Yixin blockchain | a dry article reading Yixin’s blockchain practice

Time:2021-6-7

What is the relationship between blockchain technology and finance and other real economy? What are the case scenarios of blockchain technology used in the actual business of Yixin?

On the afternoon of December 6, the monthly CEO Forum was held in Beijing as scheduled, and nearly 100 colleagues attended. In this session, we invited Xiang Xu, chief technology officer of Eason, Yu Mingyang, director of Eason blockchain laboratory, business director of Yiqi cloud service blockchain, and Qin Qin Qin, partner of Eason financial technology industry fund, to talk with downing about Eason’s blockchain practice on issues of concern to colleagues.

  • How to introduce blockchain in a very easy to understand language?
  • What is the relationship between blockchain technology and finance and other real economy?
  • What are the case scenarios of blockchain technology used in the actual business of Yixin?
  • What is the layout of Yixin financial technology industry fund in the direction of block chain at home and abroad?
  • What is the general situation of Yixin blockchain platform?
  • What is the development process of Yixin’s blockchain business?

Yixin blockchain | a dry article reading Yixin's blockchain practice

1. How to introduce blockchain in a very easy to understand language?

Xiang Jiangxu: let’s take a mining example. For example, there are 1000 miners working hard every day in a mine. He has to declare how many mines I dug today and how much salary I will be paid accordingly. According to the previous way, the mine manager should make records, but it is difficult to guarantee that the mine manager will not tamper with the mining records for personal gain, or even completely erase the merits of a miner. How to record another way? That is to let each of the 1000 miners have an account book, and record how many mines each person has dug on the 1000 account books. It is clear that the mine manager can not tamper with them unless he has paid more than half of the miners to change the account book. But if it is not 1000 miners, it is 1 million miners. With the increasing number of nodes, any transaction and block written into the account book can be traced and tampered with. This is the blockchain, which is a distributed ledger, so that any transactions recorded in the ledger are recorded in a block.

Yixin blockchain | a dry article reading Yixin's blockchain practice

(Xiang Jiangxu, chief technology officer of Eason)

2. What is the relationship between blockchain technology and finance and other real economy?

Yu Mingyang: blockchain is a distributed ledger. Its core content is decentralization. Data cannot be tampered with. All data in blockchain is encrypted. For example, in the financial industry, there is often a relationship of mutual distrust in the transactions between two people. If I lent you the money, do you use it indiscriminately. We hope to conduct supervision in a way. Originally, only banks do this kind of supervision, but banks often do not participate in many transactions. The best way is to establish a decentralized way. We put our respective transactions on the blockchain. More people supervise your transactions on the blockchain and establish a trust mechanism on the blockchain transactions. We can ensure that the whole society establishes a credit system through this way, which can be extended to all aspects of life in the future, This is in the financial field. We can rebuild a new value credit system with blockchain technology.

Another is that we can make use of the feature that the data on the blockchain can not be tampered with to ensure that some records you made earlier are reliable when it is finally needed to play a role. If there is a dispute, it can be used as a certificate, the authenticity of the data is recognized by the whole industry. In the future, for example, if you use this method to solve disputes in the judiciary, the authenticity of data can help you more easily win lawsuits and arbitrations, or use such records as evidence to finance in a third-party organization in the future, it will also be convinced by the third-party organization, reducing the cost of additional disputes.

Yixin blockchain | a dry article reading Yixin's blockchain practice

Of course, blockchain can not be said to be omnipotent. We are more considering using blockchain distributed technology to realize a new credit system. In the case that the centralized credit system can not meet the needs of everyone, we use the blockchain to build a new distributed credit system, so that more people can participate in such credit construction. In the future, in our society, everyone can have credit, so that everyone can use credit in any occasion, This is also an important starting point for the country to vigorously promote blockchain technology.

Yixin blockchain | a dry article reading Yixin's blockchain practice

(Yu Mingyang, director of Yixin blockchain laboratory and business director of Yiqi cloud service blockchain)

3. What are the case scenarios of blockchain technology used in Yixin’s actual business?

Yu Mingyang: one of the scenes where we took the lead in applying blockchain technology is supply chain finance. As early as the beginning of 2017, we deployed a blockchain on the platform of one of Yixin’s steel trading customers. We provided supply chain financial services for customers, recording the whole process of trading services, including simple goods in and out, source, contract signing, logistics, dealer sales and reaching customers, In addition, we cross verify the fund flow records of intermediate transactions in this way to prove that this is a real and credible transaction. In this way, if customers need financial support in any of the intermediate links, they can submit this part of information to the third party who provides them with credit and funds. The other party will believe the real existence of the transaction after seeing it, and will evaluate the capital demand according to the situation of the transaction, provide credit for customers, and provide financial support for their normal business development.

Yixin blockchain | a dry article reading Yixin's blockchain practice

Of course, this scenario is now a very small use case. Through this case, we can expand to other fields, including not only supply chain finance, but also how to guarantee public welfare and so on. In the future, we will also try to expand blockchain technology to other fields of finance.

Yixin blockchain | a dry article reading Yixin's blockchain practice

4. Finance is one of the most closely related fields with blockchain. In the process of financial technology investment, in view of the development of global and Chinese blockchain, which frontier fields will we pay more attention to?

Qin Qin: logically speaking, the emergence of a new technology starts from the bottom. With the underlying infrastructure, services and applications will be derived, and hundreds of billions of dollars of companies will appear. Now we are thinking, which stage is blockchain technology in? Is there a global common underlying protocol standard? In the past two or three years, we have been paying attention to the formulation of underlying technical standards. For example, some IBM has launched hyperledger fabric work platform, Microsoft has released azure blockchain work platform, and engineers have launched Ethereum work platform. China clearly proposes to take blockchain technology as the national core technology frontier to attack. At the core technology level of blockchain, we were very concerned about performance and security at that time. Now, performance is not a big problem, because for current applications, applications that can exceed one trillion TPS have not been launched. Now it seems that the technical level, security and privacy protection has become the difficulty of landing.

We are very concerned about what areas are just needed for blockchain. We can take a look at cross-border logistics. The whole transaction involves more than 200 interactions, which involve more than a dozen data flows. What kind of revolutionary changes will be produced if these more than a dozen parties use blockchain technology? This is an important breakthrough point for productivity to change production relations. According to this, blockchain is likely to be the cornerstone of the next generation of productivity explosion, which may have significant changes to the whole production relations, including international relations. Therefore, we believe that the value Internet and the new generation Internet based on blockchain should be infinitely matched with the real society. There is no big gap between online and offline. The false transactions and trust problems caused by information asymmetry will be greatly improved.

At present, the blockchain application of domestic and foreign giants is basically to get through the information flow in some large industries. That is to say, using blockchain technology, we should first solve the problem of trust, solve the problem of data on the chain, and the next step is the reconstruction of production relations. Most of our companies are still in the stage of learning what blockchain is, how to use this technology, and how to make the existing business quickly on the chain. In the chain process, the difficulty lies in how to define the relationship between the participants in the chain, especially the alliance chain. In terms of blockchain technology, the gap between us and the world is very small. Domestic governments, large enterprises and innovative enterprises are very enthusiastic about the research and application of blockchain technology.

Yixin blockchain | a dry article reading Yixin's blockchain practice

(Qin Qin, partner of Yixin financial technology industry fund)

5. What is the layout of Yixin financial technology industry fund in the direction of block chain at home and abroad?

Qin Qin: we set up this fund in 2016. We hope that in the global venture capital market, new opportunities, growth points and entrepreneurial opportunities, we can not only get considerable returns for our industry Fund LP, but also provide think tank function for the business extension of eason. In terms of blockchain, we invested in two companies in 2016 and 2018 respectively. The first company is circle, a blockchain technology company doing payment. In 2018, we invested in another company, figure, doing real estate transaction. In 2019, they hatched a real estate transaction platform based on blockchain technology.

There are two or three companies that we have invested in in in China have used blockchain technology. For example, we invested in a public welfare crowdfunding platform called easy funding in January 2018. It now has a very cutting-edge technology application, which is to apply blockchain to crowdfunding business and track the capital chain of every sum of money raised by crowdfunding. It provides this blockchain platform, and other foundations also put their own data on the chain and relevant information of customers on the chain, so it can track every donation you make. These are our layout in the direction of block chain at home and abroad. We have been doing a lot of exploration and research in this field, and we hope to have some layout and harvest before the arrival of the next value Internet.

Yixin blockchain | a dry article reading Yixin's blockchain practice

6. What points and businesses will the company focus on in the future?

Downing: in the next stage, we need to build a platform for n industries that are suitable for the application of blockchain technology, especially finance. Many customers of Yixin wealth service are entrepreneurs, and their enterprises can also use blockchain technology. In addition to building this platform, our blockchain team has also established corresponding capabilities in some important financial segmentation areas. For example, when we help our clients to carry out family inheritance, wills and important inheritance documents can be linked to the notary office and the court, so that there will be no longer protracted wills disputes. Therefore, we need to use such good technology for our customers. There are many scenarios like this. We will foreshadow that in the future, we will make breakthrough innovation with blockchain, which is being promoted. I think it has great prospects.

Yixin blockchain | a dry article reading Yixin's blockchain practice

7. Will distributed accounting data management increase the possibility of data leakage?

If the blockchain distributed system is adopted, there are many bookkeepers. It is difficult to guarantee that their network environment is the same as yours, and there will be the risk of information leakage. But we have a solution. The data on the chain can be encrypted. Even if we get the data, we can’t see it. There are many technologies that can guarantee the privacy of the data.

Yixin blockchain | a dry article reading Yixin's blockchain practice

Article source: Yixin CEO Forum

Yixinren

Author: Meili Yi