caused by information asymmetry will be greatly improved.

At present, we can see that the block chain application of domestic and foreign giants is basically to get through the information flow in some large industries. In other words, the use of blockchain technology, the first to solve the problem of trust, to solve the problem of data chain, the next step is the reconstruction of production relations. Most of our companies are still at the stage of learning what blockchain is, how to use this technology, and how to get existing business online. In the process of winding up, the difficulty of the problem is how to define the relationship between the participants in the chain, especially the alliance chain. In terms of blockchain technology, the gap between us and the international is very small. In China, from the government, large enterprises and innovative enterprises, they are very enthusiastic about the research and application of blockchain technology.

(Qin Qin, partner of Credit Financial Technology Industry Fund)

5. What is the layout of the CITIC Financial Technology Industry Fund in the block chain at home and abroad?

Qin Qin: we established this fund in 2016. We hope that in the global venture capital market, new opportunities and entrepreneurial opportunities, we will not only achieve considerable returns for our industrial fund LP, but also provide a think tank for the extension of reliable business. In terms of blockchain, we invested in two companies in 2016 and 2018 respectively. The first company is called Circle-, a blockchain technology company. In 2018, we invested in another company called Figure- to do real estate transactions. In 2019, they incubated a real estate chan trading platform based on blockchain technology.

Two or three domestic companies have used blockchain technology. For example, a public welfare crowdfunding platform we invested in in January 2018 is called easy funding, which now has a very cutting-edge technology application. It is to apply the blockchain to the crowdfunding business and track the funding chain of every amount of money raised by the crowdfunding. It provides this blockchain platform, and other foundations also put their own data and customer-related information on the chain, so it can track every donation you make. These are our layout in the direction of block chain at home and abroad. We have always had a strong exploration and research in this field, and we also hope that we have some layout and harvest before the arrival of the next value Internet.

6. What points and businesses will the company focus on in terms of blockchain in the future?

Tang Ning: in the next stage, we will build the platform for N industries that are suitable for the use of blockchain technology, especially finance to entrust guan. Many of our clients are entrepreneurs, and their businesses can also use blockchain technology. In addition to building this platform, our blockchain team has also built capabilities in a number of important financial segments. For example, when we help clients with family inheritance, wills and important inheritance documents can be linked, and there will be no protracted testamentary disputes with the notary office, the court and so on. Therefore, to give our customers to use such good technology, there are many similar scenarios, to lay a foreshadowing for you, in the future we will use the block chain to do breakthrough innovation, which is being promoted, and I think it will be very promising.

7. Will the data management of distributed accounting increase the possibility of data leakage?

If you use the blockchain distributed system, there are many bookkeepers, it is difficult to ensure that his network environment is the same as yours, there will be the risk of information disclosure. But we have a solution, the data on the chain can be encrypted and linked, even if we get the data, we can't see it. There are many technologies that can ensure the privacy of the data.

Article source: CEO Symposium on Credit Superior

Original text launch: trustworthy people

Author: Mei Liyi

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