China's blockchain white paper released, 5 major application scenarios still need industry verification

"Changing the world" has always attracted attention, and the concept of blockchain has been hotly pursued in the global capital market.

In February this year, Zhou Xiaochuan, the governor of the central bank, said that the use of blockchain technology for digital currency was under consideration, which was considered to be the "time" for the domestic blockchain industry. Previously, Wanda, Alibaba, Tencent, LeTV and others had all made early arrangements, and many entrepreneurs followed suit.

On October 18, the "China Blockchain Technology and Industry Development Forum Inaugural Conference and the First Developer Conference" (hereinafter referred to as the Forum) was held, and the "China Blockchain Technology and Application Development White Paper" (hereinafter referred to as the "White Paper") was released.

Some industry leaders, however, said that the concept was "overhyped and overheated." Cai Dong, chief architect of Wanda Network Technology, believes that the only truly mature blockchain technology application is Bitcoin, which also faces many limitations.

Broad prospects attract capital

Blockchain has become one of the hottest concepts in the information technology industry.

Xie Shaofeng, director of the Information Technology and Software Services Department of the Ministry of Industry and Information Technology, introduced at the forum: "According to statistics from research institutions, global venture capital investment in blockchain has exceeded US$1.4 billion, and there are more than 800 companies engaged in the development of blockchain technology. Application solutions cover cross-border payments, cloud storage, data identity management and medical data."

Blockchain technology is often described as "disruptive", but it also means huge business opportunities. Currently, the most well-known mature application of blockchain is in the financial field, namely Bitcoin, which is the 1.0 application of blockchain.

The financial sector is only one of the application branches of blockchain. In May this year, Goldman Sachs Gaohua Securities analyzed that blockchain may also promote the development of the P2P accommodation market, bringing in $3 billion to $9 billion in new revenue opportunities by 2020. In addition, this technology will also bring cost savings of $13 billion to $16 billion in the insurance and spot securities sectors.

In the face of opportunities, different forms of alliances have been formed at home and abroad to jointly promote the application and development of technology. According to the White Paper released on the day of the forum, Ping An Group in China has joined the R3 blockchain alliance participated by large international financial institutions such as Bank of America, Citibank, and Morgan Stanley. Wanxiang Holdings, LeTV Finance, and Shanghai Juzhen have initiated the establishment of Chinaledger. Tencent's WeBank for small and micro enterprises, Ping An Bank, CMB Network, and Hang Seng Electronics have jointly initiated the establishment of the Financial Blockchain Cooperation Alliance.

Sober thinking after the concept hype

A concept that has not yet been implemented has assumed many revolutionary visions. For a time, a large number of entrepreneurs have turned to blockchain. However, in terms of both technical maturity and market acceptance, the development of blockchain technology still has a long way to go.

Some heads of companies in the industry showed sober thinking in a hot environment. LeEco Finance CEO Wang Yongli even said at the forum that blockchain is a bit "overheated", and Wanda Network Technology Chief Architect Cai Dong also believed that "the hype is too strong."

The "White Paper" also believes that the typical applications of blockchain include six scenarios: financial services, supply chain management, cultural entertainment, intelligent manufacturing, social welfare, and education and employment. In the overview, it is written that "the lack of mature applications outside the financial field is still a practical shortcoming of blockchain."

As for the future of blockchain, or as Essence Securities said in its analysis in July: blockchain will enter the industry falsification period from the concept hype period, and the protagonists of the industry feast will be the companies that truly promote industry progress.