Li Lihui, former President of Bank of China: Blockchain technology innovation and industrial upgrading

On October 26, Li Lihui, former President of the Bank of China and head of the Blockchain Working Group of the Internet Finance Association of China, delivered a speech entitled "Blockchain: Technological Innovation and Industrial Upgrading" at the 7th Blockchain Global Summit hosted by Wanxiang Blockchain Laboratory.

General Secretary Xi JinpingTwo years ago:We should take blockchain as an important breakthrough in independent innovation of core technologies, clarify the main focus, increase input, focus on conquering a number of key core technologies, and accelerate the innovation and development of blockchain technology and industry.The party central committee and the State Council issued by the outline of the national standardization development: in the two fusion, a new generation of information technology, big data, chain blocks, health, new energy, new materials, and other areas of the application prospect of technology, synchronous deployment technology research and development, the standard development and industry promotion, to speed up the pace of industrialization of new technology.

Over the past two years, blockchain technology has accelerated innovation and expanded applications, showing broad prospects in promoting industrial upgrading.

First, blockchain technology innovation strengthens digital trusted interaction

Blockchain solves trust problems mathematically, expressing rules in algorithmic programs that build trust by trusting common algorithmic programs.This kind of digital trust has high efficiency, low cost universality. One is to form trustworthy bonds in environments where trust is unknown or weak,Save the time and cost needed for the formation of credit and increase the holding of commercial credit;Two is in the wide area, high-speed network to establish zero time difference, zero distance authentication tools,Improve the efficiency and reliability of the Internet of Things.

Recent blockchain technology innovations have focused on expanding interaction and storage capabilities. Cross-chain technology can realize interoperation between blockchains and between blockchains and the Internet, so that information and assets can be transferred in a larger scope in a way that cannot be copied, forged or tampered with. The distributed storage technology of block chain can store files in different Spaces and generate file storage confirmation certificate at the same time, which has certain advantages over traditional cloud storage in terms of reliability, edge storage cost and data privacy protection.

We are familiar with the information technology framework is large center, local closed, we are familiar with the commercial society is independent market subjects, plane interactive, we are familiar with the traditional credit mechanism is self-contained system, discrete. Blockchain technology has the potential to reshape industries and business models and promote economic upgrading by establishing a digital, credible three-dimensional interaction architecture.

One is industrial identification and equipment management.Achieve global unique identification recognition management, solve the industrial Internet equal communication problems between different logo coding system, the construction of industrial infrastructure, based on the block chain perform industrial equipment identity management and access control, for product processing, assembly, packaging and other production processes and product distribution, consumption and recycling for total life cycle management.

Second, industrial chain coordination.In the industrial chain collaborative network composed of core enterprises, suppliers, distributors, customers and other multi-parties, data synchronization sharing and management action coordination are realized, supply chain management is optimized, synergistic efficiency is improved, market response efficiency is improved, and commodity and capital allocation efficiency is improved.

Third, supply chain finance.Establish multi-party cooperation framework and trust mechanism, overcome the limitation of traditional commercial credit, and transfer core enterprise credit to more levels; Establish an ecosystem of mutual trust and connectivity, reduce financing threshold and cost, and speed up logistics and capital turnover; Incorporate business agreements into smart contracts to prevent misappropriation of funds and malicious defaults.

Fourth, rural revitalization.Construction of physical assets digital platform, realizes the digital and physical assets on the block chain mapping at different time, different physical assets and the ownership and value of the location, form traceable, traceable, tradable digital digital assets, the whole process of operation and management, to revitalize the value of the physical assets, boost rural revitalization. For example, beef cattle have become tradable, traceable and traceable digital assets on the biologicasset Trusted Supervision and financial services platform. On the pu-erh tea blockchain platform, pu-erh tea can be verified and traced to its source, stored centrally and traded separately, which solves the problems of tea cake fraud, difficult preservation and high false value in the Pu-erh tea market.

Fifth, smart cities.Digital technologies such as blockchain, artificial intelligence, big data and the Internet of Things are integrated to build a credible data standard base that supports urban digitalization and upgrading, so as to achieve real-time visualization and full-state of the city. In the field of civil personal identity credible, trusted in assets ownership, health status, credible and effective privacy protection, intelligent, smart public services in the field of administrative public supervision, public management and intelligent in the field of green economy to realize distributed real time monitoring, measurement and carbon emissions trading, realizes the intelligent route guidance in the field of traffic and parking guidance, Form an efficient, low-carbon, harmonious and safe urban ecology.

2. Accelerate the innovation and development of blockchain technology and industry

China leads the world in the experimental application of blockchain technology. In February 2021, Forbes ranked the top 50 blockchain companies in the world, and Tencent blockchain was included in the list. Wanxiang Blockchain provides customers with blockchain + industry solutions, covering supply chain finance, automotive supply chain logistics, industrial Internet, biological assets, digital city and other fields, enabling industrial upgrading.

Blockchain technology innovation is a global hot spot and has made great progress, but it has not yet reached the level of large-scale and reliable application in the high concurrency market, and the new cross-chain technology still has security risks. We are in a period of great opportunities for the development of blockchain technology and industrial innovation. In this period of opportunity,Calm institutional innovation can eliminate the possible local bubbles in time, while active technological innovation can continue to create scalable business wealth.

First, technological nation-building in geopolitics

China is a big country in data resources and digital market, but it is still a weak country in software. According to the number of international patent applications released by the World Intellectual Property Organization (WIPO), in 2019 compared with 2001, the SHARE of the United States dropped from 40 percent to 21.8 percent, that of China increased from 1.6 percent to 22.3 percent, that of Japan remained at around 20 percent, and that of Germany dropped from 13 percent to 7.3 percent. South Korea rose to 7.2% from 2.1%. Although the number of international patent applications in China has exceeded that of western countries such as the United States, the intellectual property rights of core technologies are mainly controlled by western countries such as the United States and Japan. A 2020 study by Germany's Bertelsmann Foundation found that the United States holds the most patents for 50 of 58 cutting-edge technologies.

Equality of digital technology is the cornerstone of equal competition of digital economy and digital finance. In the field of core digital technology, China can establish a relationship of equality and mutual benefit with western countries only when it makes up for its shortcomings.

In October 2020, the US released the National Strategy for Critical and Emerging Technologies, which included a 20-item list of high-end computing, data storage and distributed technologies. It made it clear that "the US must develop these technologies, protect them, and not provide them to competitors."

In terms of core digital technologies, we cannot borrow, buy or wait. The only way is to rely on ourselves, work hard and seek breakthroughs.

Second, data protection in the Internet of Everything

Data resources are personal wealth and collective wealth. The era of digital economy calls for more effective protection of data privacy.The fundamental rights of data owners to private data should be emphasized. For example, it is stipulated that the collection and processing of data by enterprises must obtain the explicit consent of the data owners, that the enterprises shall not collect, process and use the data beyond the agreed scope, and that the data owners are given the right to ask the data owners to delete the data related to their privacy.

Data resources are the wealth of a country, and data security is the guarantee of data development and utilization and the development of data industry.For example, the financial industry must build a technological environment where users trust each other and information is authentic and symmetrical, ensuring reliable data transmission and protecting individual privacy. It is required to adopt interactive verification technology of information authenticity, establish identity authentication system, carry out characteristic identification, spatio-temporal positioning and identity authentication for people or things, carry out user authorization verification and information data verification, and confirm end-to-end control.

The state supports the development and utilization of data, the popularization of data security technology and commercial innovation.Data resource sharing and secure application can be realized through technological innovation. For example, the Internet Finance Association of China led the research and development of an application system for the integration of financial industry data elements. This system integrates multi-party computing, federated learning, data desensitization, differential privacy, trusted computing and other technologies, which can protect data privacy while realizing data sharing, and protect data security while enhancing the value of data resources.

Thirdly, penetrating supervision in industrial convergence

Digital technological innovation is changing the financial service model, and gradually forming a new financial business mode of interaction, crossover and intersection. For example, the future digital asset market includes not only digitized financial assets, but also propertized patent data and works data, which will form a complex structure with the intersection of asset owners, investors, property rights registration, property rights certification, financial intermediaries, regulatory agencies, tax agencies and arbitration agencies.

Financial innovation calls for regulatory innovation. Digital financial supervision system should be co-built and shared by financial supervision departments, cover all financial institutions, penetrate different financial markets and financial businesses, realize the whole process and all-round intellectualization of financial supervision, surpass the complex process and resource-consuming on-site supervision, and reduce the cost of supervision and supervision.

Fourth, security barriers in distributed architectures

Decentralized finance has the potential to penetrate a country's financial infrastructure barriers and monetary sovereignty and regional financial regulatory boundaries. Decentralized finance is not only the hotspot of international financial competition in the future, but also the hotspot of global financial supervision in the future.

As China is a major economic country, it is a basic state policy to carry out higher level economic and financial opening-up, including capital market opening-up. The bottom line is to maintain overall economic and financial stability and guard against systemic financial risks.

So it should be necessary to in-depth analysis of the distributed parallel architecture, decentralized architecture already have and potential of digital technologies such as "subversive" performance, key research based on the new digital technology of decentralized financial instruments of the possible paths through the financial infrastructure barrier, the technical countermeasures and policy plan, build digital financial security barrier.

Fifth, security responsibilities in open source architecture

Open source is permeating more and more software products. Some experts believe that open source has become the mainstream of digital technology innovation, which can transcend the boundaries of companies and countries, enabling the transformation and upgrading of industries. It should be noted that open source will also constitute system binding and technology dependence. Some open source software lacks clear security responsibility subjects and authoritative security performance certification, and may have security loopholes.

In the open source pattern, the first is to establish software security technical standards, establish software audit and certification system, prevent the existence of security risks, even malicious Trojan horse open source software into China; Second, increase investment, increase policy support, encourage China's own scientific research institutions, innovation enterprises and digital technology talents to develop software with independent property rights, realize the optimization and balance of basic performance, expansion performance and security performance of core software, and promote the progress and growth of China's software industry.

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