BSV DevCon China 2021 | Building an honest data network with blockchain
Hi, everyone. Keyi Tech specialises in advising clients on blockchain technology and providing them with educational & training services. Currently, we are focused solely on infrastructure and technology related to public blockchains and BSV blockchains, as well as certain commercial applications and scenarios. BSV DevCon China,which is taking place here in Shanghai, is a major event in our industry. Despite various challenges this year, we are still able to get together here face-to-face and also live-stream our discussions online.
Our host city of Shanghai is a global metropolis and has played a leading role in the worlds of science and technology. We hope to create a platform that appeals to people from all walks of life - not only innovators and entrepreneurs in the blockchain industry, but also key professionals and creators from other industries, so that they can explore this new area of technology together with us. This conference aims to provide honest information about blockchain technology to people from all industries and professions, as well as to showcase new developments within the existing infrastructure of blockchain technology over time.
Additionally, we hope to help creators and entrepreneurs embrace the concept of self-transformation, and we want to enable them to identify how they can empower themselves through blockchain technology in the current business world. This conference involves many researchers and scholars. You will see that the majority of our participants and speakers hail from academic research institutions.
At the same time we will also be welcoming entrepreneurs and decision-makers from companies, public organisations and governmental departments, new and experienced innovators alike, as well as engineers with real expertise in the development field. As such, over the next day and a half this conference will provide you with a bird’s eye view of how the world’s most advanced, powerful and accessible blockchain technology has been broadening people’s visions and enabling them and enabling them to explore some of the upcoming opportunities and possibilities in store for us. Before we hear from today's other guest speakers, I hope that we can all leave behind our preconceived notions and beliefs about the concept and world of blockchain. To be completely honest, over the next two days, you won’t be hearing pitches about the so-called ‘keys to building wealth‘ or ‘hot investment opportunities’, things that are often found and pushed at other blockchain-themed events and conferences.
Instead, we will remain fully focused on blockchain technology itself and will try to discover the real significance and value of blockchain technology and Its new related concepts. I imagine that many of you already know a bit about blockchain technology, even if you are not actively working in this sector. owadays, we often hear that a lot of official or mainstream media channels, and even governmental organisations, have been researching blockchain technology, describing it as a very promising, cutting-edge area. But you may still be confused at this point when you take a closer look at the practical implementation of blockchain technology. Given the current understanding and spread of this technology, how could it become accessible and beneficial to hundreds of millions of people? And although lots of people may have heard something about it, today many believe that their life has little to do with blockchain.
The truth is, the average person is far more likely to hear stories about how to become either a millionaire or penniless overnight via blockchain technology, stories that are made up and pread by their friends or the media. If you really want to dig deep and learn more about blockchain, you will find an ever-growing number of concepts and terms appearing in this field. Furthermore, these new concepts have been spreading at a gradually increasing speed. Yet when we try to figure out why this is happening, it is quite difficult to find a satisfactory answer to our questions, namely - Why does this technology represent the future and how can it benefit us? Why is this technology always associated with stories of amassing or destroying wealth? So with that said, I hope that when this conference comes to an end, everyone will have his or her own answer.
In my view, blockchain itself is neither the “gold of the digital era” or the “currency of the crypto-world”, as trumpeted by a lot of individuals and media, nor is it this “brand-new world of freedom” touted by anarchists. These concepts have their appeal and even attract certain types of individual, which explains why many people are drawn to exploring the world of blockchain. However, none of these things represents blockchain or its true value. As we know, today’s conference is focused on blockchain technology. Let’s consider this: What is blockchain technology, at its essence? At its core, it is actually rather plain and not all that attractive. It looks like a somewhat ordinary and dated technology, something that can be described in a simple sentence or two.
Here, I’ve written just two sentences that I think can explain it in the easiest way. In essence, the blockchain network is simply a distributed data network that is publicly accessible. In common terms, we can call it distributed ledger technology. The word “blockchain” itself does not signify finance or wealth.
Instead, it is simply a concept of a data network in its plainest form. At the same time, however, blockchain represents a vast subject and is a massive technological concept. Each blockchain is a pool containing a series of data protocols. Therefore, when we talk about the blockchain, we are talking about a truly enormous subject.
Yet within this field, there are different branches of blockchain technology and different blockchain networks. No matter which specific blockchain they work with, all participants have to write, read and maintain a huge data ledger in compliance with a series of protocols related to that blockchain. Based on these traits, we can sum up the fundamental differences between a blockchain and an ordinary data network or database, right? First, it must be open to public access, with the data on the blockchain open to all. Second, since the blockchain employs a new type of data structure composed of blocks and chains, no data generated on the blockchain can be overwritten, altered or deleted by any other party.
Meanwhile, because it is a distributed network with a superb design, it does not rely on any single or group of third parties. You’re familiar with these concepts, I assume. I imagine that anyone who has learned about and understands blockchain technology is aware of these concepts. But it doesn’t sound so enticing, does it? In other words, it does not sound as alluring as this galaxy of new concepts and features being touted nowadays. Going further back, let’s take a look at blockchain’s prototype when Bitcoin was born. What was it called back then? In Chapter 3 of the Bitcoin Whitepaper, we find that at that time, here was no such word as ‘blockchain’.
Back then, Bitcoin was described as a distributed timestamp server, which was a long name and didn’t sound fancy at all. This term doesn’t sound like it relates to a new field, technology or concept. However, it does encapsulate the blockchain network.
It encompasses the most valuable things about it. First, it is distributed. Second, it gives data irreversible, unalterable timestamps. Third, it is a server. A blockchain is a server that operates to store data.
How important is data for all of us and for society at large? Looking back over the history of humankind, we’ve always used different methods to record, maintain and use data. Over 10,000 years ago, humankind first developed a primitive method of using knotted rope or other basic items to store information. Later, people began to engrave words and patterns onto certain solid objects that could be preserved for a long time. A century ago, machines started to appear that were used to record and count large amounts of data. A few dozen years ago, computers came along, and discs were used to record and maintain even more data.
Nowadays, we use cloud servers with global coverage. As we can see, throughout the evolution of human society, we’ve always worked to find a better way to record, maintain and use data. Why do we want to do that? Because each stage of human civilisation has to add to the previous one, and the data we have amassed along the way is helping to advance society and civilization as a whole. The data we record can facilitate the exchange of information between human beings or organisations and boost the development of economies and commerce as a whole.
For companies and individuals like us, this data also serves as an important basis for our decision-making. For governments and governing bodies, it can be used to provide them with better methods of governance. Essentially, all of this data is of paramount importance. Now let’s look at the state of data in the year 2021.
I’ve found some data from a respectable source. Each person on our planet generates 1.7 megabytes of data every second. Can you imagine that? In the past second, each of us sitting here has generated 1.7 megabytes of data. And in the future, this figure is going to grow exponentially, beyond the bounds of our imaginations. As we all know, the IoT era is coming soon.
By that point, data will be generated not only by human beings, but also by machines and things, which will obviously in turn generate a lot more data. With the emergence of such a colossal amount of data, we are bound to face challenges. You don’t have to be in the Big Data sector or the Information industry to foresee these challenges.
All of us can imagine the scenario. When you are swamped with an immense amount of data, how will you manage it? How will you find data that is useful for you, and how will you know if data that comes from an outside source is accurate and effective? Does that make sense? Actually, we are already faced with these issues every single day. In our professional and personal lives, individuals and companies have spent time and energy dealing with these issues, day in and day out. In order to efficiently take control of your data, locate effective data and trust others’ data, we need blockchain technology. This is where the real value of blockchain technology begins.
The blockchain technology that I’ve been highlighting from the start is actually a data network. Each blockchain is a data network that encompasses a series of protocols and rules. Its design has some inherent advantages that could help us solve the challenges and difficulties that will result from the explosion of data we are about to face. It’s easy to see what these natural advantages of blockchain technology are. It is safer because the data on it has irreversible stamps, making it trustworthy. But nowadays, would anyone say that blockchain is a less expensive option? Would anyone say that blockchain delivers strong performance? No.
Why not? Because blockchain technology is still in an early stage of its development. We see that today’s world is teeming with blockchain networks, projects and technology, and their number is growing every day. Each of them promises a particula alluring future with its own advantages. Yet as I said earlier, we need a data network that is safe, dependable, usable and cost efficient while ensuring a strong performance. That is the only criterion we look for in the best and most effective blockchain technology. However, because we are now faced with so many projects of all different types, we can see that the entire industry has been flooded with contradictory ideas and misconceptions.
We know that a blockchain is publicly accessible and contains information that is open and transparent. Do you worry about others accessing your information? One person may say that the blockchain technology used in their project can guarantee anonymity for the sake of safeguarding user privacy, a claim that then creates misconceptions in the market. That particular claim leads users to believe that a publicly accessible network cannot ensure information security. However, just think about this: Every day we access platforms and networks that are open to the public, and we transfer our keys and data onto these platforms, don’t we? As a matter of fact, we can use a lot of key management, identity management and encryption technologies to ensure timely access to an open network, in which case the privacy and safety of our personal data are still preserved and maintained. The second misconception is something we have seen quite often recently.
When people hear that your blockchain involves coins, they may turn away from you. Why is that? Because of existing policies that impose strict regulations on coins. Have you ever thought about why this type of regulation is being imposed? I think the government must have a reason. The government imposes this kind of regulation because a lot of people have begun to boast about the wealth potential of these coins in different blockchain projects as a way to encourage people to get involved in them.
However, these projects don't have the technology to support their claims. One of the dilemmas we are faced with now is that everyone is obsessed with these coins, but they are missing the true value of this technology or the blockchain itself. Another misconception is that some people consider it necessary to link up with others in order to form a stronger network based on trust and consensus, since a blockchain serves as a distributed ledger.
By doing so, they hope to build a trustworthy network through alliances. As a result, now we see more often than not that a large number of projects in China are launched on the basis of a consortium blockchain and an internal, corporate or private blockchain sponsored by particular institutions. I agree with the idea that alliances rely on and build trust. However, we need to take a look at the essence and origin of blockchain. Let me give you a question to consider.
hen we can wait and see what blockchain has evolved into later this year, next year, and in three years’ time. Before I share my personal viewpoints with you, I would like you to consider this specific question - What is special about a blockchain network? First, it is a system that allows peer-to-peer interaction and communication. Put simply, as you know, these interactions and communication take place through certain platforms.
This is going to change. How will that redefine how we work with data in the future? Second, because a blockchain is a data network, we have to record and search for data. When recording data, we give the data timestamps. Furthermore, since its network structure is unalterable, what records and data should we put on the blockchain? A lot of people are confused about this. Now that it is a publicly accessible network, will my data be seen by others once I put it on the blockchain? As I have written here, you can put your raw data your digital fingerprint, or your code logic on it.
The blockchain mode and model will be demonstrated by different guest speakers today and tomorrow. What data can we actually put on the blockchain? Things such as your documents, certificates, identification documents and even different relationships between people or machines, as well as some of your digital assets and some pre-communication authorisation, which is actually not anything new and originally took shape back in our Internet era. But think about this: When we have a blockchain network that is trustworthy, effective, cost-efficient, allows peer-to-peer communication and can be accessed by everyone, these things will function in a completely different way to how they perform now. The real value of blockchain technology lies in the fact that it enables us to redefine the trust mechanism. We need to use a truly powerful data source that is globally connected, open, can be trusted by everyone, and is transparent and auditable, allowing us to unlock the power of data using blockchain technology. Now, if we want to achieve that, what should we expect from blockchain technology? First, it must be able to hold a colossal amount of data.
Since we have said that we will be putting more data on the blockchain, it has to be a blockchain network that can support a massive amount of data and that can be scaled. Second, we need to put it to use once we’ve put data on it, right? For example, how did Google become what it is today? Because as early as 20-plus years ago, when there was not all that much information on the Internet at the time, Google began to look a few years down the road and think about how to help users locate the information they were looking for, That means that we need a truly powerful blockchain network that conducts data indexing effectively and also has a very robust data structure. Finally, we need a network that can be accessed and used by everyone on the planet. It won’t have any value as a whole until everyone can use it. As such, it must support high data concurrency and have strong performance.
When we establish these requirements for blockchains, you will find that everyone in the blockchain industry is considering questions like: What infrastructure should we design for the blockchain? What economic model should we build for our blockchain project? What consensus mechanism should we design? The answers to these three questions are the key factors in determining the sustainability and long-term development of the blockchain network. Next, I would like to show you which blockchain network technologies and capabilities have come to the forefront, amid the latest developments in the entire blockchain industry as of 2021. As of today, the peak TPS on BSV blockchain has reached 5,124 transactions per second, exceeding Hyperledger’s peak of 2,700 TPS, not to mention the levels of Ethereum and Ripple, which you have all heard of and which I have noted here. As for the BSV blockchain, the target is to achieve a peak TPS of 50,000 transactions per second on a productive Mainnet by the end of this year or the beginning of next year. Let's consider an example.
Let’s say that by that time, there are 3.2 million people around the world who want to write a transaction on the blockchain at the same time. What will happen on BTC? Roughly how long would it take to process 3.2 million transactions? Many days. What about on Ethereum? That would take a very long time, too.
But on the BSV blockchain, this image shows some of the things we have made happen. On the BSV blockchain, 3.2 million pieces of data can be written in the BSV network in the next block. But that is not the limit. We hope to go way past that and foster a network that can be open to and used by hundreds of millions, and even billions, of people all over the world. So, think about it.
Blockchain is not some new and enigmatic technology that can only be described in obscure and confusing terms. We can sum up the change it is bringing to the world in a single sentence and then you can let your imagination run wild. In your view, what will a data network that is open to and accessible to everyone, amazingly affordable, trustworthy and globally recognized bring to the world of the future? For supervisors and regulators, there will no longer be any need to constantly monitor for acts of fraud, corruption and infringement. As for network security, hackers won’t be able to delete their logs anymore, since all of the information in their logs will have been uploaded onto the blockchain via the IoT. Imagine an era in which there are no hackers demanding ransoms, since all of the information and transactions related to the ransom can be retrieved and located through the blockchain.
Here’s another scenario: a user unwillingly tied to a platform is unable to convert his data when trying to move to another platform. When you own your private data, you don’t like and Move to a different platform, Move to a different platform, while maintaining possession of your private data. We can imagine how we will be able to manage and guarantee the safety and security of the entire IoT and the data system using cost-efficient blockchains in the future when the IoT has gained enough traction and the world is swamped with data. Therefore, I hope all our guests and our online audience will find the answers to these important questions after listening to all of our guest speakers today and tomorrow, who will present their academic research and commercial applications in their respective areas of business.
Although blockchain technology is still in its infancy, things will inevitably undergo twists and turns during the course of its future evolution. There is a lot of noise and confusion now, but it won’t last long. So as long as we can see a glimmer of hope and the solutions that lie ahead, we can find our own roles and opportunities despite the ups and downs.
In today’s talk, I may have said the word ‘data’ more than 100 times. It comes from the Latin word ‘Datum’ which actually means ‘Given.’ A lot of companies are currently looking at how to cash in on data. But they need to think about the real meaning of data, which is to give. As individuals, it is our duty to contribute to the development of human civilisation.
Likewise, businesses should fulfill their social responsibilities in order to make this world a better place. Blockchain technology can help us break geographical boundaries and data silos, and improve the transparency and creditability of our data. Our vision is to construct a better society and build a trust-based data network using genuine blockchain technology.
Only by doing so can we each all benefit from it and enjoy a better, marter and healthier environment at home, in the community, and across the business world at large. Therefore, the real purpose of this conference is to spread these creative, positive and forward-looking ideas about the blockchain industry. We hope that these ideas will encourage you to pursue and embrace innovations of your own. Also, our company will do its part to help foster skilled professionals specialising in the development and advancement of blockchain technology.
Finally, I would like to say thank you to you all for being here today. Thank you again for being here despite the pandemic. Here are the contact details for our company. If you are interested in our services or business model, please contact us. Thank you!