The four elements of the digital economy: value, institution, technology, and system

Four elements of the digital economy

At present, a new round of scientific and technological revolution is developing rapidly, and the digital economy has become an important engine that leads the global economic and social transformation and promotes the high-quality development of my country’s economy. At the recent Beijing Service Trade Conference, General Secretary Xi Jinping pointed out that “we will strengthen the establishment of rules in the service sector, and support Beijing and other places in the implementation of international high-level free trade agreement rules to first test, and create a digital trade demonstration zone.” Beijing’s development of a digital economy has the advantages of “time, place, and people”. It should seize the historical development opportunities and continue to take the lead in data value generation, factor market construction, transaction model innovation, financial technology leadership, etc., to help innovation Financial center construction. In the development process, we must focus on the four major elements of the digital economy-digital value, digital organization, digital technology, and digital system.

1. The new economy creates new value

As a core social element resource, data has universal use value, but its asset attributes have not yet been fully reflected. The development goal of the digital economy is to fully tap and realize the huge economic and social value contained in data by promoting factor market reform and financial innovation. This requires the release of the powerful kinetic energy of data elements, the need to insight into the profound relationship between the construction of the data element market and the realization of data value, and the continuous evolution and improvement of data value.

Just like China’s 40-year marketization process of reform and opening up, the development of the digital economy is also a process of valuing from digital resources to digital assets and then to digital capital. The value enhancement of digital resources has to go through several core links. The first core link is to confirm rights. The ownership of data includes ownership, use rights, management rights, income rights, etc., through the definition of ownership and proper separation of ownership, with a series of complete systems such as ownership confirmation and registration, asset evaluation, etc., digital resources can be realized into digital assets. Of the leap. The second core link is trading. Because only through transactions can market price be set, and digital value can truly be transformed from assets to capital. The third core link is innovation. In the process of every economic factor reform, the emergence of new economic assets will trigger a series of financial innovations to amplify the value of economic capital.

These three processes and links are very similar to the real estate reform in the 1990s. Before the reform, everyone lived in public housing, and individuals had no property rights, there was no market transaction, and the house had no value. At that time, the main assets of Chinese households were cash and bank savings. After the reforms, houses have been confirmed to become personal and family assets. Through the establishment of a real estate market for transactions, they have market value and become economic capital. This makes the scale of assets and wealth of Chinese households leap to the world in one go. Forefront. This huge change was not caused by “5+2” and “white + black”, but broke out through the advancement of factor market reforms. Similar to financial innovation in the fields of land, real estate, etc., exploring financial innovation tools such as data asset pledge financing, data asset insurance, data trust, and data asset securitization through prudential trials will further enlarge the scale and value of digital assets and digital capital.

We believe that through the establishment of a rights confirmation system, the development of the trading market, and the exploration of financial innovation, the realization of the value leap from primitive digital resources, to digital assets, and then to digital capital is the core goal of the development of the digital economy and an important realization of serving the new economy. This approach will provide a powerful source of capital for China’s future economic growth and promote real supply-side structural reforms. The capital Beijing has the advantages of “time, location, and harmony” to build a digital economy. The direction of the capital’s financial innovation should also focus on this area with great potential.

2. New business formats spawn new institutions

As an important carrier for the development of the digital economy, the data element market system includes data providers, data buyers, trading platforms, intermediary service providers, and data transaction regulatory agencies. All participants together constitute a complete data element market ecology. In the future, the establishment of a series of innovative institutions such as data custody institutions, trading venues, and data intermediary service institutions will play a key role in cultivating the data element market.

First, we must innovate and develop data hosting institutions to strengthen data governance. At present, due to the sensitivity of private data and legal disputes about data right confirmation, data security management and compliance development and utilization have become social pain points. Although most small and medium-sized Internet companies have collected large-scale data, they lack the basic capabilities of data governance. Professional data custodians have huge practical needs. Data custodians can become “safes” and “processing plants” for Internet companies to conduct data governance, and use powerful data governance capabilities to standardize and desensitize entrusted data, turning them into valuable and usable data resources; At the same time, it cooperates with legal affairs agencies to verify the legality of the data source and collection process to ensure its compliance; in addition, it can also learn from the system experience of custodian banks and asset trusts to rationally design a data custody system, which will be authorized by the subject or For data assets permitted by law, proper separation of ownership, use rights, management rights, and income rights is carried out to achieve in-depth mining and substantial increase in the value of data resources. As an integral part of the digital economy infrastructure, data custodians should meet the basic requirements of social credibility, public welfare operations, strong technical capabilities, and financial-related business qualifications.

Second, improve data services through the development of market-oriented data intermediaries. For example, establish data asset evaluation agencies, data brokerage service agencies, and data audit service agencies to quantify the value of data, promote data transactions, contract conclusions, and post-audit audits. Data rating conducts a comprehensive credibility assessment of the data resources used for transactions in advance, including the qualifications of the data provider, the ability to provide stable data, the ability to ensure data security, and the compliance and delivery rate of the target data source. Data valuation is through a comprehensive analysis of the inherent value, market value, and environmental factors of data resources, and then the fair value range of the underlying data is obtained. This is just like before companies issue stocks and bonds, accounting firms and rating companies have to review corporate financial statements and financial status. In the future, data value evaluation agencies will also shoulder important responsibilities.

Thirdly, data circulation and value discovery are realized by establishing data trading venues. Theoretically speaking, data transactions can be carried out one-to-one between individuals and enterprises, and the procedures are more convenient and do not need to be carried out through third-party platforms. However, large-scale, normalized data transactions need to be conducted through a professional and credible platform. This is a more economical and rational choice: one is more efficient, which can increase mutual trust and increase the success rate of transactions; second, it is more economical and can reduce Transaction costs and shorten transaction time; third, more inclusive, conducive to strengthening the management of core social resources, and improving the level of public welfare in society; fourth, more compliant, facilitating market supervision, thereby ensuring the legal compliance of transactions.

As an innovation leader and industry pioneer in the development of my country’s digital economy, Beijing is actively building an infrastructure for data circulation. In the first half of this year, the Beijing International Big Data Exchange was formally established. This is the first domestic data exchange based on a new data transaction model. It adopts a hierarchical and hierarchical data management model and comprehensively uses technologies such as data confirmation, privacy encryption, and smart contracts. , Realize the circulation of data use value through the construction of a series of transaction-based smart contracts including data, computing power, and algorithms. This model will effectively solve the pain points of high-value data in the circulation process, and strive to explore the future development direction of data transactions.

3. New trading application new technology

The development of the digital economy requires new technology to match it, especially in the data transaction circulation link. The new transaction model will have new technical requirements for the transaction platform, such as data confirmation identification, privacy encryption calculation, and smart data contract. New technologies represented by data application tracking will play an important role.

Develop data right identification technology to solve the ownership problem of data transaction circulation. The definition of data ownership is the prerequisite for data transactions. Through data confirmation and identification technology, combined with cryptographic algorithms and blockchain technology, the unique identification of data is realized, and the data is confirmed by technical means and transformed into tradeable Digital assets, this is the basic requirement for data confirmation and identification technology. The standard system of data confirmation and identification technology will continue to evolve in transaction circulation, from new applications such as hash codes, timestamps, and NFTs, to the future inseparable and irreplaceable “unique corresponding identification” technology that confirms rights and The innovative development of identification technology will be the basis and prerequisite for data assetization.

The development of privacy encryption computing technology promotes the realization of transactions of high-value data under the premise of “available but not visible”. Due to the unlimited reproducibility of data, the benefits of plaintext transactions of high-value data are far lower than the cost of collection, and the willingness to go public is very low. At present, through technologies such as multi-party secure computing, federated learning, and trusted execution environment, based on plaintext encryption, cryptographic algorithms, and chip hardware encryption, it is possible to achieve “data availability and invisibility”, deep mining of the economic value of data without touching it Data specific information and personal privacy, to achieve the separation of data use rights and ownership transactions. Privacy encryption computing is a technological innovation of data transactions, has broad application prospects, and will provide an effective means to realize the value of a large number of originally silent sensitive data.

Smart data contract technology will promote the evolution of data transaction models. In the past, the trading products of various data exchanges were basically the data itself, but the future trading targets will be more diversified, more like a set of solutions for specific digital economic problems, which we call “data contracts.” In the future, digital transactions will develop from a single data transaction to a data contract combination transaction of data, algorithms, and computing power. It expands the range of value realization of data-related resources and turns algorithms and computing power into assets that can be traded. . This is like a big food supermarket, which sells ingredients, recipes, and processed stoves. Smart data contract technology will provide the underlying technical support for transaction contracts, and provide standard interfaces for data, algorithms, and computing power, standardize data contracts, and transform complex contract terms into smart codes, which are automatically generated and executed. This will significantly improve the efficiency and credibility of data contract transactions, and promote the realization of a wider range of digital values.

Data application tracking technology is a guarantee for the safety and compliance of data transactions. Let’s take shared bicycles as an example. If the platform does not have the ability to record and track bicycle usage, the shared bicycle mode will not be possible. In the same way, after the data is confirmed and marked, traces are left in the transaction circulation link, and the traceability and tamper-proofing are realized through the chain, and the recording and tracking of data assets can be realized, so as to ensure that the scope of use after the data transaction conforms to the relevant agreement of the transaction contract , And accurately measure its application scenarios and frequency of use. In this sense, data application tracking technology will become a guarantee for increasing the transparency of data transactions and realizing market compliance management.

Fourth, the new highland perfects the new system

At the Global Digital Economy Conference in August this year, Beijing introduced an implementation plan for accelerating the construction of a benchmark city for the global digital economy. In the next step, we propose to promote the introduction of more supporting policies and management measures, and form an “institutional highland” for the development of Beijing’s digital economy by formulating relevant policies to promote the development of the digital economy.

The first is to promote the formulation of a comprehensive tenure protection system. It is recommended to formulate basic rules for data right confirmation and rights protection, and promulgate the “Regulations for the Promotion of the Development of the Capital Digital Economy” to clarify the definition standards for different data ownership, solve the basic problems of data transactions, and provide for the owners, users, and management of data. Protect the rights and interests of all parties of investors and investors, and do a good job in the balance between the protection of data rights and the circulation and utilization of data elements. These systems will not only protect data owners, but also data managers, users, and investors, so that the entire ecosystem can develop steadily.

The second is to formulate an open, fair, transparent and efficient trading system. Through the hierarchical management of data sensitivity, formulate public data governance rules, data transaction delivery rules, and data cross-border flow pilot rules to clarify the rights and responsibilities of all parties in the data transaction link.

The third is to establish a corresponding supervision system to ensure the legal, compliant, and safe application of data resources. It is recommended to explore the establishment of a multi-level entity classification mechanism for the data element market, conduct access management of the data element market, and scientifically set access standards for new participants such as data trading venues, data custody institutions, data evaluation institutions, and data audit institutions. Improve the security, standardization and operability of data circulation.

By-law: Beijing Financial Technology Test Platform

Recently, the Zhongguancun Forum has just released the Beijing Jinke New District Financial Technology Test Platform. This platform is led by the Haidian District Government and Beijing Financial Holdings Group, and is jointly built by the Haidian District Finance Office and the Beijing International Big Data Exchange. As the first financial technology testing platform based on data circulation and model verification in China, it will greatly assist the construction of Beijing’s “two districts”, accelerate the construction and development of Jinke New District, give full play to Beijing’s outstanding advantages in gathering financial resources and scientific and technological resources, and develop in compliance with laws and regulations. Financial technology innovation, and guide the innovative application of financial technology. By building a credible algorithm development and testing platform, we will access public, social, Internet and other data that are urgently needed by financial technology companies, and attract large, medium and small companies in the financial technology industry to the platform to develop, optimize, and optimize model algorithms. Testing and verification.

We can understand this platform as an “open kitchen” for financial technology innovation. The platform will help the development of Beijing’s financial technology industry in the following five aspects.

1. Massive data supply, that is, to provide qualified “foodstuffs” for financial technology innovation. In addition to the Haidian District’s own data sources, the platform will also connect with data resources such as the Beijing Financial Public Data Zone, as well as the social data resources based on operators, power, investment and financing, the Internet, market-oriented institutions and other channels that have entered the Beijing Data Exchange. .

2. Broad application scenarios, that is, to provide “customer menu requirements” for ordering meals. The financial field has very rich data opening, testing and trading scenarios. The platform effectively integrates financial technology testing and business scenarios to help financial institutions improve operational efficiency in multiple scenarios such as risk prevention and control, credit management, precision marketing, and credit evaluation.

3. Innovative technology guarantee, that is, to provide “stove” for processed food. In the process of data development and testing, the platform uses a variety of innovative technologies such as privacy encryption calculation, data confirmation identification, and data watermarking to provide technical guarantees for financial technology innovation enterprises. Privacy computing technology supports data available invisible, and benefits can be distributed. Blockchain technology supports the entire process of chaining to ensure that the content is tamper-proof. Data confirmation identification technology supports the unique confirmation of data assets, ensuring that sovereignty can be confirmed, and the source can be traced.

4. Help financial technology companies improve models and algorithms, that is, help chefs improve their “recipes” and recommend them to customers. Fintech companies can train models and algorithms through the platform, and then NBEI recommends the application scenarios of the algorithms, and connects their needs with banks and financial institutions to continuously optimize and upgrade the model algorithms. In addition, BIT also recommends the best financial technology companies to enter the market as “algorithm service providers”, forming a closed business loop of technology iteration, model innovation, and results landing.

5. Promote industrial ecological agglomeration and help create a “public kitchen” for the entire process of financial technology innovation. One side of the test platform connects with “data suppliers” such as governments, Internet companies, and social institutions, and one side connects with “business demanders” such as banks, insurance, securities services, and financial institutions, and verifies the model algorithms produced by the platform with actual business scenarios. At the same time, relying on the credible environment provided by the platform, attract more financial institutions, data source providers, data cleaning and processing service providers, data model service providers, and data governance service providers to gather to form a good and open innovation industry ecosystem.

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