From the "Fourteenth Five-Year Plan", we can see that the digital economy has been increased in many places, and the blockchain technology has been upgraded to the development strategy of the next generation information technology. So, what is a blockchain? At present, it is in a critical period of innovation and reform of the financial system. How will the blockchain change the pattern of digital finance in the future? What are the application explorations of blockchain in the digital financial market? Zheng Zhiming, an academician of China Academy of Sciences, first put forward the model of blockchain distributed trusted system in China, and put forward the ternary optimization and balance strategy of blockchain.

On July 30th, Academician Zheng Zhiming was invited to attend the 7th Risk Management and Financial Statistics Forum held in Nansha, Guangzhou and delivered a keynote speech. During the forum, he accepted an exclusive interview with Southern Finance.

(Zheng Zhiming, Academician of China Academy of Sciences and Professor of Guangzhou University)

Blockchain will reconstruct the financial credit system

Southern Finance and Economics: The first thing I want to ask is whether it is possible.Tell us about some applications of blockchain in digital finance with a vivid and simple example.

Brian cheng:The simplest thing is digital finance. All financial transactions must consider the risk issue, because the core of finance, its first element is risk, so how to control risk, blockchain will do this. It is to establish a credible platform to exclude the risks in the process of financial digital finance and financial transactions, and its core point lies in this place. Because it is a trust system, the role of blockchain makes the transaction process simpler, more direct, simpler and clearer. It is a technology that uses the traditional trust model in the past to establish a rapid trust relationship through technology.

You see, if there is a problem with that financial system, the risks are not well controlled or there is a problem, so I think blockchain technology can greatly improve the efficiency of financial transactions. This efficiency is established on the basis of ensuring its credibility, so improving the efficiency is what we talked about at the beginning, that is, what GDP is equal to, that is, M times V, that V is the circulation speed, and that M is the money invested, so with the blockchain technology, the circulation speed (V) will be greatly improved, so that is to say, I will change the economic model and then improve the whole GDP.

Blockchain helps the transformation from "owner mode" to "property mode"

Southern Finance and Economics: Was it like the Bank of China, which had to go through this procedure, and then ICBC had to go through the procedure, which might be some repetitive work?

Brian cheng:Here’s the thing. For example, the Agricultural Bank of China made its own system, while the Bank of China made its own system. This system is all internal, and the system it made will not be used by the Agricultural Bank in the future, so it is not only a duplication of work in the past, but also a repetition of the platform it built, which is tantamount to isolated islands.

So in fact, no matter the development of information technology in the future, it is very important to change the concept. The past concept was called "owner mode", right? The "owner mode" means that I am the owner and I am the platform, so if you come to me to use my things, who will come to you to use them? Therefore, to change this mode, it is necessary to make it a "property mode". I have done a very good job in the property, and I have served all of you well. You are all on my platform, and then you can get your past stock, which can be consolidated and added new increments. Everyone is satisfied.

Therefore, it is such a thing with low cost and high efficiency. For the blockchain, it should be jointly supported to make a high-level platform that everyone builds and shares, which is the so-called "property platform". Only in this way can we do this well.

It is extremely urgent to establish China’s national blockchain basic platform.

Southern Finance: It really seems that especially in the first two years, the concept of blockchain was particularly popular and well known, but at the same time, it seems that the threshold is relatively low, as if there are many (fake) financial products, and even the phenomenon of swindling with it actually exists. What do you think of this problem?

Brian cheng:Because that blockchain technology is actually a very difficult technology, why does it suddenly feel very simple? Because now the United States has launched several open source chains, such as Bitcoin, after this open source chain comes out, information people are most afraid of not having open source. After it has an open source chain, frankly speaking, it has been trained for two or three months. After a code transformation and a white paper, it will set up a company, so it will become a very low threshold thing. But in fact, it is difficult and difficult to really do this technology well, frankly speaking, there are few people in China.

Because blockchain is an expansive technology, as long as you use mine, you have to abide by my rules, which is equivalent to turning this obvious and unreasonable treaty in the past into a hidden one, that is, an obvious and hidden treaty. Then, for our country, we also want to develop into a strong country. If we want to develop a strong country, we must make full use of blockchain technology, and then we can push out our country’s influence.

Doing a blockchain is a scene and a chain, which is basically a life cycle of several years. It can’t last long, because with the development of blockchain technology, after this so-called "property platform" is built for it, it can adapt to multi-business scenarios. If the "property platform" is built, you think that the blockchain like it will soon be destroyed.

It is necessary to speed up the improvement of the original innovation capability of blockchain.

Southern Finance & Economics: At present, all our industrial chains have encountered a problem, so they all set up their own set of intelligent management systems. On this basis, why can’t it get through? What is its difficulty?

Brian cheng:A business scenario, if it is so slow and produced little by little, will have no digital economy and digital finance. Digital financial data requires fast, and business scenario transactions should be realized quickly. It is safe for you to use Bitcoin, and its network is fine, but it is not alive. Although it has many advantages, it is not the best blockchain in the world.

Then, after sacrificing security, after you throw away the security and credibility, is it still called blockchain? Therefore, it is easy for many people who want to do blockchain, so its threshold is very low. But how to prove how high the security level of this system is, few people in China can do this.

How does blockchain promote the development of digital finance industry in Guangdong?

Southern Finance: How does the blockchain promote the development of the entire digital finance industry in Guangdong?

Brian cheng:I think compared with other places, Guangdong’s economic development is more open, more flexible, more pragmatic, and its policies are wider. Moreover, Guangdong, Hong Kong and Macao have traditions, and I think it will definitely take the lead in digital finance in the future. Therefore, I hope that our technology can first serve the rapid development of digital finance in Guangdong and make it a good platform. Second, we should learn from its reform, and understand the whole reform idea of learning from it. Then adjust the technical characteristics of the whole technology platform to suit the development of digital finance in Guangdong.

Academician Zheng Zhiming emphasized that "trust" is the core connotation of blockchain, "trustworthiness" and "intelligence" are its core characteristics, and blockchain is the only way for the development of digital economy. From the multiple perspectives of demand side, market application, underlying technology and social structure, blockchain has a wide range of applications and a promising future.

Reporter: Lai Xi Huang Haiqing

Editor: Wang Minling, Peng Shuai (Internship) and Cui Jiali (Internship)

Shooting: Zhao Zhihui, Xu Zhixiang, Xie Xiangwen

Poster: He Haoming

New Media Coordinator: Ding Qingyun Zeng Tingfang Ding Haili Huang Daxun

Producer: Yang Haitao

Coordinator: Cao Jun.

Produced by: Southern Finance All Media Group

(Editor: Wang Minling)