Ping An Establishes a Beachhead in Blockchain: The Midfield Battle story of OneConnect

Abstract : If OneConnect is going to make IPO in US, can the blockchain become the “China sample” that the company will show to the world?


Nov 17

“AS the only constructor of the blockchain bottom layer of the Ping An Group, and at the same time undertakes the needs of all the blockchain applications of the Ping An Group.” OneConnect Financial Technology Co., Ltd. (“OneConnect”) was once “the only external financial technology” of Ping An, and now it has another identity.

According to the Ping An Group's financial report, as of the end of June 2019, the number of technology patent applications filed by OneConnect was 3,070, of which 98.4% were invention patents. In the recently released Ping An Group's third quarterly report, OneConnect is the technology service platform with the biggest financial institutional clients number in China. As of September 30, 2019, OneConnect has 3,700 institutional clients, serving a total of 618 banks and 84 insurance companies, including all major banks in China, 99% of city banks and 46% of insurance companies. Hundreds of millions of end customers were covered by OneConnect with these institutions.

On November 13th, the US Eastern Time, OneConnect submitted a prospectus to the US Securities Regulatory Commission, officially opening the road to the listing. OneConnect has long focused on three core technologies: artificial intelligence, blockchain and cloud computing. This time, these “financial technology output capabilities”, which have been verified by the business, attract most attention.

Surpassed the complicate winter

In March 2016, the Pingan Blockchain team was established. In May, Ping An officially joined the R3 blockchain financial alliance and became the company's first member from China. This is a time when people are unfamiliar with the blockchain. At that time, the industry was still in a flood period. Virtual currency largely eroded people's persistence in technology and their understanding of correct values.

The Pingan blockchain team stayed awake from the beginning and stood directly on the opposite side of the virtual currency. They know that the real value of the blockchain lies in building a trust system under the digital economy trend, rather than borrowing the name of the blockchain to issue bad money.

At the same time, some practitioners who insist on technological innovation have encountered bottlenecks in the commercialization of the blockchain, including the throughput efficiency that determines the performance efficiency of the blockchain, the privacy protection that determines security, and the ways that simplify deployment and management.

The industry needs a standardized solution, and to be honest, the industry needs a mature leader. Now, OneConnect stood up. After experiencing early industry observations and technology precipitation, Oneconnect officially launched the blockchain solution in February 2018, FiMAX.

With the full-encryption blockchain framework FiMAX S3C with low latency, high TPS, friendly and easy-to-use features, FiMAX is firmly seated in the center position, becoming the core and most basic solution for the financial account-pass blockchain technology.

Since then, the blockchain-enabled entity projects based on FiMAX have blossomed in many places, and successfully achieved in 14 business scenarios such as trade finance, asset securitization, supply chain finance, and reinsurance.

Technical hard core rooted in the ground

In the official website of OneConnect, FiMAX is defined as a “breakthrough” blockchain solution. This is not only a “breakthrough” for the FiMAX, but a “breakthrough” for the entire industry. In the architecture of FiMAX S3C, Cathaya implements data encryption and privacy protection, Core focuses on performance improvement, Concord is responsible for one-click deployment and optimizes user experience, and Sparrow is the middle layer of the underlying interaction with the application and plays an important role of cross-chain interaction.

At present, the reason why the blockchain has not achieved large-scale application is mainly because the industry does not provide a set of trustworthy data privacy protection programs, which leads to enterprises or organizations not dare to go on the chain. The significance of the FiMAX S3C fully encrypted blockchain framework is that all data on the chain is encrypted by the data uploader and uploaded, and the participants have complete control over their own data.

What follows is "high performance." FiMAX team independently developed the intelligent block technology, which can achieve a single-chain average TPS of more than 10,000 and a delay of less than 0.01 seconds in a low-core eight-core CPU and a national secret environment. Unlike many chains that only emphasize transmission rates, FiMAX achieves a two-way breakthrough in throughput and low latency.

The final one is "complete management." FiMAX S3C has built a set of exportable CA system bases on the CA specification of the National Secret Service, which enables enterprises that follow the national secret standards to connect with the blockchain without worry.

It can be found that in the entire FiMAX framework, each module emphasizes "privacy and data security", emphasizing national standards, which is rare and precious in the blockchain industry. At present, the blockchain technology service providers have the wrong concept of “the faster the better” and each of the underlying chains emphasizes their performance advantages without thinking of others, which makes TPS become a lively event for laymen. Efficiency is the core element in assessing the performance of blockchain. This is not a fake, but technology must be implemented in the business. By then, security is more important than performance.

The mission closely rooted in Ping An

A country's financial system is ultimately a set of economic systems based on the supply chain. It is the duty of every technology company to pass through the blockchain to unblock the barriers in the supply chain and support the financing needs of SMEs.

OneConnect is born out of finance, but not just finance. OneConnect tells the story of using technology to empower finance and empowering ecology, and this gene is rooted in Ping An in the new era.

In the past 30 years, Ping An has established a complete financial system and become the largest fully licensed financial group in China. Today, this huge financial group no longer emphasizes the maximization of monomer benefits.

Ma Mingzhe, Chairman of China Ping An, said in his 2019 New Year's speech, “The definition of 'finance + technology' is clearly defined as the core business of Ping An. To face the future, we must continue to ensure the steady growth of the financial main business, increase investment in science and technology, strengthen the construction of 'financial + ecological', continuously consolidate and develop our core advantages, and strive to provide better gifts for the 70th birthday of the motherland."

In the past few years, the use of blockchain by OneConnect has continued to put technology and finance into wider and deeper scenarios. In the future, as the infrastructure of the financial system, the blockchain will also bring financial accountability and bring Ping An into a broader and more trusted era of digital economy.

OneConnect intended to be an IPO on the NYSE or Nasdaq Global Market under the symbol “OCFT” in the form of American Depositary Shares (ADS). As the leading representative of Chinese enterprises in technology, OneConnect is making new changes.

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