Xiao Feng: block chain investment mainly concentrated in the general data layer, protocol layer and application layer business
On July 30th -31, the 2016 session of the sixth session of the third Shanghai new financial year and the Internet financial summit in the Bund will be held in Shanghai, universal holding vice chairman Xiao Feng invited to attend the Internet financial event, and the guests on the block chain technology is discussed.
When it comes to block chain technology view, Shaw wind block chain technology is divided into four layers: network layer, data layer, protocol layer and application layer of general business.
First, the network layer, the only mature is bitcoin blockchain, blockchain Ethernet square far from complete, the private chain and chain alliance concept is only last year;
Second, on top of the bitcoin blockchain, second levels are called data layer, there have been some mature application in data layer, because of him as a distributed books or database, in the data recording and storage have some application;
Third, to the third level is a lot of communication protocol of the blockchain, just as the Internet industry has a lot of communication protocols, such as HTTP etc.. There are many blocks in the chain, such as smart Ethernet contract is a generic protocol workshop;
Fourth, the application in the three layer fourth layer is various, we call the application layer, business application development in the above, we see very good prospects, in the financial, networking, medical and so on have a good direction and prospect. But so far, all things are basically still in the test stage.
Xiao Feng also said that the block chain of real business value is definitely the general data layer, protocol layer and application layer business. The network layer, if the public is chain must be fully open. Even Hyperledger is open-source, the core of course not anyone can master.”
Following is the speech text xiaofeng:
Thank you for hosting Liao bureau. He just said that we can only talk about what to do, we have theory. From our beginning, we began to study the blockchain in early 2014, considering the blockchain, value and potential prospect. Last year, we set up a laboratory, because the blockchain trend is from the technology, is not only a change in the business model, so our laboratory is some partial technology. In addition to the establishment of a special investment chain block a $50 million VC fund. Until now we have invested $about 20000000 in worldwide investment 23 start-ups. When you realize this is a technology, we have no accumulation, we want to use a VC to fund and global technology start-up companies to establish a connection, establish a very strong link, equity relation. Easy to put these technology into Chinese, we and the world can China is one of the shareholders.
The more than 20 companies, we are at home only cast 1, the rest are in overseas investment, including the United States, Europe, Asia, Asia in Singapore, in the area of Taiwan, in South Korea have. This is a case of our universal Holdings do. Two or three months later we will have some new releases, the universal holdings and some new ideas in the block chain.
Next I talk through the two or three years of our views. The landing block chain after three years and there is no mature degree to do large-scale application development. I put the block chain is divided into several levels, the most basic is the network layer, the only mature is bitcoin blockchain, blockchain Ethernet square far from complete, the private chain and chain alliance concept is only last year. We know that the industry standard alliance, several a great reputation R3 or Hyperledger or R3, we even have not released the code, you can know far from can use, including Hyperledger is not complete. So from the perspective of private chain, chain alliance, let us see also need 6-10 months to complete a thing, the public in the chain, also need more than one year time Ethernet fang. Bitcoin block chain is very distinctive values created by people. Now want to expansion, because under the existing framework of only 7 transactions per second, it is impossible to get used to our financial. Would you like it but for expansion, how noisy expansion now in a complete mess because the original is one thing, some extreme anarchists do, there is no central bank, government, nor any organization can manage it, you have to go after the transformation for financial or other industries. The values of the people they say we these things do not want to quarrel, now more than two years, it has not been decided. This is the current situation, very not mature.
On top of the bitcoin blockchain, second levels are called data layer, there have been some mature application in data layer, because of him as a distributed books or database, in the data recording and storage has been used in some. For example, companies such as Factom, shortly before the U.S. Department of Homeland Security and gave them a lot of money, they hope the blockchain based on database technology to do some of the data storage, the technology is relatively mature, it is a.
Go on the third level is a lot of communication protocol of the blockchain, just as the Internet industry has a lot of communication protocols, such as HTTP etc.. There are many blocks in the chain, such as smart Ethernet contract is a generic protocol workshop. Smart contracts so far this technology has not developed to our financial core production available. With its speed, now even after the square turn finished second Ethernet is to do 1000 pens or hundreds of pens, are not enough for our high concurrent large-scale financial transactions. In addition to the general agreement, technology development is not mature enough, at least so far, we have not done a good and great application. There are some other common protocols, such as privacy protection agreement, as far as we know two public account information chain, so the whole network is open, if the block chain technology is applied to the financial system to go first, any banks are unlikely to accept that my account, although your name don’t know, by no encryption, a hacker can break, but the account information to the public, because it should be the third party account, so bitcoin account balance is open, the bank apparently cannot accept this point. So some people have developed some privacy protection algorithm, homomorphic encryption, ring signature technology and so on, we also invest in one of the best privacy protection in the United States, but so far, these techniques cannot be directly used in our financial system, because it is not mature and perfect. So you say to finance immediately, is obviously not realistic, technology is not enough. This is a block chain, general agreement on the database, so far is still developing, also need 2-3 years time estimates, these can only be complete and mature. Mature after large-scale application in our financial system.
The application in the three layer fourth layer is various, we call the application layer, business application development in the above, we see very good prospects, in the financial, networking, medical and so on have a good direction and prospect. But so far, all things are basically still in the test stage. So you see we almost all major financial institutions only set up their own laboratory, I also visited several laboratories, such as the UBS lab, he put 20 several financial scenarios for the blockchain test. I have been to last year and the year before, to tell the truth from the application is still very far away. But you’re not on the runway, when the gun. You are not eligible to participate in the competition, so we must prepare all into the track, you don’t prepare, if shot? You have no disqualification. So we are trying to do this thing. This is the world in the application of a general condition.
Q: is still in a stage of fitness and preparation for the future. Because you invested 23, 1 Chinese 22 home and abroad. Can you introduce to the audience, the world you are aware of the situation, because on 2015 the blockchain investment growth is very fast, 16 years is the rapid growth trend. Their investment in accordance with the four aspects: you just talked about, is located in what level?
Xiao Feng: the real business value is certainly the general data layer, protocol layer and application layer business. The network layer, if the public is chain must be fully open. Even Hyperledger is open-source, the core of course not anyone can master. R3 their membership in the framework is discussed and debated. Because so many banks in which he also said do open future. In the network layer may have investment opportunities where? Some people are trying to do a thing, is the different block chain to make a package, and then we do the development on top of it, you don’t need it under a certain function, you don’t need to know is in bitcoin or Ethernet square chain block. This he can charge. At present, it is a very large, very great project. Because the bottom is not mature, it is very difficult so you go to the package, now no one to invest in it.
I share my long ago to the United Kingdom, Singapore to visit the financial supervision departments of their experience, they are in the UK and Singapore announced the establishment of a sandbox system, the new system must first put sandbox mechanism no problem before they can enter the production system. They are actually in the sandbox mechanism of financial technology, financial technology because things will be any conflict with existing supervision. How to treat? Regulators put you into the sandbox mechanism test for one or two years, as for the financial markets, a positive contribution to social welfare, I modify my law, modify my rules. If the test a year later said no, we stopped it. But, I do not pursue the regulatory red collision innovators may over the past year or the bottom line supervision. I strongly suggest that this mechanism Chinese regulators can also establish such a sandbox mechanism.
The Japanese Tokyo has a block chain forum, financial department officials in Japan is the first speaker, what the speaker says? He did not say that he should establish a sandbox system, but he said you have what innovation and we can talk, talk before we see is not a test, Japan is actually set up a similar sandbox. We don’t like P2P, the first wild long, then handahansha, the innovation risk is too big.