Blockchain Technology Development in Ten Years: From Revolution to Integration

In 2015, the launch of the Ethereum mainnet marked a new era of smart contracts for Blockchain technology, while also laying the foundation for its diversified application scenarios beyond Bitcoin. Since then, Blockchain has no longer been just the distributed ledger technology behind Bitcoin, but has carried more expectations such as "decentralization" and "trustworthy collaboration."

Due to the natural fit between blockchain and the flow of funds, the traditional financial sector was the first to pay attention and attempt to apply it to the optimization of processes such as fund settlement and clearing. In 2015, a report noted that several well-known financial institutions showed a strong interest in blockchain technology, focusing on exploring its application in the settlement process. By the end of 2017, a large technology company launched a blockchain cooperation project covering multiple fields such as cross-border payments, education, food safety, identity verification, insurance, and shipping, and predicted that more industries would be directly impacted by blockchain in the future.

It has been proven that from 2017 to 2021, a wave of "Blockchain innovation craze" indeed swept through various industries. A survey conducted in 2018 showed that over 84% of surveyed executives stated that their companies had ventured into the blockchain field to some extent. However, these explorations were mostly focused on "permissioned ledgers," essentially using blockchain to achieve data sharing and tracking within enterprises or between partners. However, constrained by the existing digital infrastructure of enterprises and the lack of blockchain governance, the potential of the technology is difficult to fully unleash.

"Governance" was once one of the most disliked topics in the blockchain community, but over time, people have gradually realized that governance is not only the key to promoting the mature application of blockchain but also a necessary condition. Reports from multiple international organizations have pointed out that for blockchain to enter a mature phase, in addition to technological breakthroughs, continuous efforts are needed in non-technical areas such as standardization and regulatory frameworks.

As "governance" becomes the main theme, the application path of Blockchain gradually shifts from the idealized notions of "revolution" and "disruption" to an "evolutionary integration" with existing systems. After 2021, people's focus on Blockchain has returned to the financial sector, specifically in terms of "tokenization." This concept refers to the transformation of traditional assets into a digital form that is recorded and circulated on programmable platforms such as Blockchain. Recent practices in tokenization emphasize introducing Blockchain based on the advantages of the existing financial system while also focusing on compliance and controllable risks.

Over the past decade, although various industries have been keen to explore Blockchain for business innovation, most applications still revolve around "transparency" and "public ledger", lacking truly irreplaceable core functionalities. In many scenarios, Blockchain is more of a complement to existing database technology rather than a complete transformation. For example, supply chain traceability, public donation records, and some government electronic invoice systems often use Blockchain to enhance trust endorsement rather than fundamentally reshape processes.

The development path of Blockchain often gives people a feeling of "scratching an itch over the boot." No one denies its value as a technological innovation, but in many industries outside of the gray market, Blockchain has not effectively met core needs. Many seemingly cutting-edge attempts inevitably fall into the trap of "innovation for the sake of innovation." To this day, people's expectations for Blockchain have spread from finance to various industries and ultimately returned to finance—after all, people have realized that finance may be the area with the most practical demand and landing space for Blockchain.

In recent years, Hong Kong's policy support for stablecoin legislation and RWA tokenization indicates its attempt to find a balance between compliance and innovation to attract quality digital asset projects, consolidating its position as an international financial hub in offshore RMB, cross-border payments, and asset management. However, this direction also faces numerous challenges. Taking stablecoins as an example, the global market often presents a "winner-takes-all" pattern, with US dollar stablecoins long dominating retail transactions and value storage. For Hong Kong dollar stablecoins to break through, clearer differentiation and ecosystem construction are needed to fully leverage Hong Kong's unique advantages as an offshore financial center.

As regulations gradually improve and pilot programs deepen, if the advantages of Blockchain and traditional financial systems can be organically combined under the premise of controllable risks, Hong Kong still has the potential to occupy an important position in the global digital financial landscape, truly becoming a "bridge" and "testing ground". Whether Blockchain can overcome the predicament of "scratching an itch through the boot" in Hong Kong still requires time for verification, but at least, the direction has become increasingly clear.