Despite the raising awareness of bitcoin as a digital currency or even as an alternative investment, the concept of blockchain technology is still unfamiliar by general public. Star Xu, the founder of OkCoin, Songxiu Hua, the president at Bitbank, and Zaiyong Yang, the founder of Beam Capital gathered at TechCrunch Beijing 2016 and led in-depth discussion on blockchain technology and something even more advanced and futuristic; smart contracts.

The point is ‘decentralization’
“World has evolved in a way that promotes decentralization and automization. Smart contract is a piece of software that stores rules of negotiating the terms of a contract, automatically verifies and executes the terms” said, Star Xu, Founder & CEO at Okcoin at TechCrunch Beijing this Tuesday. This seemingly complicated concept is basically enabled by the blockchain technology which is a decentralized shared database system where each transaction processor on the system maintains their own local copy of this database and the consensus formation algorithm enable every copy to stay in sync. Coupled with blockchain, smart contracts removes the reliance on traditional central systems such as banks and allows the direct transaction between or among parties which saves the intermediary cost and raises efficiency.

Invention of Etheraum was the real innovation
President at Bitbank, Songxiu Hua says that although blockchain technology still has much room for improvement, there certianly had been some innovative steps, one of which was the invention of Etheraum. Etherum is often coined as ‘upgraded version’ of bitcoin. Buterin, the inventor of Etherum realized that even the really smart people were having trouble creating generalized applications to the bitcoin protocol. So, he took a step back and said instead of trying to add some features to bitcoin protocol, it makes more sense to build a computationally complete virtual machine and install it in every node of every network. “Thanks to the release of Etherum, applications that facilitates the exchange of digital currency had been more rapidly developed than before,” Hua emphasized.

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mjkim

MJ explores the startup community across a variety of industries. MJ is particularly interested in O2O and Big Data. MJ is based in Shanghai.