PlatON CTO James Qu: How Does Blockchain Technologies Facilitate the Industrial Transformation and Upgrade
On May 15th, 2020, PlatON CTO James Qu, invited as the guest speaker of 126th 武谷论链, gave a sharing on how blockchain technology facilitates the industrial transformation and upgrade in the next-generation digital era.
Technical Revolution Brought by Blockchain
In my opinion, blockchain is the perfect combination of the modern cryptography and computer science after years of development. It is a comprehensive science that consists of consensus algorithms, governance model, economic model, storage model, distributed theory, network interaction, virtual machines, smart contract, etc.
From bitcoin to “World’s Computer” Ethereum to the third-generation blockchain, we’ve witnessed all kinds of blockchain technologies and revolutions that show us the breakthroughs of decentralization, security ad scalability, in the 12 years of development. The key of the technical revolution for traditional companies is to replace the vertical parallel complexity of the traditional world with the distributed horizontal complexity. Furthermore, we have the new-generation financial infrastructures based on privacy-preserving computation and the public blockchains features computing architect like PlatON that lead the new direction of blockchain development from the core productive factors.
In a word, from the data storage, to business practice of collaborative consensus, to the infrastructure featured with data protection and computation sharing, blockchain has played an important role in the revolution of traditional industries. And privacy-preserving computation is just the game changing innovation for data asset and circulation.
Blockchain Facilitates the Industrial Transformation and Upgrade
Generally speaking, a traditional company stands out with lower energy consumption in investment, operating cost, risk control cost, transaction cost, upgrade cost, etc. and more effective information transmission. With the data trace feature of blockchain, the data inconsistency issue of traditional systems, especially cross-system, will be well addressed, and unqualified component recall of airplane, cars, medicines, etc, and unqualified medicine destroying will be solved with lower cost in time, human and material resource.
Blockchain technologies can be used for traceability and tamper-proof, and cryptography algorithms such as ZKP, MPC, etc. can be used for controlling and penetrating regulation issues.
Hence, with reasonable blockchain economic model, the highly transparent distribution according to labor is guaranteed; with smart contract, decentralized transaction atomization and automation, lower transaction cost, real-time payment and settlement are guaranteed to reduce the costs of risk control, management and capital stagnation greatly. If a company can utilize privacy-preserving computation in addition to the operation model of blockchain distributed economies to create its data asset, then it can achieve the general transformation, and upgrade the industry with innovate dimensionality reduction.
Industrial Transformation and Upgrade Require Basic Capacity
Firstly, define the real world according to the rule of the blockchain world properly, including the identity definition, related attribute definition, mutual relationship, interaction events, upgrade and evolution, and management rules, etc. In the interconnected world, the rational judge on trade-off is necessary.
Authorization and privacy-preserving on account system, behavior management, business logic and business info to ensure the the right confirmation of data in data protection, and reasonable data sharing.
PlatON team has successful business practice on the verification system with prominent storage design implementation, network optimization, quick and reliable consensus algorithms, upgrade governance models, etc.
Challenges the Industrial Transformation and Upgrade is Facing
1. Game of the ones with vested interests. Blockchain companies should explore new markets. For example, companies could facilitate the right confirmation of data with privacy-preserving computation to make data as well as the data ecosystem more valuable.
2. Dilemma of perpetual motion machine. Once a blockchain system is live, it has enter into the perpetual motion machine model with 7*24 non-stop mechanism. The PlatON team utilizes the ISO 18238 Space System-closed Loop Problem Solving Management for quality control.
3. Highly risky environment, the cryptography gene of blockchain system determines the anti-risk capacity of system. The blockchain system can work as normal even under highly risky open environment, however, the system crash issues are inevitable. Thus, threshold for the blockchain system is necessary.