Di Gang, deputy director of the Central Bank Digital Currency Research Institute: Neither deify nor generalize the blockchain
Regarding blockchain as an important breakthrough for independent innovation of core technology, we will accelerate the development of blockchain technology and industrial innovation. Although it has been one year since the 1024 speech last year, the public’s enthusiasm for blockchain has not diminished.
Recently, Di Gang, deputy director of the Digital Currency Research Institute of the Central Bank, said at the “Building a New Blockchain Engine to Boost the Industry’s New Upgrade Forum and the “Understanding Blockchain” New Book Release”, said that the most important thing in digital financial technology is the block. Chain technology. At present, our understanding of blockchain is still in the initial stage of development. We can neither deify nor generalize blockchain technology.
He believes that our understanding of the blockchain needs to be upgraded. Blockchain cannot be used for blockchain. Not all projects need blockchain, not all data needs to be chained, and blockchain still has credibility issues.
Open ecology and cooperation are the only way to trust the blockchain
It is understood that the Central Bank Digital Currency Research Institute has made many attempts in the field of blockchain. On September 4, 2018, based on the underlying blockchain technology independently developed by the Institute of Digital Research, the central bank’s trade finance blockchain platform was launched in Shenzhen on a pilot basis. After the company enters transaction information, the information cannot be tampered with, and the bank can share it with other departments information. As a financial infrastructure, the central bank’s trade finance platform exerts its neutral, professional and authoritative characteristics, and uses the three capabilities of peer-to-peer interconnection, inclusive docking, and controllable sharing provided by blockchain to further clarify the ownership of data , To lower the threshold of data acquisition, and to a certain extent realize the “total to general” data sharing among multiple ministries.
Di Gang introduced that the central bank’s trade gold platform is an ecological direction oriented to “2+2+1”, that is, two systems (a set of digital economy theory, a set of standard specifications), and two types of technologies (blockchain high-throughput technology) , Privacy data security integration and intelligent service technology, an open platform, a total of 1 ecology. Data shows that as of mid-October 2020, the trade finance blockchain platform has accumulatively registered 50 banks, with a cumulative transaction amount of 205.6 billion yuan.
In the process of research on blockchain technology, the state has given a great deal of payment. Di Gang said that the highest level of blockchain scientific research projects, project funds can reach 32.35 million. In addition, the Central Bank Digital Currency Research Institute has also led or participated in the establishment of a domestic blockchain identification system, such as the “Financial Distributed Ledger Technology Security Specification”, “Blockchain Technology Finance Application Evaluation Rules”, and “Information Technology Zone Blockchain and Distributed Captain Technology Reference Architecture; also under development are the “Distributed Ledger Trade Finance Regulations”, “Financial Distributed Ledger Technology Application Reference Architecture”, and “Blockchain Technology Security Framework”.
Why is it important to understand the blockchain and what aspects should be understood? In Di Gang’s view, we must first unify the concepts so that the logic layer and the operation layer will not be chaotic. The blockchain is to solve the problem of mutual distrust of multiple topics. The second is to break the central concept and emphasize reciprocal interconnection. He believes that open ecology and cooperation are the only way for blockchain to be trusted. The future of the blockchain must be opening up, it must be towards ecological development, and it must be towards cooperation, not to engage in isolated islands.
He believes that our understanding of blockchain is still in the initial stage of development. Not all of its technologies are suitable for solving all problems. It also has its short version, but we can take advantage of its strengths. It is neither deified nor generalized. It still needs to be unified in understanding.
Di Gang emphasized at the meeting that blockchain cannot be used for blockchain. Not all projects need blockchain, not all data needs to be chained, and blockchain still has credibility issues. The scenario should be identified, and application development should be driven by demand. Blockchain is suitable for multi-party collaboration, peer-to-peer connection of all parties, breaking data barriers, and improving collaboration efficiency. Which scenario is suitable? Di Gang said, “The central bank chose the trade finance scenario. Trade finance now has a lot of pain points from the business side, and this pain point is not that there is no solution before the blockchain in the past, but the cost of the solution is very high. The effect is not good. The effect we achieved by using the blockchain method is still good.”
Blockchain technology is the core of the digital financial technology system
It is worth mentioning that Di Gang also put forward the basic principles of blockchain application in the field of digital finance at the meeting.
First of all, look at and promote the innovation and development of blockchain technology in a rational and pragmatic manner, and objectively understand its development stage and its improvement in the field of digital finance. Neither deification nor generalization of the role of the blockchain, unity and consensus are achieved at the conceptual, logical, and operational levels. The industry should actively make use of the technological improvements of the blockchain itself, and look for real economic applications that fit its technical characteristics and are significantly better than traditional technologies, so that blockchain technology can truly solve the pain points of the industry. Relevant government ministries achieve overall positive benefits at the system level by providing support for policy soft infrastructure. Strengthen popular science education on the application of blockchain in the field of digital finance.
Secondly, blockchain is currently a hot technology explored in the field of digital finance, but due to its endogenous technical defects, it remains to be seen whether it can be applied on a large scale. Choosing the right application field must be considered together with the main risks of financial institutions. Fully guarantee the feasibility of the technology and avoid introducing new risks to the digital finance field. Such as the completeness and performance of the consensus algorithm.
Finally, correctly evaluate the technical nature of the blockchain, choose its essence, and avoid shortcomings. The realization of blockchain requires a variety of technological breakthroughs, and requires the joint efforts of all sectors of society to promote its development and application in the field of digital finance. The development of blockchain explores other important technical difficulties.
Regarding the relationship between blockchain and the digital financial technology system, Di Gang believes that blockchain technology is the core technology. There are many technical components in blockchain technology. Now digital finance and digital economy are also very hot. It is not only blockchain technology that supports the development of digital finance. In other words, there are many key technologies in blockchain technology that need to be taken out separately. .
For the digital financial technology system, blockchain ledger technology, cryptographic technology, digital identity technology, supervision technology, and smart contract technology all have important meanings. Di Gang explained that the expansion of asymmetric cryptography is the basis of identity authentication for digital finance. The blockchain can realize penetrating supervision through the implantation of supervisory probes and programmable rule making. The programmable attributes brought by smart contracts allow the flow of funds and information to flow in parallel.
Looking forward to the future, Di Gang hopes to work with relevant brother units of the Ministry of Industry and Information Technology to create an integrated ecosystem of government, industry, university, research and application: jointly formulate international and domestic financial blockchain standards; promote financial blockchain industry application innovation; financial blockchain testing and Certification; financial blockchain communication platform; financial blockchain science popularization; financial blockchain talent training. At the same time, it is also hoped that more ecological partners will join the central bank’s financial blockchain to build an ecosystem.
