Frank Cui: The Important Speech Of The President Xi Jinping The Points Direction For The Development Of Blockchain Technology
Frank Cui is Chief Technical Advisor of HSN. He has a PhD in Electrical Engineering from Tsinghua University and rich theoretical knowledge and practical experience in Blockchain technology principles and applications, Big Data, FinTech and other fields. Also, as editorial board member of IEEE on Magnetics, he has published several papers in international scientific research journals and has won the first prize of Beijing Science & Technology Award, and the Chinese National Excellent Patent award. He has more than 10 years working experience in the United States, UK, Japan and other places, with extensive experience in R&D.
On the afternoon of October 24, the Political Bureau of the CPC Central Committee carried out the 18th collective learning on the current situation and trend of Blockchain technology development.
When presiding over the study, General Secretary Xi Jinping stressed that the integrated application of Blockchain technology plays a key role in new technological innovation and industrial transformation. We should take Blockchain as an important breakthrough in independent innovation of core technology, clarify the main direction of development, increase investment, focus on tackling a few key technology challenges, and accelerate the development of Blockchain technology and industrial innovation.
The published report and analysis of the President’s speech has been quite thorough and comprehensive. Next, I will make some interpretations of the key points from the perspective of a technology expert, as well as my own observation and outlook on the current industry trend.
According to national TV station’s comments, the President has emphasized the following main points when presiding over the study:
· One situation judgment
· Two development requirements
· Four specific plans
One Situation Judgment
First, it is the “one situation judgment” proposed in the report, namely:
The application of Blockchain technology has extended to Fintech, Internet of things, Intelligent Manufacturing, Supply chain Management, Digital Asset Trading and other fields. The integrated application of Blockchain technology plays a key role in new technological innovation and industrial transformation.
So, what is “Blockchain technology”?
In short, “Blockchain” is a multi-party, encrypted and distributed digital ledger. Bitcoin and other cryptocurrencies that you are familiar with are an application of Blockchain technology.
Next, in which areas does the integrated application of Blockchain technology, or “Blockchain +”, have specific applications?
As judged in the report, the current application areas mainly focus on the following directions: Fintech, Internet of things, Intelligent Manufacturing, Supply chain Management and Digital Asset Transaction. This article will focus on two of the most important application areas: Fintech and Internet of things
Fintech
Fintech has developed rapidly in the past few years. For ordinary Chinese consumers, the most direct feeling is that the number of times to go to the bank counter is getting less and less. Most financial transactions (including payments, loan, securities investment, etc.) can be completed through mobile phones and the Internet. The “Cashless society” has become a reality.
What is the role of Blockchain? On the one hand, Blockchain, as a distributed encrypted ledger, avoids the dependence on a single center, especially in the business completed by a variety of financial institutions, such as cross-border transfer, credit verification, loan review, etc., by linking all parties and participants together. Thus, if any party wants to tamper with the data, it will need all participants’cooperation, which greatly increases the cost of “being evil”.
In other words, it replaces “centralized trust” with “inter-trust”. Typical cases in this regard include Tencent’s first Blockchain invoice issued in Shenzhen and Alibaba’s international remittance based on Blockchain technology completed last year.
On the other hand, with the development of Blockchain, cryptocurrency, or generalized digital currency, is also widely used in the field of Fintech. Now, consumers all over the world can send messages, voice and even video quickly through the Internet. Can we transfer money in such a convenient way? Facebook’s Libra project was born out of such a vision, and the digital currency of the Central Bank of China is planned to come into reality this year after years of brewing.
Internet of Things
What is the Internet of things? Internet of things, or IoT, came into being with the further development of Internet. Initially, the terminal of Internet connection was a computer, which played a role in changing business process. Next, the Internet connected to everyone’s mobile phones, changing everyone’s lifestyle and habits. Further, it is to connect to every device and object around us, so that everything becomes “intelligent” (not only to get information from these terminals, but also to control them), so as to change the big picture of the whole world. This trend is taking place. What we can see everyday includes smart watches / bracelets, smart locks, smart appliances, and even the Internet of Things that may appear in the future.
So what help can Blockchain technology provide for the development of the Internet of things? Let’s get back to the definition. The role of Blockchain technology is to write all kinds of data in a highly encrypted form into a distributed database. This is a very important feature that IoT lacks, as the biggest disadvantage of the Internet of things is (data) security.
So far, the security of IoT devices is relatively fragile. In real life, we can often see that in some home and even small enterprise networks, once users connect to the same WiFi network, most devices on the network will have full or partial unrestricted access rights. Some devices are connected through Bluetooth or 3G / 4G networks. These networks have certain security controls, but they are still not completely secure. As more devices are added, it opens more channels to be attacked, and hackers can then access many devices and data. Blockchain and Smart Contract based on it can be achieved by the following methods:
1) Transmit and save all data after encryption
2) Create a tracking chain, trace the history of a single project and data package, avoid malicious intrusion
The methods and other means can improve the overall security of the Internet of Things. It is worth mentioning that, Hyper Speed Network (HSN) is the first public chain project focusing on 5G application scenarios in the world. It integrates Blockchain, Internet of Things and 5G communication organically. With the rapid development of 5G technology, it can bring the Internet of Things wider coverage, more stable authorized frequency bandwidth, more unified standards, so as to provide strong support for various applications based on the Internet of Things, especially with traceable and tamper proof Blockchain applications.
Relying on the high-speed 5G communication technology and the development of Internet of Things, Big Data, Artificial Intelligence and other technologies, the Blockchain will be able to provide stable tracking, traceability and distributed peer-to-peer transaction functions for trillions of commodities around the world. HSN innovatively proposes the concept of edge nodes, which can embed the intensive computing business related to the Internet of Things to the edge nodes, which helps to reduce the response delay and bandwidth cost, and meet the needs of various intelligent scenarios under the decentralized architecture model.
As the source of massive computing and storage resources in HSN’s network, edge nodes can be all terminal devices with certain computing or storage capacity in the future. By making super nodes guarantee edge nodes, edge nodes can provide efficient and reliable Blockchain network services for the “Internet of Things”.
At the same time, the “HSN ONE” 5g MEC module that HSN is developing will support large-scale edge computing with hardware, thus providing strong support for the new generation of communication enterprises and helping them to create and improve a wide range of Internet of Things solutions.
Two Development Requirements
Based on the above situation judgment, the President further proposed two clear Requirements:
First, take Blockchain as an important breakthrough of independent innovation of core technology and focus on the development of basic technology; secondly, pay attention to the deep integration of Blockchain technology and the real economy, and focus on the actual effect.
The reason why Blockchain should be regarded as the breakthrough of national science and technology strategy and core technology innovation is not accidental. Besides the irreplaceable technical importance of Blockchain, there is a deep practical foundation behind it.
First of all, as a new frontier technology, Blockchain is located in the “no man’s land” and has not yet formed a strong technical barrier. For countries around the world, in fact, it is basically in the same running line. China needs to achieve breakthroughs in core technologies in this field, with less constraints and obstacles. It is easier for China to stay at the forefront of its theory, occupy the commanding point of innovation, and gain new industrial advantages.
Secondly, China has a good foundation in the field of Blockchain. Whether in technology, industry, talent, policy, or public opinion, China has the soil to form a rapid breakthrough. In terms of Blockchain patent applications, China’s share of global new patents is also increasing year by year, from 33.33% in 2014 to 82.1% in 2018, which is far ahead.
More importantly, from the attention of the decision-making level, combined with the advantages of the overall planning, it is very likely that the technology and application of the Blockchain can break through the bottleneck of the existing development and enter a new world in China.
In terms of independent innovation, HSN has submitted three independent intellectual property patents, with core knowledge base from consensus mechanism, storage method to file encryption and de recalculation method, which is in response to the President’s high attention to core technology.
At present, China is at a time when the new and old driving forces are transforming. If the Blockchain and the real economy can achieve deep integration, can be widely implemented and applied in the field of people’s livelihood, and can be combined with the construction of a new smart city and government services, it will greatly promote the upgrading of traditional industries, improve the efficiency of social operation, and improve people’s wellbeing.
Currently, in addition to the technical problems faced by the development of Blockchain, the development bottleneck is derived from reality, that is, how to integrate deeply with physical products, how to truly generate benefits, and provide assistance for people’s life and economic operation. For example, cross-chain connectivity problems between different Blockchain ecosystems, such as cross-enterprise cooperation challenges based on Blockchain, such as security challenges, privacy protection challenges, unified standards development and implementation challenges, traditional enterprise acceptance of Blockchains, the problem of the use of “Blockchain+” in the field of people’s livelihood, etc., these are not solved by technology research and development, capital investment or talent cultivation. It requires a strong overall responsibility for overall planning and promotion. This is precisely the focus of the central government’s efforts to launch relevant decisions with the highest standards, and it also reflects our advantages in achieving breakthroughs in Blockchain development.
In terms of actual business, HSN has actively combined Blockchain technology with the industrial economy and made a series of down-to-earth efforts, including:
• HSN’s subsidiary, Tianbei IoT, signed a strategic cooperation agreement with Lenovo, a well-known computer hardware manufacturer. HSN will provide Lenovo with intelligent storage devices and 5G routers.
• Tianbei IoT and public company Quectel Wireless Solutions Co.,Ltd. have reached a long-term cooperation with 5G technology to provide 5G terminal application products and integrated solution solutions to help the high-quality networked M2M application layout of Quectel.
• HSN signed an agreement with public company MeiG Smart Technology to improve mobile broadband (eMBB), large-scale machine-like communication (mMTC) and low-latency high-reliability communication (uRLLC) to create better 5G products and solutions.
• Tianbei IoT’s strategic partner, Shenzhen Jieshun Technology, won the bid for “Wulan County Chaka Scenic Area Tourism Poverty Alleviation Infrastructure Construction Project (Phase II) Smart Scenic Area System Purchasing Project”.
In addition, the HSN project recently launched the HSN brand series hardware products, including:
• HSN AP ONE wireless access point
• Mesh distributed wireless dual router
These achievements have highlighted the efforts of HSN in the development of Blockchain technology to effectively promote economic development and improve the quality of people’s livelihood.
Four Specific Deployment Plans
Finally, the President pointed out a clear direction in the report and made the following specific deployment plans:
1) Technical research
It is necessary to strengthen basic research, enhance the original innovation ability, and strive to let China take the leading position in the emerging field of Blockchain, occupy the commanding heights of innovation, and gain new industrial advantages. It is necessary to promote collaborative research, accelerate the breakthrough of core technologies, and provide safe and controllable technical support for the development of Blockchain applications. It is necessary to strengthen the research on Blockchain standardization and enhance the right to speak and rule in the world.
2) Industrial development
It is necessary to speed up industrial development, fully promote the market advantages, and further open up the innovation chain, application chain and value chain. It is necessary to build a Blockchain industry ecology, accelerate the deep integration of Blockchain and frontier information technologies such as artificial intelligence, big data, and Internet of Things, and promote integrated innovation and integration applications.
3) Industry integration
It is necessary to promote the deep integration of the Blockchain and the real economy and solve the problems of difficulty in financing loans for SMEs, difficulties in controlling the risks of banks, and difficulties in departmental supervision. It is necessary to use Blockchain technology to explore digital economic model innovation. It is necessary to explore the application of “Blockchain+” in the field of people’s livelihood, and actively promote the application of Blockchain technology in the fields of education, employment, pension, precision poverty alleviation, medical health, commodity anti-counterfeiting, food safety, public welfare, social assistance, etc. The masses provide more intelligent, more convenient and better public services.
It is necessary to promote the combination of the underlying technical services of Blockchain and the construction of new smart cities, explore the promotion and application in the fields of information infrastructure, smart transportation, energy and power, and improve the level of intelligence and precision of urban management.
It is necessary to explore the use of the Blockchain data sharing model to achieve the joint maintenance and utilization of government data across departments and regions, promote business synergy, deepen the “run-up once” reform, and bring better government service experience to the people.
4) Technical specifications
It is necessary to strengthen the guidance and regulation of Blockchain technology, strengthen the research and analysis of Blockchain security risks, closely track development trends, and actively explore development laws. It is necessary to explore the establishment of a safety guarantee system that adapts to the Blockchain technology mechanism, and guide and promote Blockchain developers and platform operators to strengthen industry self-discipline and implement safety responsibilities. It is necessary to implement the rule of law network into the management of Blockchain and promote the safe and orderly development of Blockchain.
These four deployment directions also point the way for the further development of HSN. Under the guidance of the policy, HSN will actively and steadily promote the core technology research and development, take a technical foothold, develop physical products, and focus on the long-term strategic vision and development direction. HSN will release a series of high-quality products to meet the diverse needs of enterprises, households and consumers, and provide strong support and continuous motivation for the deep development of the entire project.
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