Our takeaways from the Global Blockchain Summit Forum in Hangzhou, China

BLKSMIT

We are seeing all kinds of blockchain conference globally, from United States to Puerto Rico, from Europe to Southeast Asia.

Surprisingly, most of these conferences are not as global as they claim or as global as the technology they are reporting on.

This week’s Global Blockchain Summit Forum in Hangzhou, China, is no exception; most of the guests and speakers are from within China.

However, we can still learn insightful perspectives from this summit. Guests from venture capitalists, blockchain startups and government offices shared their opinion on blockchain development. And here are some of their ideas.

Why crypto will not disrupt traditional currency for the time being?

Mr. Zhang Yifeng, director of blockchain lab of China Banknote Printing and Minting Corporation (CBPMC) believes that cryptocurrency is a key driver for digital economy transformation, but he also said that transformation will not be delivered overnight and traditional currency will co-exist with cryptocurrency for quite a long time in the future.

Why? Because the transformations of every currency form in human history are gradual processes, from goods currency to metal currency, from metal to paper, if we take a close look, none of them happened in a few years. It has taken decades, even centuries for the transformation to complete. So, a co-existence of traditional currency and cryptocurrency is likely to become the trend of this generation.

The huge potential of inter-blockchain market

In a roundtable discussion, CEO and president of Wanchain, Global Business Director of ICON, founder of Bytom, Global Business Development Director of Kyber Network, founder of ONTology and founder of AION has discussed the inter-blockchain market.

Inter-blockchain means connecting different public chains so that they can communicate and make transactions with each other.

Dustin Byington, president of Wanchain, said that current blockchain is like an intranet, value transactions are made only within one ledger. Building bridges to connect different ledgers could have profound impact for blockchain, just like the impacts World Wide Web brought for computer industry.

Matthew Spoke, founder of AION, believes that each blockchain project is like a special programming language and when you use a different blockchain project, such as from Bitcoin to Ethereum, you need a translation to and understand the transactions happened in each ledger. So, the inter-blockchain technology is essentially to understand how each blockchain works and figure out a way to make them interoperate.

What’s the most important thing for inter-blockchain technology? Li Jun, founder of ONTology points out that it’s not about designing a single protocol, but about building protocol groups. Inter-blockchain communication should be divided into three levels – data, asset and real world, each level should be correctly mapped for both chain.

But inter-blockchain can also present challenges as Duan Xinxing, founder of Bytom said that we will have to compromise between security and efficiency in blockchain. Decentralized system based on blockchain can provide security at the expense of efficiency, and the design of inter-blockchain is a way to improve efficiency, however, with the sacrifice of a few security.

Because building inter-blockchain means opening some ports for outside ledgers, and ports could provide entrance for hackers.

What could be the best solution for inter-blockchain? Federated blockchain could be a good one. TN Lee, Global Business Development Director of Kyber Network thinks that one of the benefits of blockchain federation is resource sharing and standardization.

What’s Internet investors’ perspective on blockchain?

In a roundtable of blockchain-related investment, traditional venture capital investors have expressed their opinion on the development of cryptocurrency and blockchain.

Chen Weixing, founder of Funcity Holding, shared his philosophy on blockchain investment. He said he will never invest to win a zero-sum game, what he seeks is a win-win solution and a growing industry. And blockchain is an area for him to invest.

As for specific sectors, what he values most is infrastructure projects, wallets and exchanges.

He also claims that he will NEVER CASH on cryptocurrency, because he believes that cryptocurrency will be the future of currency and when the time comes, you will only cash to crypto, rather than cash to dollars.

Chen Bin, president of Cybernaut Investment talked about the fundamentals of blockchain. He thinks that compared with Internet and TCP/IP protocol, blockchain has three extra features – trust, transaction and smart contract. So he advises startups to innovate on those three areas.

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Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

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