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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. (Click to enter the video replay of the summit）
Ji Ruihua, partner of PwC China, gave a keynote speech on "Blockchain Innovation and Subversion".
Ji Ruihua said that the blockchain should not be viewed as a single technology application, the key is how to match other technologies and application scenarios to bring some new innovations and achieve greater value, and took "trust automation" and "digital mirroring" as examples illustrate:
Trust automation: through the synergistic use of multiple technologies, such as blockchain, IoT, and artificial intelligence, to ensure data authenticity, verify identities, and enable secure multi-party transactions. For example, IoT sensors can track food from farm to warehouse to store, providing verification for the entire supply chain, including shipping routes, and environmental conditions at each leg of the journey.
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The following is the full text of Ji Ruihua’s speech, edited by Odaily:
Hello, everyone, thank you very much for the invitation of the organizer, allowing me to share some of our thoughts with you here.
Blockchain is indeed a very unique technology. Today I will discuss with you technology and innovation, new infrastructure and blockchain and the essence of subversion.
Remember the Internet?
Above are the earliest browsers and the earliest web pages. Do you remember what Yahoo was like back then? Our social network today was called BBS in that era.
It didn't take long for the disruption to come. Apple began to introduce a concept that subverted the entire economic structure of the Internet at that time, and it changed some business rules at that time.
With the emergence of social networks, we really did not expect to become what we are today in a few years, to achieve such a strong cohesion today, as a channel for sales and other business products; the emergence of electronic payment is also very shocking , when Alipay was launched in China, it basically overturned some industry rules in the financial market at that time. Today, on the basis of network technology and the cohesion of social networks, electronic payment has been integrated into every aspect of our lives. If we go back to the 1980s and 1990s when the Internet just started, we ask, what application scenarios does the Internet have? I believe absolutely no one will tell you that you can use the Internet to create a career such as an Internet celebrity, such a role.
When we first started many new technologies, we often asked, what can I use this technology for, how can I make it better, and what application scenarios do we have. But at that time, you may not see the actual application scenarios at all, because you have never been exposed to new businesses and new laws, and all you have in your head is inherent thinking. You want to innovate, and it is actually very, very difficult to think of some new scenes.
Disruption does not come from technology itself, but through technological empowerment, creating new business models, new business rules, and breaking the existing pattern. This is subversion.
The impact of innovation is not only that you have a new tool in your hand, innovation affects our experience, feeling and participation in some things.
If traditional pottery is replaced by 3D printing, the sense of participation is completely different. This is a fact brought to us by innovation: when made in China becomes printed at home, it will change all aspects of what you understand, see, understand and get used to today. Knowing will be completely different.
For example, as an accountant (I am a certified public accountant), we may find that there will be no inventory for you when we print at home. When a company has no inventory and no production, what will be the impact on the report? The concepts we are familiar with today, such as goodwill, trade surplus and deficit, etc., the accounting standards I understand today may not be applicable tomorrow.
Innovation and disruption will have a great impact on us. The new infrastructure proposes many different technologies including blockchain, artificial intelligence and big data, especially 5G, which will be a very critical technical component.
PwC analyzed a number of emerging technologies in 2016. We asked ourselves a question, among hundreds of different innovative technologies, which ones may have a greater impact on the overall economic operation in the future, and we summarized the key Blockchain is one of eight technologies.
This was released by the Cyberspace Administration of China last year, summarizing the more common blockchain application scenarios at that time. When you look at these application scenarios, you will find that these scenarios highlight a certain function or functions of the blockchain. For example, anti-counterfeiting of certificates relies on the immutable technical characteristics of the blockchain.
In fact, Bitcoin is the first application of the blockchain. If we go back and look at the white paper of Bitcoin, we find that Bitcoin does not mention technical features such as anonymity and non-tampering. What Bitcoin needs to do is a point-to-point number Cash payment system. Satoshi Nakamoto analyzed what problems will be encountered if this system is to be run? Then he chose some technical means to solve these problems. The use of technologies such as time stamps and hash values are used to implement this digital cash payment system.
Today we refer to the underlying technology of Bitcoin as the blockchain, saying that the blockchain has these functions, but in fact, if we change our thinking a little bit, the blockchain should not be viewed as a single technical application, it is actually It contains some technical elements, but the key is how to match these elements and how to integrate them with other technologies to bring new value. This is what we will explore later.
Two years ago, we began to study how to combine the eight core technologies mentioned above, and what functions and benefits may be brought after the combination. "Trust automation" is one of them.
What we are talking about today is that food safety is actually achieved through trust automation, but we can push this concept forward, through the Internet of Things, through automatic information collection, and the combination of different technologies to support us. Trust is processed automatically and extended to application scenarios beyond root tracing.
Digital mirroring, today we can build a virtual environment by combining the Internet of Things, artificial intelligence, virtual reality, etc. Air circulation, etc., we can simulate what the safe value here is. Through digital simulation, let us gain a deeper understanding and understanding of a thing.
Today we are in a transition period where two worlds are handing over, from our physical world to a digital one. In addition to blockchain, artificial intelligence, 5G, and then there is quantum computing (this technology will have a greater impact), all of which are critical technical support for this handover. There is a concept that everyone should be aware of. The physical world and the digital world are two worlds. The digital world can be automated through smart contracts, but you still have to store some information from the physical world to the digital world. There is an exchange between the two. Otherwise, the digital world is completely isolated from the physical world.
Can physical things be digitized? Everyone has been discussing tokenization these days, can I digitize my house, can I digitize the bottle of wine I bought from the supermarket, the real thing is not digital in nature, so how to digitize the concepts in the physical world, and Operating in the digital world and transforming it into higher value is what we need to explore.
Regarding blockchain application scenarios, I believe many people are thinking about this answer. Through the integration of blockchain and other technologies, everyone is considering whether some new laws can be recombined and arranged. Mr. Tan mentioned BSN today and established a new community and industry alliance. The members of these alliances are actually cross-industry, including financial industry, technology-focused, and traditional industry giants. In fact, they have begun to break some of the laws of the traditional physical world. We believe that this phenomenon will become more and more obvious as technology continues to mature. We have just started to explore the application of blockchain. Let us move forward together and use blockchain and other core technologies of new infrastructure to further build social integrity and solve important problems.
