Two months ago, Bai Shuo, former chief engineer of SSE, took up his new position in HSI, responsible for the research and application of HSI in the frontier technology fields such as artificial intelligence, block chain, high performance computing, big data and financial engineering.
Recently, the media conducted an in-depth interview with Bai Shuo, who is the director of Hang Seng Research Institute, on several topics.
First, about the development of blockchain technology and the financial industry. Bai Shuo said bluntly, “There is still a need to tone down expectations.”
In his opinion, the financial industry is always ahead of the curve when it comes to digital bookkeeping, and its digital bookkeeping was realized early – only it was centralized. But from the demand side, the immediate need for true decentralization in the financial industry has not yet surfaced. At the same time, the financial industry attaches great importance to regulation and emphasizes sound operation. This led to the previous “private definition of blockchain” has not been applied in the financial industry on a large scale.
At the same time, Bai Shuo also mentioned that in recent years, banks and other regular licensed institutions, although a variety of blockchain applications are growing, but the coalition chain is used more, but also more about efficiency, “and folk say the connotation of blockchain may not be consistent”.
However, this domestic blockchain technology authoritative expert also believes that “it cannot be said that the blockchain accepted by traditional financial institutions is not called blockchain, and everyone is defining the future blockchain with their own practical actions, which is a synergy. As to what direction this combined force will push the blockchain in the end, it may be the result that no one knows.
Secondly, as the former CTO of SSE, Bai Shuo also expressed his views from the perspective of regulatory technology on the recent eye-catching “rat positions” and “banker stocks” in the capital market. Bai Shuo said, from the technical point of view, at present, the “mouse position” is “can’t get away”, but the banker shares can’t be identified yet.
Specifically, the operation of the “mouse position” is convergent trading – two accounts, the time has a sequence, but the action is the same. In the case of so many billion accounts in China’s capital market, the need to find which pair is converging, belonging to the problem of finding a specific pattern in the mass of data. “It seemed astronomical and not very solvable before, but the solution has been found under the big data architecture. With this demon mirror, “mouse positions” can’t get away.” Bai Shuo said.
In contrast, Bai Shuo mentioned that the operation of more covert banker shares is still not only through technical means to monitor. “But before I think the mouse warehouse is insoluble, now also solved, I believe the future of the banker shares can also be solved.”
For today’s financial IT localization alternative wave, Bai Shuo believes that the current difficulties of localization mainly lies in two aspects: first, the domestic still lack of hardcore basic talent; second, the existing domestic database is still facing the problem of industry polishing, especially in the financial industry, to experience many years of scene application, in order to find and solve the data pain points. As for the polishing time, Bai Shuo is expected to take about 3-5 years.
In addition, Hundsun Electronics also recently launched a new generation of low-latency, distributed, highly available technology platform LDP, using a combination of software and hardware solutions. Hundsun Electronics said that the LDP platform can achieve end-to-end delay SHM less than 250 nanoseconds, network latency less than 2.3 microseconds, TPS greater than 15 million, and support business solutions second-level switching, RPO of 0.
According to Shuo Bai, “Quantitative system upgrade is a very common demand of major financial institutions. In quantitative trading, the opportunity of high frequency is clear and can be picked up as long as the technology is advanced. But the high frequency capacity is limited, a few people pick up the end, this opportunity is gone, and then more funds can not enter, or those funds can not be used in the same way. The more to the middle and low frequency band of technology tools, the more not from fast to win, but may be accurate or depth.”
The following is the transcript of the conversation between Media App and Bai Shuo.
“Blockchain cannot be monopolized by the private sector in terms of interpretation.”
Media: about the combination of blockchain and finance. Previously, the mainstream view is that blockchain technology is very suitable for the development of the financial industry, but the progress in this area seems to be slow at present, what do you think?
Bai Shuo: First of all, it is digital transformation. From the perspective of digital bookkeeping, the financial industry is ahead of the curve, except that this bookkeeping is centralized. When other digital development, to varying degrees, have encountered trust issues. When all the trust issues are pushed to the same centralized procedure to solve, the volume is very large, which provides a space for blockchain. But to what extent this space contains the current mature financial business is to put a question mark.
Finance itself is about robustness and puts risk control at the forefront, so it is rather more cautious than other industries in adopting blockchain technology. But the process has already started.
The number of banks and other regular licensed financial institutions using blockchain technology is positively growing, but it may not be consistent with the connotation of blockchain as folk say. For example, the regular licensed institutions are using more coalition chains and are more efficient, and even the path of certification is very different from the folk path.
Of course, blockchain should not be monopolized by the private sector in terms of interpretation. Everyone has the right to interpret this concept and has equal opportunity to apply it. As for what will evolve in the end, you can take a look at Libra, which was expected to be very high at first, but later lowered its expectations again and again. It was originally said to be a transnational currency, but later it was said to support a single dollar, and now expectations have to be further lowered. It shows that the concept of this technology born from the private sector is changing in the game with the formal licensee.
At that time, I wrote a commentary, saying that Libra would be “cross-border or die”. Later, in the game with various monetary authorities, Libra also accepted a single currency. Therefore, I think we should lower our expectations about the combination of blockchain and finance.
Similarly, it is not proper to say that blockchain accepted by traditional financial institutions is not called blockchain. Everyone is defining the future blockchain with their own practical actions, which is a synergy. As for what direction this combined force will push blockchain in the end, it may be the result that no one knows.
“The immediate need for decentralization in the financial industry has not yet emerged.”
Media: So it is still the result of cyclical market demand and regulatory demand in all directions?
Bai Shuo: On the one hand, the immediate need for real decentralization in the financial industry has not yet surfaced.
Secondly, there are some institutions that originally had this condition, from the evolution of the industry itself, from a fully-controlled center to a certain degree of decentralization of the center. “A certain degree of decentralization of the center,” that is, other people’s data, other people’s backstage can join together to do a unionized center. But the reality is that it’s not really happening.
Media: But the problem of data silos is still not solved?
Bai Shuo: That’s the problem. But people’s data, people can rely on data to get their normal business interests.
One of the problems is the interest, one is also a technical problem, can not let a fair measurement of the contribution of various data sources. As long as the degree of contribution is agreed upon, then the rest of the revenue sharing can be done down the road. But it is a question of how this degree of contribution can have consensus results.
In addition, bookkeeping and supervision rights can be separated, which many people may not realize.
The concept is centralized bookkeeping, but oversight rights can be de-centralized – without destroying privacy and self-incrimination. An outsider can be someone who does not have bookkeeping rights and oversee whether it is fair bookkeeping, including the regulator who can see if it is fair bookkeeping by way of oversight.
If oversight can be decentralized, even if bookkeeping is still centralized, it still makes sense. This is the direction of the development of blockchain technology down the road. In fact, when the technology is developed well enough, these demands can be met, and at the same time, the public trust service, public bookkeeping service and other trace and evidence service can be truly achieved, which is not contradictory.
The “mouse position” can not run away, but the banker shares still can not be detected
Media: Recently, Ye Fei mentioned various “rat positions” in his expose. You used to be the chief engineer of the SSE, now the regulatory technology can timely find this kind of situation?
Bai Shuo: From the terminology of regulatory technology, the operation of “rat positions” is convergent trading – two accounts, one in the first and one in the second, but the action is the same. This side first buy, that side after buy, this side first sell, that side after sell. With so many billions of accounts in China’s capital market, the need to find which pair is converging in the total inventory is basically a problem of finding a specific pattern in a huge amount of data. Previously, it seemed to be astronomical and not very easy to solve, but the solution has been found in the big data architecture. With this demon mirror, “mouse positions” can’t get away.
Media: “Mouse warehouse” is not run away, the banker shares can be monitored?
Bai Shuo: for this piece is not necessarily feasible. Just said the “mouse position”, in a certain period of time, it is believed that there is no way, but there are big data on the way. Zero years mentioned the problem of Zhuang, and now there are some explosions. Regulation must pay attention to this issue, relying on technology to achieve better regulation is also very clear.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/dialogue-with-hundsun-electronics-bai-shuo-finance-blockchain-still-need-to-tone-down-expectations-the-financial-industry-decentralization-has-not-yet-emerged/
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