Dundee: Blockchain industry layout realizes value transfer

Introduction: Recently, the "2015-2016 Microfinance 50 Forum Annual Meeting" hosted by the Microfinance 50 Forum was held in Beijing, with the theme of "Opening the Dream of the Future - Microfinance and Sharing Economy". In the "Blockchain Technology and Credit" session, Yuanbao.com CEO Deng Di attended the forum and delivered a speech.

This is compiled based on on-site shorthand, and has not been confirmed with the speech experts. It is for reference only.

The full text is as follows:

Dundee:

I will try to briefly talk about it. In fact, blockchain is not something that can be explained in two simple sentences. I have been in this field for three years. I feel that this field is more difficult than any other field I have worked in before. I have worked in video and cloud computing. I have many patents for cloud computing. However, I feel that blockchain is much more difficult than the previous two fields. This is what Professor Wang Wei, whom I respect very much, said. This is very profound. He said, "The Internet has realized the dissemination of information, and blockchain has realized the transfer of value." People who study blockchain have a sense of this sentence, so I will not elaborate on it here. IBM has seen this sentence. Blockchain is the next cloud. So if you want to embrace the next cloud computing, big data, or other concepts, investing in blockchain today is the best and best.

This is our initial feeling. "The impact of blockchain on the progress of human civilization may be on par with the invention of the Internet" is not just a casual statement. We believe that blockchain is at least a concept parallel to cloud computing. It is not just a simple technology. Bitcoin technology existed ten years ago, so blockchain is like cloud computing and P2P concepts. It is a philosophical thought. This philosophical thought has led us to change many things. What is blockchain? There are many definitions here. I have also searched for some. Some people say that it is a distributed database that prevents tampering through the continuous growth of encrypted data records. Simply put, it is a distributed tamper-proof database. Some people say that it is a public ledger of digital events. The third is a commercial contract agreed upon by a program, which is judged and executed through the consensus of each node that makes up the network. This is the consensus between programmatic networks. It is difficult to say that the above points are blockchain. So what is blockchain not? We can now say very clearly what it is not. First of all, blockchain is not Bitcoin. It is just the earliest application of blockchain and a very small subset of blockchain. Once blockchain enters various industries as a basic technology, the output value of all aspects involved will be many times greater than that of Bitcoin. As long as we equityize the blockchain stocks of A- share listed companies, the value represented by this chain alone will be much, much greater than that of Bitcoin. What is the status of Bitcoin? I think Bitcoin is a very revolutionary change. However, when we talk about Bitcoin now, we must see the conditions under which Bitcoin was created. Zhu had already used Bitcoin technology to the extreme under the conditions at that time. At that time, no one was willing to exchange your money for Bitcoin in a neutral market. At that time, no financial professionals paid attention to them. Only geeks and network administrators were playing with Bitcoin. In this case, how did Bitcoin complete its initial distribution? It was through mining. As long as you have a computer, you have the right to obtain Bitcoin. This incentive method helped it to be promoted without a penny in the early days. Today, most Bitcoin blocks are mined by 6-7 people. These 6-7 people may control Bitcoin in the future, or even shorten it to 1-2 people. In the future, government laws must include anti-money laundering control mechanisms, and Bitcoin will die. Therefore, it has already been in a very critical state.

Second, Bitcoin consumes a lot of energy to mine. If Bitcoin rises to $10,000 per coin, its energy consumption will be very high. The third problem is that there are all kinds of people in Bitcoin, including geeks, senior financial practitioners, and drug money launderers. When we want to go in this direction, many people say we can't go, so we can't innovate. Now Bitcoin is in a very difficult situation. I dare not say that Bitcoin will die because it has a basic market, but the danger lies in its centralization.

We talk about what blockchain is. The core of blockchain is that we give credibility to data. Personal credibility can be confirmed through a series of resumes, but data had no credibility before. Data was just clean numbers recorded in the database, which were pale and blank. There was no way to judge whether the numbers were true or false, but blockchain can give credibility to data. There is a comparison here. The data in the database has no history, while the data on the blockchain is organic and unique in the world. It has a date of birth, a growth process, and up-and-down relationships. What grows and develops with the blockchain is almost practical, which is why so many people take Bitcoin seriously.

The advantage of blockchain is that financial data, such as trading markets, are based on whose data to make price judgments, such as the global gold price and the global dollar price. Is there an authoritative publishing agency? No, each market publishes its own data. How to achieve unification across the entire network? Blockchain has the biggest advantage. Not to mention the storage of the entire network, the ledger, authenticity identification, and joint processing may produce intelligent AI levels. Let's take a look at this and I won't say more.

Now let's not talk about the significance of blockchain. Let's talk about consensus. I really can't find a good word to bring out consensus to discuss the rules of blockchain. In the real world, we rely on agreements between companies, laws and violent organs to make decisions, but this decision is not always effective, because there is always a lot of flexibility in effectiveness, such as whether it is executed a few days earlier or later, there is a lot of water. But what is blockchain? It is to implement the agreement between machines and rely on a certain consensus mechanism for decision-making. And this kind of decision is guaranteed to be 100% effective directly through mathematical algorithms, which is the most amazing thing. It is stronger than any country's violent organs. He said that it is, once Bitcoin is sent out, it cannot be returned. This is the most amazing thing.

There are many factors in the operation of the consensus mechanism. The first is what kind of participants can participate in the consensus decision-making. Bitcoin is very simple. As long as you have a computer, you can participate. However, we find that this mechanism is becoming more and more difficult. The emergence of professional mining machines has led to the monopoly of professional decision-making in the hands of a few people. The private chain of banks is only for each bank to become a participant, and other users can use it. Do not participate in the consensus. This is the future architecture. It will take a long time to talk about the consensus rules, but the characteristic of the consensus rules is to choose a correct chain. There are a lot of people in the meeting. Who will choose which chain is correct and which one is abandoned? Those who choose the correct chain may be rewarded. There are POW and POS in the Bitcoin decision-making mechanism . It is difficult for me to finish and just mention it. In addition, this problem is that the biggest problem of Bitcoin is that there is no good mechanism for revising the consensus rules. At present, why can't Bitcoin be upgraded? Upgrading depends on miners. Miners must protect their own interests. The controllers of the Bitcoin original code think that they should listen to them. So now there is a contradiction in the consensus. So it should be said that the consensus rules should consider that the consensus rules are not always valid at the beginning, and how to upgrade.

Because you may be in the financial industry, unlike previous currencies, Bitcoin does not consider asset mapping issues, but considers cost issues, relying on cost to generate value for blockchain, but most of the time when solving real problems, you have to consider how to map the virtual world to the real world. This is the classic model of asset mapping. In the past, there were many solutions, but it is currently truly feasible. The feasible asset mapping solution in the real world is still this solution. First, there must be a gateway. The gateway has corresponding credit guarantees, legal guarantees, and other guarantees that allow it to supervise these real assets, such as cars, houses, or RMB and US dollars. There is a gateway on the technical side. First, there is an underlying chain. This chain can. Real assets cannot be generated by mining. It is impossible to use Bitcoin to represent a house, which will lead to an embarrassing situation. Where does the mined Bitcoin come from? The sub-chain and asset chain should be accurate and cannot evaporate at will. It must accurately correspond to real assets. For example, 10,000 US dollars will actually issue 10,000 coins. The underlying chain is a problem of consensus rules. The sub-chain can be used. Going up, real assets are mapped to the virtual world. Many can make payments, transactions, pledges, and contracts. The first premise is that there is such a model. Without a model, assets cannot be matched and there is a problem.

The gateway I just mentioned is actually now acting as a gateway for spot exchanges and currencies, but in the future, exchanges such as foreign exchange exchanges, commodity exchanges, equity exchanges, and possibly industrial and commercial bureaus may become gateways. All company shares registered here will be technologically mapped to a certain blockchain, and the central bank will be the gateway to directly issue digital RMB and electronic RMB.

You can just take a look at the following. I won’t say much about the international opinions and the various dimensions of blockchain project evaluation.

I won't say much about application cases. People in the financial industry know that blockchain can do a lot of things. Let me briefly say that there may be some people here from Alibaba and LeTV, you are all rich bigwigs, let me tell you, now many people in the blockchain industry sometimes don't know how to invest and what to invest. In fact, there are many directions in the blockchain industry. First of all, there is a universal blockchain coding platform . People who used to do technology are idealistic and think that all problems can be solved by one system, like Ethernet, which eventually became the coding language of blockchain. This direction is right. It is very likely that there will be underlying coding languages ​​in the future, but at present, coding languages ​​need to be customized and modified a lot before they can be applied to a certain industry. So the biggest opportunity next is in various industries, focusing on equity, payment, auditing, crowdfunding, fairness, and anti-counterfeiting. There are many key elements involved in each industry, and each system is very different. To do equity well, we need to do a lot of work from the perspective of digital currency, so in the future, each industry must have its own set of separate systems. The second is the peripheral services of blockchain . When we are doing blockchain, we have done trading platforms. Trading platforms attach great importance to security. In the future, once all physical assets and real assets are mapped to the Internet, security will be a huge problem. It is just that it has not been implemented yet. Once it is implemented, we will find that there are too many security problems. In addition, blockchain financial services, including asset transactions, full-network transactions, cross-border transactions, and pledge financing, can be carried out online. Once real assets are virtualized, pledge financing will be a very simple thing. The fourth point is the asset mapping gateway. For example, traditional notary offices, trust companies, and banks use various means to complete the mapping. There are a lot of technologies to be done. In addition, there is innovation in business models. For example, everyone knows that QQ 's Q coins play a very important role in the entire industry group. It can transfer these users and resources back and forth. It is very likely that the cooperation of the industry alliance can be realized in a decentralized way. Mutual insurance protection, I won't go into details. Sharing economy, whether the car house can be shared through blockchain technology, this will be a very large market.

Finally, there is hardware. For example, high-performance chips with low latency can achieve faster broadcasting speeds across the entire network and be combined with home appliances, automobiles and other equipment. There is a lot of market space here. At present, I think these investment directions are all worth investing in.

Next, let's take an example, such as the third-party trust model. Anything that requires an intermediary, such as real estate transactions, can use blockchain technology. The pricing of digital goods can also be determined through a consensus mechanism. For example, weather and PM2.5 index can be written into the blockchain, and whether it is sunny or rainy can also be written into the blockchain. Insurance companies can develop futures for PM2.5 technology, which can be hedged. Foreign countries can send employees to China to pay air pollution compensation fees, which can be hedged. Then there is storage, which I won't go into detail about. I won't go into detail about smart contracts. The following signatures will also be used in many places. You should be able to imagine it. Let me talk about this briefly. Use private keys to share assets. For example, to implement the blockchain model, cars, bicycles, driverless cars, and packages can all be solved through private keys. There are also controllable licenses. When issuing gun licenses and prescription drugs, all places that require licenses can be prevented from being forged through blockchain. There are also auditing and finance, and taxation can also be proved through blockchain. There is also gambling. As you know, the problems of welfare lottery and sports lottery are quite big. Whether blockchain can prove it is definitely possible, it just depends on whether the government is willing to do it. Many global mobile banking projects have been done, but whether they can be globalized is not possible at present. Whether blockchain can be used is worth discussing. There are also non-public agreements, such as agreements signed privately, which are not known to others. They can be sealed with a timestamp, which is fair content. Including payment processing and decentralized self-organization, in the future, these ideas of blockchain may lead to other production forms or business forms other than companies. This is entirely possible. Bitcoin is a payment system without companies. Although it has encountered many problems now, it has opened up a new idea. 16 is the domain name. The domain name we use now is controlled by the root server. Those servers are in the United States. Management, such as how the government manages members, access rights, whether members have the right to participate in voting, and decision-making can all be managed through blockchain. The voting system is also possible. Reputation online identity registration is relatively easy to understand. Reputation is equivalent to recording people's credit ratings. eBay has applied for a patent. What is the concept of truth crowdsourcing? It is too complicated to explain. You can search it yourself. It is a concept generated on the dark web. It is very interesting.

Compiled based on on-site shorthand, not confirmed with the speech experts, for reference only