Editor's note: Gai Keke is an associate professor at School of Computer Science and Technology in Beijing Institute of Technology, China. The article reflects the author's opinion, and not necessarily the views of CGTN.
IT industry never lacks new concepts. As an emerging technical term, the Blockchain has caught a giant attention because of its flexible and solid deployment features, even though the core of this technique is not new.
This new concept was born with a halo due to one of the successful crypt currencies, Bitcoin, and its widespread reputation. Gartner deemed that blockchain was one of the top ten technical development trends in 2018.
The Chinese government also paid attention to its growth and maturation and a few relevant official blueprints or manuals had been made.
These documents revealed that the Chinese government would have financial supports as well as beneficial policies to drive the expansion of blockchain, aligning with the national development strategy.
It is observable that the Chinese government is ready to make sufficient efforts and put more resources in this domain. Numerous Internet companies are rushing into this realm to occupy advantage positions for seizing potential markets.
There are many startups with a focus on blockchain established every day. It seems that blockchain has become a universal solution to everything over one night, including autonomous cars.
However, there are more questions needing answers than it seems to be. A typical question for public is “is blockchain worthy for investment?”
Before answering this question, a good understanding about Blockchain is needed. Don & Alex Tapscott give a definition in their new book (Blockchain Revolution, 2016), which mentions “the blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
European Parliament member and entrepreneur Antanas Guoga launched the blockchain centre in Vilnius to boost start-ups and establish connections with Asia and Australia./ VCG Photo
Translating this technical description into a non-technical friendly manner may assist people in understanding its meaning.
As the matter of fact, blockchain is a kind of data storage method. It has a few representative features that are generally considered as advantages.
The first feature is that it is hard for attackers to maliciously change data on a blockchain. Next, keeping a comprehensive record also is a feature so that people can track all activities from the very beginning.
Moreover, users in blockchain system can use alias names rather than real information. Privacy can be protected at this point.
Finally, the record is stored by multiple parties and each change is on the basis of their agreement.
According to the concept of blockchain, we can see that it is a technique with a few advantages from the perspective of security. The support from the Chinese government also emphasizes its advantage in data security.
Nevertheless, blockchain is not a solution to all problems. It also encounters a variety of challenges. Some typical disadvantages include additional networking burdens, unstable markets, computation wastes, etc. Companies need to be aware of the reason when deploying a blockchain-based solution.
Whether or not using this technique depends on if benefits brought by blockchain are greater than that of drawbacks. Companies have to understand that blockchain is not the only solution to security problems.
European Parliament member and entrepreneur Antanas Guoga launched the blockchain centre in Vilnius to boost start-ups and establish connections with Asia and Australia./ VCG Photo
In fact, many security problems have not been solved yet in blockchain. Therefore, developing blockchain-related innovative technologies is facing various anticipative/unanticipated risks.
A rigid knowledge support is crucial for a healthy development of blockchain. Fortunately, the China Computer Federation (CCF) established the Blockchain Technical Committee in April, 2018, which represented that a bridge connecting academia and the industry started serving its growth.
It was a milestone for this young and energetic realm. A close collaboration between universities and research organizations and industrial practitioners was deemed a great option for sharing resources.
The new technical committee could provide both theoretical guideline and technical details for startups or IT giants. The assistance could aid companies to know their surroundings and plan developments.
Meanwhile, practitioners had the concentration and enthusiasm, partnering with professional teams, to bring a dream to fruition.
With the strong support from the Chinese government and the knowledge support from the Chinese academia, it could be good news for startups to dig out treasure. A success might depend on whether there was a necessity of using blockchain.
Now, it might be a good time for companies to ask themselves: “Shall we rush into blockchain?”
