"The New New Economy is a Programmable Economy" - Summary of the Blockchain Practice and Application Training Seminar

On December 17, the second session of the Blockchain Practice and Application Training Seminar was successfully held at the Ernst & Young Building, hosted by the Blockchain 100 and co-organized by Renmin Huijin and Ernst & Young Blockchain Group China. The training session was hosted by Wu Zhifeng, Chairman of the Blockchain 100 and Senior Economist of the National Development Bank, Wang Liren, CEO of Renmin Huijin, and Lin Songxiang of the Ernst & Young Blockchain Group China. The three sharing guests combined their academic background, work experience and understanding of blockchain to bring professional and rich training to everyone.

What is blockchain?

Wu Zhifeng first shared his understanding of "what is blockchain".

“Today, the Internet has entered a new era, evolving from the original point-to-point information transmission to the point-to-point value transmission, and the point-to-point transmission of value requires trust. At this time, the machine that creates trust: blockchain appeared.”

Wu Zhifeng believes that the existing system, whether it is the payment system, the clearing system or the various lines of the Internet empire that have been formed, is centralized. For example, the Internet companies such as Google, Tencent and Alibaba are overly centralized, each monopolizing and unable to penetrate each other. This centralized system has many disadvantages, such as high cost, low efficiency and monopoly of central authority. Blockchain achieves decentralized trust by building a P2P self-organizing network, a time-ordered and tamper-proof cryptographic ledger, and a distributed consensus mechanism.

P2P networking, ledger structure and consensus mechanism have become the three major mechanisms of blockchain. P2P networking is to connect each node directly, without centralized nodes, and nodes can enter and exit freely, thus forming a large mesh structure. The ledger structure is to form a block chain of data, realize sharing among multiple centers, establish networked trust, and integrate the most advanced encryption, authentication, P2P, consensus and other core technologies. The ledgers are connected sequentially, and this ledger contains the hash value of the previous ledger to form a chain-like structure. The consensus mechanism is the mechanism for verifying transactions. There are several consensus mechanisms, mainly the POW proof-of-work mechanism and the POS proof-of-stake mechanism. The proof-of-work mechanism is the so-called mining mechanism, which selects the longest chain. The Pos proof-of-stake forms the equity through the number of coins held and the number of coins held. The greater the equity held, the less difficult it is to mine.

This blockchain that can create trust has a wide range of applications, including cross-border payments, clearing and settlement, equity transactions, auditing, notarization, and the Internet of Things. It can be said that blockchain is a technology of epoch-making significance.

Blockchain application practice

In this training, Wang Liren, CEO of Renmin Huijin, led everyone to learn the actual transfer process of Bitcoin on the blockchain from a practical perspective. Through mutual Bitcoin transfers and explanations of the transfer page, everyone had a deeper understanding of verification, accounting, block generation, why the average block generation time is ten minutes, and the meaning of proof of work.

"The act of accounting has been going on since humans began counting. The trust foundation of blockchain comes from mathematics, which is the counting of the Internet age. The blockchain system is the embodiment of mathematical algorithms and is backed by mathematical algorithms. All rules are based on an open and transparent mathematical algorithm (program), which enables people from all political and cultural backgrounds to reach a consensus." Wang Liren, CEO of Beijing Renmin Huijin Technology Co., Ltd., who has been engaged in the field of information and communication equipment for many years, said, "The new economy is a programmable economy."

What are the application scenarios?

"The launch of the first Bitcoin debit card, Visa and Docusign's cooperation in using blockchain to test car rental, Stampery's use of Bitcoin blockchain technology to provide authentication services, SEC approval of online retailer Overstock to issue company stocks on the blockchain, IBM and Linux launched an open source blockchain project, Kynetix uses blockchain technology to support the development and transformation of the real economy... These are all practical application scenarios of blockchain. The banking industry is also exploring the application of blockchain, which is currently known to be roughly divided into five aspects: financial products, technology research, venture capital, system construction and entrepreneurial incubation."

Lin Songxiang from EY Blockchain Group China introduced.

Ernst & Young is one of the world's four largest accounting firms. It has established a distributed infrastructure working group worldwide. Its members are composed of more than 20 Ernst & Young local offices in America, Europe, Asia, and other regions, including professional service personnel in high-tech, finance and other industries. In addition to providing professional services, the global team regularly shares the latest progress and industry applications of global blockchain technology.

Lin Songxiang used a picture to depict the layered structural framework of the blockchain: at the bottom is the blockchain infrastructure layer, above which are the overlapping coverage of various networks, above which is the shared protocol layer, and above that are various applications connected through various API interfaces.

From the development of blockchain, there are three versions. Version 1.0 is mainly currency, such as Bitcoin, Litecoin, etc. Version 2.0 is a contract form. Version 3.0 is a notarization service that goes beyond currency.

About the Blockchain Practice and Application Training Seminar "Blockchain Practice and Application Training Seminar" is a public welfare training event jointly organized by the Blockchain Hundred People's Association, the Blockchain Technology Application Research Institute, and Renmin Huijin Technology. It is mainly aimed at non-technical professionals who are interested in blockchain, such as those with equity investment experience, entrepreneurial incubator experience, and government agency administrators. It is planned to be held every two weeks. If you are interested, you can sign up in the "Activities" section of the Babbitt Forum.

Correspondent: Li Yajuan
Reporter: Meng Dada
Source: Babbitt Information (http://www.8btc.com/blockchain-100)