Many authoritative experts and professors from financial institutions such as funds, securities, banks, and industry leaders gathered here to share new information on financial technology and explore the future potential of blockchain. (Link to the live broadcast of the summit:
Many authoritative experts and professors from financial institutions such as funds, securities, banks, and industry leaders gathered here to share new information on financial technology and explore the future potential of blockchain. (Link to the live broadcast of the summit:https://play.yunxi.tv/pages/27c9b4494d09487c8e9c9866e38895e8#/）
Chen Zhiming, assistant director of the Financial Product IT Innovation Laboratory of the Information Technology Management Department of China CITIC Bank, gave a keynote speech on "Blockchain Exploration and Ecological Construction". Chen Zhiming said that the innovative application of blockchain technology is an irreversible general trend, no matter from the perspective of technological advantages, or the advantages of mechanisms and models. Blockchain technology represents the development direction of the digital economy, and the blockchain model represents the flat development direction of social and economic disintermediation. Blockchain technology will bring major changes to the national financial and commercial infrastructure.
Chen Zhiming also introduced China CITIC Bank's exploration in the blockchain field from the technical level and the application level. From a technical perspective, China CITIC Bank has been reading some papers related to blockchain technology since 2016, doing POC, starting from an open source platform, upgrading from Fabric 0.6 to Fabric 1.0, and building a BaaS platform as the application continues to deepen , and an industry cloud-based blockchain platform are currently jointly exploring an autonomous and controllable platform.
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The following is the full text of Chen Zhiming's speech:
Thank you, thank you to all the guests who came to the event today. What Professor Zou said just now is very profound and grand. Next, I will mainly introduce how to use blockchain technology from the application level.
The content of this picture is taken directly from the leader’s speech in 2016. Since 2016, our bank has believed that the application of blockchain technology is an irreversible trend.
From a macro point of view, the blockchain is an important part of the digital economy, and it also represents the development direction of finance, decentralization, and flat society. It is possible that the country's infrastructure will undergo major changes in the future, and there will gradually be Some large financial infrastructures are constructed by blockchain.
From a mesoscopic point of view, it is still necessary to pay close attention to the development of technology, not to act blindly or passively. Blockchain should be combined with big data. Through the collection of core data, it will be combined with data analysis, artificial intelligence and the Internet in the future. Blockchain will eventually be applied to life scenarios and closely related to personal life.
From a micro perspective, this is a gradual process that promotes the decentralization of credential records. The core competitive advantage comes from the ecological integration ability of resources. In the future, risk management and some risk control methods will be updated with the application of blockchain technology.
At present, the blockchain mainly adopts the alliance development model. We have cooperated with many banks, such as Bank of China, Minsheng Bank, Ping An Bank and so on.
Blockchain is a technology that embraces cooperation. The advantage of cost may not be obvious at the beginning, just like the speed of a car is not as fast as a horse-drawn carriage at the beginning, but we must have a tolerant attitude towards the application of new technologies. Looking back at our judgment on the blockchain four years ago, it is still very forward-looking.
This is the specific exploration process of our CITIC Bank blockchain, which is divided into two parts. One part is the application at the technical level, and the other part is the practical application of blockchain technology in financial scenarios. From a technical perspective, we have been reading some blockchain technology-related papers since 2016 and doing POC. From the end of 2016, we started to explore Fabric 0.6 version, and later upgraded to Fabric 1.0. With the continuous deepening of applications, we built a BaaS platform , a blockchain platform based on the industry cloud, and our original application of blockchain to the mobile terminal.
Technology exploration and business application are a complementary process. We first learn about blockchain technology, and then go to the banking business to find application scenarios. With the deepening of the application, it also promotes the development of technology exploration. For example, we combine blockchain technology with industry cloud because the cost of cross-organization operation and maintenance is too high, so we designed a logically distributed and physically centralized solution. . Now the country advocates self-control and control, and we are also trying to build an independent and controllable blockchain platform together with peers and blockchain laboratories.
From the perspective of application, we have done a lot of exploration. In June 2017, we launched the industry's first blockchain letter of credit system (BCLC), and explored the cooperation model of the banking industry's inter-institutional alliance chain from scratch. Then we studied the blockchain forfaiting trading platform based on the letter of credit, and digitized, networked and online the forfaiting secondary market. Later, we explored the blockchain blacklist system and the blockchain supply chain financial system. The amount of cross-bank transactions on our blockchain forfaiting platform has exceeded 300 billion yuan. Some time ago, we signed an agreement with the Central Clearing Center of the People’s Bank of China to donate our blockchain platform to the regulatory authorities for free. In the end, we may be able to Build an industry-level distributed financial infrastructure based on blockchain technology. It is worth mentioning that we undertook the construction of the first construction fund management blockchain information system in Xiong'an New Area.
The picture above is a general summary of our application level. The first one is record storage to ensure that records are not tampered with, traceable, and auditable, and can provide public services for multiple organizations; the second is efficiency improvement, improving transactions, The efficiency of interaction and asset history tracking; the third is the digital asset market, a new market based on digital assets, where digital assets can be composed of (physical or virtual) non-digital assets; the fourth is subversive applications, based on blockchain Blockchain is at the core of the new business model.
Next, let’s talk about the blockchain forfaiting platform. Many banks have participated in this platform. Forfaiting is the asset of the bank. If the position is tight, the bank can sell this asset to another bank in exchange for funds. A secondary trading market has been formed. The traditional trading market is offline, and WeChat, telephone, and traders are connected with each other. We apply blockchain technology to realize full online matching and transactions without intermediaries. The above process is completely decentralized, and all participating institutions are completely equal, including node ownership, open source code, etc.
This has brought some benefits: reducing operation time, solving transmission limitations, saving operation and maintenance costs, and improving service levels. Now the transaction volume has exceeded 300 billion. This platform will soon be handed over to the People's Bank of China Clearing Center, and they will continue to explore and develop.
The picture above shows the financial construction fund management blockchain information system we participated in building in Xiong’an New District. At present, the four major banks (Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank) and China CITIC Bank have entered this platform as The payment node and the payment information are all transmitted through the blockchain network. The authenticity of other on-chain data can be guaranteed through payment as the starting point. Through this platform, a new type of fund supervision and whole-process monitoring mechanism for project construction has been established.
The above is our technical architecture. We believe that blockchain technology, including member management, ledgers, smart contracts, etc., is only a part of the entire technology ecosystem. When developing a blockchain system, the number of developers of the blockchain technology system is often not as large as that of the application system, and the application system accounts for the main part of the technology ecology. From the architecture diagram on the right side of the picture, we can see that the application system can be divided into presentation layer, application layer, business layer and data layer. At present, the development of blockchain is more at the data level, and at the business layer, business logic can now be processed through smart contracts, and more business logic is still carried out in traditional information systems. With the continuous development of smart contracts, the blockchain continues to realize the business layer through smart contracts.
China CITIC Bank is still relatively early in the exploration of blockchain technology and applications, and we have won many awards for this, including the People’s Bank of China’s Technology Development Award, the Asian Banker’s Blockchain Application Award, etc. We have also applied for nearly 30 projects Blockchain technology patent. Credit Bank's exploration on the blockchain can be summarized into three points, one is to start early, the other is to focus on solving practical problems, and the third is to have core development capabilities.
Here are some opinions I would like to share with you, which are only my own:
You can only do it if you think about it, and plan ahead. Facts have proved that China CITIC Bank was very correct in paying attention to the blockchain idea in 2016. In 2001, Jobs analyzed and predicted that the development of computers can be divided into three stages, including the commercial period, personal life, and various smart devices, followed by IPod, IPhone and so on. The development of blockchain requires our participants to think deeply, have strategic thinking and forward-looking thinking.
The second is that if you can't make yourself excited before doing something, then you will definitely not be able to do it well. My original intention of doing the blockchain is to improve the integrity level of the whole society and prevent honest people from suffering (because I am an honest person). And from my personal point of view, I was a technician before, and I always wanted to solve problems. Blockchain applications require more product thinking, how to guide demand, and create demand.
Sow the seed, enjoy the process, and wait for the harvest. This exchange is also a process of sowing seeds. Blockchain is an open and cooperative technology. I am willing to cooperate with you to explore new possibilities together.
China CITIC Bank is big enough, not eager for quick success, but also small enough, it is impossible for one family to take all. We will do the blockchain business with a very open attitude. We hope to have the opportunity to explore together with you and promote the development of blockchain to the core level. ,Thanks!
