Wu Zhongze, Former Vice President of Research and Technology: Blockchain Technology Promotes Financial Transactions, Accelerates Digital Exchanges

At the AP Investment Summit on December 30, 2021 and Taihu Bay Development Forum “Science and Innovation Leading Resource Binhu” was held today in Wuxi, Wu Zhongze, former Minister of Science and Tech said: We are attending and discussing.

As Wu Zhongze pointed out:The integration of blockchain technology is an important part of the digital transformation of the financial system and the underlying processes that underpin the future of digital commerce. Blockchain is the relationship between design and manufacture, in the future, blockchain will affect or even change the way the internet, which may lead to technological changes in new and changing international markets.

According to our country's 14th five-year development plan and important country and governing body documents,The 14th Five-Year Plan will be a five-year plan in which the national blockchain accelerates innovation, develops ecosystems, and is widely used and funded by surveillance. In the future, blockchain technology will be used in various fields such as blockchain banking, supply chain, retail, insurance, etc., and existing financial systems could also be transformed into a new financial system. in the digital age.

Below is a list of quotes.

First of all, celebrating an event today has two main themes.One is financial investment, the second is the development of technology, and the combination of the two is financial..Most of the people at the conference today are friends of the financial industry. So, I want to take this opportunity to talk about how blockchain technology can quickly transform digital in financial markets, and share some information and ideas.

On October 24, 2019, the Central Politburo of the Council of China convened a study group on the development and design of blockchain technology. Secretary-General Xi Jinping addressed the meeting:The integration of blockchain technology plays an important role in the development of new technologies and market developments, and is expected to lead to the development of blockchain technology and new constructions.

blockchainThe key technologies that support and guide the growth of the digital industry are continuous information and technology.The main concept of blockchain consists of four sentences. The first sentence is to create and modify data through distribution and approval algorithms. The second sentence ensures the security of data transmitted and accessed by cryptographic algorithms, and the third sentence services and manages data by smart contracts. The fourth sentence is to access and store the string structure data.

so,Blockchain is a new application that integrates many new technologies, such as smart tuning algorithms, cryptographic algorithms and distributed systems in the internet age, to ensure that the data recorded from all parts of the network are correct and valid.In addition, it exhibits excellent performance such as distribution, proof, reliability and traceability. As a result, blockchain is seen as the industry by another influential innovation in computing models for mainframes, personal computers, and the Internet.

Blockchain is an innovative concept. This is why Internet architectures are based on IP addresses and devices. To access an affected computer, website, or application, you must first see the IP address resolution of the device, then log into the application system, and finally access the data file. Now, to access the resources you need online, you need to take three or four steps. However, with blockchain, no matter where the user is located or what device (computer or mobile) they are using, all data is synchronized when the user only logs into their account with their own key.The blockchain is a data reader and every design is a data reader.

These changes are critical in determining our organization's resources, including the distribution, identification, and exchange of digital resources that Internet models cannot support. Without these changes, the digital economy of the future will not be able to survive.Blockchain is an architecture that supports the digital marketing of the future. The blockchain is more profitable than the Internet.

First, the internet can be virtual and the blockchain is the internet of trust.

Second, the secure transmission of information over the Internet can store and process information without constraints of time and space, and blockchain is the Internet at a cost which can provide great value and done well.

Third, the internet is visible and blockchain encryption is in the digital world and is an untapped asset.

Fourth, Internet users have reached the limit. For example, "unsuccessful growth" is caused by a lack of long-term innovation in complex processes, content lifting, communication processes, processes, dialogue content, collaboration and dialogue. In the future, Metaverse will establish an industry of blockchain and other technologies, tightly integrating the virtual and real business, social and personal system, and allowing each user to create and edit content. Now, "the little flower sees only the edge of the blockchain".

Fifth, the Internet is the central operating organization. Blockchain is a collaborative organization.

Sixth, the Internet is only a "consumer", and in the Internet age, we are only a consumer. In the age of the blockchain, we are consumers and traders.Blockchain is a rich technology that anyone can accomplish with added value.

As such, blockchain is a challenge for the organization and process of the Internet of Things and is also a challenge for the reliability of the Internet today and for the lives of people.In the future, blockchain will actually affect or replace existing bottom-up processes on the internet. This could lead to technological changes and changes in the global economy.

About the "first half" of the Internet age, the Internet, 4G, 5G networks and the Internet of Things have established a transparent data connection and even connectivity of all kinds. We call it the 1.0 era of digital marketing. health management. The next decade is therefore the “second half” of the Internet.The integration and completion of blockchain and other digital technologies will realize the interplay of benefits and integration supporting the era of digital commerce 2.0.

An important channel of this interaction is the reliability that blockchains operate at low cost.In other words, by establishing a trust mechanism through a distributed system, it reconstructs the social trust relationship by transforming the trust patterns of human beings into a trust model for machines. So we have to connect and keep the blockchain.

The blockchain has been completed rapidly in just 12 years since its introduction in 2009. Today, the application of the blockchain industry has gradually spread from the digital industry to the realm of space and services, including the internet of things, smart manufacturing, chain management, digital real. real estate marketing and much more. Extensive research has started to obtain preliminary results. In particular, it is different from other blockchains based on digital technology which were first introduced in the new phase of the Korean digital industry in April of last year.Blockchain is the basis of innovation because it is both productive and social.With the rapid development of new infrastructures,Blockchain will facilitate the integration and development of next-generation technologies such as 5G, cloud computing, Internet of Things, Big Data, cloud computing and Internet applications.

These collaborative technologies have created the Internet from the Internet to the smart Internet, from the virtual Internet to the trusted Internet, from the data Internet to Internet access, and through Internet users to Internet can create. Improvements in the financial system and public administration have laid a solid foundation. As a result, it promotes the close integration of digital technology and commerce in the real world, strengthens the transformation and transformation of traditional industries, promotes innovation, children of new industries, new trends and models, and creates new advantages in digital marketing. andBlockchain provides a new environment for growth, primary mission and critical support.

Today, the blockchain industry has attracted more and more entrepreneurs and capital to enter the market, becoming a new place of innovation and entrepreneurship. According to the data, the global blockchain industry is expected to grow from $ 3 billion in 2020 to $ 29.7 billion in 2025. This means that over the next five years, the market's annual economic growth will reach 67, 3%. Of these, financial, payment and service information will be the most widely used.

The growth of blockchain in 2021 is impressive, and at least 25% of Forbes' top 2,000 companies are using blockchain technology as the basis for achieving high digital reliability. With the development of blockchain technology and innovation, its application has accelerated and the market has grown. Currently, this field is in the process of shifting from small application research to large application practice stage, and is expected to become the new growth of the industry in the future.

In recent years, national ministries and committees have come together to create a set of policy documents to support all aspects of the basic common blockchain system, simple thinking, application scenarios, training and innovation , monitoring and management of security and development policy. published. Research on the use of blockchain technology in our country is accelerating the export of the blockchain industry and strengthening globalization and energy management.

The People's Bank of China, the Central Cyber ​​Administration of China, the Ministry of Agriculture, the Ministry of Industry and Information Technology, the Ministry of Transport, the Ministry of Human Resources and Social Security, the Ministry of Education have all reported issuing new rules. The Ministry of Human Resources and Social Security added two new blockchain projects and released an expertise model, Sichuan and Hainan talked about digital heritage and more.

According to the 14th five-year plan, 7 key areas of digital commerce will be developed, of which the development of the blockchain industry has three main tasks. The former focuses on the rapid development of blockchain technology like smart contracts and approval algorithms. The second is to develop blockchain platforms and solutions in financial, chain management and government services. The third challenge is to improve the management process.The 14th Five-Year Plan predicts that our country's blockchain will be the fifth year to innovate, build an ecosystem, and be widely used and monitored.Currently, the Chinese Enterprise Research and Technology Department has included the key role of "blockchain" in the key "14th Five-Year" national research and development plan, pushing blockchain to the top again. . For the next generation of blockchain, we will continue to champion technology students, work to tackle and solve more “hushed” problems, and be a strong leader in blockchain innovation and development. .

Technology is the foundation and the stage is king. Use technology as an example. The global financial past of blockchain has created a craze, revealing the mindset of the major financial models of the future. Blockchain has opened the door to the future financial system of human life.

How to make the most of the value support and the attractiveness of blockchain for the digitization of financial markets? We will focus on certain aspects of the app that use blockchain technology to support financial transactions to accelerate digital transformation.

First, blockchain banking.

Banks are international storage and delivery rates. Blockchain can be similar to a digitally secure and tamper-proof distributed data technology. At first, banks need an outright loan to get a loan, but blockchain loan information cannot be linked, so you don't need a lot of credit collateral to get a blockchain loan. The speed and efficiency of blockchain cannot be compared to traditional financial companies.The use of blockchain in finance, deposits and loans, financial transactions, payments and transactions, etc. has become an international distinction.

Second, the financial equipment.

Payments by payment chain are one of the most representative of the blockchain application. The “14th Five Year Plan” focuses on the development of the blockchain industry in two applications: financial management and chain management. When you double the overlap, you have the tools connected. Jae won. It can be seen that financial resources will be one of the most important factors for the development of the blockchain industry during the 14th Five Year Plan.

Promotion of blockchainDecentralization of the financial sector shortened the capital chain through mass balance for the expansion and production of enterprises, facilitating the supply of and demand for financing directly from the capital market, revolutionized the efficiency of allocation and the distribution of capital and increased the capital balance sheet.

In the traditional financial model, financial firms are unable to secure financial support in many areas that require funding due to high data asymmetry, monetization effects, and risk aversion. However, with blockchain scores, you don't have to worry about credit and risk issues as your finances can get into a chain of financial trouble.

The difficulty of raising funds and the problem of high finances are especially prevalent among SMEs and small business owners, which is the biggest problem for Korea's economic growth. . Companies that get credits on blockchain platforms with assets, receipts, house receipts, contracts, etc. Second loan in seconds.

Using blockchain as collateral can help you financially.According to statistics, more than 60% of SME assets in Korea are income and assets. %. One of the main causes of controversy is that Korean heritage and liability agencies register separately and the registration and investigation process is rare, which affects the development of financial wealth.

The third is the market.

Currently, the market is mainly based on the Internet technology platform,If the market uses blockchain to improve its technology, it will be beneficial to improve the creditworthiness, transparency, quality and management of the market and listed companies.Currently, the transformation of the blockchain into the stock market in our country is being piloted. Last year, the China Securities Regulatory Commission agreed in principle that regional stock markets such as Beijing, Shanghai, Zhejiang, Jiangsu and Shenzhen would participate in the blockchain pilot project.

Fourth, insurance.

From the perspective of insurance companies, blockchain could lead to significant changes in the entire insurance contract process, requiring solutions, reviews and decisions.The blockchain can capture the participation of all stakeholders in a business enterprise through fundraisers and smart contracts, and incentives can be distributed, improving engagement of very good hands.As a result, many insurance companies have started using blockchain for management and operations.

From a long-term perspective, human-model relationships have become a major shift in digital, in the digital economy, finance must be better, easier, more reliable, secure and honest. Currently, our central blockchain role - including security and reliability, value-added connectivity, and autonomous organizations - has been pursued with the aim of promoting financial, risk prevention, and design support.

We believe that the use of blockchain-encrypted consensus code credits to improve the creditworthiness of the existing financial system and gradually complete the transition from the industrial age financial system to the new finance The digital age financial system is a inevitable trend. Existing financial markets must join the blockchain to complete its upgrade. The "14th five-year plan" already includes the development of blockchain-financial technology,Financial companies must seize the time and money for the event.

Of course, it will take a long time for blockchain to be widely used in the financial industry, just as the internet was seen as a force for global change when it first appeared. However, real results and great applications have only happened in recent years. Blockchain also requires a similar process. But the thousand-kilometer journey begins with a step and requires preparation.

Let's share our destiny with a national blockchain strategy with new horizons, new starts and new leaps. To become a leader in the use of blockchain technology, the financial industry uses high-level blockchain to improve technology, re-innovate financial strategies and technology in the digital age, aware of changes and transitions, and the General Secretary Xi Jinping of our digital nation. the development of a business plan has turned into a truly magnificent and encouraging business improvement plan!