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Prof. Yu Xiong Calls for the Internet Computer to Integrate the Spirit of Magna Carta

— A conversation with Prof. Yu Xiong on sustainability, decentralization, and blockchain

About Prof. Yu Xiong


Figure 1: Prof. Yu Xiong

Professor Xiong’s research focuses on sustainable and technological issues in global supply chains, where he has published in leading international journals, including European Journal of Operational Research, Nature Communications, International Journal of Production Research, International Journal of Production Economics, and Journal of Operational Research Society. His publication in Nature Communications has its Altmetrics score reached more than 1800, and listed as one of the most significant science activities in 2021, and one of the only few research in the world that is included in Timeline of Computing 2021. Find more about Prof. Xiong at the end of this post.

Distinguished Scholar Highlights:


Figure 2: Prof. Xiong as a Torchbearer for the 2012 London Olympics

Follow Prof. Xiong on LinkedIn

If you too find Prof. Xiong’s work pioneering, don’t miss out the International Investment and Innovation Forum(and launch of OxValue.AI) coming up on Jun. 25 where Prof. Xiong will chair the Launch of OxValue.AI and Signing Ceremony_!_

1. What is your motivation for doing research on fintech/blockchain?

Prof. Xiong:

1.1 Decentralization empowers innovation by giving power back to individuals

I think the spirit of blockchain is exciting. It is about decentralization. In this way, we can have more people, to have more freedom of creating value for the society without barriers. The standard systems sometimes become substantial obstacles for people who have talents and creative ideas. Big giants and the centralized system, the traditional ones like Tencent, can easily do innovations and creations. But the majority of people in the world are not part of giants like Tencent and they cannot easily innovate. I think that blockchain or FinTech can provide more freedom and power back to individuals.

I was trained as a computer scientist more than fifteen years ago. My bachelor’s and Ph.D. degrees are in computer science. My Ph.D. degree focused on grid computing, which is now called cloud computing. Back then in 2003, I was one of the first researchers in the area of decentralized systems and cloud computing. But the reason I changed my subject was that I found myself having a lot of ideas, but I just didn’t have the resources, the funding, and the network to implement them. All of this requires a big network and a lot of resources, so I gave up on my own ideas and joined a business school where I can give advice to other people, but it’s sad that I cannot do more on the technology side of innovation. However, I think that if we give more freedom and power back to people, the world will be much more innovative than today.

1.2 The spirit of Magna Carta: the past, present, and future of decentralization

One of the recent things I did relevant to FinTech and blockchain is about a very important piece of history, the Magna Carta [1]. Magna Carta is the first great charter ever signed in the world. I’m sure many people are familiar with the story: 25 noblemen (barons) kidnapped King John to the Magna Carta Island about 800 years ago, and forced him to sign the great charter.


Figure 3: King John signing the Great Charter on the Magna Carta Island

Eventually, this enabled the world to move forward since this is the first political power decentralization, giving power to a group of people and the parliament. That was the start of decentralization for political power. I’m glad to say that my company acquired this island. As Chinese, we own this land. I think we should not only look at the history but also the future, how the Magna Carta spirit continues to influence society. I have been thinking about the decentralization of finance power. 800 years ago, we saw the decentralization of political power on this island, blockchain now enables us to decentralize finance power. Next, it will allow us to decentralize the technology power, so we don’t want any more tech giants like Facebook and Alibaba.

2. Could you briefly highlight your research in the field of fintech/blockchain?

Prof. Xiong:

Research on Blockchain: Business value, Sustainable development, Fairness & Transparency

I pay great attention to connecting theoretical research with practice. Now, 4 of the 6 Ph.D. students that I’m supervising are focusing on the research related to blockchain, and we have interests in studying blockchain business models, for example, how to make blockchain valuable and profitable. However, we do not only keep our eyes on the business profits generated by blockchain but also what values it can contribute to society. In addition, we also did research on blockchain and social responsibility. As I mentioned earlier, the blockchain shares a similar spirit to the Magna Carta. Much of my research will focus on the blockchain and the Magna Carta. It’s worth mentioning that I have already seen some research, which raises a point that the blockchain is like the Magna Carta for the Internet. Furthermore, I’m also interested in the topic of blockchain and SDGs — sustainable development goals. There are 17 sustainable development goals [2] defined by the United Nations, and blockchain actually can contribute to every single goal of these 17 SDGs. So, on the one hand, I think my research mainly focuses on how blockchain can bring social fairness; on the other hand, from a business angle, to investigate how blockchain would improve the transparency of the supply chain and the integrity along the supply chain in the business world.

3. Blockchain undoubtedly replaces numerous inefficiencies in finance, but how do you see it promote the sustainable development of the finance industry?

Prof. Xiong:

Blockchain promotes financial transparency, inclusion, and equity

Sustainable development means that the technology, no matter which sector it’s in, contributes not only to the money but also to the environment and solving social issues. Providing financial support for poor people who really need it has always been a big issue because of corruption and the system. I think hundreds of millions of people don’t even have a bank account, so how can they receive financial aid. Blockchain can actually enable the funding to reach the right people, people who really need it. And it is also good for anti-corruption which solves some social issues. Of course, we can track the transactions using blockchain technology, which provides better solutions to prevent money laundering. Therefore, central banks are creating their own digital currencies using blockchain technology. I also think that blockchain can solve the issue for SMEs and startups that they often have difficulty getting loans and financial support from banks because they get less credit, even though they may be really good companies. Providing finance to the right people/organization is what I believe to be very promising.

4. Your recent work [3] on the carbon footprint of Bitcoin demonstrates the environmental impact (E) of blockchain. Under the scope of conventional ESG, what Social and Governance implications, both risks, and opportunities, might blockchain have?

Prof. Xiong:

Opportunities and challenges coexist for blockchain

Blockchain has very good potential for providing social fairness and justice and creating transparency to society as I mentioned in the previous question. It also provides an opportunity for a much better future. Normally, traditional technologies could not provide good opportunities and support people to be treated fairly in aspects like gender and ethnicity. But blockchain can not only track the transactions but also track the behaviors, so it provides solutions to traditional problems. However, as you said, there are huge risks created along with opportunities. If we talk about Bitcoin, it could be used for terrorism because it is not tracked. That’s why central banks do not support Bitcoin. Also, money laundering. Since Bitcoin is not monitored, this sector can become wild and it can grow crazily. For example, the Bitcoin price increased ten times compared to last year, but of course, we saw a recent drop. But if a sector can rise so fast, this would change social value. That is why in my research I address carbon emission. The recent one you mentioned, published on Nature Communication, has been reported by more than 200 press. We call awareness from the society that Bitcoin does cause environmental issues.


Figure 4: Top Bitcoin mining pools, from Prof. Xiong’s Nature Communications article

5. Analogous to current ESG ratings for firms, what do you think of building a sustainability rating framework tailored to blockchains? What suggestions would you kindly offer if we were to construct such a sustainability evaluation method?

Prof. Xiong:

5.1 A rating system for evaluating blockchain is significant and necessary

I think that constructing an evaluation system for blockchain is important. I remember that one of my colleagues at the University of Surrey has several publications about blockchain for good, and he is one of the leading scientists in the area of how we can make good use of blockchain to serve society, which I believe is meaningful. Thus, the proposal you mentioned to construct a sustainability rating framework for the fintech firms and blockchain is necessary and significant.

5.2 Rating system construction with spirits analogous to Magna Carta spirit

People regard blockchain as the Magna Carta for the Internet and technology. It can decentralize finance, technology and be beneficial for future development. As for the spirit of blockchain, similar to the spirit of the Magna Carta, is to create a fairer and more just society. Thus, we are happy to see if there is any measurement created, which can measure whether the blockchain applications can bring more liberty, fairness, justice, equality, transparency, and peace to people. Apart from those, the spirit of compromise can also be involved, which represents the need for people to communicate and understand each other. By achieving all these, we can eventually achieve the goal of sustainability. Therefore, I think it necessary to create such a rating system focusing on the degree to how a blockchain application serves the people (e.g. serving all the people or only serving a certain amount of people). We do not intend to create a blockchain where people on the top gain a large proportion of profits, but others are sacrificed. In China, we call it “cut the leek”, which means that using different systems to draw people’s attention and let them pay, but only certain people can get profits in the end.

5.3 Rating elements: Power back to people, Equality, Positive impact on human behaviors

It’s also worth evaluating whether the technology can give power back to people. Let’s take Facebook as an example: users store data on Facebook, but Facebook sells the database to other enterprises for big data analytics, like user behavior analysis. I think it is appropriate. Thus, we should give power back to the individuals (users), because the data should belong to them rather than centralized giants. Another point we can consider is whether the technologies can contribute to the equality of gender, rich and poor, race and ethnics. In addition, we could also consider the degree of positive impact, which a blockchain application generates on human behaviors. Let’s take TikTok as an example, as people’s behaviors have already changed, they spend days and days on this app, but it’s not quite positive. Thus, it’s significant to set a standard measuring how the application positively affects people’s behavior, for instance, measuring the time people spend on certain applications. Taking this into consideration, only blockchains can track and provide transparent
Figure s (data) for help.

So, going back to the rating construction, I think we can first utilize the Magna Carta spirits. Since the Magna Carta is considered as a consensus, the blockchain also needs a consensus. For example, for bitcoin, without a consensus at the beginning, only a small proportion of people knew it and bought it. Gradually, with more and more people stepping in, they reach a consensus and then bitcoin has value. Similarly, blockchain applications should establish a consensus that most people accept in a positive way. Nowadays, there’s a concept called “Society 5.0” [4], and I’m trying to push this concept to deliver the spirits of the Magna Carta. I hope that in the next stage of society, we can live in a fair and just world.

6. Comments on the Internet Computer by DFINITY [5]

Prof. Xiong:

6.1 More focus on innovation, not implementation

Internet Computer is certainly a very influential project by DFINITY, and I think the spirit of this project is very impressive.


Figure 5: DFINITY launched the Internet Computer in May 2021.Learn more on DFINITY’s official website

When I was doing my Ph.D. 15 years ago, I focused on how to create a shared platform for more people and I created several applications on the cloud. I think this project can enable more people to access leading technologies. Also, DFINITY can make technology development easier. It is easier to develop using the coding language provided by DFINITY. So, people may focus more on what they want to do rather than what language they should learn. People should focus more on the creativity side rather than the implementation side. I believe this will change the future business models, especially technological ones. This will allow more people with less computer science skills to develop more applications that are valuable, and this can encourage people to focus on thinking and creating rather than funding for example. We don’t need to hire like 20 developers for an idea, no, we do less such investment and focus on what we can do. We should spend less time on developing connections unless some people would like to of course. People who focus on creativity have less time for social (activities). Unfortunately, many people may have brilliant ideas, but they are not very good with social. Without social (activities), they cannot get resources to fund and support them. Thus, I believe this project, if it can be successful, which I think is very likely, will be very important infrastructure technology to support social development.

6.2 The transformative potential of Internet Computer


Figure 6: Illustration of Society 5.0

As I mentioned earlier, society 5.0, I think the spirit of society 5.0 and I think the spirit of society 5.0 is very connected with DFINITY, that is to enable a more creative and innovative society. Currently, we have 5G technology, and later on, we may have 6G, which enables faster response and better remote operations, can make the Internet Computer more feasible and effective with more shared computing resources and more computing systems with greater transparency. I think the Internet Computer by DFINITY, if integrated with the things we discussed earlier like blockchain ratings and the Magna Carta spirit, can transform the world and create a more trusted computing world.

Relevant Materials

[1] Magna Carta

  • What is the Magna Carta?

The Magna Carta (“Great Charter”) is a document guaranteeing English political liberties that was drafted at Runnymede, a meadow by the River Thames, and signed by King John on June 15, 1215, under pressure from his rebellious barons. By declaring the sovereign to be subject to the rule of law and documenting the liberties held by “free men,” it provided the foundation for individual rights in Anglo-American jurisprudence. (Source: Britannica).

The island where the Charter was signed is the Magna Carta Island as mentioned by Prof. Xiong. It is also the base of the World Peace and Sustainability Foundation where Prof. Xiong is one of the trustees.

[2] 17 Sustainable Development Goals — by United Nations

  • History:

The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries — developed and developing — in a global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth — all while tackling climate change and working to preserve our oceans and forests. (Source: The United Nations)

  • Contents:

(1) No Poverty, (2) Zero Hunger, (3) Good Health and Well-being, (4) Quality Education, (5) Gender Equality, (6) Clean Water and Sanitation, (7) Affordable and Clean Energy, (8) Decent Work and Economic Growth, (9) Industry, Innovation and Infrastructure, (10) Reducing Inequality, (11) Sustainable Cities and Communities, (12) Responsible Consumption and Production, (13) Climate Action, (14) Life Below Water, (15) Life On Land, (16) Peace, Justice, and Strong Institutions, (17) Partnerships for the Goals

(Source: Wikipedia)

[3] Paper (co-authored) by Prof. Xiong

  • About the paper:

The mentioned paper is published on Nature Communications and has been included in the Timeline of computing by Wikipedia.

The study finds that carbon emissions from Bitcoin mining in China — where a majority of the proof-of-work algorithm that generates current economic value is computed, largely fueled by nonrenewable sources — have accelerated rapidly and would soon exceed total annual emissions of countries like Italy, interfering with climate change mitigation commitments. (Source: Wikipedia)

  • Reference:

Jiang, Shangrong, Yuze Li, Quanying Lu, Yongmiao Hong, Dabo Guan, Yu Xiong, and Shouyang Wang. 2021. “Policy Assessments for the Carbon Emission Flows and Sustainability of Bitcoin Blockchain Operation in China.” Nature Communications 12 (1): 1938. https://doi.org/10.1038/s41467-021-22256-3.

[4] Society 5.0

  • What is Society 5.0?

One definition: “A human-centered society that balances economic advancement with the resolution of social problems by a system that highly integrates cyberspace and physical space.” Society 5.0 was proposed in the 5th Science and Technology Basic Plan as a future society that Japan should aspire to. It follows the hunting society (Society 1.0), agricultural society (Society 2.0), industrial society (Society 3.0), and information society (Society 4.0).

(Source: Cabinet Office)

[5] DFINITY

The DFINITY Foundation is a not-for-profit scientific research organization based in Zurich, Switzerland, that oversees research centers in Palo Alto, San Francisco, and Zurich, as well as teams in Japan, Germany, the UK, and across the United States. The Foundation’s mission is to build, promote, and maintain the Internet Computer. Its accomplished team — which includes many of the world’s top cryptographers and distributed systems and programming language experts, with nearly 100,000 academic citations and 200 patents collectively — is committed to building advanced experimental technologies to improve the public internet. (Source: DFINITY)

More About Prof. Yu Xiong

Professor Xiong’s research focuses on sustainable and technological issues in global supply chains, where he has published in leading international journals, including European Journal of Operational Research, Nature Communications, International Journal of Production Research, International Journal of Production Economics, and Journal of Operational Research Society. He has been guest editors to the International Journal of Operations and Production Management, Technovation, International Journal of Technology Management, etc. He is the Editor in Chief of the International Journal of Chinese Culture and Management. According to Elsevier, from 2014–2020, his number of research outputs in Closed-Loop Supply Chain and Remanufacturing rank №.3 in the UK, his citation rank №.1 in the UK in the same category(CLSC and Remanufacturing) of all the researchers in the UK. His publication in Nature Communications has its Altmetrics score reached more than 1800, and listed as one of the most significant science activities in 2021, and one of the only few research in the world that is included in Timeline of Computing 2021.

Professor Xiong’s research has been funded by EPSRC (Engineering and Physic Science Research Council), Department of Business, Energy and Industry Strategies, British Academy, British Council, Offshore Renewable Energy Catapult, Satellite Application Catapult, China National Science Foundation, etc. Professor Xiong is a Fellow of the University of Cambridge Institute for Sustainability Leadership, Visiting Professor in the Computer Science at the University of York. He also carries visiting positions in several leading Chinese universities including Tsinghua University, Zhejiang University, Central South University, Chongqing University etc. He has brought in more than 26 million pounds to the UK’s innovation projects.

Professor Xiong has created impact in several industries:

Professor Xiong has extensive experience working as director/chair of companies. He was co-Chair of Cocoon Global Limited, this is a £13 million investment that established the largest innovation center in central London, with 7000 square meters. The innovation center supports technology commercialization activities and has helped hundreds of start-ups and SMEs to get funds to reach the market. Apart from this, he was the initiator of the first overseas Tsinghua University Science Park, which was built in Newcastle. This is a £6 million investment innovation center which has created a significant impact on eco-system innovation in North of England. Currently, he is non-executive President of the UK International Innovation Centre, which focuses on scaling the UK’s project into the international market. He is Strategic Advisor to Satellite Application Catapult, the UK’s national center for satellite application technologies, appointed by the CEO of the Catapult.

To know more about Prof. Xiong’s innovative impacts in various industries, please visit his profile page.

Acknowledgments:

Interviewee: Prof. Xiong Yu

Interviewer: Haoxin Yu, Lewis Tian

Executive Editors: Lewis Tian, Haoxin Yu

Chief Editor: Prof. Luyao Zhang

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