Macro-Finance Salon (No. 88) and Fintech Open Classes (No. 14): Bitcoin's Past, Present, and Future

2017-12-24 IMI

On December 24, the Fintech Open Classes (No. 14) was held at Renmin University of China. Mr. Wang Liren, Senior Researcher of China Blockchain Research Alliance, expert in Network Engineering and Safety Technology, Deputy Secretary General of Zhongguancun Blockchain Industry Alliance, co-founder of the Energy Blockchain Laboratory, co-founder of the Agricultural Blockchain Laboratory, delivered a keynote speech on Bitcoin’s Past, Present, and Future. Mr. Wang first explained the emergence of bitcoin from the viewpoint of information. He pointed out that in the Internet age, blockchain technology was born out of the need for information retention, encryption, circulation and trading. Bit is a medium carrying information. It is also an extension of market economy theory in the Internet. On the other hand, the flow of money constitutes the economic and social debt network, and bitcoin can be used as a unit of account to settle debt. To summarize, this is a process gone through from source to signal, then to message, trust, credit, and back to the source… Money is also formed in this consensus. Then Mr. Wang analyzed the current status of bitcoin and blockchain from a technical perspective. Firstly, the trade is transparent. Based on the transactions and circulation of Token, blockchain technology could ensure that all the information involved in the many related-party transactions is true, reliable, and cannot be distorted. Secondly, every transaction is recorded. An account page is a Block, and Blockchain is a string of transactions. As the block chain is formed, property ownership is also verified. Thirdly, it can flow. The transfer and flow of token allow resources to be distributed across time and space. To make it popular, the cost needs to be low enough. Next, Mr. Wang elaborated the blockchain technology and put it in the context of Internet technology. The Internet has two major structural defects: First, it is difficult to ensure the reliability of information and privacy. The second is HTP, which is a centralized protocol. The essence of the Internet is mathematics; that is, to do the mathematics about information in an encrypted, decentralized, open, secure and irreversible way. Within a great mass of information, the trustworthy information will generate credit. Therefore, blockchain system must be open-sourced, in order to ensure information transparency and a decentralized model. Finally, he analyzed the future of Bitcoin from the viewpoint of risk, RMB internationalization and the Fed's attitude. One risk of bitcoin is that the nodes might be attacked. One solution is Royal Bitcoin. From the viewpoint of international currency exchange and pricing, the Bitcoin system was once a good opportunity for RMB internationalization. After bitcoin was blocked, the Chicago Mercantile Exchange introduced bitcoin futures, showing that the Federal Reserve is nevertheless neutral about bitcoin which claims to challenge the dollar hegemony. He envisioned the next generation of blockchain as a "multi-link" interactive information system. At the end of the lecture, he recommended some excellent financial and technology books to the audience.

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Macro-Finance Salon (No. 88) and Fintech Open Classes (No. 14): Bitcoin's Past, Present, and Future

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