Shuqin Technology : Further Cooperation with Factom

Recently, the operation entity of Baoquan.com——Shuqin Technology Co.,Ltd.(hereinafter referred to as Shuqin) has signed a further strategic partnership agreement with Factom to promote the cross-border interation between both two sides. As early as in 2016, Baoquan.com and Factom have reached a strategic cooperation intention to jointly promote the development of Blockcchian underlying technology. And for this time,  both parties will have a deep learning and exploring in application layer of Baoquan.com and the bottom products of Factom, then to further form the co-operation with business interconnection and combination technique.

Factom also said that Shuqin is the customer who uploading the maximum amount of data on Factom chain except itself. Relying on the technical support of Factom, Shuqin has completed the key projects like China local stock exchange, big data, etc. And cooperated with Qianmai for the judicial identication, which means Blockchain electronic data attestation won the first approval of  justice on judicature layer. On the one hand, Factom will apply a more comprehensive identity management and on-chain data feedback service to perfect the underlying technology service. On the other hand,  Shuqin will also provide the business practice to support the upgrading of basic technology and the deploying of demestic alliance nodes.

Factom is an infrastructure service provider for recording, verifying and auditing based on Blockchain, and stores the world’s data on a decentralized system. Using blockchain technology for smart contracts, digital assets and database integrity. The core technology that enables company to interact smoothly with data, improve efficiency, and make better decisions. And Factom software can plug into the existing systems with proven technology that can be deployed quickly and adapt to any domain. The application of Factom has far exceeded the scope of recording and management, and is being ued in copyright, education, taxation, government services and some other fields.

As for a China local blockchain enterprise, Shuqin is devoting to solve the practical problem by blockchain technology with the core business on the financial service. Baoquan.com as the first product in electronic data attestation, applied the distributed and decentralized characteristics of blockchian technology to provide the one-stop service for enterprises and personal. Big data exchange centre as the core project, using blockchain technology to ensure the authenticity and safety of data sources, and achieve the transparency of chain-trading, then to realize the goal of real-time traceability for the data sources and trading information. Meanwhile, using blockchain technology as the underlying infrastructure, then building the value Internet operation ecology about “ 1 chain, 1 web, 1cloud, 4 platforms” to realize the synchronizing flow of online and offline information.

For this further cooperation,  Factom offers full technical supports, woking with Shuqin in the advanced blockchain technology and fast developing field to open up a new world.  Shuqin is actively promoting the landing of big data project, and the large amount of data will be recorded on Factom chain, which can provide the data support for global Blockchain developers, then further promote to build the intelligent on-chain data trading system with transparency and integrity.In future, Shuqin will keep cooperation with Factom in technical and commercial fields, to accelerate the innovation of blockchain technology, promote the upgrading of products, perfect the construction of platform, then working for a efficient and safe financial service platform, further to build and maintain a honesty digital world together.

Insurance + Blockchain Part 4

New breakthrough for Internet insurance with Blockchain

Blockchain distributed database has achieved cross-regional information and value exchange by full network consensus mechanism, blurring the geographical boundaries, from regional even to global, then strengthen the interaction relationship between different individuals and areas, especially to break the obstacles from information asymmetry in the development of insurance business. Meanwhile, “timestamp” in Blockchain owns the full transaction and transfer process recording, and the record can not be modified or tampered with. Thus expanding the scope of time, relative to shorten the time period, make the original insurance period into segmentation become possible, and develop a more flexible insurance products.

New situation for Internet insurance with Blockchain

Blockchain, especially for smart contract, the insurance contract can execute automatically, greatly improve the trading interaction of insurance. Meanwhile, with the wide application of big data technology, it has greatly enriched the data dimension and quantity, effectively dilute the quality of data, then realize the function of self-authentication. This combination about “self-execution + self-authentication” make “self-finance” become possible, and provide a “point-topoint” micro insurance solution for people. There is no need to rely on the insurance broker or intermediary, market participants can create their own risk pool system based on blockchain technology in a more direct and active way.

New changes for insurance regulatory with Blockchain

The market economy theory said a effective market should be able to realize “free market” and “effective supervision”. From the overall trend, supervision will realize the transformation from “system” to “technology”, and Blockchain provides the possibility for technical supervision. The interactive consensus trust system for multi-party verification can explore the establishment of  the self-supervision platform, the core idea is based on Blockchain, so that each client node can participate in examing and verifying any insurance business, realize the point-to-point management system with check and balance mechanism, to ensure that the system can not be cheated by any computer in it.

Through the whole network supervision, using the characteristics of immutability and traceability, it can ensure the reality and legitimacy of the insurance, strengthen the information asymmetry and transaction security, then effectively reduce the cost of supercision, improve the effectiveness of supervision. With the development of Blockchain, insurance supervision will achieve the three changes, from system supervision to technical supervision, from government supervision to self-industry supervision, from company compliance to social supervision. Anyway, the application of Blockchain in insurance will have extensive prospect in future.

Insurance + Blockchain Part 3：Principle analysis for Blockchain insurance

Blockchain is constructed by encryption ledger with point-to-point self-network, time order and immutability and distributed consensus mechanisms, so as to realize the whole network accounting and common notarization with the trust decentralization, based on computer algorithm not rely on the trust mechanism of the third parties, then to realize the point-to-point transmission of value.   Each node in the system can participate in the public network ledger, enter the historic Blockchain recording information by many times and recorded forever with immutability. The immutability and traceability of Blockchain make the data information on Blockchain with high safety and reliability, and build the authentication mechanism of “Internet trust”based on network consensus, then build a decentralized trust chain with immutability to ensure that the system is neutral and credible to any user, and create a highly secure transaction network environment for parties.

Blockchain is established on the Internet, any Internet port can access to Blockchain, any documents, physical or personal authentication or records can be recorded on Blockchain, then become the digital identity. Depend on the reliable and immutable database, Blockchain will completely change the ways for information registration and verification like identity register and asset register.The self-verification should not rely on the third party anymore. In the premise of permission, insurance company can verify and manage the whole information of personal identity, health records, asset information and so on. The reality and accuracy of data can be ensured, provide a network environment with reliable safety basement and transparent trusty environment for the Internet insurance business.

An important innovation of Blockchain is smart contract, realize the programmability of program contract by introducing the “script”. The code of contract will be automatically written into the code layer, and can not  be separated. Therefore, the contract should be definded by coding and fully automatic enforced, half-way interference is not allowed, and both contract parties can excute without trustness.

When the insurance events meet the condition trigger of insurance payment, the smart contract can execute automatically, start the insurance claims process, and realize the automatically payment. All of these should be effectively executed under the legal framework about “code is the law”, which greatly reduce the manual operation with high efficiency and immutability.

In addition, Blockchain combined with big data, which can realize the perfect conection between big data prediction analysis and automatic smart contract. As an effective quantify management tool, Blockchain transfer prediction to action, establish a set of automatic management system for “response-prediction-execution”.

Moreover, based on Blockchain, insurance customers can add the insured automatically, and establish the insurance management list for family type, then realize the deep combination of self insurance menu management with smart contract under the premise of privacy. In other way, it can help get through the whole chain of Internet insurance for execution and management, to provide a online trading platform for customers that based on network consensus and automatic execution mechanism, then gives birth to a mantual insurance organization with point-to-point based on information platform, promote mutual insurance into the 2.0 era.

Insurance + Blockchain Part 2：Development Chanllenge for Internet insurance

The essence of finance is for value circulation, and any value transfering, trading, storage and payment are all based on trust. The Internet protocol called TCP/IP, which can break the information silos, eliminate information asymmetry, realize information transfer, and get rid of information barriers of the traditional fianancial trading activities. Blockchain technology which is built on TCP/IP, combined encryption authentication technology with Internet distributed technology, then find a new solution based on algorithm, promote Internet transfer from “information” to “value”. Blockchain can effectively achieve the establishment of trust mechanism between the transaction parties, with high efficiency and low cost, and optimizing the matching efficiency by strengthening the supply and demand, which means the core technology of decentralized finance. With the matured and widely used, blockchain technology will take great changes for Internet insurance even to the entire insurance industry.

Development Chanllenge for Internet insurance

There exists many chanllenges in the development of insurance, trust and security are the main keys that need to be solved.

Trust

The online trading of Internet insurance can bring the economic and convenient compared to the traditional way, but “online trust”of binding and existence are relatively weak, especially under the current social system with incomplete credit system and network credit mechanism. How to establish“online trust”

 with the characteristics and advantages of Internet is the key to the sustainable development of Internet insurance.

Security

”Online insurance” can realize the combination of information flow, capital flow and value flow, identity information and capital account of users will be exposed on the Internet, facing the great information security risk, the traditional technology and management tool will often fall into a quandary, but the high cost can not effectively solve the safety problems, may also restrict the development of Internet insurance.

Blockchain in Internet of Things

Block chain technology will not only deeply affects and changes the financial industry, but also plays a revolutionary role in the field of Internet of things. It is a kind of technology that connected by sensor, controller and machine equipment through the network, realizing the aim of intelligent management and control for machine equipment through things connection. Internet technology connects all the computers around the world together, realizing the remote communication between people, promoting the great progress of human civilization.

As anonymous decentralized peer-to-peer remote sensing technology, Blockchain has become a public ledger for a large number of equipment, and they no longer need to have a centralized routing between them. Without the verification of central control system ,the equipment will be able to realize the anonymous transmission between each other, and manage software update, errors, or energy management.

Block chain technology can provide Internet way of point to point for data transmission, the entire Internet solution does not require the large data center for data synchronization control and management, including data acquisition, sends instructions and software update, all these operation can be transmitted through Blockchain network. The problems of block chain technology in Internet of things are mainly for the three aspects:

• Architecture for distributed point-to-point data transmission and storage;
• The data encryption protection and authentication mechanisms under the distributed environment；
• Fees settlement and payment in a convenient and reliable way.

Insurance + Blockchain

In recent years, the insurance industry has gradually come into 2.0 era, the essence of online insurance relies on the new financial technology like big data and Blockchain, which can promote the rapid development of insurance Internet +, realizing the processes of Fintech automatic insurance, risk pricing and claim settlement. Therefore, Blockchain will play a role in all aspects of insurance industry, reduce the loss of fraud, automatic process with low costs, then to create a new business mode.Pain points are as follows:

• Identity authentication: Insurance company need to access a large number of C-users, spent lot on KYC( know your customer).

Blockchain solution: Blockchain company can provide the identity authentication by the third party, and there is no need for each institute to the KYC, saving the cost.

• Data loss, the single node is easy to be controlled: Insurance company owns a large of customer data, including insurance policies, customer privacy data, etc., the safety of database is critical. If the database is destroyed, the consequences will be disastrous.

Blockchain solution: Blockchain is the distributed and shared ledger, which can avoid the loss of single node collapse. Even if a database is damaged, the other data on other nodes can recover it. And the consensus mechanism of Blockchain can ensure the reality of accounting.

• Data security: Insurance company can obtain a large number of sensitive customer information during the process of underwriting and claims, such as identity, medical health, etc.

Blockchain solution:During the claim process, all the data will be extracted from the alliance chain of insurance company and hospital so that the sensitive information no longer need to be submitted to the insurance company, but only to be verified on Blockchain when needed. Meanwhile, Blockchain using symmetric encryption and authorized system, even the transaction on Blockchain is open, but only the authorized person can access to the data.

• High operation costs: The traditional insurance industry is driven by a series of manual operation: from the quote to apply, underwrite to compliance audit, and issue to loss message, each link needs the participation of person, leading to the high cost.

Blockchain solution: Smart contract: No need to apply for insurance claims, and without the settlement approcal of insurance companies, as long as the trigger claims condition, the automatic claims can pay the amount of claims. Of course, it can save the claim costs.

• Huge loss for fraud insurance

Blockchain solution: By the establishment of alliance chain on cross industry and cross regional, such as the Blockchain cooperation of hospital, traffice management departments and security departments, improve the verification efficiency of insurance cheating.

After solving the above traditional problems, Blockchain also brings new possibilities for the development of the insurance industry.

The above process shows the operating of Blockchain system. For the one thing, the data on the Blockchain are open and transparent, can not be forged, that is to say, each payment flow will be recorded on Blockchain and the investors can have a clear understanding of their premium flows, each user can monitor clearly.  For another, all funds transformation will be executed by the smart contract, without man-made movement. And everyone’s sensitive information is encrypted, others cannot get through.

Hyperledger meetup in Zhejiang University

Hyperledger Meetup was held in Zhejiang University in Hanghzou in March 13^th by Hyperledger( the world’s largest Blockchain alliance). At the appointed time, Brian Behlendorf (the founder of Apache & the executive director of Hyperledger ) attended the conference, and showed the lastest technology and application achievements of Blockchain together with the Hyperledger members (Dr. Li Wei: CEO of Hyperchain, Dr. Huang Butian: CEO of Yunphant, Mr. Zhang Yifeng: President of ZhongChao Smart Card Research Institute, Mr. Wu Sijin: Founder of Fuzamei-33.cn, Mr. Yu Xuemai: Co-founder of Shuqin Tech-Baoquan.com)in Hangzhou. 

Before the meetup, Wang Lei(Member of Hangzhou Blockchain preparatory group) revealed that the global Blockchain summit will be held in Hangzhou at the end of April this year, with the opening ceremony of Hangzhou Blockchain Association of application and technology.

Yu Xuemai shared Blockchain application in insurance with the stored and proved digital electronic data which can be accessed to judicial expertise. And Blockchain can store the reality and integrity in the digital world. The new project about trusty network ecology will be in the near future landing by Baoquan.com.

The executive director Brain of Hyperledger made an introduction about Hyperledger, and hyperledger is the fastest growing open source project in Linux which involving banks, finance, things of Internet and so on. Hyperledger has 30 members in China, more than 120 members in the world so far. As a member of Hyperledger, Baoquan has devoted itself in the research of Blockchain application, and give support to the development of Hyperledger in China.

This Blockchain meetup doesn't only mean the first meetup in Hangzhou by Hyperledger, but also means a significant technical exchange between Blockchain enterprises. Of course, we can believe that Hangzhou will cause the world’s attention  in the Blockchain industry in the near future.

Application in AML and KYC

Blockchain makes great changes on the existing financial compliance mode for anti-money laundering(AML) and understand customer (KYC).

In the field of anti money laundering (AML), based on Blockchain, the financial institutions will collect and verify their customer’s digital information, then upload to Blockchain. At the same time, the financial institutions provide electronic identity information for trading entities (like private key), and connect users’ address with e-identity authentication information, any transaction should be verified by private key and public key of banks, and access to user address, which determines the traceability of data on the Blockchain. In such mode, all financial institutions will share transaction information on Blockchain, each part of any transaction will not be out of sight of money laundering supervision, which greatly enhance the efforts of anti money laundering. Of course, Blockchain can automatically verify the compliance of transaction and users by setting the rules and logic, the non-compliance of transaction and users will be removed, and the compliance degree of the whole financial enterprises will be greatly improved.

In the field of understanding customer (KYC), the financial institutions can share the transaction entity information through Blockchain, which will reduce a lot of repetitive work, meanwhile, save the compliance costs for each institution.

The central infrastructure of Cloud data

The infrastructure of cloud computing is divided into two major parts about service and management. For the service part, mainly to provide cloud services, including 3 levels: IaaS, PaaS and SaaS. For the management part, mainly to provide cloud management, and its main function is to ensure that the entire cloud computing centre can operate with safety and stability, which can be effectively managed. The infrastructure is shown as following:

The core of cloud computing is the computing concentration and scale breakthrough, meanwhile, the provided computing type which decides the hardware infrastructure of cloud computing centre.From the demands of cloud cutomer, cloud computing centre usually needs to provide the scaled types of computing power.And the server system can use three (multi) layer architecture, one is the high performance ,stable and reliable high-end computing, ,mainly dealing with tightly coupled computing tasks, such computing not only includes the key services like external database and data mining of business intelligence, but also including the core system like their own accounts and billings, usually provided by large server of enterprise; Two is for the ordinary general-purpose computing applications, to provide the low-cost computing solutions, such computing has low requirements for hardware, usually with high density and low cost integrated server with high density, then to reduce the operation cost of data centre and the use cost of terminal user; The last is for the business like scientific computing and bioengineering, providing the high performance computing to then million times, and its hardware base is a high-performance cluster.

Based on the standard and openness principle, there is no need to depend on a particular brand of hardware equipment, virtual machine, platform service component in the hardware layer, virtual layer and platform service layer, it can realize the flexible adaptation based on standards. For the so-called elastic, mainly to provide sufficient dynamic stretching capacity, fault tolerance ability and heat migration capacity, then to support for business application and meet the business continuity requirements. Only based on this “open flexibility” can support the final “security”.

The infrastructure for big data processing platform

The data processing and data flows are shown as above.

Data source:

The current data sources, mainly come from the application data, database, server logs and others. Mysql-binlog is mainly used to add a user or active computing. And logs can also be divided as interface.

Data integration:

Data integration mainly refers to data collection tools for various data. Data can be sent from the source collection to data cache center( kafka) by javanio. Part of the data source will not be integrated into data cache center, directly ETL to Hadoop.

Data sorting:

This process is based on message buffer(kafka)for publish or subscribe. The original data source will through data formatting, data classification and filtering by a lot of sorting node data, finally generate multiple subscription data source(topic), and the fineness of topic can be adjusted according to data analysis, then come to split or combination. There are two directions for these sorted data: one is for the real time computing system for consumption; and the other is for the generation of slice file by time to hold-up to the off-line computing.

Data storage:

Data storage is mainly for the time slice file that after sorting. For the consideration of performance, the original data may be very rough, so it needs some special ETL tools to generate the final document with a specific format. And the final document will be loaded to the distributed file system Hadoop regularly, then data can support for Hive distributed computing tasks.

Distributed computing:

The source data that stored into Hadoop cluster will generate a lot of offline computing tasks, computed by map-reduce  and then will be displayed on the front, finally the result data will be stored into the hive table according to the partition about time type- time value- data type.

Data pre-loading:

The result of data will be loaded into the memory, so that can support for the requirements of different front-end data.

Data display:

At present, there are two main data displays: data platform(Web), report mail and third party applications.

Cloud storage with Blockchain

The serviceability of Cloud storage in Storj can reach to about 99.99999%. And Storj comes from the open-source project Metadisk, so its core technology is Blockchain without data center and engine room. By other ways, using the rest hard disk space on each person’s computer. Therefore, the cost is very low, which takes up about 1-2% compared with the current cloud storage. Of course, it is affordable for every Internet user.

If you upload a file, Storj takes files into sections which will be encrypted individually, then all of these can be stored in the disk space of other Internet users. To ensure the immutability of data, Storj uses a data structure called Merkle, which is a hash tree. The strength of such tree is the hash value of each node is related to the following leaf node, so it only needs to compare the hash value of the root node. Of course, there is no need for the hash challenge for the entire data blocks, Storj can use the mixed way(entire block, cut into small loops, certain blocks) to verify the integrity of data. If some blocks are not available(modified or inaccessible), Storj uses the erasure code to reconstruct the data block and store in other nodes. For the P2P technology, the download speed will be faster.

The store also uses GVN (Group of Verication Nodes) to solve the problem of Bitcoin(it need powerful computing capacity to maintain the consensus of the network, and most members should be honest), realize the auditing and payment with no trust.

However, there are still many problems to be solved, in addition to the technology maturity review, the legal and ethical issues still need to be solved.

Company website：https://www.baoquan.com/en/

Contact email：js@baoquan.com

Blockchain in Zhejiang University ——Hyperledger Meetup in Hangzhou

Hyperledger Meetup will be first held in Zhejiang University in Hanghzou in March 13^th by Hyperledger( the world’s largest Blockchain alliance).

At the appointed time, Brian Behlendorf (the founder of Apache & the executive director of Hyperledger )will attend the conference, and show the lastest technology and applicaation achievements of Blockchain together with the Hyperledger members in Hangzhou. If you are interested in Blockchain or Hyperledger project, welcome to join us and together enjoy the new technology “blockchain” —— the emerging Internet technology for delivering value and trust.

Time:

March. 13^th, 2017, Monday

Location:

Zhejiang University, Yuquan Campus, Run Run Shaw Science Museum, Lacture Theatre 212

AGENDA:

13:00-13:30  Guest registration

13:30-14:00  Design and practice for Consortium Blockchain of enterprises——Hyperchain: Dr. Li Wei

14:00-14:30  Hyperledger introduction & Achievements introduction of Hackthon (Shanghai)——Hyperleder: Brian Behlendorf

14:30-15:00  Basic concept and application of Blockchain ——Baoquan.com: Yu Xuemai

15:00-15:20  Tea Break

15:20-15:50  Application practice of Consortium Blockchain——YunPhant: Dr. Huang Butian

15:50-16:20  Enterprise notes on Blockchain——33.CN: Wu Sijin

16:20-17:20  Round table: Discussion for Hyperledger application and development—— Hyperledger：Brian Behlendorf, Baoquan.com: Yu Xuemai, Hyperchain: Li Wei, YunPhant: Huang Butian, 33.CN: Wu Sijin, ZhongChao Smart Card Research Institute: Zhang Yifeng

Guest Introduction：

Mr. Brian Behlendorf: Executive director of Hyperledger

Dr. Li Wei: CEO of Hyperchain

Dr. Huang Butian: CEO of Yunphant

Mr. Zhang Yifeng: President of ZhongChao Smart Card Research Institute

Mr. Wu Sijin: Founder of Fuzamei-33.cn

Mr. Yu Xuemai: Co-founder of Shuqin Tech-Baoquan.com

Sponsor: Zhejiang University, Linux Foundation, Blockchain alliance of technology and application (Hangzhou)

Co-organizer: Hyperchain, YunPhant, 33.CN, ZhongChao Smart Card Research Institute, Baoquan.com

Contact person：Yu Xuemai

Email：yxm@baoquan.com;js@baoquan.com

Characteristics（4V） for Big data

To some extent, big data is a cutting-edge technology of data analysis. That, in a nutshell, is the ability to quickly obtain valuable information from various types of data. Of course, it is this point to promote the development of enterprises by such technology.

In 2001, the analyst Doug Leni from Gartner pointed out that there are 3 direction challenges and  opportunities for the growth data: Volume, how many data; Velocity, data input and output speed; Varirty, data diversity; Value, low value density.

Volume

The core network node is a person in the mobile Internet, no longer a web page, everyone can produce data in anywhere. Data can come from automated sensors, automatic recording facilities, production monitoring, environmental monitoring, and automated process recording like POS, ETC, etc. It is estimated that the global data centre may reach to 8.6 million.

Variety

In the big data era, data format has become more and more diverse, covering text, images, audio, video, analog signal and so on; Data also come from diversified sources, not only produced in the inner working organization, but also from the outside.

Velocity

The chief engineer Wu Gansha of China Intel research institute believes that the high speed of big data is the major difference compared with the traditional data mining technology. Big data is the real-time processing and real-time results oriented solutions. And it has the two following levels.

First, faster production. Some data with the explosive production, and some with slowly production.

Second, faster processing. Big data has two processing paradigm about processing batch and stream processing to realize the fast data processing.

Value

The importance of data lies in the support of the decision. But the data scale can not decide whether they can provide help for decision-making, the authenticity and quality of data is the most important factors to obtain knowledge and ideas, also is the most solid foundation to make successful decisions.

The industry professionals expand the basic characteristics of big data from 4V to 11V， including visualization，validity and so on. How to achieve the value of data through the powerful machine algorithm, which is an emerging problem to be solved in big data era.

Cloud data with Blockchain

Cloud data is based on business model application of cloud computing, technologies and platforms like data integration, data analysis, data distribution, data warning and so on. It can be used in various ways with the development technology.

The whole cycle of cloud data including create, store, use, share, archive and destroy. When sharing data, the privacy and security of data should be concerned.And data has its own life cycle, show as following:

During each step in life cycle, all these characteristics should be cleared, including the data source, data type, storage class sharing method and so on. And characteristics of cloud data are showed as following:

Of course, the security risk assisted in the whole life cycle may bring great challenges. When sharing data in cloud, we may experience the network leakage and data falsification. When store data in cloud, we may also experience data loss. And security risk of cloud data are showed as following:

Nowadays, there is a new emerging computing cloud that is virtual and doesn’t require servers setup, because it runs on the blockchain’s infrastructure. Therefore, the blockchain cloud has a form of micro-value pricing that parallels the traditional cloud computing stack, but via a new layer. It’s not a physical unbundling of the cloud, rather it’s a new layering of cryptography-based transaction validation and state transition recordings on a parallel, but thinner cloud.