The evening breeze gently swept through the campus as twilight settled over Xiamen University. On December 9, 2019, the 56th installment of the Xiamen University "Yuanda" Financial Law Forum—titled "Blockchain Technology Development, Application Scenarios, and Future Outlook"—took place in Room B521 of the Law School. Hosted jointly by the Financial Law Research Center at Xiamen University Law School and Fujian Yuanda United Law Firm, this academic-industry collaborative series has become a cornerstone for interdisciplinary dialogue.
Over fifty participants attended, including faculty members from Xiamen University’s Law School, Intellectual Property Research Institute, Medical College, and Jimei University, alongside experts from legal practice, technology industries, investment firms, and doctoral and master's students from the Financial Law Research Center. Professor Liu Zhiyun moderated the event, which featured Mr. Zhang Haihang as the keynote speaker.
👉 Discover how blockchain is reshaping industries and unlocking new digital opportunities today.
Understanding Blockchain: From Bitcoin to Real-World Use Cases
Mr. Zhang Haihang, a serial entrepreneur and founder of Six-Dimensional Quantum (Xiamen) Technology Co., Ltd., also serves as Partner at Lishan Capital and Deputy Director of Xiamen University Blockchain Research Center. A recognized leader in fintech innovation, he has participated in over 56 blockchain projects and received multiple awards, including the Outstanding Blockchain Figure Award at GFIS 2018 and FinTech Leader of the Year by the Asia-Pacific Financial Investment Association.
Zhang began with a short video tracing Bitcoin’s price history and pivotal moments in its evolution. The audience responded with enthusiasm—some expressing regret for not investing earlier, others emphasizing caution due to market volatility. Using an imaginative analogy, Zhang likened Bitcoin mining to Mahjong: four players (miners) compete to solve a random number puzzle; whoever "wins" (completes the block) earns rewards and gains the right to record transactions. This process is fair, decentralized, and consensus-driven—core principles underpinning blockchain.
He outlined the three eras of blockchain:
- Blockchain 1.0: Focused on cryptocurrencies like Bitcoin and Litecoin for digital payments.
- Blockchain 2.0: Introduced smart contracts via platforms like Ethereum, enabling programmable finance.
- Blockchain 3.0: Expands into societal applications—healthcare, governance, supply chains, and intellectual property.
To clarify key concepts, Zhang highlighted essential blockchain features: peer-to-peer networks, timestamps, consensus mechanisms, non-symmetric encryption, immutability, node transparency, and smart contracts.
He further categorized blockchains into three types:
- Public chains (e.g., Bitcoin): Fully decentralized, open to all.
- Private chains: Controlled by a single organization with restricted access.
- Consortium chains: Managed collectively by multiple institutions—like a group of Mahjong players jointly overseeing the game.
Cross-chain technology, often seen as complex, was demystified as involving two core functions: value transfer (direct asset exchange) and communication interoperability (data translation between chains).
Practical Applications: Where Blockchain Adds Real Value
Beyond theory, Zhang illustrated how blockchain delivers tangible benefits across sectors.
1. Authenticating Cultural Artifacts with Blockchain + VR
In a live demonstration, attendees scanned a QR code to view a VR-rendered Song Dynasty gold-glazed tea bowl. The system used blockchain to securely log provenance data—authenticating origin, verifying ownership through judicial notarization, and issuing preservation certificates. Each item's full lifecycle was recorded on-chain, allowing buyers to verify authenticity instantly while enabling tax authorities to track transactions transparently.
2. Digital Evidence Preservation
Individuals can now use blockchain-based platforms to store digital evidence immutably. Once data is hashed onto the chain, tampering becomes nearly impossible. Courts have already accepted such evidence in rulings—a testament to blockchain’s reliability in legal contexts.
3. Supply Chain Traceability in Food & Luxury Goods
Using groupers as an example, Zhang explained how edible bio-tags applied at birth allow real-time tracking of growth conditions. Consumers scan codes to access health records and farming practices.
Similarly, high-value goods like Moutai liquor employ 14 traceability technologies powered by blockchain. From production and quality checks to logistics and government oversight, every step is recorded immutably. Unlike traditional anti-counterfeiting methods that focus only on endpoints, blockchain secures the entire journey—preventing fraud at every stage.
These cases showcased blockchain not just as a financial tool but as a transformative force across industries.
Blockchain in Finance: Efficiency, Security, and Innovation
Zhang then turned to financial applications—most relevant to law students specializing in financial regulation.
- Payments: Global blockchain payment adoption is projected to grow by 73.72% over five years. In countries like South Korea, blockchain enables faster cross-border settlements.
- Cost Reduction: By eliminating intermediaries, blockchain can cut operational costs by up to 20%, enhancing efficiency.
- Rental Market Innovation: Applying blockchain to long-term apartment rentals allows creation of a trustless platform connecting landlords, sub-landlords, tenants, and financial institutions. Smart contracts enforce agreements; credit models reduce fraud risk.
- Cross-Border Transfers: Cryptocurrency remittances are cheaper and faster than traditional wire transfers.
- Decentralized Finance (DeFi): Use cases like shared ledgers and automated contract execution are already live.
- Stablecoins: Rapidly gaining traction for cross-border payments and value storage.
Regulatory Challenges and Policy Landscape
Zhang addressed regulatory concerns using the controversial case of small-property-right housing (xiaochanquan). These units lack formal legal status for sale, creating unregulated markets with no taxation or oversight. Blockchain could enable secure title registration and transaction logging—bringing these deals into the formal economy. However, legal ambiguity remains: while usage rights trade actively in practice, outright sales violate current laws.
This sparked debate among attendees. Professor Liu noted that market participants already price in legal risks—suggesting that blockchain could serve as a neutral verification layer during regulatory gray periods.
Globally, China initially lagged in regulation but accelerated after July 2017, when authorities declared most Initial Coin Offerings (ICOs) illegal due to risks of unauthorized fundraising. Today, 19 countries impose crypto taxes; most treat digital assets as property subject to capital gains rules.
Frequently Asked Questions (FAQ)
Q: Can blockchain be regulated if it's decentralized?
A: While decentralization complicates oversight, regulators can still target exchanges, wallet providers, and service operators. Effective regulation balances innovation with systemic risk control.
Q: Why does Bitcoin dominate despite newer alternatives?
A: Market leadership stems from network effects and collective belief. Like precious stones or art, Bitcoin’s value is socially constructed—driven more by trust and adoption than utility alone.
Q: Is blockchain’s high cost limiting its adoption?
A: Currently, talent scarcity drives up development costs. As education and industry maturity improve, costs will decline—mirroring past tech curves (e.g., early internet).
Q: How secure is "immutable" data on private blockchains?
A: Immutability is relative. In public chains, massive computational power ensures security. In private systems, trust shifts back to governing entities—reducing decentralization benefits.
Q: Can stablecoins replace traditional currencies?
A: Not yet. Projects like Libra face political and trust hurdles. However, central bank digital currencies (CBDCs), such as China’s DCEP, show promise in combining innovation with state-backed credibility.
Q: What’s the future of blockchain beyond finance?
A: Blockchain will expand into healthcare (patient data), voting systems (transparency), IP management (copyright), and environmental tracking (carbon credits)—any domain needing verifiable records.
The Road Ahead: Innovation Meets Responsibility
Zhang concluded with optimism: though still in its infancy, blockchain holds vast potential. Governments are cautiously supportive; markets are eager. The key for startups is to embrace regulation—not resist it—and collaborate with established institutions.
Professor Liu summarized the night’s insights: every revolutionary technology—from steam engines to smartphones—faced skepticism and high initial costs. Over time, accessibility improved, applications multiplied.
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Blockchain may not change everything overnight—but it is laying the foundation for a more transparent, efficient, and equitable digital world. As talent grows and use cases mature, its impact will deepen across law, finance, commerce, and society at large.
The three-hour session ended with sustained applause—an unusually long engagement that reflected deep audience interest. Attendees left inspired by Zhang’s clarity, humor, and vision—not just for what blockchain is today, but for what it could become tomorrow.