Opportunities brought by the “Data Security Law” to the development of blockchain
On the afternoon of June 23, 2021, a seminar on “Opportunities Brought by the Data Security Law for Blockchain Development” jointly organized by Shenzhen Information Service Industry Blockchain Association, BSN Development Alliance, and Zhongguancun Big Data Industry Alliance Convened smoothly. Zheng Xiangqian, Chairman of Shenzhen Information Service Industry Blockchain Association, Tan Min, Secretary-General of BSN Development Alliance, Cai Hengjin, Professor of School of Computer Science of Wuhan University, and Yan Yang, Deputy Secretary-General of Zhongguancun Big Data Industry Alliance attended the online roundtable. The roundtable meeting was hosted by Long Xi, CEO of Shenzhen Feihua Interactive Network Technology Co., Ltd., and the guests had in-depth exchanges and discussions on the significance of the promulgation of the “Data Security Law” and the opportunities for the development of blockchain technology.
The following is the round table record
Host Long Xi:
On June 10, 2021, my country’s first law on data security, the “Data Security Law of the People’s Republic of China”, was announced and will be implemented on September 1 this year. With the rapid development of the digital economy, the world has entered an era of data explosion, and social data has played an increasingly important role in social development and people’s lives. How to promote high-quality economic development in the era of data economy, the key is to release the value of data elements. However, the continuous outbreak of data security incidents has aroused strong attention from the world, and data security has become a major obstacle to the development of the digital economy. In terms of data, any minor mishandling will affect the whole body. Therefore, it is not an exaggeration to say that the degree of attention of this law is the top stream in the bills in recent years. Then, we will ask our experts to interpret the significance of this “Data Security Law” and what opportunities it will bring to the development of blockchain. The next question will be interpreted by our 4 experts. What is the significance of the successful promulgation of the “Data Security Law” for the sound data element market proposed in the “14th Five-Year Plan” outline? First, I invite Secretary-General Tan.
Tan Min: The promulgation of the “Data Security Law” is an inevitable development of the times. With the convergence and integration of information technology and human life, various types of data have grown rapidly and gathered massively, which has had a huge impact on economic development and people’s lives. At this stage of the development of productivity, there will be production relations that match it. Only with the support and protection of laws and regulations can the future digital economy develop in an orderly manner. The formulation of the “Data Security Law” is an inevitable requirement to protect national security. Data is a basic national strategic resource. Without data security, there would be no national security. The Data Security Law implements the overall national security concept, focuses on potential risks in the field of data security, strengthens the overall coordination of national data security work, and establishes basic data classification and hierarchical management, data security review, data security risk assessment, monitoring and early warning, and emergency response. system. Through the establishment and improvement of various systems and measures, the national data security protection capability is improved, effectively responding to national security risks and challenges in the non-traditional field of data, and effectively safeguarding national sovereignty, security, and development interests. The formulation of the “Data Security Law” is an objective need to safeguard the legitimate interests of the people. The digital economy has brought a lot of convenience to our lives, but at the same time, it has also brought us many hidden dangers. The phenomenon of data infringement on the interests of the people is becoming more and more prominent. When it comes to the need for laws and regulations to protect the interests of the people, Therefore, let laws and regulations ensure that the people have more sense of gain and security in the development of the digital economy. The formulation of the “Data Security Law” is an important guarantee for promoting the healthy development of the digital economy. The core of the development of the digital economy is the orderly flow of data elements, and the essence of the digital economy is related to data. If we want to develop a digital economy, how will data flow? Who owns the data? These need to be defined by laws and regulations.
Host Long Xi:
Thank you, Secretary-General Tan. Secretary-General Tan mentioned that the “Data Security Law” is the basic law of the national strategy. He also mentioned the maintenance of national security and the healthy development of people’s interests. Regarding the above points, please let us, Professor Cai, give us an extended interpretation.
Cai Hengjin: As President Xi said, we are now facing a development opportunity that has not been seen in a century. Because of the rapid progress of AI, future development will be faster than we expected. We are now in a transitional period of accelerated migration from the physical world to the digital world. Data security, data ownership, and usage rights are very important. First of all, let’s talk about the progress of AI. Maybe many people don’t know the speed of its development very well. Even though many people in the industry, judge that it will take a long time for AI to enter each of us’s lives, but the actual situation is This is not the case. The computing power we see now is rapidly advancing the evolution of the system, and the rate of this evolution can be as fast as doubling every three to four months, which means that it doubles ten times a year. Everyone can do the math. This is a tenfold increase in one year, a hundredfold in two years, and a thousand times in three years. This rate is very alarming. Although we had a molar ratio in the past, it only doubled in one and a half years, but we are now ten times in one year. Now our best and most advanced system, such as the recently enlightened China’s enlightenment system, now has 1.75 trillion parameters. The analogy of parameters of this order of magnitude to our brains is also very complicated. We have about 100 billion neurons, and each neuron may be connected to another 1,000 or 10,000 neurons. Therefore, the total amount of parameters of the human brain is much larger than that of existing computer systems. However, according to the current development speed, in three or four years, the total parameter amount of the silicon-based system can exceed the total parameter amount that our human brain can process, which is quite fast. Therefore, as Secretary Tan just mentioned, there will be more and more data. Massive amounts of data are constantly being generated. How to confirm the rights of this data and how to use it is closely related to each of us, and it also involves national security. Therefore, the promulgation of the “Data Security Law” is a good guide for how we innovate in the upcoming AI big data era and how to adapt to such rapid changes.
Moderator Long Xi: Thank you, Professor Cai. Professor Cai mentioned that in the process of transforming to the digital world, the amount of this data is very large, so in terms of data confirmation and utilization, AI can be of great help. Thanks to Professor Cai for his interpretation, let’s take a look at the views of Secretary-General Yan.
Yan Yang: I will talk about my understanding from the perspective of a big data practitioner. On the one hand, borrowing from Su Shi’s poem, “Looking at it as a ridge and a peak on the side”, both internal and external driving forces are needed to prompt a law to be promulgated in a timely manner. On March 23, 2018, the United States promulgated the “Clarification of Extraterritorial Legal Use of Data Act”, and the European Union also promulgated GDPR in 2018. Almost 100 countries have promulgated laws and regulations for data. This is an external driving factor. . There are many internal driving factors. First, in 2015, the state promulgated the “Program of Action to Promote the Development of Big Data”; second, the requirements of the “14th Five-Year Plan”. Regardless of internal or external causes, there is an urgent need for data security laws to be promulgated, and the timely promulgation of the “Data Security Law” this time is also in line with the development needs of this era. On the other hand, after studying the Data Security Law from beginning to end, we found that this law is very systematic and comprehensive. Take the data definition as an example. It completely separates the network security information we mentioned before, thus ensuring the comprehensive coverage of the data. In addition, the system and comprehensiveness are also reflected in the macro-level and detailed rules in the specific implementation process. For example, it is detailed to protect vulnerable groups, including the elderly and the disabled. Therefore, the Data Security Law is a bill that takes care of everything from point to point. In addition, the bill fully takes into account the operability of the entire data element in the implementation process. In the revision process this time, grading and classification were also proposed, which made the entire bill maneuverable during the implementation of the data elements and laid a solid foundation for the successful implementation of the “14th Five-Year Plan”.
Moderator Long Xi: Thank you very much, Secretary-General Yan. Secretary-General Yan quoted a poem by Su Shi to give us a systematic understanding of the development of the big data era. In terms of timeliness, systematicity, completeness, and operability, we have made a systematic summary of the “Data Security Law” regulations. Next, I invite Chairman Zheng to speak.
Zheng Xiangqiu: Data is indeed very important, especially in our digital transformation period. The foundation of the entire digital world is data, and even our personal manifestations in this digital world in the future are a bunch of data. Data is really important. Judging from the situation that the Shenzhen Chain Association has been in contact with during this period, the society did not know much about data before, and the understanding of its value was not very good. But since the second half of last year, this understanding has been greatly improved. Everyone recognizes the importance of data, especially after the two sessions this year emphasized digital transformation. Within a short period of time, many people feel that many people attach great importance to data protection and the value of data. Although you don’t know how to use the data or what it’s useful for, you know that this thing is very useful. This is the basic situation we understand. The Data Security Law serves as an entry point from the perspective of data security and makes some basic and principled regulations on data processing. The data security law is the highest level of a special law in the field of data security. It is based on an overall national security concept. Professor Cai mentioned this point just now, bringing the sovereignty of data into the category of national sovereignty. The Cyber Security Law was promulgated in 2017. Together with the Cyber Security Law, the Data Security Law completes the legal system of security governance under the overall framework of the National Security Law. The data security law coordinates the development and security of data. We are emphasizing digital transformation, including how to build a digital framework, and the digital economy, digital government, and digital society mentioned by Secretary-General Tan just now provide legal guarantees. The data security law is of great significance to the entire digital transformation.
Host Long Xi:
Thank you very much for Chairman Zheng’s interpretation. From the digital economy to the digital government, the data security law provides a solid foundation for our development and data security. Then we move on to the next question and invite our Secretary-General Tan and Professor Cai to answer together. The distributed network of the blockchain has a natural advantage in data security. Where is it reflected?
Tan Min: If the promulgation of the “Data Security Law” has brought a new spring to the development of the digital economy and the data industry, and provided legal protection, then blockchain technology will sweep the development of the digital economy and promote the construction of smart cities. Clear obstacles and provide a technical guarantee. Blockchain can promote the flow of data and is an ideal solution for promoting the high-quality development of the digital economy. The popularity of the term blockchain is attributed to an unidentified Bitcoin inventor, but after careful research, the name blockchain is actually not very accurate. The core of blockchain technology is the underlying data transmission logic, not a Data storage logic. The birth of the Internet was the first to realize the second-level transmission of data between two computers. The formation of the Internet was that computers kept joining and stringing together and local area networks kept stringing together, gradually forming a global Internet system, which caused the problem of data. The transmission is the linear transmission. Business logic nowadays is becoming more and more complex. It is so complex that any IT system will interact with multiple IT systems. The current transmission of this interaction is in a linear manner, from one system to another, or From one system to the other two systems and then down, the synchronization of this transmission process is very poor. The core of the blockchain is to change the linear transmission of data to broadcast transmission. When many IT systems are transmitting data, one person receives it, and everyone knows it. If someone modifies the information, everyone can know it. Virtual currency is one of the simplest applications generated by the data transmission logic of blockchain technology, which is similar to e-mail in the Internet era. Our BSN Development Alliance research believes that the transmission logic of the entire Internet will be changed to broadcast transmission logic in the next 20 years. The business form supported by this broadcast transmission logic, data security, privacy, and certainty, and timeliness of data transmission Sexuality cannot be achieved by linear transmission. Blockchain technology is indeed a very great technology. We believe that the Internet will be reconstructed in the next 20 years, and even the communication method of the HTTP protocol will be changed.
Host Long Xi:
Thank you, Secretary-General Tan, for explaining the technology of blockchain for use in a simple and profound way. It also extends from the legal protection of the “Data Security Law” to the technical protection of data. Next, I invite Professor Cai to add to this.
Cai Hengjin: Except for blockchain technology, only from the perspective of AI’s rapid progress can we truly understand it and know its importance. The current Internet is actually very loose, and we don’t have an inherent time on the Internet. After the emergence of blockchain technology, we actually have an inherent time, which means that we have a reliable tool to judge the order of development of things. This allows the entire digital world or the Internet world to have a precise time and endogenous space, which is one of the future development directions. But I think it is very important that the blockchain system or the entire Internet system, the digital world will become an organic whole like a human body. Our human body has various organs, which have their own functions and coordinate with each other. Therefore, a healthy person will be very comfortable in dealing with various situations, including all kinds of unexpected and extreme situations. Then, the future blockchain system or super-intelligent system will also achieve a flexible state. The Token of the blockchain system is like various hormones such as dopamine in our human body. Due to excessive hype, the coordination mechanism of the Token fails. If there are legal regulations, the blockchain system can become an organic whole, a system that does not fight each other on its own. This system has consistency and a sound state of consciousness. So its importance is reflected here. On the one hand, we have to migrate this offline, material world data to the digital world; on the other hand, our digital world will also develop its own unique consciousness. Therefore, the scope of industry competition and innovation is very wide. We are facing a very challenging and promising digital age. Therefore, the promulgation and implementation of our “Data Security Law” is very timely and necessary.
Moderator Long Xi: AI combined with blockchain technology will bring better development to our data economy era and better promote the development of our data element market. So next, please ask Chairman Zheng and Secretary-General Yan to answer for us. The Data Security Law further regulates the rules for the use of data and strengthens the protection of national and social people’s property. What does this propose for the standardized development of the blockchain industry? Require? Zheng Xiangqiang: Let’s first look at whether the blockchain industry belongs to the scope of the adjustment of the data security law? The Data Security Law has a very clear definition of data. Data refers to the recording of information electronically or in other ways. According to this definition, some of our blockchain-based digital assets are undoubtedly belonged to the category of data and belong to the scope of the adjustment of the data security law. Then the implementation of the data security law is of great significance to the development of the blockchain industry. The data security law also stipulates that, including just now Secretary-General Yan mentioned at the beginning of the data security law that there is a classification and grading protection system for data in the data security law. In addition to the general protection principle, this data will be classified and classified. Digital assets based on blockchain technology, Professor Cai also mentioned just now that they have a certain exchange value. Now in our country, we characterize blockchain digital assets as a virtual business. According to the data security law, it belongs to the category of data, and it is a category of data with relatively high exchange value, which is suitable for the important data protection category in the data security law. The Data Security Law has opened up a chapter to stipulate data protection obligations, and there are some more stringent regulations on important data, including the need to improve the security management system of the process and organize and carry out data security education and training, including regular risks. Evaluation etc. The blockchain information service management regulations also have information on blockchain operations. During the operation process, the information of traders should be recorded and files should be kept. These should all apply to the transaction behavior of blockchain digital assets. I will talk about it. so much.
Moderator Long Xi: Thank you, Chairman Zheng. Chairman Zheng gave us a brief description of the definition of data, and all the recorded information is data. On the other hand, it also gave us detailed explanations from service, technology, standards, and education. Next, I hope that Secretary-General Yan can give us a further interpretation.
Yan Yang: This time the Data Security Law also particularly emphasizes that data security and development are simultaneously carried out. Because after the entire data is incorporated into the factor market, it takes us from the farming era and the industrial era to the Internet era. The fundamental difference between this data element and the past is that in the process of advancing the data in the past few years, the ownership of the data has been transferred out during the process of data circulation. In fact, this time the “Data Security Law” has clearly stated that the relevant ownership requires us to separate. According to my understanding, these ownership rights include at least six aspects of ownership, namely, ownership, use rights, operation rights, income rights, management rights, and transaction rights. These aspects must be able to be separated. For this kind of ownership confirmation, the blockchain can provide a better foundation. We have summed up the four characteristics of the blockchain before, which can be seen, credible and executable, plus an incentive mechanism. Because if we want to incorporate data into a configuration of the national economy, it must promote the development of the national economy so that everyone is willing to share the data. When the data is shared, the blockchain can provide a better incentive mechanism. We can refer to this mechanism. Professor Cai mentioned earlier that the legal and compliant integration of the Token business model into our industry enables the entire data circulation to be self-certified, and it can also be mutually certified, and it can be highly efficient. Synergy, this is the effect that the Data Security Law “Data Security Law” still needs to achieve. From the traditional business path, the production and circulation of data all the way to the transaction link needs to form a closed loop. This aspect is more from the perspective of industrial digitization. At present, we have developed digital 3.0. Digital 1.0 refers to the digital perspective of the industry. With the emergence of many new technologies, Internet applications can reach a high-end competitive situation. At this time, we call it Digital 2.0. As the data elements are incorporated into the factor market, it actually guarantees the digital transformation and has the opportunity to develop in the direction of higher-end digital 3.0. So from the perspective of the Data Security Law, we need to redefine the flow of data. According to the current definition, the traditional data flow passes through the two parties that emphasize supply and demand, but at least six types of ownership in the intermediate links are weakened. The actual situation is that these rights and interests cannot be circumvented. Therefore, in the process of specific industrial application, it has formed three modes, one is the application in the centralized system. In this mode, data security and controllability will be better, but everyone takes too much defensive technology for data security, making applications more a productized way. This is not impossible, but in fact, it creates a lot of obstacles to the complete integration of data. Therefore, in the entire application process, we have to use the “Data Security Law” to redefine an efficient and secure model of data circulation. And this further reflects the impact of the promulgation of the “Data Security Law” on the development of our industry, which is my understanding.
Moderator Long Xi: Thank you very much, Secretary-General Yan. From the perspective of data security law, Secretary-General Yan strengthened everyone’s understanding of ownership in the circulation mode. From various scenarios of centralization, productization, and integration to explain to us, I would like to thank Chairman Zheng and Secretary-General Yan for their interpretation. The promulgation of the “Data Security Law” in fact not only means that the supervision of the data field has become more stringent. In addition to the form of a cage, the case has also accelerated the birth of new outlets. More cutting-edge technologies have also been put into use in the data field. What opportunities does it bring to the development of the blockchain industry? Professor Cai will interpret this.
Cai Hengjin: As Secretary-General Yan mentioned just now, including the separation of ownership and use rights mentioned by several guests, this one is actually very challenging. At present, in our technical field, I think that the best solution has not been found yet. Although there are technical methods such as zero-knowledge proof, multi-party secure computing, federated computing, federated learning, etc., there are actually potential problems. For example, a zero-knowledge proof will lead to a substantial increase in the number of calculations, and we have not yet found a scenario that is truly suitable for applications. The “Data Security Law” has already mentioned the classification of data, which is actually a very important point. We can make a lot of innovations using this. Because data has a characteristic, unlike our material world, there is only one thing. There is no inherent time in the digital world, and a file can be copied without damage, but the main problem at present is that the rights cannot be confirmed. For example, my data, once I give it to a person or an organization, can be copied endlessly, and I can’t control who uses it. Although the separation of use rights and ownership can solve this problem, there is actually no good technical solution. Of course, in the future, there is also the possibility of thorough institutional or technological innovation. We are also applying for biological data protection and other topics recently. In practice, we will also encounter issues such as data protection classification, sharing, and how to transfer. At present, we are also working hard in this area, trying to propose a new set of mechanisms. It may be a solution outside of our multi-party calculations, zero-knowledge proofs, and federated calculations. These technical solutions all need the recognition of national laws, so the promulgation of the “Data Security Law” is a great opportunity for development. Although the promulgation of the law seems to restrict some aspects, from another perspective, we can also make more innovations to achieve leap-forward development under the premise of legal compliance. Migrating from the physical world to the digital world, there are too many innovative opportunities in this process, and they are world-class or even more advanced innovation opportunities.
Moderator Long Xi: Thank you, Professor Cai. We especially look forward to the emergence of new research results in addition to some general technologies in data security such as privacy computing and multi-party computing, and we look forward to your sharing again. In the following words, we will ask our Secretary-General Yan to continue to interpret for us.
Yan Yang: In contrast to the EU’s GDPR, we have seen that the boundary of data has extended from the physical space to the technological boundary. In other words, the promulgation of the GDPR shows that the EU has adopted a site-based approach to data jurisdiction, so technology plays a very important role in the implementation of data elements. Over the years, we have summarized data-driven applications into 8 categories of technologies. Among them, big data, cloud computing, API, AI, etc., we regard it as a standard configuration. In the process of promoting data elements, we feel that the combination of blockchain, private computing, distributed storage, 5G, quantum computing, and brain-like technology is even more important. Earlier we mentioned that blockchain plays a very important role in the confirmation of the digital economy, but how to use technology and combine these technologies is also a problem we have to discuss over the years. For example, the landing of data elements requires the combination of the six ownership relationships, and sometimes they have to be broken up, which poses a big challenge to the technical architecture. Professor Cai also mentioned just now that our country has achieved good results in the field of the digital economy in recent years. Although many of the technologies are imported, some innovative applications of technology have been realized in combination with the actual situation in China, such as privacy computing. Due to the complexity of this ownership relationship, how to protect the privacy of data subjects in the process of data application has always been an issue of great concern to everyone. After the “Data Security Law” is promulgated, only three elements need to be grasped-one is in terms of ownership, that is, sovereignty is in the country; the second is that people are responsible for the right to operate, and the third is that the right to use is called the subject place name- -It can simplify the processing process so that advancement can be beneficial to the development of our industry. So we put forward the Best Architecture in the process of industrial advancement. The Baisi architecture actually extends from the technical level, with privacy computing plus blockchain and GDRP, which we call protection of litigation rights. This is completely different from the past network technology and information security. For example, distributed storage itself is also an important part of the blockchain system, including the privacy calculations are done now, to solve the counterparty’s problem, that is, to prevent data from being acquired by the counterparty. But it cannot solve our security problem. If you still use the method of restricting the gatekeeper to solve the problem, then it is only an administrative control scope, and more technical support is needed for the technical control. If we use distributed storage, it is different from the previous method, which is equivalent to lightning at the level of storage to the medium. As for putting its keys together for lightning or decentralized lightning, the application in the middle of the process is different. of. Therefore, it is necessary to fully consider efficiency and safety as one. In the application process, it is necessary to evaluate and determine the standards according to actual application scenarios, and also consider what technology is used in the data operation process, whether it is cross-domain, including the future cross-border, as well as the maturity of the technology, commercial value, and expansion space And so on. The Data Security Law also specifically mentions data transactions. This is still difficult to achieve in the entire data circulation link. Taking the blockchain as an example, the use of data assets as transactions must at least be promoted in a dual-chain manner, that is, using blockchain and supply chains, because any technology that is not driven by a business model is inefficient. In summary, technology still has a long way to go to promote the implementation of the “Data Security Law”.
Moderator Long Xi: Thank you very much for the interpretation of Secretary-General Yan and Professor Cai. From the big data security protection, we can see many common technologies. Next, we will choose different architectures according to different scenarios and different situations. A few days ago, Shenzhen issued the “Draft for Soliciting Opinions on the Data Regulations of Shenzhen Special Economic Zone.” For this reason, the Shenzhen Information Service Industry Blockchain Association also established the Shenzhen Data Element Industrialization Committee to cultivate the data element market in the Guangdong-Hong Kong-Macao Greater Bay Area. What are the advantages? And how is the current progress? We ask Chairman Zheng to interpret it for us.
Zheng Xiangqiang: A large number of technology companies have gathered in the Guangdong-Hong Kong-Macao Greater Bay Area. Take Shenzhen as an example. Shenzhen itself is an important town of electronic information. For so many years, its electronic information industry has remained above 1/6 in the country. The foundation of Shenzhen’s ICT industry is relatively good, and several leading companies are also here. With the continuous development of a new generation of information technology, the amount of data will become larger and larger, and there will be more and more data sources. I remember that BSN has been incorporated into the 14th Five-Year Plan outlines of several provinces. It didn’t seem to be used very much in Shenzhen, but it has increased rapidly recently. Thanks to Secretary-General Tan, these technologies are applied. Promotion will increase our data volume. Secretary-General Yan also mentioned this issue just now, especially in some areas where the new generation of information technology is relatively developed, such as Shenzhen, so that it will enable the Guangdong-Hong Kong-Macao Greater Bay Area because of the amount of data and the development of the new generation of information technology. It has the natural advantages of data transactions, which is one of the points, which is determined by its industrial foundation. The second is that in October last year, the central government issued a pilot plan for the comprehensive reform of Shenzhen’s construction of a pioneering demonstration zone of socialism with Chinese characteristics. In terms of cultivating the market of data elements, we will be the vanguard. The reform plan is very specific. The first is to require Shenzhen to confirm data rights in the data industry, and to take the lead in improving the data property rights of the data property rights. The second is to require Shenzhen to take the lead in opening up and sharing government affairs data. The data platform of Hong Kong, Macau, and the Greater Bay Area is the main reason for Shenzhen to quickly promote the promulgation of data regulations. In addition to these big plans, the plan also specifically requires Shenzhen to explore data statistics and accounting, including transactions, and so on. This is a very important mission for Shenzhen, but of course, it will also be a very difficult task. In July last year, the Shenzhen Municipal Bureau of Justice accelerated the legislation to promote the Shenzhen Special Economic Zone Data Regulations. On July 15 last year, it began to solicit opinions from society. On the next day, on July 16, we established the association’s data element industrialization. Special Committee. Immediately after the establishment of the special committee, a series of investigations and discussions were carried out. At that time, Secretary-General Tan, Professor Cai, Secretary-General Yuan, and others gave a lot of good opinions and wrote many reports to the legislative group. Most of these opinions except The regulatory sandbox have some reservations, but others have adopted it. Shenzhen has the legislative power of the special zone, which is a great advantage for Shenzhen. In addition to its good industrial foundation, the central government has given such an implementer to ask Shenzhen to explore the market for cultivating data elements, and Shenzhen itself has the legislative power of the special zone. It is Shenzhen’s advantage in developing data elements, mining data value, and cultivating the data elements market. We believe that the promulgation of the regulations will definitely greatly help the cultivation of the data element market in the Guangdong-Hong Kong-Macao Greater Bay Area and stimulate new momentum for data elements. For our association, the most direct gain is to connect as much as possible the resources used by industry, academia, and research in the field of data elements. Many excellent data companies have gathered in the association, including the extraordinary number intelligence of our company Long. The Extraordinary Digital Intelligence has done very well in data analysis and data application.
Host Long Xi:
Thank you, Chairman Zheng. Shenzhen’s advantage is to serve as a pilot demonstration area for the national strategy of data elements. Shenzhen has grasped the policy dividend of developing the data element market and shouldered the important task of building a data platform in the Guangdong-Hong Kong-Macao Greater Bay Area. At the same time, it must also promote cross-border data transactions and improve the national data integration mechanism. Next, we ask Secretary-General Tan to interpret that, in the context of the normalization of epidemic prevention and control, China has accelerated the development of new business models and new models such as cross-border e-commerce in countries along the “Belt and Road” by using digital new infrastructure including blockchain. As the laws of different countries are different, many challenges will be encountered in the process of advancement. What kind of help will the promulgation of the “Data Security Law” bring?
Tan Min: The digital economy era has given China many development opportunities. At present, my country’s 5G technology is leading the world, and blockchain technology is also on the same starting line as the world. Why do we want to build a global infrastructure like BSN? After studying and judging the global situation, it was discovered that a large number of foreign funds and talents are investing in virtual currency research, and our country’s strict control of virtual currency gives us a good time to sink our hearts and study technology. Blockchain technology is an upgrade of Internet data transmission technology, which can make up for the lack of security and credibility of Internet technology and can better support the development of the digital economy. However, the global blockchain does not have a low-cost interconnected public infrastructure like the Internet, so we in China have come to lead the initiative and call on global blockchain companies to jointly build the blockchain infrastructure BSN. BSN is not a chain, but a cross-cloud service, cross-door the global public infrastructure network used to deploy and run blockchain applications is used to deploy and run blockchain applications. The purpose is to greatly reduce the development, deployment, operation and maintenance, interoperability, and supervision costs of blockchain applications. In the future, BSN will gradually abstract a set of global protocols similar to the HTTP protocol. BSN is a global public infrastructure of “one network, two systems”. Due to differences in political systems and geopolitics, it is extremely difficult for Chinese technology to go global because it is not easy to convince the other party. For example, Goldman Sachs and BSN cooperated, the technical level and business level were passed, and finally, the highest level was rejected when the meeting was held. Why? Because two days before their meeting, the United States opened a hearing on the China issue, which mentioned BSN. An expert told the Biden administration to pay attention to the development momentum of China’s BSN, saying that BSN has been deployed globally and that China wants to Dominate the global blockchain industry, etc.; the second is the Wall Street Journal, which published an article about BSN. After seeing this, Goldman Sachs officials expressed their need to be cautious and rejected the cooperation plan. Although there are many difficulties for BSN to go out, Chinese technology must go out, especially since China is already the world’s second-largest economic system, and we also need new technological infrastructure led by China. The core purpose of BSN is actually two points: First, adhere to the concept of openness and tolerance to solve the problem of interconnection, from simple to complex, and adapt the global broadcast transmission technology, distributed storage technology, and privacy computing technology. , In the adaptation process, on the one hand, we are understanding other people’s technology, but also doing some standardized work, such as unified gateway, unified certificate, unified API interface, unified IP address, unified key algorithm, etc. Second, simplifying the complexity and summarizing a set of universal agreements to reduce industry costs. It is not easy to conclude this set of protocols. Just like the HTTP protocol that everyone uses now, the protocol knows no borders. I hereby call on everyone to build it together. In the post-epidemic era, how can our digital economy go out of the “Belt and Road” initiative? BSN’s China network was officially launched on April 25, 2020, and BSN International was officially launched on August 10, during the period after the launch, BSN has achieved a huge international influence. You can watch it online. To a large number of overseas media reports on BSN. The Wall Street Journal made an in-depth report. The Foreign Relations Association, the highest think tank in the United States of international relations, specifically mentioned BSN in a special report on the “Belt and Road”; on April 15th, the US Congress also had a hearing on Sino-US relations. The BSN was discussed. Although it has been less than a year, BSN has exerted a very large influence overseas. It can be said that our independent research and development technology system is now out of China, and it has received many international peers, overseas media, and overseas think tanks. widely accepted. It has strengthened our confidence and determination to continue to make BSN well, bigger and stronger. The global layout of BSN infrastructure, including in-depth cooperation with Saudi Arabia, Singapore, Thailand, and Europe. At present, BSN is also supporting the Shenzhen government and the Singapore government to explore the cross-domain flow of data elements, and supporting the Chongqing government to establish a China-Singapore data channel with the Singapore government. It is not difficult to achieve technically. The difficulty is the lack of international rules and support for the orderly flow of data elements. legal protection. This time the “Data Security Law” was promulgated in a very timely manner. Its clauses involve international exchanges and cooperation in the data field. It also clearly states that China will participate in the formulation of international rules and standards related to data security to promote the safe and free flow of data across borders. I believe that the “Data The promulgation of the Security Law will gradually remove legal obstacles to the cross-border flow of data elements. Facing major changes unseen in a century, the “Data Security Law” was promulgated in a timely manner. China has the opportunity to participate in global rule-making in the digital economy era, and it can also develop a blockchain infrastructure led by China.
Host Long Xi:
Just mentioned that blockchain is a new type of infrastructure, and data is an important factor of production. The two are closely related. To promote the circulation of data, cross-border circulation requires a data architecture and system that everyone agrees to better mine the value of data elements. Today’s meeting has come to a successful conclusion. I would like to thank all the guests and experts for giving us a deeper understanding of the meaning of the “Data Security Law” and helping everyone to better understand the “Data Security Law” as a blockchain. What new opportunities does it bring? Today, I would also like to thank the organizers of our event, Shenzhen Information Service Industry Blockchain Association, BSN Development Alliance, Zhongguancun Big Data Industry Alliance, and event media-Daoji Technology Media and Mars Finance for their support. Thank you for your attention.
