Former CTO of Shanghai Stock Exchange: Current blockchain concept stocks are pseudo-concepts

Recently, blockchain technology has received a lot of attention from the capital market. Today, Bai Shuo, former chief technology officer of the Shanghai Stock Exchange, made it clear that the blockchain concept stocks in the capital market are actually pseudo-concepts and are not recognized by the industry.

(Photo: Bai Shuo, former chief technology officer of the Shanghai Stock Exchange)

Blockchain is an important concept of Bitcoin. It was originally designed to support the formation and circulation of Bitcoin. The application of blockchain technology can establish a decentralized credit system in a distributed network and realize the transformation from information Internet to value Internet.

Recently, many securities firms have published research reports, believing that blockchain technology is of great significance to information security and digital currency, and may even become the next disruptive technological revolution. Guotai Junan Securities said that blockchain is expected to become one of the biggest outlets in 2016; China Merchants Securities also pointed out in its report that blockchain combined with application scenarios is expected to change the existing centralized IT network data management model and create huge economic benefits. my country's central bank digital currency may adopt the model possible with blockchain.

At a telephone conference of the computer/finance team of Soochow Securities held in the afternoon, Bai Shuo, former chief technology officer of the Shanghai Stock Exchange, interpreted the development prospects of blockchain. He first pointed out that the blockchain concept stocks in the current capital market are actually pseudo-concepts and are not recognized by the industry. "Some people have proposed the concept of blockchain concept stocks in A-shares, but in fact, it is not very accurate after careful consideration."

Bai Shuo explained that cryptography, distributed systems, and financial application solutions are the core of blockchain applications. Without any two of these three, it cannot be considered a blockchain application. "Among these companies, some barely have a cryptography concept, and almost no one has a distributed system. From the perspective of blockchain experts, this list is still very different from the understanding of the blockchain industry."

Many parties predict that blockchain technology will be implemented in the financial field in the next 2 to 3 years. In this regard, Bai Shuo believes that blockchain may not necessarily replace the on-site trading, which has a high matching efficiency, but is more likely to be realized in the over-the-counter market. "Traditional on-site trading is a concentrated, high-liquidity, large-scale transaction. Whether in terms of total transaction volume or peak transaction speed, blockchain is far from being competent at present." He said, "Regional capital markets for over-the-counter transactions, inter-institutional trading markets, fixed income products of exchanges, and trading products such as warehouse receipts are all areas where blockchain applications are most likely to be realized."

He also added that in the future, interbank transfers will be a business between banks, and it is also the most likely to realize blockchain applications; and specifically for domestic banks, non-monetary business of banks, such as financial management business, may be the first field to realize blockchain applications. "Several aspects of financial products, one is the accounting of financial products, and the other is the various sources of funds for financial products, can all be replaced by blockchain technology to replace the original underlying technology."

Regarding the current business opportunities for blockchain startups, he believes that there are three main aspects: one is technology providers, the second is operators, and the third is the complex of solution development and operation. Bai Shuo also mentioned that currently a large number of geeks who understand blockchain are not deployed in the main battlefield, and the redistribution of talents takes time. For the innovation and promotion of the entire blockchain, the sooner the better.