Analysis of the underlying business logic of AntChain under the business trend

Today, more and more companies are beginning to discuss digital transformation, hoping to use new technologies to ensure their sustainable development and to have a deeper insight into external business opportunities. This wave of corporate digitization began long before the global epidemic broke out and has continued to this day.

A considerable number of business managers have begun to realize that slow response of companies to market changes, too complex corporate organizational structures, and information islands formed between companies may all be the main factors affecting the sustainable development of companies. However, in today’s constantly changing business environment, what is more important is to build the underlying business logic based on the understanding of the megatrend .

As a leader in the field of industrial blockchain, AntChain has used dozens of specific and sensible application cases and thousands of blockchain authorized patents to have a broad and profound impact in the industry. So what is the underlying business logic that AntChain relies on to support the current achievements? Jiang Guofei, the vice president of Ant Group and the president of the intelligent technology business group, has made in-depth thoughts and explanations in this article. He believes that the core of the growth of Antchain is driven by customer value, and the entire industrial ecology can only become unprecedented based on the realization of customer value. Prosperity.

Three key trends in the post-epidemic era

In the post-epidemic era, companies need to understand business development trends to clarify their position, think about how to operate better, and how to achieve sustainable business growth. Here are three key trends that we believe are becoming more and more obvious.

Key trend 1: More emphasis on “links”

In the past, the connections between people and between enterprises and enterprises were more limited in physical space, and the subjects that could be reached by this connection were also very limited. And “link” allows more subjects to establish connections in real time and smoothly within a larger mesh network.

In the past, the centralized operation and management system to ensure the smooth establishment of connections between subjects will no longer exist. Instead, there will be a more efficient and lower-cost distributed operation system, that is, a new type of data center and network operation center composed of data centers and network operation centers all over the world. Infrastructure to ensure the breadth and stability of “links”.

The global “link” guaranteed by technologies such as blockchain and cloud computing will bring significant improvements to the development of various industries. In addition to promoting the rational allocation and utilization of resources and increasing the benefits of linking parties, more importantly, the “link” “The free flow of information has been promoted under the new co-opetition relationship that has spawned, and the possibility of disruptive innovation has increased.

Key trend two: less “friction”

In the past, for any new market entity who wanted to enter a certain industry or field, it was possible to get rid of cost disadvantages by forming economies of scale through mass production. With the development of the Internet and emerging information technologies, cost disadvantages related or unrelated to scale are gradually disappearing with the diversified development trend brought about by new technologies.

We can also say that this is a reduction in industry thresholds or entry costs (frictions) brought about by “links”. More and more cutting-edge companies have joined the industry competition through online and offline channels with unprecedented differentiation and innovation.

At the same time, whether it is within an enterprise or between enterprises, the frictional costs caused by incomplete information or information asymmetry in the future will also gradually decrease as the “links” deepen.

Key trend three: a higher level of intelligence

The rapid development of new technologies has made all aspects of people’s lives more convenient than ever. On the industrial side, we see that with the blessing of big data and artificial intelligence technologies, the level of industrial intelligence is constantly improving. For example, in the field of intelligent transportation, relying on intelligence can greatly improve the efficiency of transportation; in the field of manufacturing, improving the efficiency of production through intelligent technology can reduce labor costs.

In the future, the construction of intelligent infrastructure brought about by open and open technology will allow companies to easily obtain and use various intelligence-related resources like building Lego bricks, and the level of economic and social intelligence will be further improved.

In this context, companies should think about how to make good use of new technologies, based on data, and efficiently and cost-effectively solve organizational management problems and business growth problems.

A typical sample under the business megatrend: AntChain

How to make good use of new technologies to promote the internal and external “links” of enterprises will be a new theme in the company’s competition and cooperation relationship for a long time in the future. Today, there are still very few companies that can practice in practice. “Antchain” can be used as one of the typical samples. Use it for some research.

AntChain initially focused on the application of the blockchain industry, and its original brand name was “Ant Blockchain”. July 23, 2021 is of special significance to AntChain, because it ushered in the first anniversary since the brand upgrade in 2020. In AntChain’s own words, “The name is shorter and the dream is bigger.” The big dream of Antchain is to promote the application of blockchain technology in various industries and “slowly turn uncertainty into certainty.”

On June 23, 2021, Jiang Guofei, the vice president of Ant Group and the president of the intelligent technology business group, explained the development concept of AntChain at the first AntChain Developer Conference. He said, “The word’chain’ of AntChain , even though it starts from the block Chain, today’s greater connotation is “link”. Look at the logo of AntChain, it means that a little ant is working tirelessly to build roads, link industries, and link trust.”

Jiang Guofei speaks vividly about the development concept and positioning of AntChain, and if this development concept is unfolded, it can be the “three always”.

Always talk about development from an ecological perspective

Not all technology companies have the opportunity to talk about development from an ecological perspective, and companies with such opportunities must first make it clear what kind of ecology they are committed to shaping or cultivating.

AntChain didn’t choose too much to talk about ecological development, but used concrete and vivid application cases to slowly show us a broad ecological picture of technology application. Therefore, the ecology of the AntChain is specific and sensible. Within its ecology, there are Chinese small businesses in Yiwu, farmers in Dangshan, Anhui, hotels, elevator manufacturers, etc…. In terms of the number of applications, the AntChain ecology has solved more than 50 Provides more than 30 innovative industry applications and solutions for trust problems in various industrial scenarios. In terms of application scenarios, the landing scenarios of Antchain have expanded from traceability, public welfare, bills, judicial deposits, etc. to international trade, port and shipping logistics, copyright transactions, financial leasing, and industrial manufacturing.

According to Jiang Guofei, the development of AntChain does not stop at the establishment of the ecology. The greater imagination in the future lies in helping industries within the ecology to optimize the relationship between supply and demand while helping more companies to collaborate efficiently in a digital way. “The digitization of a single industry is equivalent to building a building, and the digitization of inter-industry collaboration is more like building a road.”

Always focus on the fusion application of new technologies

Part of the practical problems encountered in business activities can be solved by technology, but when we think about how to use technology to solve problems, we often do not focus on a single technology, but a comprehensive application of technology.

Jiang Guofei said in an interview, “In the past, we talked about blockchain technology a little bit more, but today, as we move into the industry, the more we find that we need to integrate many technologies together, because customers still have to solve specific problems in the end.”

In the field of blockchain technology, AntChain has made quite a few innovations. Its blockchain patent applications have remained at the forefront of the world for four consecutive years. At the hardware level, AntChain has developed an all-in-one machine based on more than 300 patents and integrated the district. Several core technologies such as block chain secure computing hardware, block chain cryptographic card, and block chain network consensus accelerator, simplify the chaining process.

However, understanding AntChain does not stop at the blockchain. For example, the AntChain trusted on-chain module realizes the trusted on-chain of the Internet of Things data is “blockchain + Internet of Things”; the AntChain copyright solution “magic chisel” is ” Blockchain + AI”; Ant Chain Morse Secure Computing Platform (MORSE) is embodied as “blockchain + privacy computing”. Antchain’s “blockchain + X” strategy is to comprehensively use blockchain, privacy computing, Internet of Things, big data, artificial intelligence and other technologies to build its own technical system.

Always keep the original intention unchanged

The technical characteristics of the block chain can ensure that the information and data on the chain cannot be tampered with and can be traced, and solve the problem of trust construction in the digital economy era. The block chain is therefore called the “trust machine”.

Jack Ma has called trust as the most valuable thing in the world on many occasions. If China’s consumer Internet era, Alipay can help build trust in most transaction scenarios, then in the era of industrial Internet and even the digital economy, AntChain is one of the important forces in building trust at the bottom.

In Jiang Guofei’s view, the essence of business society is transactions, and there must be two most basic conditions behind transactions, one is the “link” at the system level, and the other is the construction of a trust mechanism. Only after the establishment of a trust mechanism can transaction risks be resolved and the prosperity of the ecology and supply guaranteed. “From this perspective, we came for this kind of original intention.”

The original intention of AntChain does not remain in fantasy, but is reflected in every landing case down-to-earth. For example, AntChain’s international trade and financial service platform TRUSPLE, with the immutability and traceability of blockchain technology, fundamentally solves the trust problem of cross-border transactions of enterprises.

To understand the ant chain better, listen to what “brother-in-law” says

Jiang Guofei, the vice president of Ant Group and the president of the intelligent technology business group, is affectionately called the “brother-in-law” inside the company, and for people outside the company, he is the soul of AntChain. If you want to better understand AntChain, you might as well listen to how he introduced AntChain’s values ​​and his thoughts on industrial development, entrepreneurship, team management, etc. to the outside world.

What is the value realization path of AntChain?

Jiang Guofei: For AntChain , the most important issue at present is to solidly increase customer value in the industry, because the growth of AntChain must be driven by customer value. Only the prosperity of the entire industrial ecology can make us think about how to take every step in the future. To put it humbly, AntChain’s efforts in the field of industrial blockchain over the years have made us the leader or at least one of the leaders. The front runner must find a lighthouse in no man’s land. What is the lighthouse that guides us? I told all our classmates that we want to provide our customers with the ultimate and beautiful products, which also reflects our long-term values.

We have always been the “two-wheel drive” of the market and products. Only relying on product-driven products may end up behind closed doors; relying solely on market-driven products, products kidnapped by the market will only become thinner and thinner. The future-oriented growth should be driven by the growth of product value in essence. This is also something we insist on very much. The core is to rely on products to help customers realize value, which will naturally lead to better market coverage.

Is the industrial blockchain a false proposition?

Jiang Guofei: Many people think that the industrial blockchain is a false proposition, but this is because of the inconsistency of relevant concepts. Under the public chain system, it is assumed that everyone cannot be trusted, and it starts with a zero trust mechanism. Therefore, the design of such a mechanism is destined that the public chain can only be limited to pure data processing and transaction speed. The establishment of trust must also have a lot of problems. There are too many uncertain factors for things built from the foundation of zero trust, which will inevitably cause this thing to be very heavy, and in many cases it will cause transaction difficulties.

However, the industrial blockchain is not built from a zero-trust foundation. It actually takes into account multiple entities. These entities may already have 70% trust when they enter the blockchain network, because these entities can be Find and have legal protection. Finally, if we want to achieve 100% trust, we don’t actually start from scratch. What we have to do is to judge from which dimension to start the construction of the entire system. The industrial blockchain just explains the nature of today’s business society, that is, business rarely starts on a zero-trust basis. Business itself is a process of gradual establishment of trust. Finally, business risks are locked in through contracts before starting business .

What is the pace of development of the blockchain industry?

Jiang Guofei: Most of the predictions on the development of the industry are wrong. In the past, the process of foreign business models and products being moved to China was a process of being imitated. In fact, imitation should emphasize execution more. But today, the various industries on the road to entrepreneurship have unprecedented uncertainty. The source of this uncertainty lies in the uncertainty of technology, product uncertainty and business model uncertainty. The entire process of innovation and exploration is to slowly turn uncertainty into certainty. The development stage of today’s blockchain is a bit similar to the Internet email era in the early 1990s. Although some value has been seen in some places, if we are not ready to subvert, we still need to transform the industry. The value chain is made thicker.

Today, it has not yet reached a network-take-all world, which is not the case. It can be connected if there is a demand, but it cannot be connected if there is no demand. Some networks are isolated by themselves, and they don’t need to link with others. This is the state today. In the end, you can see such an industrial collaboration network. This is a sure thing, but we don’t need to know his rhythm, because the rhythm is driven by his value. In fact, for many things, his rhythm cannot be designed by you. No matter how you do it, you need a huge variety of social forces to push forward development together.

The mentality of entrepreneurship and team management?

Jiang Guofei : Like many entrepreneurs, I am sometimes very excited because I can see good progress in some places. But sometimes I am also very anxious, because I also doubt some things, I think this is the mentality of all entrepreneurs. Because there are so many uncertainties in the world, there is no certainty. Based on your own experience and your own judgment, you are constantly looking farther in the fog. In this process, there must be some things that you can see clearly, and there must be some things that you can’t see clearly, so you will continue to reflect, think, and question.

I manage the following team, usually speaking four words. The first is the direction and vision . Without direction, I think it is the most infeasible. Especially it is not feasible to do business like ours. What can you do without direction? The second is passion , because there has never been an easy thing in this world. As an entrepreneur and a leader in the front, you must be trembling in front to prevent you from falling into the pit. So there must be a strong passion in it, to put it bluntly, a certain belief is required. The third is executive . We can’t talk empty talk. I am most afraid of empty talk, to achieve the unity of knowledge and action. After having a vision, the important thing is to return to a very solid execution. Only when every step is solid will there be poetry and distance. I discuss something with the team every week, and more of it is to create together. The creativity of the entrepreneurial team must come first. This is something that many companies and teams are relatively lacking. Because for the entrepreneurial team, there is not much to refer to and imitate, so it has to create and think of new things, and the things they think can be sold, that is, they can solve the customer’s problems. The fourth is determination . Entrepreneurs need will. Regardless of whether they are large or small companies, we should respect all entrepreneurs, because they must be anxious and confused. Finding certainty in certainty requires a strong will.

What do you want to find the opportunity to express the most?

Jiang Guofei: Today I want to thank our partners and customers who are willing to try and make mistakes. They are the fellow travelers who are really exploring with us in the “no man’s land”. I am personally grateful. In a brand-new world, many things are invisible, and there is always a group of people to try. Some partners will surprise us. They will be very passionate and willing to run with us.


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