(This article is excerpted from the "2021 Global Blockchain Application Market Report"
When we talk about blockchain, but anyone who knows something about blockchain will be able to express some of their own insights on the related topics in one way or another. For example: from the technical system, blockchain is a new type of application of computer technology such as distributed data storage, peer-to-peer transmission, *** knowledge mechanism, encryption algorithms, etc.; from the functional attributes, blockchain has the characteristics of decentralization, tamper-proof, whole process of tracing, traceable, collectively maintained, and open and transparent.
Looking back at the history of blockchain, we can't get around Bitcoin. on January 3, 2009, the Bitcoin genesis block with serial number 0 was born. A few days later, on January 9, 2009, the Bitcoin block with serial number 1 was born. When the two blocks were connected, the blockchain was "born".
The inventor of Bitcoin, nicknamed Satoshi Nakamoto, probably had a hard time imagining that over the past 12 years, a huge "cryptocurrency family" centered around Bitcoin had created a "giant wave" in the global financial markets that has lasted to this day. "A huge wave of cryptocurrencies. During this time, cryptocurrency-related innovations and risks are intertwined, progress and bubbles are present, pursuit and criticism*** exists, and pushes the government departments of various countries to continuously improve the monetary and financial system, social governance and regulatory system.
At the same time, the blockchain that accompanies Bitcoin is also evolving rapidly, and has long since transcended the realm of "Bitcoin's underlying technology" to be applied to all corners of social and economic development.
So what kind of mechanism does the blockchain work through, what advantages does it have over traditional technologies and models, and how is it applied? In the "2021 Global Blockchain Application Market Report" jointly released by Capital Labs and Fargo Think Tank, we try to provide answers to the above questions with some empirical evidence by studying more than 1,550 application cases around the world in the whole year of 2020 and the first quarter of 2021. At the same time, based on these case studies, we can establish a renewed understanding of blockchain: blockchain as trust, blockchain as ****enjoyment, blockchain as transaction, blockchain as substitution, and blockchain as efficiency.
In Bitcoin's founding paper, "Bitcoin: A Peer-to-Peer Electronic Currency System," Satoshi Nakamoto repeatedly emphasized that Bitcoin is independent of a "trusted third party," or "decentralized. The Bitcoin system is not dependent on a "trusted third party" and is "decentralized".
On the flip side, Bitcoin's underlying technology, the blockchain, is built for trust. In other words, reinventing "trust" in the digital age is the most basic function of the blockchain, except that this kind of trust has been converted from trust between people and legal entities to trust between machines, blocks and blocks, and nodes and nodes. Interestingly, the subsequent birth of the "smart contract" function through the integration of the blockchain to further strengthen this trust.
Identity encoding and authentication is the first step in realizing the above trust mechanism, and the Decentralized Identity (DID) system is the core of it. With DID applications, from individuals to organizations to IoT devices, from physical objects to virtual products, all can be given a digital "identity" and achieve trusted interaction. Because of this, blockchain-based certification, empowerment, verification, circulation, and transactions can be realized, and also the implementation of blockchain in various industries.
Application cases from around the world show that the new trust mechanism provides new rules and power for social and economic operations:
l China is comprehensively promoting the application of blockchain e-licenses, and enterprises and residents are able to enjoy more efficient and convenient governmental services;
l "One fish, one code" l Applications such as "one code for one fish", "one code for one fruit" and "one code for one tea" are promoting the upgrading of the global anti-counterfeiting traceability and food safety system for agricultural products;
l Through the combination of blockchain, big data and artificial intelligence, the credit "portrait" of enterprises can be improved. "l Through the combination of blockchain and big data and artificial intelligence, enterprises can have more accurate credit profiles and obtain faster and lower-cost financing services;
l Public welfare organizations have been "uploading" their charity funds onto the blockchain to form a more transparent and standardized public welfare tracking and management system;
l Cities in China have launched blockchain-based public welfare systems, which are being used to promote the upgrading of the global agricultural products anti-counterfeiting and food safety systems. ...
Of the three types of blockchain (public, federated, and private), federated chains are the most widely used. In addition to considerations of technical performance, operational efficiency, operability, expected results, etc., this is mainly because alliance parties already have a certain foundation of trust. This also shows from another angle: in the application of blockchain beyond cryptocurrencies such as Bitcoin, "multi-centralization", rather than complete "decentralization" is a more realistic choice.
In addition, it is undeniable that, unlike the proof-of-work mechanism that underlies Bitcoin mining, blockchain is not able to ensure the authenticity of the data uploaded to the blockchain from the source during the actual application process. That is to say, an alliance member or node may provide false data intentionally or unintentionally. However, with the characteristics of blockchain, such as tampering, traceability and multi-party **** recognition, the alliance can identify the fake behavior and make corresponding punishment, such as "kicking" the fake member out of the node. Therefore, in a sense, blockchain-based trust is to a large extent the establishment of alliance members of the fear of data authenticity, as well as the deterrence of data counterfeiting behavior.
If "trust" is the foundation of blockchain applications, data *** sharing is the core of blockchain applications. Without data sharing, there will be no cooperation, and there will be no way to talk about the application of blockchain on the ground.
l The pilot of the State Administration of Foreign Exchange's "cross-border financial blockchain service platform" has been fully rolled out, which promotes the development of foreign trade export business through the exchange of information among the foreign exchange bureaus, tax authorities, banks, and relevant market players of the enterprises;
l The "insurance/claims settlement platform" jointly established by 11 insurance companies in Taiwan, which is the first blockchain application in the world, is the core of blockchain application. The "Preservation/Claims Alliance Chain", jointly established by 11 insurance companies in Taiwan, has been put into operation, and the companies have realized "a single application and document *** pass" on the platform;
l Blockchain platforms, such as Contour, TradeLens, etc., have been adopted by enterprises, financial institutions, shipping companies, terminals, customs, and so on, Contour, TradeLens and other blockchain platforms are reshaping the global supply chain and powering the digital transformation of international trade through data collaboration between enterprises, financial institutions, shipping companies, terminals, customs and other organizations. .......
l In China, government departments have realized "one number, one source, one source for multiple uses, one network, and the whole process" through data synergy;
l Through the "judicial chain" platform, various types of electronic evidence can be combined with notarization, arbitration, forensics, courts, and other judicial organs.
l Through the "Judicial Chain" platform, various types of electronic evidence can be seamlessly connected with notary, arbitration, judicial appraisal, courts and other judicial institutions, which improves the efficiency of the judicial system and at the same time reduces the cost.
l China's "Guangdong, Hong Kong and Macao Greater Bay Area Portfolio" project was formally launched, which can support the interconnection and interoperability of trade parties between the five directly under the Customs jurisdictions in the Greater Bay Area, and become the first interconnection *** enjoyment of the blockchain network in the Greater Bay Area that goes through the entire process of trade, such as ports, Customs, logistics, enterprises, and financial services;
l Japan's KDDI Telecom, Hitachi, Kansai Electric Power, Sekisui Housing and other major companies have formed NEXCHAIN, a blockchain alliance, to form a cross-industry real estate information***sharing and management model, and to promote cross-industry innovation;
Renault completed the testing of its blockchain project, XCEED, for use as a platform for the integration of component suppliers and automotive suppliers into the global network of the Greater Bay Area. l Groupe Renault France completed testing of its blockchain project "XCEED" to ***share compliance information between component suppliers and automakers and simplify compliance certification .......
Although the above application cases in finance, government affairs and various industries are only a few typical cases, they are sufficient to illustrate that, on the one hand, data **** enjoyment is an inherent requirement of blockchain application. On the other hand, the practice of blockchain application in turn promotes cross-level, cross-sector, cross-industry, cross-regional and cross-border data*** sharing and unprecedented cooperation. cooperation.
The above examples also show that, based on the transparency, security, and trustworthiness of blockchain, data ****sharing allows for unlikely cooperation and the formation of more open innovations; data ****sharing effectively improves the operational efficiency of the business system, the financial system, and the social governance system; and the data ****sharing and cooperation between various organizations and external institutions facilitates the development of new technologies, and the development of new technologies, and the development of new technologies. In the meantime, all kinds of organizations have promoted their own organizational and process changes through data sharing and cooperation with external institutions.
On the basis of trust and *** enjoyment, "transaction" is the most intuitive and deepest manifestation of the value of blockchain application. Currently, blockchain is opening a new chapter in the transformation of the transaction mode of various industries around the world.
From the perspective of functional architecture, blockchain-based transaction is not just a change of transaction link, but a synthesis of the unique functions of blockchain, which is an integrated integration of blockchain applications such as anti-counterfeiting and traceability, supply-demand docking, warehousing and logistics, payment/settlement, supply chain financing, insurance, and cybersecurity, etc.
From the perspective of functional architecture, blockchain-based transaction is not just a change of transaction link.
In terms of application form, blockchain-based transactions go beyond the traditional concept of product or service transactions and represent a broader realization of the value of data in circulation.
From the perspective of application scenarios, blockchain-based transactions involve the upgrading of the real industry, the digitalization of the financial industry, and the innovative application of the "pass economy".
In the real industry, take the application of agricultural blockchain as an example: on the one hand, blockchain-based supply chain traceability has become an important barrier to food safety; on the other hand, however, the supply chain traceability function is far from enough for growers or farmers. How to help them expand the sale of agricultural products and get as much income as possible is the "hard truth" that blockchain technology continues to promote the development of agriculture. This applies to other industries as well.
Against this backdrop, new trading platforms are emerging in real-world industries across the globe:
l The Indian government is using a blockchain platform to help farmers in remote areas sell their agricultural products and earn more revenue while cutting down on intermediate costs;
l Cerealia, a Swiss company, has built a blockchain-based agricultural trade and financing platform to boost global agricultural exports from emerging market countries;
l Cerealia, a Swiss company, has built a blockchain-based agricultural trade and financing platform to boost global agricultural exports from emerging market countries; and agricultural exports from emerging market countries;
l Al Khaleej Sugar Company of the United Arab Emirates, the world's largest independent refined sugar producer, launched DigitalSugar.io, a blockchain-based sugar product trading platform, to realize spot-based international raw sugar trading;
l Ganzhou, Jiangxi, went online with the blockchain-based international timber e-trading platform to manage the entire process of timber trading, which manages the whole process on the chain, and will provide the whole industry chain services such as supervising cloud warehouse, logistics, finance, insurance, etc. for the timber market;
l Shandong Province launches the Shandong Internet Chinese herbal medicine trading platform, which will realize the online integrated services of quality control, trading, payment, settlement and supervision through blockchain and other technologies;
l Weitang Town, Xiangcheng District, Suzhou, releases the online pearl trading platform based on blockchain, which realizes the core parameters of pearls and the quality control of the pearls. trading platform based on blockchain, which uploads the core parameters of pearls and inspection reports for certification, and will also add functions such as supply chain management, trade finance, smart contracts, payment and settlement, and incentive mechanism;
l Honeywell launched GoDirect Trade, an online trading platform for new and used aircraft parts, which provides valuable references for large manufacturers on how blockchain can be applied to the trading and circulation of parts and components. valuable reference .......
In the financial industry, blockchain is promoting the digital advancement of financial transaction business from securities trading, asset securitization, trade financing, cross-border settlement and other aspects:
l The National Stock Exchange of Australia launched ClearPay, a digital securities trading platform based on distributed ledger technology, which can provide same-day multi-currency, real-time DVP settlement and will replace the original exchange settlement system;
l Swiss company Finka launched a related securitization token investment platform based on livestock in Bolivia's organic pastures to promote the development of the local animal husbandry industry;
l U.S. company Securitize set up a Japanese real estate investment platform based on digital securities, which is aimed at revitalizing the idle real estate in rural areas of Japan and boosting the rural economic vitality;
l China Postal Reserve Bank and Construction Bank completed the first cross-blockchain platform forfaiting transaction, and Kunming Branch of Huaxia Bank realized secondary market forfaiting resale business for the first time;
l Nanjing Iron & Steel completed the first blockchain-based iron ore transaction with Australia's Rio Tinto and Brazil's Vale respectively;
l Baosteel and Australia's Rio Tinto completed the first blockchain-based iron ore transaction; and Company completed the first blockchain-based RMB cross-border settlement transaction .......
Of course, while blockchain promotes the advancement of financial transaction business, the dark side of speculation, scams, money laundering, and cyber-attacks related to blockchain and cryptocurrency follow. How to continue to promote financial innovation while at the same time carry out efficient risk prevention and control, as well as a strong crackdown on illegal crimes, is an important issue that needs to be addressed in the long term. Globally, China has responded with a strong attitude, tough measures, and fruitful responses in this regard.
The transaction changes realized by the blockchain in the real industry and the financial industry are only the primary stage of the blockchain to change the traditional transaction mode, and the "Token Economy" is the higher level of the blockchain's "transaction" function.
In the case of the Token Economy, it is the higher level of blockchain's transaction function.
Under the framework of "Token Economy", all kinds of data, from e-certificates to skill certificates, from credit records to records of participation in public welfare activities, and from social media tracks to carbon emission reduction actions, are endowed with "wildcards" when they become encrypted digital proof of rights and interests, and can be circulated and exchanged. "
Skimming is the most effective way to get the most out of your data.
Leaving aside the investment/speculation boom in Non-Fungible Token (NFT), we can already see a number of early applications of the pass-through economy around the world:
l The Austrian government-supported NFTs are a great example of the use of a pass-through economy.
l Weibin District, Xinxiang City, Henan Province, issued passes based on a points system for merchants and enterprises in its blockchain industrial park project to establish a new commercial service platform;
l Chengdu City released a blockchain-based community governance product called "Chain Community", which allows residents to gain access to the platform through volunteer services and other activities;
Chengdu City, China, released a blockchain-based community governance product called "Chain Community", which allows residents to gain access to the platform through volunteer services. Residents can obtain "time bank" points on the platform through volunteer services and other activities, which can be exchanged for benefits and privileges provided by community merchants;
l The Electric Vehicle Charging Network Working Group ("EVGI") of the Mobility Open Blockchain Initiative ("MOBI"), a global non-profit organization, launched a decentralized charging network for electric vehicles, which will be used as a platform for the development of a new commercial service platform. Members can convert their existing points into local MLK passes or into other third-party points via the MiL.k platform .......
As seen in the above cases and many more, the "pass economy" has several distinctive features:
The "pass economy" gives asset attributes and tradable attributes to a wider range of data, and can improve the overall quality of data through cross-domain and cross-platform mutual trust and circulation. Through cross-domain and cross-platform mutual trust and circulation, it can improve the operational efficiency of the entire social and economic system;
The "wildcard economy" is a new value creation and realization process, which does not necessarily use money as the medium of exchange, but is more reflected in the exchange of various elements and resources for mutual benefit and redistribution;
The "wildcard economy" has several distinctive features:
Overall, the pass-through economy will give rise to new factors of production, reshape the production relationship, and greatly liberate social productivity; the pass-through economy represents the transformation of the "information Internet" into the "value Internet". The "pass economy" represents the evolution of the "information Internet" to the "value Internet", indicating the most exciting future of the digital economy; the "pass economy" based on the blockchain has already begun to take shape and is beginning to bring about continuous and visible changes to the operation of the economy, the governance of the society and the way of life of every person. The blockchain-based "pass-through economy" has already begun to take shape and is beginning to bring about visible changes to economic operations, social governance, and the way everyone lives. All kinds of organizations and individuals should be prepared for this change in their thinking and actions.
Like other new technologies, blockchain is constantly generating substitution effects on platforms, media, models, and methods in the process of application and popularization: physical documents are replaced by electronic documents, credit records are replaced by pass-through certificates, manual audits are replaced by data validation, and city management platforms are replaced by the "city brain. .......
Such substitution has become the norm:
l Argentina's central bank began a proof-of-concept for a new blockchain clearing system that could replace its existing clearing system;
l Korea Minting and Security Printing Corporation (KOMSCO) expanded its blockchain digital gift certificate business to replace paper gift certificates, and achieved record revenue growth while bills and coins issuance declined dramatically;
l Korea Minting and Security Printing Corporation (KOMSCO) expanded its digital blockchain gift certificate business to replace paper gift certificates and achieved record revenue growth while bills and coins issuance declined dramatically. record revenue improvement;
l Courts across China have begun to adopt blockchain electronic seals to replace traditional paper seals in the execution of real estate seizures;
l The Shanghai Municipal Court System is exploring the replacement of manual trial transcripts with digital trial records through the adoption of new technologies such as artificial intelligence and blockchain;
l Japanese company SUSMED launched the A pilot of a "demonstration of a clinical data monitoring system using blockchain technology" has been launched by Japanese company SUSMED, demonstrating that the necessary monitoring processes in clinical trials of drugs or medical devices can be replaced by blockchain systems;
l Alipay and Wukong Rent-A-Car have launched a "face-swipe" car rental service through blockchain technology. Through blockchain technology and the credit-free model, tourists can rent a car by simply "swiping their face" and return the car through cell phone operation;
l Under the new crown epidemic, local governments in China have intensively launched "non-meeting, no contact, zero errand" government services combined with blockchain technology, which can be used as a substitute for blockchain systems.
In addition, we can also see that through the use of blockchain technology, all kinds of enterprise-level services are also in the realization of the alternative and evolution: from paper contracts to electronic contracts, and then based on the programmed, automatic execution of smart contracts blockchain contract, blockchain is promoting the contract signing into the "chain contracting" era; from the offline human resources company to the online human resources company. From offline human resources companies to online human resources platforms to blockchain-based human resources market, global human resources services have experienced continuous changes from the 1.0 era to the 2.0 era and then to the 3.0 era.
Overall, when blockchain "invades" various industries, it "mercilessly" removes all unnecessary links and processes, all unnecessary manual operations, and accelerates the arrival of paperless, unmanned, and automated era.
In our analysis of more than 1,550 blockchain application cases around the world, similar to "improve", "accelerate", "shorten", "reduce", "minimize", "economize", "save", etc. frequently appeared in front of our eyes. These words indicate that the improvement of efficiency is the *** same pursuit of all parties to the blockchain application, and the most direct results of the blockchain substitution effect.
Numerous application practices are adding to this:
l Shamba Records, a Kenyan company, provides blockchain traceability, trading and financing services for farmers in the country, which now covers more than 6,000 small-scale farmers and has helped them increase their incomes by at least 40%;
l Blockchain trade platform TradeWaltz, which is a participatory investment by NTT DATA, Mitsubishi and others, has been launched. TradeWaltz, a blockchain trade platform in which NTT DATA, Mitsubishi and other companies participated, completed its trial run, and the results showed that the platform was able to cut down the workload of traditional trade processes by up to 50 percent;
l Walmart Canada significantly reduced its invoice disputes with its carriers by 97 percent through the application of the DL Freight blockchain platform;
l The State Grid Corporation's electricity transaction depository and traceability query platform was put into operation, realizing the registration of users. was put into operation, realizing the automation of the whole process of authenticity audit for registered users and saving 99% of the time of credible manual audit;
l COSCO Shipping Container Lines cooperated with Qingdao Port of Shandong Port Group to launch the blockchain paperless import release mode, which can save nearly 24 hours of pickup time for customers for each container on average;
l Zhejiang Taizhou made use of the Zhejiang Taizhou utilizes the "Internet of Things + Blockchain" recycling system to solve the problem of marine pollution management, which can save 94% of labor costs and 84% of operating costs compared with traditional treatment methods .......
In summary, through the trust mechanism, the *** enjoyment mechanism and the transaction mechanism of the *** same role, blockchain formed an obvious alternative effect, improve the financial, government affairs and the operational efficiency of various industries, and will continue to form a systematic change. This change reshapes the relationship between people and machines, people and society, and people and the environment, and clearly points to three ultimate goals: efficiency, well-being, and environmental protection.