Hu Jiye, China University of Political Science and Law: Ecology and cross-chain are the main battlefields of the new round of public chain competition

introduction

In recent years, with the continuous development of blockchain technology, it has been applied in more and more fields, and the blockchain is regarded as the next generation Internet. From the perspective of the development process of the Internet, the final competition tends to focus on ecology and compatibility, and becomes the general law of the development of the network economy. This trend is also happening in the blockchain field. A new round of competition in the public chain gradually focuses on “ecology + cross-chain”. To wave field chain, for example, recently proposed plans to set up a fund of over $ 1.1 billion, is designed to support the development of TRON ecological prosperity wave field, also introduced expansion across the chain solutions BTTC, realized the wave field TRON, Ethernet Square and currency security intelligence The compatibility of the chain (BSC) hopes to occupy an advantageous position in the competition of the public chain in the future.

Cross-chain: striding forward to the interconnection of Wanchain

The so-called cross-chain is to connect homogeneous or heterogeneous blockchain systems to realize the interoperability of assets and data on the chain. It is a bridge for the outward expansion and interconnection of the blockchain. Cross-chain relies on the advantages of direct conversion of assets, no need to go through a centralized exchange, and simple operation process, and the demand is increasing day by day. Cross-chain technology realizes the mutual communication and reading of internal and external information and on-chain assets of different public chains, and improves the scalability, speed and malleability of each chain. The cross-chain participants are not the TRON family. The cross-chain field has already been implemented in the public chain before TRON entered the game. In fact, the cross-chain war between platforms is already full of smoke. Therefore, the industry should now pay more attention to infrastructure construction to lay the foundation for completing the virtuous circle of the blockchain ecology.

As a pioneer in the cross-chain field, Ethereum has been plagued by scalability issues since its inception, and is still struggling to deal with various problems. The severe network congestion and high costs have become obstacles to the development of Ethereum.

As the interoperability between cross-chain protocols becomes more and more diversified, the interoperability between DeFi protocols is becoming more and more complex, the asset scale of cross-chain protocols continues to expand, and the ecosystem of the TRON cross-chain protocol that has become mature has changed. Got more and more important. If the blockchain has re-excavated the concept of smart contracts, DeFi has given smart contracts a broader range of applications. At the same time, the decentralization of the blockchain is originally conducive to cross-chain interconnection, but due to the different underlying architecture and technical routes, cross-chain interconnection is still more difficult, which is far from the Internet based on TCP/IP protocol. The degree of interconnection is completely different.

The reason why the TCP/IP protocol in the Internet era can rapidly develop and become a de facto standard is that its standard is completely open, can be used by users for free, and is independent of specific software, hardware and operating systems, and high-level protocol standardization. Can provide a variety of reliable network service ecology. In the era of blockchain, protocols like TCP/IP have always been scarce. It is also for this reason that as early as 2017, the Bank for International Settlements Payment and Settlement System Committee (CPSS) and the International Organization of Securities Regulators (IOSCO) jointly issued the “Financial Market Infrastructure Principles (PFMI)”, proposing a blockchain-based distribution Ledger technology can fundamentally change the way assets are maintained and stored, as well as the mechanisms for debt repayment, contract enforcement, and risk management. The principles include reducing complexity, increasing end-to-end processing speed, and reducing coordination efforts across multiple ledger management infrastructures. Considering the unshakable authority status of CPSS and IOSCO in the international banking and securities circles, all companies involved in digital finance have to follow PFMI. Due to the high degree of decentralization of the public chain, the data processing efficiency and transaction efficiency are naturally relatively low. In addition, the poor compatibility of the public chains with each other makes it difficult for data and on-chain assets to flow efficiently across the chain.

Ecology: from monopoly to network compatibility

Finance and technology are the two wheels that drive the progress of human society. At present, the new round of technological revolution and industrial transformation is further deepening, and major countries around the world are accelerating the development of blockchain technology. Digital finance is an important field in the blockchain ecology, and network effects are the core of the ecology and the center of gravity in the next stage of the public chain, which will have an unprecedented impact on the traditional financial system.

The SWIFT system in the traditional financial system is an international inter-bank non-profit international cooperation organization. It organizes all its members based on the mutual interests of member banks and financial institutions around the world, and organizes all its members in accordance with the laws of Belgium. System registration, headquartered in Brussels, Belgium. The SWIFT system supports payments in almost all currencies. Through text transmission, the bank’s settlement provides safe, reliable, fast, standardized, and automated communication services, thereby greatly improving the bank’s settlement speed. But its disadvantage is that it is centralized and costly. 

At present, all major economies are actively considering or promoting central bank digital currency research and development. The latest survey report of the Bank for International Settlements shows that about 86% of the central banks of 65 economies have carried out digital currency research, and the number of central banks that are conducting experiments or proof-of-concepts has increased from 42% in 2019 to 60% in 2020. For example, the central banks of the United States, the United Kingdom, France, Canada, Sweden, Japan, Russia, South Korea, Singapore and the European Central Bank have announced plans for central bank digital currencies in various forms in recent years, and some have begun or even completed preliminary tests. my country’s digital renminbi research and development and pilot projects are relatively early. As of June 30, 2021, there have been more than 1.32 million digital renminbi pilot scenarios, covering life payment, catering services, transportation, shopping and consumption, government services and other fields. More than 20.87 million personal wallets and 3.51 million public wallets were opened, with a total of 70.75 million transactions with an amount of approximately 34.5 billion yuan.

Blockchain-based supply chain finance can be used for reference

Scholars generally believe that the blockchain 3.0 stage is not limited to currency and financial markets, but extends to applications in various fields such as government, science, and culture. The core is to highlight the potential and value of ecology. This is the meaning of “ecology + cross-chain”: ecology provides diversified services, and cross-chain improves the efficiency of applications, and this is precisely the basis for blockchain 3.0 to become the next generation of the Internet.

Supply chain finance based on blockchain is an important application in the ecology.

Take Zheshang Bank as an example. In August 2017, the bank launched the receivable chain platform, which is the first bank in the domestic banking industry to use blockchain technology in supply chain finance. In recent years, the bank has achieved outstanding performance in the blockchain-based supply chain financial ecology: as of December 2020, it has cooperated with more than 3,300 large-scale core enterprises and issued more than 100,000 transactions. “The combined use has helped about 27,900 small and medium-sized enterprises in financing over 300 billion yuan. The accounts receivable chain platform of Zheshang Bank has realized that the accounts receivable assets that cannot be circulated and divided in the industrial chain can be converted into safe and circulated accounts receivable voucher-golden notes, which has established various accounts receivable in the industrial chain. The trust mechanism between the participant and the bank.

In the future, based on the blockchain 3.0 era, the ecological improvement is more needed. Therefore, TRON intends to establish a fund to support the blockchain ecology. Grow into the next generation of Internet.

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