Public blockchain technology is revolutionary

Public blockchain technology is revolutionary

Zhang Feifei

Blockchain technology, as a new network application technology that combines traditional encryption technology and Internet distributed technology, has been explored and promoted by more than 20 top financial institutions around the world.

The creation and expansion of Circle, an American consumer finance company, is based on the exploration and application of blockchain technology. With curiosity about Circle's entrepreneurial vision and the global trend of blockchain technology, the reporter of China Business News interviewed Jeremy Allaire, the CEO and founder of Circle.

China Business Daily: As the Internet is used as a channel to trigger changes in the financial landscape, what opportunities and challenges does this provide for Internet-based consumer finance companies like Circle?

Jeremy: We believe that in the next five to ten years, the primary financial services for consumers will be software-driven businesses based on the Internet. This is a major opportunity and a top priority for our company. However, this requires us to provide consumers with services that are more valuable than the current monetary and financial products. We must build trust and become a well-known brand that consumers love and trust. Similarly, we must work with government departments to ensure that this new banking model driven by software and technology can fully protect consumers and prevent criminal abuse and corruption.

Daily: Circle has received financing support from institutions such as Goldman Sachs and IDG Capital. After completing this round of D financing, how will you use these more sufficient funds to achieve market expansion? Please talk about Circle's future development path and planning.

Jeremy: In total, Circle has raised about $140 million in funding. We plan to invest in some key areas, including increasing investment in R&D projects, expanding our existing direct consumer marketing projects in the United States and Europe, and establishing new markets and currency regions. While doing the above projects, we need to continue to increase our investment in customer and risk operations to support the rapid growth of user transactions.

Daily: Domestic scholars believe that a set of rules such as blockchain may be able to better transfer from the monetary level to the financial level. What impact and influence will this have on the financial market and related infrastructure?

Jeremy: Any business that needs to record and coordinate decisions in a clean and stable way will benefit from blockchain technology. Because, for the first time in human history, we have a global ledger and a record system that no one can change. This global ledger can be applied to many industries and related use cases, and will ultimately have a substantial impact on management, law and finance.

Daily: In China, blockchain is a set of advanced technologies that are not yet understood by ordinary people. In your opinion, what challenges need to be overcome to truly realize the value of blockchain? The application of blockchain technology by Chinese financial institutions is rare. How do you view the development prospects of blockchain in China?

Jeremy: As I said above, we are in the early stages of using this technology. The technology itself and all its aspects are very complex and not something a consumer or a business can immediately understand or use. However, innovative entrepreneurs are creating software that skillfully uses this technology to better serve ordinary people. Many people understand the value of the Internet because the software and services we use give life to the Internet - in China, people can search for information through Baidu, buy products on Alibaba, and use Tencent's products to keep in touch with everyone they know. These are all built on an open protocol platform that makes the Internet work.

We are entering the next phase of the protocol, which will enable information exchange in the same way that it enables global information exchange, media distribution and communications. We foresee that there will be many powerful applications based on blockchain technology for Chinese consumers to use in the future. Circle hopes to be one of them as soon as it is truly developed.

Daily: Circle believes that data blockchain will soon be involved in the mobile payment industry. Could you please give us your outlook on what changes blockchain will bring to the mobile payment field in the future?

Jeremy: In the near future, blockchain technology will make it possible to send and receive payments instantly, securely, and for free anywhere in the world. This will bring numerous opportunities to business transactions and consumers. Eventually, in addition to existing electronic payment methods such as credit cards and cash, business transactions can use blockchain technology to receive payments. This will reduce business costs, open up new markets, increase security, and reduce fraud.

Daily: Technological innovation creates business opportunities, and blockchain technology can drive the birth of new business models. Please talk about Circle's business ideas and application practices in exploring blockchain technology. In a decentralized scenario, which industries do you think will be the beneficiaries of blockchain?

Jeremy: Circle is a consumer finance company. Our mission is to provide financial products to consumers around the world. In the near future, we believe it will be possible for consumers in any country to store and share value and make currency-free payments in a reliable way. More financial products can be developed on top of this. Any business or organization in the world can benefit from blockchain technology in terms of reducing costs, improving user experience, and reducing fraud and other risks. More advanced blockchain technology applications, such as Ethereum, will introduce the concept of "smart contracts" based on blockchain technology and automated business rules, which will bring many opportunities and will also have an impact in the fields of finance, insurance, law, and corporate and civic governance.