Don Tascott: Blockchain represents the second era of the Internet

Klaus Schwab, founder of Davos Forum, believes that Blockchain is an important achievement in the fourth industrial revolution after steam engine, electrification and computer. It is expected that global GDP will be before 2025. 10% of the total will be stored using blockchain technology.

Countries around the world have an insight into the enormous potential behind this technology, and multinational government investments have investigated the application of this technology. According to the Tencent Trusted Blockchain Program White Paper Report, there are currently nearly 100 blockchain startups and research institutions in China.

Don Tapscott is known as the father of the “digital economy.” In the global Thinkers 50 list released in November 2017, Don Tascott became a long-term research on technology influence. The second-ranked thinker in the world. The Chinese version of Harvard Business Review interviewed him at the "Global Drucker Forum" held in Vienna. He talked about the latest developments in blockchain applications and pointed out that this technology is a rare opportunity for mankind.

The biggest innovation since the invention of computer science

HBR Chinese version: Where is the revolutionary blockchain?

Don Tascott: First of all, I want to emphasize that blockchain and bitcoin are not the same thing. The blockchain is a distributed ledger, but what it represents is much more than that. I think it represents the second era of the Internet.

In the age of information Internet, if I send you a file via the Internet, I have sent a copy. For information, this is fine. But copying things that are really important to the economy, such as assets, including money, intellectual property, stocks, carbon credits, music, art, identity, energy, etc., is not a good idea. If I transfer you 1,000 yuan, make sure I lose 1,000 yuan in my hand, otherwise I can transfer money to many people. This is the problem that ciphers have long called double spend. When managing the economy, we do it through intermediaries such as banks, governments, credit card companies, and social media companies. They determine the identity of both parties to the transaction, leave a record, and complete the transaction.

In addition to the information Internet, we also have the value of the Internet, a vastly distributed distributed ledger: from money, stocks to identity information, music can be stored, and can complete peer-to-peer transactions - trust is not created by intermediaries Instead, it is done by encryption and is done by the fully functional code of the collaboration, which is the blockchain.

Instead of a strong intermediary, we complete the transaction through the original value medium. I think this is the biggest innovation since the invention of computer science.

The potential of the blockchain is also reflected in its ability to increase efficiency and reduce risk. Blockchains are distributed and are more resistant to hacker attacks than today's centralized computer systems. This is just the tip of the iceberg, and there are more opportunities to hide. Blockchain protects rights through unalterable records and creates a true shared economy.

HBR Chinese version: What applications are currently available in the blockchain?

Don Tascott: The most prominent application is for companies that are so subversive, such as Uber, Didi, Airbnb, and other companies that claim to share economic models. In fact, these companies are not truly shared. Is an aggregation service provider. The blockchain software is fully capable of completing the work of Airbnb. Let's assume that a company called b-airbnb is a blockchain distributed application that is shared by anyone who wants to rent a home. When someone wants to rent a house, use this software to filter the conditions, find the right room, use the blockchain to handle contracts, authentication, digital payments, etc., without any unicorn company as an intermediary platform to extract agency fees.

This technology can also be applied to the supply chain. All trade finance business can be completed through the blockchain, and its prospects are unlimited. In terms of value Internet, hundreds of applications are emerging.

HBR Chinese version: Which applications have been practiced?

Don Tascott: A remittance platform that does not require a bank as an intermediary already exists. This technology is also used in trade finance: cross-border delivery involves various players such as shipping companies, logistics companies, escrow agents, customs clearance companies. With this technology, everyone can see the books and share the status. This is very revolutionary.

Blockchain technology requires standards

HBR Chinese version: What aspects of the ecological environment of blockchain technology development are not mature enough?

Don Tascott: Like the first generation of the Internet, the blockchain is not managed by the government, but is managed by a bottom-up, self-organizing ecosystem. A lot of things still need to be improved, such as the need for better research, a better policy environment, and the need for standards – this is critical. For some blockchain applications, the standard-setting process is terrible, and Bitcoin is an example. The information Internet has clear standards at the time, such as the Internet Engineering Task Force, which is a body that sets standards for the Internet. There is also the World Wide Web Consortium setting standards for the World Wide Web As for the blockchain, it is still a barbaric stage and there are no standards. This is full of confusion, chaos and disaster.

HBR Chinese version: How do you evaluate Bitcoin?

Don Tascott: I don't care much about Bitcoin. The government should not care too much about it. I think Bitcoin will never be a competitor to any country's legal currency.

HBR Chinese version: How will blockchain technology affect business operations?

Don Tascott: The impact is very big. At the Blockchain Research Institute, we conducted 70 research projects on this issue. For example, for the company's chief financial officer, now everyone is common for double-entry accounting, but under blockchain technology, we can introduce a third project to cover a transaction. A timestamp receipt, which enables triple-entry accounting, enables real-time auditing of all accounts within the company so that the CFO does not need to audit at the end of the year.

There is also the Chief Legal Officer. Developed by a Canadian, the Ethereum blockchain enables smart contracts that can be self-executing and handle agreements between people on issues such as execution, management, performance, and payment. Many social activities are based on contractual conclusions, formal and informal, and these contracts have a significant impact on becoming smart contracts. Think about what this means for lawyers? The company's marketing department and legal department will be affected by this.

There are also chief operating officers who typically manage the supply chain and the supply chain becomes a revolutionary change after becoming a blockchain. Therefore, all managers should keep an eye on this technology.

HBR Chinese version: Blockchain is very disruptive, what should companies do to not use this technology to subvert it?

Don Tascott: This is a very important issue. If you resist it or ignore it, it can become a dangerous thing. But if you embrace it, it may become a powerful force for the company's development. Enterprises must begin to understand the technology, continually experiment, cultivate relevant talents, and encourage the government to formulate reasonable regulations. For example, when doing surgery, use a scalpel and do not use a saw. The current mainstream approach to blockchain applications is more inclined to use saws.

HBR Chinese version: Why do you care about this technology as an individual, how to use it?

Don Tascott: For example, my city, Toronto, has nearly 1 million Chinese people who will send money to relatives and friends in China. This is a huge market. Traditional remittance agencies charge them a higher fee, but you can now do it through the blockchain platform, which requires only 1% commission and 7 minutes. From this example we can see that peer-to-peer asset flows can revolutionize these families.

If you are a musician and don't get a reasonable reward, you can use the blockchain technology platform. It also protects privacy. Once the block identity appears, you can put all the information into the block, including transaction information, educational information, medical information, social media, etc., all in your identity, controlled by you and monetized. You can decide how to use this data.

This technology will soon have a huge and far-reaching impact on our lives. The first generation of the Internet, the information Internet, brought us wealth, but it exacerbated social inequalities and led to a series of social problems. In the value Internet, we can pre-allocate wealth by democratizing the wealth creation process. This has changed the way wealth is created from the beginning, allowing more people to participate in the economy and get reasonable compensation.

HBR Chinese version: Have you considered the negative problem of this technology?

Don Tascott: There are indeed many negative issues, such as the government may use this technology to control the public; it may bring structural unemployment; criminals will use this technology for profit; and be careful, technology can learn independently It is also worrying that they may learn to do other things and eventually develop into a virus. Technology can't bring prosperity, and humans can. The blockchain gives us an opportunity to solve many difficult problems, depending on how humans use them.

HBR Chinese version: Now the technology development seems a bit out of control, how do you think about the future of technology?

Don Tascott: I believe that the future cannot be predicted, but by human practice. We must be very careful about the boundaries of technology, try to make it good, and create a better world for the next generation.

HBR Chinese version: When it comes to the next generation, what should we teach them to make them better fit for the future?

Don Tascott: You don't have to teach them technology, they will teach you. For them, technology is like air. I pay more attention to educating children to learn integrity and self-discipline, forever curiosity, to have good interpersonal relationships based on trust, to have friends, family and social capital. I always say that I don't care what you do and how much money you make. I hope that you have the principle to do things that change the world.

Niu Wenjing / Wen

This article first appeared on the WeChat public account: Harvard Business Review. The content of the article belongs to the author's personal opinion and does not represent the position of Hexun.com. Investors should act accordingly, at their own risk.

(Editor: Cui Zhiming HF118)

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