Editor View
On the evening of July 21, 2020, Beijing time, the founding president of Huobi University, Yu Jianing, once again appeared in the live broadcast room with the theme of “Defi Swept by”. A week ago, he started broadcasting on Baidu, and a day later, he will appear in the live broadcast room of CITIC Publishing House to give lectures. He is called the most diligent and photogenic principal.
Before being invited by Li Lin to establish Huobi University, Yu Jianing was the youngest director of the Institute of Industry and Economics of the Ministry of Industry and Information Technology. Resolutely leave the system and join the new wave, not because of the flammable and explosive physique, but acting for the pure faith and love of the Economist. Now, Yu Jianing has become the most well-known digital economy research scholar and industry-recognized top expert, and has won the Global Blockchain Leadership Award, and countless titles such as China’s top ten blockchain figures and influence education figures. Praises, honors and works are equal.
Unlike ordinary experts, the young President Yu Jianing is willing to talk about the daily impact of finance and digital currency on life and his personal feelings. Once he talks about it, he talks endlessly, as if inspiration is constantly emerging. At the same time, he is also very good at using examples and describing details to extract the listeners from the boring abyss of knowledge for a short stretch. For example, when comparing digital currency with traditional finance, he talked about the psychedelic sense of the bank under the sun. The fierce gate, the security stick and the helmet, vividly spread what you have seen, heard and felt before you, making you immersive and feel the same.
In 2017, after a wave of bad harvests, blockchain, Bitcoin, and digital finance have always had the attribution of “shocking the world”, and they have been dubbed “air art” and suffered injustice. As a staunch blockchain supporter and educator, Jianing Yu has been trying to normalize this distorted consciousness, reminding people to pay attention to the inevitable trend behind it, hidden behind those strong names and saturated colors The essence of this is the unstoppable financial revolution.
It is said that Yu Jianing at work has made everyone at Huobi University a Virgo. But when facing the students, the audience and the public, he showed the essence of amiable appearance and always had the ability to work together, using virtual toys to lower the threshold of enlightenment for students. For example, financial Lego, stable coin lottery, and “The biggest value of blockchain is liquidity, turning solid gold into liquid gold.” At that time, I was thinking, since the three historical creations of blockchain are, Public chains, smart contracts, and overseas compliance trading platforms, then, is DEFI the golden point of rebuilding the blockchain order?
The following is from the link of Dr. Jianing’s circle of friends, the original title is “Yu Jianing: DeFi as a new model of digital finance is becoming the “main track” for various public chains to find practical applications”, reporter Yu Junyi, copyright of Securities Daily all. Long Yuxuan, the executive editor of “readCEO”, reposted this article with the approval and authorization of Dr. Yu Jianing. Founders are welcome to pay attention to Huobi University and the new course of Dr. Yu Jianing.
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I
Beginning in 2018, the DeFi (Decentralized Finance, distributed finance) agreement began to provide open and smart contract-based financial services and began to form a new trend. Since the beginning of this year, DeFi has become a dazzling new star in the blockchain industry and has quickly become the most attractive sector in the entire industry. Capital favors and platforms flood in. It seems that all projects are desperately rubbing the hot spots of DeFi, and DeFi seems to have suddenly become the most cutting-edge new outlet in the blockchain industry.
DeFi is actually called Open Finance. It actually refers to a decentralized protocol used to build an open financial system, which aims to allow anyone in the world to conduct financial activities anytime, anywhere. As a representative application field in the blockchain field, DeFi has received extensive attention from the financial industry and is also considered to be the forefront of the financial technology field. Can DeFi become the killer application of blockchain in the future? Yesterday, Dr. Yu Jianing, a blockchain expert and president of Huobi University, gave a live lecture on the topic of “The new Defi model swept over, how to seize the distributed financial opportunities”.
II
Dr. Yu Jianing said that the financial industry has not changed for a long time. The limitations of traditional institutions have greatly reduced the transparency of funds, and property ownership and use efficiency cannot be both. Defi will bring about a new revolution in the financial industry: that is, from the past trust in people or companies to trust in programs.
Yu Jianing went on to say, “The essence of DeFi is a new smart business, which indicates that a new wave of blockchain applications is coming.” He said that as a new model of digital finance, DeFi is becoming a reality for public chains. The “main track” of the application will also become the “pedestal” of open finance, and it is expected that a number of great projects with epoch-making significance will be born, and therefore it also contains huge wealth opportunities. He further introduced that Defi’s characteristics are that it is intelligent, unmanned, and procedural, and open source programs are inherently more reliable; the second is the combination of assets, which can combine good assets to synthesize assets. This year should be said to be the “year of DeFi experimentation and innovation”. I believe that in the era of “open finance”, DeFi will usher in great development.
III
Yu Jianing believes that the high intelligence and high transparency of the blockchain platform based on DeFi will bring a new round of reforms to the global financial system. In the future, with the maturity of the DeFi model and the iteration of blockchain technology, it may even dominate the new financial system of the future “code world”. DeFi is a “new species” of the financial industry, playing a core business of banks, namely lending. Its business forms, operating rules, and development rules are relatively unique, and are quite different from traditional financial services and blockchain projects. If you want to seize this wave of wealth opportunities, you must study in depth. Therefore, learning to master DeFi is the right time and it is necessary.
Yu Jianing also emphasized that DeFi comprehensively uses innovative elements such as blockchain intelligent logic, token models, algorithm incentives, community models, etc., effectively forming a highly ecological operation system, and effectively integrating cutting-edge technologies and intelligence. The innovative features of commerce, open organization, and digital finance are fully integrated to form a very sophisticated business system. In addition, the evolution direction of DeFi is open finance, and open finance is the future shape of the financial industry and the fundamental direction of the transformation of financial institutions. This is a good time to learn industry knowledge and explore future models. If you want to understand the new opportunities facing the financial industry under such a technological storm, the key is to realize a mind-changing mind and master the blockchain thinking.
“Open finance is a new philosophy of financial development, DeFi is a new model, and blockchain is a new technology for carrying.” This is the relationship between these three in Yu Jianing’s eyes. He said that the blockchain is an important system of the digital economy. Under this system, digital assets must be the main wealth of mankind in the future, but there will also be many shocks and turbulences in this development process. But open finance must be the general trend of the financial industry. DeFi just meets the needs of open finance, so it will become the “base” of open finance. Defi is equivalent to a testing ground. Those successfully incubated businesses and new models that have been verified are likely to be deeply integrated with the new financial golden hook institutions, releasing huge power and value on a global scale. “In fact, the essence of blockchain is to release the liquidity of the market. What it is doing is the creation of liquidity. Therefore, in the future, what you have done to the world and what you have contributed will be reflected fairly. This is the zone. The meaning of blockchain.”
IV
When it comes to whether DeFi will have an impact on commercial banks, Yu Jianing believes that it should be viewed from two levels. First of all, for central banks of various countries, he believes that from the current point of view, central banks of various countries will not resist DeFi, but they will certainly make DeFi more standardized and consider more compliance issues. Then rely on some compliant organizations to create services that are more in line with legal requirements. Secondly, for other commercial banks, although the rapid development of DeFi will bring certain competitive pressure to the banks, the impact is not big. At present, the development of DeFi cannot replace the core services of traditional banks, so banks can choose to embrace defi and develop in parallel. It will not be a short-term process for DeFi to replace commercial banks, and long-term development is needed.
Finally, Yu Jianing also specifically mentioned risks. He said that although Defi is good, its risks are not less. Take Compound as an example. In fact, it has revealed to people its huge market risks. In addition, runs and attacks by hackers using technical vulnerabilities are also risks and have to be guarded against.
