Zhongan Technology Wu Xiaochuan: The value of the blockchain lies in converting products and services into encrypted digital assets to achieve low-friction and borderless circulation | POD New Area Summit
On November 28, the "2018 POD New BlockTrend New Area Blockchain Summit" hosted by Odaily and 36kr was held in Beijing.
On November 28, the "2018 POD New BlockTrend New Area Blockchain Summit" hosted by Odaily and 36kr was held in Beijing.
At the meeting, Wu Xiaochuan, director of the Zhongan-Fudan Blockchain and Information Security Joint Laboratory, gave a speech on the theme of "Token Economy Exploration". He shared how to map insurance assets from the physical world to the blockchain world, and establish a unified asset and tokenization standard through the asset open protocol to promote asset circulation.Wu Xiaochuan believes that,
The value of the blockchain lies in converting products and services into encrypted digital assets, carrying asset value and data in the form of tokens, and realizing low-friction, borderless transaction circulation.
The following is the transcript of Wu Xiaochuan's speech:
Good afternoon everyone, I am Wu Xiaochuan from Zhongan Technology. In fact, asset certification was mentioned in the sharing of the guests this afternoon, but we integrated the concept of asset certification and proposed an open asset protocol to help the tokenization of assets.
Blockchain certificates originate from the blockchain, are generated from the blockchain, and circulate in the blockchain. They generally have monetary attributes, instrumental attributes, and economic attributes. The currency attribute is circulation; the tool attribute is the use of blockchain equity certificates; the economic attribute refers to the value of the token itself, for example, the more users or the more active users, the higher its value may be.
But the asset certificate I am talking about today is different from the certificates that are currently seen on the market. Asset tokens originate from outside the blockchain, are generated from the blockchain, and circulate in the blockchain. These assets can be tangible physical assets, such as mountains, rivers, real estate, vehicles, cattle and sheep; Some digital and electronic vouchers, such as bills, points, and Jingdong IOUs, etc.
The formation of the token concept stems from the accumulation of ZhongAn in recent years. Zhongan Insurance is the first Internet insurance company in China; ZhongAn Technology was established in 2016, realizing the development of tools and platforms; while opening up the technical capabilities of the platform, we promote insurance through the aggregation, linking and refining of data and services. The development of business capabilities has improved user experience, and achieved channel innovation, product innovation, and efficient regulatory audits.
However, when we further opened up the product capabilities of the platform, we discovered and encountered some problems, such as data openness capabilities, collaboration issues in the reinsurance and co-insurance industries, and low-cost and flexible access links with scenario parties. We hope to solve these problems through technical means, which is also our current mission as a technical team.
The question I mentioned just now comes from the "Bubu Chicken" project, which is our cooperation with Lianmo Technology. The "Step by Step Chicken" project combines the blockchain, the Internet of Things, and intelligent counterfeiting to realize the anti-counterfeiting traceability of free-range chickens. Through this project, many customers have come to us, and their needs are more complicated. How to quickly develop and iterate new products, how to integrate and deploy the existing anti-counterfeiting traceability system with one click, and how to quickly access financial services such as agricultural insurance and performance insurance are all issues that we need to consider in the plan.
Our solution is to carry out asset equity proof on the blockchain. Through the open asset protocol, the service docking interface and data format are unified. In this way, it is no longer messy APIs and discrete data that are circulated between each link or each participant, but a concrete certificate that carries asset value and asset data.
Taking the case just now back to the previous question, in fact, we found that the value of the blockchain lies in converting services, products, and activities into encrypted digital assets, carrying asset values and asset data in the form of tokens, and conducting low-friction, seamless The circulation of transactions at the border stimulates the real value of assets and empowers the real economy.
Therefore, we propose an asset open protocol to define asset tokenization standards. In the insurance field, it aims at transforming insurance assets, that is, insurance policies into policy certificates, and promotes the flow of insurance assets and data by promoting the circulation of policy certificates, thereby improving insurance business capabilities.
In fact, there is more than one kind of policy certificate. We mainly divide it into four types according to some characteristics of the insurance business. You may not know much about insurance, so I can briefly introduce it here. The insurance product structure is actually very complex in actual application scenarios, usually with 6 to 10 levels of hierarchical configuration information, and a series of rules such as underwriting, compensation, and risk control. The so-called insurance products are more of an abstract concept that is easy for users to understand, especially after the emergence of online marketing platforms. It is the clauses that really work for insurance products, such as the purchase of air tickets, flight delays, and the insurance company paying me money are the clauses.
With these foundations in place, let's look at insurance tokens. PBT501 is a single-term insurance product with thousands of faces. A single clause, refers to uniqueness, there is only one clause. Thousands of people and thousands of faces mean that under the same insurance product, each policy certificate is different. Technically, thousands of people and thousands of faces are non-homogeneous. PBT502 is just the opposite of 501: all the tokens of the same insurance product are the same, which is applicable to mutual insurance. guarantee. PBT701 is a combination insurance. What is combination insurance? In some specific scenarios, we hope to provide users with comprehensive protection, not just protection for one risk point. Technically, the policy token PBT701 can combine PBT501 and 502 single insurance products arbitrarily. PBT901 is a marketing-type insurance, and marketing-type insurance tokens are more different at the marketing level. In different sales channels, different scenarios, and different events, the terms, premiums, insurance amounts, or channel rebates may be slightly different. different. It is stupid to provide maintenance and configuration of insurance tokens in every scenario. The marketing insurance pass PBT901 is a dynamic combination of terms allowed under special scenarios.
"Feixiang e-Life" is the first product launched in the insurance token. It actually has 8 clauses, including one main insurance and seven additional insurances. Each clause is a PBT501 single clause product, and each clause is implemented based on a smart contract.
In this way, we have realized the mapping of insurance assets from the physical world to the blockchain world from the four dimensions of insurance product definition, user insurance behavior, business collaboration, and audit supervision. This is insurance tokenization.
And what value does the insurance pass bring to our insurance business? Combined with the traditional insurance system to analyze. In our traditional insurance system, in the face of massive, rich, high-frequency, and fragmented scenarios, the existing insurance system has some shortcomings in external coordination and scalability. Why do these flaws exist? Because there is no unified standard, there are trust issues between the value of assets, asset data, and business models.
However, in the insurance system after transformation based on tokenization, tokens are transferred between the various systems, which are transferred in the alliance chain. At the same time, the service standard is uniformly defined by the certificate, and the authenticity of the asset value is proved by all parties based on the consensus of the blockchain. Therefore, the friction of business boundaries, collaboration thresholds, and transactions is greatly reduced.
In a business environment, it often involves four aspects. Users, products, scenarios, and regulation promote and influence each other. What role does the insurance token play in these four aspects?
For users, the insurance pass realizes the unified management of insurance assets by users. The insurance terms and claims process are more transparent, improving user experience and trust in insurance companies, and protecting users' data privacy. As for products, on the one hand, it makes product maintenance, configuration, R&D, and iteration more flexible; on the other hand, it greatly improves risk control and automation capabilities through data openness capabilities, and promotes product innovation capabilities. For scenarios, while better linking existing scenarios, link to more new scenarios, open up data islands, and innovate in channels and scenarios. As for supervision, supervision can be real-time, proactive, and collaborative, so as to ensure the development of business compliance.
Data openness and data privacy protection are the second core value of our asset token. We have made many attempts on data privacy protection before, such as combining cryptographic algorithms, homomorphic encryption, etc., in a sharing-based way Greatly improved security. Based on the current token theory, the token is bound to data, and there is a blockchain to prove it. Because the pass is owned by the user, we better protect the data based on distributed user access control and user authorization.
Let's take a look at the application of the open asset agreement in other fields, such as the case of "step by step chicken", from the cultivation of a chicken to the farm, to packaging and logistics, and to the whole process in the hands of consumers, the circulation All are certificates. On our platform, there are already more than 40,000 chicken tokens.
Another example is high-end consumer goods. Taking diamonds as an example, on this platform, diamonds go from import to customs declaration, to China Diamond’s traceability, and then to consumers, plus the financial derivative activities added later, such as pawn, auction, storage, trusteeship, etc., this series All the tokens are transferred in the process. There are 1.45 million diamond tokens on this platform, with a value close to 7 billion yuan.
Let’s look at another future scenario, the scene of seeing a doctor in a hospital and making an insurance claim. The user buys insurance first, then goes to the hospital to see a doctor, pays the bill first, and then settles the claim. Let's think about such an experience, the same user buys insurance and goes to the hospital to see a doctor, the user can connect the hospital terminal and the insurance terminal, and when paying the bill, the insurance company and the hospital will directly connect, is this better? However, the current technical means cannot solve this problem, mainly because there is an island between the hospital data and the policy data. Considering the patient privacy and data leakage issues, no one dares to move. So now it is easy to have an asset certificate. I just said that the user is connected to both the hospital and the insurance company. This is equivalent to an active authorization process. You can see from the picture that Zhang San has a certificate from the insurance company. , there is also a hospital token, these two tokens are bound through user association, and are safe and reliable.
