Huobi Research Institute visits Hainan University to look forward to blockchain technology applications and global regulation

On November 29, Huobi Research Institute was invited to Hainan University. Li Hui, deputy director of Huobi Research Institute, was invited as a corporate mentor to participate in the teaching of the public course "Introduction to Blockchain" with the theme of "Frontiers of Blockchain Industry Development". He popularized blockchain-related knowledge to more than 200 undergraduate and graduate students, and introduced the development trends of blockchain technology and global blockchain regulatory trends in an easy-to-understand manner.

On November 29, Huobi Research Institute was invited to Hainan University. Li Hui, deputy director of Huobi Research Institute, was invited as a corporate mentor to participate in the teaching of the public course "Introduction to Blockchain" with the theme of "Frontiers of Blockchain Industry Development". He popularized blockchain-related knowledge to more than 200 undergraduate and graduate students, and introduced the development trends of blockchain technology and global blockchain regulatory trends in an easy-to-understand manner.

Li Hui, deputy director of Huobi Research Institute, teaches at Hainan University

Blockchain applications are divided into four levels

Li Hui pointed out in her lecture that, at present, blockchain is accelerating its integration with cutting-edge technologies such as 5G, artificial intelligence, cloud computing, and the Internet of Things, and is becoming a key cornerstone for the development of the digital economy. The industry applications of blockchain can be summarized into four types: evidence storage on the chain, data on the chain, value on the chain, and asset on the chain, which respectively play the role of immutability, data sharing, value transmission, and token incentives.

Taking evidence storage on the chain as an example, electronic data is stored through blockchain technology, relying on the characteristics of non-tamperability, thereby generating the reliability and credibility of legal evidence. In September 2018, the Supreme People's Court of China promulgated the "Regulations of the Supreme People's Court on Several Issues Concerning the Trial of Internet Cases", which pointed out: "If the electronic data submitted by the parties can be proved to be authentic through electronic signatures, trusted timestamps, hash value verification, blockchain and other evidence collection, fixation and tamper-proof technical means or through electronic evidence storage platform certification, the Internet Court shall confirm it." At present, Beijing, Hangzhou, Guangzhou, Jilin, Shandong, Zhengzhou, Chengdu and other places have realized electronic evidence platforms combined with blockchain technology.

"In the era of big data, data on-chain can optimize the process of the big data industry, improve collaborative management capabilities, share data, and mine data value." Li Hui believes that there are currently four main ways to put data on-chain: data is directly open and transparent, or part of the data is made open and transparent to a part of the alliance nodes. She pointed out that for private data, private data can be stored like assets, and only people holding specific private keys can see and use it. The last way is to make data available and non-theftable through trusted computing, which guarantees data privacy and also enables data on-chain and value mining.

At present, blockchain technology is widely used in the international financial community, which is inseparable from its third type of application characteristics, value chain. Li Hui pointed out that value chain is to achieve the unity of information flow and value flow. Digital currency based on blockchain technology can realize point-to-point transactions between users and is often used in cross-border payment models of banking systems. For example, JPMCoin, a digital stablecoin issued by the world's financial giant JPMorgan Chase, can realize directional transmission between JPMorgan Chase's institutional customers, thereby greatly improving the efficiency of financial settlement.

In the digital era where digital assets are constantly developing, asset chaining has become an inevitable trend. Li Hui believes that asset digitization has the advantages of reducing costs and increasing efficiency, innovating ecology, and strengthening supervision. In the future, traditional assets such as currency, stocks, and bonds will be digitized through "chaining", thereby effectively reducing capital costs and systemic risks. Li Hui pointed out that blockchain will achieve a major upgrade of the Internet and financial system, helping the real economy to become better and stronger.

Global blockchain regulation moves forward cautiously

With the accelerated development of blockchain technology, the regulation of digital assets in major countries around the world is developing prudently. At present, there is no unified definition of digital assets in the world, and there are many views on its characterization, but the two main ones are to position digital assets as assets or tools. Most of them are classifications of digital assets by regulators for regulatory needs.

Regarding the issuance of digital currency, Li Hui found that there are currently about twenty countries or economies in the world that allow the issuance or use of digital currency; most countries have not proposed clear regulatory frameworks and requirements for digital assets and related services; a small number of countries prohibit the issuance or use of private digital currency and related services.

On the other side of the strict regulation of digital currencies and digital assets, central banks of various countries are also focusing on legal digital currencies CBDC (Center Bank Digital Currency). CBDC is a digital payment tool denominated in national accounting units.

During the lecture, Li Hui pointed out that central banks and regulatory authorities in various countries are paying more and more attention to legal digital currencies. According to a recent report released by the Bank for International Settlements, as of mid-July, at least 36 central banks around the world have released central bank digital currency plans. With the accelerated advancement of the pilot of the digital currency DCEP of the Central Bank of China, countries around the world and international organizations are also discussing, planning and implementing the central bank digital currency CBDC to varying degrees.

It is reported that this blockchain course is the first blockchain course offered by Hainan University for the whole school. Hainan University is also one of the first universities in the country to offer blockchain courses. "In the future, Huobi Research Institute will continue to participate in blockchain-related education, help cultivate blockchain talents in Hainan and even China, and provide a steady stream of fresh blood for the development of industrial blockchain and the digital transformation of the economy." Li Hui said.