Shentu Qingchun: The financial industry alliance chain will go through two development stages: B2B and B2C

Bankledger was invited to participate in the "Monetary and Financial Roundtable 2016 Summer" seminar held by the International Monetary Institute (IMI) of Renmin University of China on June 26, 2016. The theme of this seminar was blockchain and finance.

Cao Tong, co-director of the International Monetary Institute of Renmin University of China and chairman of Xiamen International Financial Technology Co., Ltd., presided over the meeting. Guo Qingwang, dean of the School of Finance and Banking of Renmin University of China, delivered an opening speech. Ma Delun, president of the China Financial Accounting Society and former vice president of the People's Bank of China, delivered a keynote speech. 30 leaders and guests from the central bank, Renmin University of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission and other financial institutions and enterprises attended the meeting.

Dr. Shentu Qingchun, Executive Vice Secretary General of the Golden Chain Alliance and founder of Bankledger Silver Chain Technology, was invited to deliver a keynote speech entitled "Silver Chain Technology and Alliance Chain". Dr. Shentu briefly introduced the Golden Chain Alliance. The Golden Chain Alliance has 31 members, including 7 categories such as banks, funds, securities, equity, insurance, finance, and technology, of which financial institutions account for 70% and financial technology companies account for 30%. The main business of the Golden Chain Alliance is to launch cloud blockchain services, conduct technical training, set up research groups and implement technical codes. Among them, the cloud blockchain service platform based on Ethereum and consensus algorithm developed by WeBank has been put online for trial, becoming the first application result of the Golden Chain Alliance.

Dr. Shentu introduced the research and development direction of Silverchain Technology, which aims to solve the privacy and compliance issues of blockchain. Bitcoin and Ethereum blockchains cannot protect personal privacy well and are not compliant, so a solution that is both private and compliant is needed. Silverchain Technology is currently researching and implementing the code. Dr. Shentu revealed that Silverchain Technology will launch the first DEMO chain that solves privacy and compliance in July-August .

Another business of Yinlian Technology is the development of alliance chain. Dr. Shentu criticized the current view that blockchain is over-praised, and pointed out that if financial institutions do not change user ownership, business ownership and processes, sensitive data ownership, regulatory requirements and architecture, and cannot revolutionize financial institutions, the application of blockchain is like dancing in shackles and is greatly restricted.

But Dr. Shentu is still optimistic about the application prospects of blockchain in financial institutions. He expects that the alliance chain will be divided into two development stages: B2B and B2C.

In the B2B development stage, financial institutions can use unified interfaces and clearing and settlement. For example, it takes half a year to a year for WeBank to connect to a new bank. If all banks follow the blockchain unified interface, the access time will be shortened to 7 to 10 days, which is a huge improvement. Clearing and settlement is another rigid demand. Through blockchain, a general ledger that all business parties can trust and use for clearing and settlement will bring many benefits to all business parties. Further development at this stage, the digital RMB chain, various assets on the chain, can carry out asset transactions and value transmission. Dr. Shentu pointed out that the digital currency issued by the central bank can reach this stage without damaging the interests of commercial banks.

In the B2C stage, the ultimate manifestation of blockchain is decentralization. Users can go online through financial institutions or even directly to trade various assets. However, users going online will lead to user sharing, which is something most financial institutions do not want to see. Therefore, it can only be implemented after certain conditions are met, such as new business development, expansion of new users, interest integration, high recognition, etc.

Dr. Shentu believes that the B2B stage is easier to implement and the current blockchain alliance can make it happen. The B2C stage is more difficult to implement in the financial industry and requires a longer period of development.
Dr. Shentu compared the current blockchain alliances such as R3, Hyperledger, ChinaLedger and Jinlianmeng in terms of their similarities and differences, relationship management, research progress, etc. R3, ChinaLedger and Jinlianmeng are aimed at the financial industry, while Hyperledger is more general; the alliances have competitive relationships, but also cooperative relationships; R3 and Hyperledger have made rapid research progress, and ChinaLedger and Jinlianmeng are both in the stage of extracting key needs, and should work together to accelerate the implementation of the underlying blockchain technology platform. In the end, the development trend of the four alliance chains may be similar to the Internet's inter-network interconnection, interconnecting chains and eventually forming an interconnected chain.

After the meeting, participants took a group photo