China Distributed Ledger Basic Protocol Alliance holds technical seminar in Shanghai

Baozou Times Review : The China Distributed Ledger Foundation Protocol Alliance (hereinafter referred to as the "ChinaLedger Alliance") held a technical seminar at the Shanghai International Convention Center, attended by overseas consultants and alliance members. This seminar discussed topics that have attracted much attention from the outside world, such as how to comply with financial supervision with Chinese characteristics and how to use blockchain technology to protect privacy. In addition, it also provided appropriate solutions for how to combine blockchain with the privilege system in the future.

Author: Amber Dingding

Recently, the "China Distributed Ledger Alliance" (abbreviated as "ChinaLedger Alliance") held a technical seminar at the Shanghai International Convention Center, attended by overseas consultants and alliance members. The guests included Mr. Bai Shuo, Director of the Alliance Technical Committee, Vitalik, overseas consultant of the Alliance and founder of Ethereum, Anthony, CDO of the Toronto Stock Exchange of Canada, and many other blockchain industry experts, who discussed the latest developments in the most cutting-edge blockchain technology and the most in-depth analysis of distributed ledger technology.

Let me briefly introduce the China Distributed Ledger Alliance. On April 19, 2016, the blockchain alliance jointly initiated by 11 institutions including China Securities Inter-dealer Quotation System Co., Ltd., namely the China Distributed Ledger Alliance (China Ledger Alliance), is headed by Bai Shuo, a former engineer of the Shanghai Stock Exchange, and the alliance secretariat is located in Wanxiang Blockchain Laboratory under Wanxiang Group.

The alliance is mainly committed to the development and research of distributed ledger systems and their derivative technologies, and the basic code will be used for open source sharing. The China Distributed Ledger Basic Protocol Alliance currently focuses on blockchain asset applications, taking into account the exploration of the capital side, building a basic distributed ledger that meets common needs and selecting landing scenarios, and developing targeted solutions and basic code open source, and using it to share solutions among members.

How will the future application of blockchain technology in the financial industry be consistent with financial supervision with Chinese characteristics? Considering what the core needs of the future financial arena are, this discussion was also discussed at the forum.

During the discussion during the meeting, considering the core needs of the main financial battlefield and the characteristics of China's financial supervision, the participants also made very pertinent discussions and responses. The core focus of the China Distributed Ledger Infrastructure Protocol Alliance (ChinaLedger Alliance) should focus on key technical issues such as consensus efficiency, computing and storage efficiency, privacy mechanism, privilege mechanism, sandbox mechanism and docking with off-chain systems. In particular, it is necessary to consider establishing a feasible privacy and privilege mechanism.

Privacy protection has always been a focus of attention for all parties. How to use blockchain technology to better protect users' privacy is also one of the important topics of this discussion.

The Technical Committee believes that, given that private chain and consortium chain scenarios are not opposed to the technical solution of partially returning to centralization of the overall decentralized architecture based on reasonable or even legal reasons, if some computing processes using private data (such as the private key of the legal central counterparty) are allowed to be completed outside the chain, then privacy protection can be achieved with the help of the existing mature distributed ledger technology system.

As blockchain is still in its early stages of development, the regulatory systems and regulations have not yet been implemented in relevant documents. However, the China Distributed Ledger Alliance (ChinaLedger Alliance) has also discussed how blockchain will develop in an orderly, secure, legal and compliant manner.

Regarding the construction of the privilege mechanism, the ChinaLedger Alliance believes that it is necessary to take into account that in real economic activities, the legal system will grant certain privileges to judicial organs and specific institutions. For example, business rules cannot resist judicial freezing, and regulators can view certain privacy-related data according to procedures based on work needs. Moreover, exchanges can force liquidation of investor accounts engaged in leveraged trading, and temporarily suspend trading of specific products and markets. In addition, registration and settlement institutions can suspend delivery or even cancel transactions for obviously unfair transaction results.

The discussion also proposed a feasible solution on how to build a privilege mechanism with "Chinese characteristics" based on blockchain technology.

The construction of the privilege mechanism can be started from three aspects. On the one hand, the privileged account can be used to "brake" the smart contract. On the other hand, the privileged account can be used to "see through" private information. In addition, the privileged account can be used to "ensure" the state bypass.

In addition, the meeting also deployed and arranged the next stage of work for the China Distributed Ledger Infrastructure Protocol Alliance (i.e. ChinaLedger Alliance).