Exclusive interview with Li Guoquan: AI and blockchain accelerate a new era of human-machine collaboration

Source: Metaverse Thirty People Forum

Li Guoquan is a professor of financial technology and blockchain at Singapore University of Social Sciences (SUSS), and a member of the Academic and Technical Committee of the Metaverse 30 Forum. Professor Li Guoquan is a professor of financial technology and blockchain at Singapore University of Social Sciences (SUSS), a distinguished professor at Shanghai University of Finance and Economics, an AIDF expert consultant at the National University of Singapore (NUS), the vice president of the Singapore Economic Society and a director of the British Blockchain Association. Council director.

At the same time, Professor Li is also the dean of the Global FinTech Institute (GFI), co-founder and founding chairman of the Singapore Blockchain Association, co-founder of the Blockchain Security Alliance, a member of the Technical Advisory Committee of Ping An One Account, and a member of several listed companies in Singapore. The company's independent director (eToro, HLH), an internationally renowned blockchain scholar and industry opinion leader, an internationally renowned blockchain and inclusive financial innovation and entrepreneurship angel investor, and the main investment advisor of Web3 fund Artichoke Capital, Rule72.

Question:

*What is Teacher Li busy with recently? **What areas are you focusing on? ***

Li Guoquan:

At school, our main job is to research and organize various summits, contribute research to the Web3 community, and strengthen exchanges and cooperation with the industry. **Recently there is an inclusive finance node at Singapore University of Social Sciences, focusing on blockchain, artificial intelligence and technology research related to various contexts. We are mainly busy with several things. The first is to study the decentralized physical world network, that is, the distributed physical infrastructure network, involving the Internet of Things and decentralized networks. In this regard, we have cooperated with multiple institutions, working with various government departments and prestigious universities to study how to implement these innovations in Singapore or schools and introduce the digital economy into the real social economy.

Additionally, I am busy managing the Global Fintech Academy. I just got back from Africa, working with the Singapore Economic Authority to bring some Web3 projects internationally. Africa, the Middle East and Turkey have all shown strong interest in the blockchain industry, especially the Web3 field. Their market potential is huge, Africa has a population of 1 billion, and the Middle East is smaller but well funded, and we have invested a lot of energy in this area. We are actively working in Africa and Australia, bringing Singapore's Web3 to these places, providing professional financial technology training, and reaching out to their communities through training.

At the same time, our Global Fintech Academy is also building a platform to facilitate better communication and capital flow between investors and Web3 entrepreneurs. We hope that investors from all over the world can come to Singapore to invest. Whether it is a Singapore-listed company or a global listed company, they can develop in Singapore with the help of this platform. At the same time, the platform will also bring these Web3 companies to the world, especially China. We hope to cooperate with China in the Web3 industry, create entrepreneurial opportunities for graduates and technical personnel, and let them understand the development of the global Internet through this platform. This is the role that our Global FinTech Academy hopes to play globally.

Recently, I also found out that **with the development of artificial intelligence, the way of education may change. **Through AI, I can transform the teacher's lessons into multiple teaching methods. Although it is the same teacher, the teaching effect is different. Therefore, students can choose different styles of courses, some teachers may be more humorous, and some may be more serious or efficient, which can meet the needs of different students. This is also a way to popularize education and cover remote areas, because not everyone can study at top universities such as the University of Singapore, the University of Social Sciences, and NTU. But we can send these teachers to these places and spread the curriculum of fintech and so on to the whole world.

Through education, we can guide the development of Web3 in a direction that is beneficial to the sustainable development of mankind. So we've been working, not only in blockchain and artificial intelligence, but also in sustainable economics and finance, which have been our recent focus areas of research.

Question:

*You started to study blockchain technology in 2012, and you are also an iconic figure and expert in the blockchain industry. Regarding blockchain and artificial intelligence, please also talk about what kind of sparks will be produced by the combination of artificial intelligence and blockchain, and what innovations will it bring? ***

Li Guoquan:

We have been actively involved in the blockchain and cryptocurrency community as early as 2012, working with regulators and academia in Singapore to promote related activities. Recently, we have noticed the combination of artificial intelligence and blockchain, so we plan to actively establish a global Web3 association, which will be officially launched on September 11, hoping to attract the participation of more Web3 industry practitioners and bring together the entire Web3 community stand up.

What I want to emphasize is that the combination of artificial intelligence and blockchain is of great significance to the following four aspects. **

**First, artificial intelligence reduces the difficulty and cost of content production and improves content quality. **Artificial intelligence has long been used to optimize large-scale blockchains, which are essentially massively distributed systems. We can build a unified artificial intelligence-supported blockchain from the perspective of large-scale systems, including energy optimization solutions, which solves the problem of large power consumption in blockchain systems.

At this point, I would like to emphasize that the security of the underlying technology is non-negotiable, because to develop the digital economy, we must invest a lot of energy. If we are not willing to invest in people, the digital economy will not be realized. We must pay attention to renewable energy and distribute and optimize it from the perspective of artificial intelligence to meet the needs of applications. No country can live without renewable energy, otherwise the digital economy will not be able to develop. This is a basic condition, so in-depth research and investment in renewable energy must be carried out. It's also good for the planet, and we have to realize that technology should be held accountable.

Second, artificial intelligence can help us optimize human resource solutions, solve the problem of high power consumption of blockchain systems, and allocate computing power to where it is needed.

Third, artificial intelligence can learn to detect codes, improve the attack capabilities of blockchain systems, and improve the security of information systems. If you combine the two, you can better ensure security.

**Fourth, the artificial intelligence network utility maximization mode can perform dynamic learning to predict that a node meets a specific mining task, thereby improving mining efficiency. **If the blockchain community does not help the development of the green energy community, the blockchain will face many difficulties. This is the point I want to emphasize.

Artificial intelligence has greatly liberated productivity, but it definitely needs blockchain to coordinate so as not to pose an uncontrollable threat to human beings, so I have a few points I want to share with you.

First of all, I just mentioned that artificial intelligence technology requires a large amount of data for training, so the issue of data privacy becomes particularly important. If our personal data is not properly protected when using artificial intelligence, it poses a significant threat to privacy. **Blockchain technology can solve this problem very well. It not only increases the transparency of data, but also uses encryption technology to protect privacy and is responsible for recording the access history of data, which is very important in terms of governance. **If someone misuses artificial intelligence to commit illegal acts, the blockchain can record these acts. Although we may not know the specific identity, at least it can be traced back to the act itself, thus helping to prevent abuse. Through blockchain technology, we can also realize the separation of data ownership and usage rights, and decide the sharing objects and uses of data, instead of letting the data circulate uncontrollably.

Secondly, **blockchain-based cloud computing can provide distributed computing capabilities for artificial intelligence. **This is very important for artificial intelligence applications, as they often require large amounts of computing resources. For example, gamers' computers typically use a portion of their computing power and storage resources only at fragmented times. Through smart contracts, they can sell these unused resources to generate income. At the same time, artificial intelligence developers can use these idle computing resources to train and deploy deep learning algorithms to avoid wasting computing power and storage resources. Therefore, blockchain can provide more efficient computing resource allocation for artificial intelligence.

In addition, **blockchain can help us track and understand the logic behind artificial intelligence decisions. **Because artificial intelligence models and algorithms are often very complex, it is difficult for humans to understand their decision-making processes. This leads to a problem - we don’t know what the decision-making logic of artificial intelligence is in the digital world. But the blockchain can record these logics and help us better understand the reasons behind the decisions, which is very important to ensure that the decision-making process of artificial intelligence is transparent and explainable.

Finally, a decentralized blockchain can prevent the control of artificial intelligence by a single entity. **If the artificial intelligence system is completely controlled by a centralized server, once a problem occurs, it may have an impact on the livelihood of the entire country, because many infrastructures, such as power and networks, rely on artificial intelligence control. Therefore, decentralized blockchain can be used to decentralize control and ensure that artificial intelligence does not completely take over everything, which is also to protect the safety of people and society.

We live in a trustless environment, so measures need to be taken to protect the privacy of people, ensure data security, provide distributed computing power, and track the logic of artificial intelligence decisions. The combination of blockchain technology and artificial intelligence can provide us with these protections and possibilities to achieve a safer and more sustainable digital society.

Question:

***What do you think are Singapore’s competitive advantages in the field of AI and blockchain? ***

Li Guoquan:

In the early stage of Singapore's development, after about the 1960s, we focused on building infrastructure, mainly in hardware, which is similar to the development ideas of the Belt and Road Initiative. First, we started building ports because having a deep water port would make us a hub for trade. Next, we noticed the need for sound financial infrastructure when conducting trade activities, so we attracted global banks to set up their headquarters in Singapore, and even branches in the Asia-Pacific region, thus establishing an international financial center. In addition to transportation and finance, we have built tourism facilities such as hotels and restaurants, which have attracted a large number of tourists. This series of measures has allowed us to establish a complete hardware infrastructure.

However, things are different now. **Once the hardware infrastructure is complete, we need to develop the software infrastructure. **The Singapore government is thinking about how to develop in this area. We noticed that the concept of financial center is no longer applicable, and the ideas of nodes and blockchain are usually used, so the Singapore government positions Singapore as a node of Web3 and digital economy, rather than a center. To become a node, we cannot do without blockchain and Web3 technology. Therefore, the Singapore government began to take measures in areas such as artificial intelligence, blockchain and big data.

The Singapore government wants to position us as a node of the global digital economy, and in order to be a successful digital economy node, international digital trade agreements are essential. Therefore, the Singapore government is actively promoting these digital trade agreements with other countries, which determine where data is stored and whether technologies such as blockchain are used to address data privacy and regulatory issues.

Secondly, the government must play a leading role. **Because in terms of infrastructure, especially when we first foray into the public blockchain space, we need to jump over hurdles like Bitcoin. There is nothing to stop people from downloading this software and connecting to a different node or IP address, so we need to be transparent. The government needs to learn from Satoshi Nakamoto’s experience and lessons. They recognize that to cross borders, they must rely on digital economic infrastructure, not just private blockchains. The role of the government is to promote the development of private chains. In Singapore, you can see that the government has launched a number of schemes aimed at solving the problem of non-cooperation between banks. The government issued an order requiring cooperation among banks to establish blockchain nodes. In the business community, this kind of collaboration is difficult to achieve, only regulators can achieve it. The government told banks to build payment infrastructure, blockchains for digital assets, and conduct blockchain exchanges. Both banks and licensed blockchain micro-companies can participate. If the banks won't cooperate, that's okay, the government will issue new licenses for the digital economy. We invited Tencent, Alibaba and Greenland Group from China, and a World Bank established in Singapore. In fact, many Chinese domestic and international companies are doing Web3 business in Singapore. This is because it has advanced infrastructure and regulations, which is different from the retail market and more suitable for institutional development.

Why do you say this way? Because if retail investors lose money, they will complain to the regulator, and the regulator must take action. Therefore, after careful consideration, the Singaporean government believes that if measures are not taken to bring irresponsible speculators into the legal system, it will lead to market chaos. We're not going to ban people from buying bitcoin, ethereum, or other cryptocurrencies, but we want all institutions, licensed or not, to be held accountable. If something happens in the future, don't interfere with policies and regulations, but cooperate with these licensed companies, and the issue of fines will be handled by us.

But if regulatory agencies can take responsibility, I think there is no need to interfere with the development of the entire Web3 business. Therefore, I think this strategy is very important not to let irresponsible speculators destroy our digital economic ecosystem. This is an idea of the Singapore government. We are not promoting internationalization, but we encourage and assist the development of responsible Web3 projects.

**The government leads by example and combines the government's alliance chain, public chain and private chain together. **In Singapore, all school and university certificates are linked to relevant data on the Ethereum chain. The government has also come up with the idea that blockchain has its greatest potential use in the absence of a single system of control, where everyone is a node.

**In terms of trade, the cost of trade cooperation is the highest, and blockchain can solve this problem. **The Singapore government has proposed a trade trust platform called "Trade Trust Balance", referred to as TXT. What is the main goal of TXT? What it does is that anyone, regardless of whether they have trading needs, can use this platform to verify the existence of the certificate and use it for transactions and other related operations. This platform takes into account both public and private chains, and all data undergoes required privacy protection. This privacy protection is the responsibility of the government. But the trust mechanism is maintained by the public chain, which means that trust and reliability can be ensured, and can only be achieved on the public chain, not the private chain. This is a huge advantage for public chains as it can better ensure privacy.

The thinking of the Singapore government is that you can see that recently they have provided 150 million in funding specifically for projects in areas such as AI and blockchain. As long as your project is a responsible Web3 project, you can cooperate with the Singapore government and may even help you enter the African market.

Singapore's development is sustainable and it has a great mission. Our goal is an inclusive platform involving inclusive financial technology and sustainable CBD economic development. Our Web3 project aims to help SMEs transition as future carbon taxes will be high, especially for companies like Singapore Airlines whose aircraft have an impact on the environment and need to transition their aircraft to a carbon neutral approach, This requires a lot of capital. So how does our Web3 community collaborate with this? This is something we need to consider. They must ensure that the aircraft are transformed into environmentally friendly ones. We can also introduce blockchain technology into the transportation sector to help people choose the lowest-emitting transportation mode before going out. Taking the subway is the lowest emitting way and we need to develop subways and public transport rather than having as many large cars as possible.

Owning a big car with 3,000 watts in Singapore is not a wise choice, it will cause doubts to the Singapore government. Because on the one hand, you need to be responsible for technology, and the government is supporting you, but on the other hand, you choose vehicles with large emissions, which is unreasonable and inconsistent with the concept of truly serving the people. If you are a practitioner of Web3, I suggest you take the subway or bus. We promote this behavior no matter how rich you are. This is our way of showing our sincerity, rather than just focusing on profitability.

**In Singapore, building a brand is not about spending a lot of money to buy traffic, but about showing your sincerity through actions and showing your true side. **Your behavior is your company's brand. Even if no one is recording your actions, you must be kind to family and strangers around you. This is the most important brand for internationalization in Singapore. I have also noticed that many people from other countries come to Singapore, and if they do not integrate into the Singaporean culture and understand how to expand their business in the international market, then they will not be able to go global.

Question:

***What’s special about Singapore’s research and education in blockchain, artificial intelligence, and the metaverse? ***

Li Guoquan:

Singapore began to actively cooperate with the community in 2010 to explore how to promote the development of Singapore in the global financial field. One of the reasons why Singapore is so great is that it is small in location but has very elite talent.

Although Singapore is small, there are also some fraud syndicates, which have been reported in the news recently. These fraud syndicates are usually discovered quickly because the country is small and there are not many places to hide, which may be more difficult to do in larger countries. Therefore, large countries must be more cautious.

Small countries also have their advantages, as governments are easier to control and therefore easier to support innovation. For Web 3 practitioners, Singapore is a place where all your dreams can come true if you have an honest will. But if you have bad intentions and just want hype and speculation, then better not come to Singapore as such behavior will not be tolerated here. In Singapore, your brand and reputation are very important, if you are associated with scam syndicates or other improper activities, then your reputation will be damaged.

Singapore's leaders are very smart, and government civil servants are full of responsibility for social services. When business and academia advise them, they go to great lengths to transform regulations into a form that benefits business and academic research. They boost funding for school research and bring scholars into communities to build ecosystems. For example, the Singapore Fintech Society has funded us, and the Singapore Blockchain Association is also supporting us. I believe that in the future they will give greater support to the development of the Global Fintech Academy and the Global Web3 Association.

The government's plans to help Web3 and schools are very clear. The government has provided a lot of support, whether it is in the field of advanced education or in the field of Web3. Regarding education, we need to develop students who have the skills to work in companies. The role of the school is not just to produce academics, but to produce socially connected practitioners who help companies internationalize. Therefore, the school offers a specialized curriculum which makes our education unique. Some scholars are dedicated to research, but there are also two-thirds of the school's academics who are dedicated to teaching. Their goal is to ensure that students can quickly work for the company after graduation and help the company internationalize. We need to equip students with real business-related skills, not just pure academic knowledge.

Singapore has adopted a collaborative approach, where the government, schools and communities complement and help each other. The government is not a superior regulator, but a collaborator, willing to help solve problems. If you have a problem that you can't solve, you can find academics and the government will provide funding. Community groups are also fully supported, no matter what you are doing in the community. This collaborative spirit has led to Singapore's ongoing success.

We invest heavily in education and support projects researching blockchain innovations. Our universities, especially those in the social sciences, have begun working with companies in areas such as blockchain and Web3 to incorporate this knowledge into their curricula. We don't just focus on the technology, but also on the business side, especially the sustainability of the business model. Business schools have played a key role in driving this forward. Business schools are also actively promoting research and education in fintech and blockchain. Business school students have an advantage in this field because they understand business and technology, and in the future they will become leaders of enterprises.

**Our education is international and committed to teaching students how to understand Bitcoin-related codes. **Initially, some Singapore universities restricted access to cryptocurrency networks, resulting in our students being unable to access these networks, including Ethereum and others. Our teachers think this is unacceptable because the government is using Ethereum, so our school needs expertise in this area.

Unlike universities in other countries, universities in Singapore can operate on any network. This is because** we need to learn skills like smart contracts and writing code to support our Web 3 projects. **The government's science and technology department has played a key role in this regard, providing us with many teaching materials and resources. Therefore, unlike universities in other countries, Singapore has a more open and cutting-edge way of thinking.

Therefore, schools have specially created these courses, which is the difference in our field of education. We need to do research with leaders in industry who may not have as good academic writing skills as academics, but they are very good at business models, which makes them more valuable than academics. The PhD in Business program aims to prepare students to become scholars who can spread their ideas globally and enhance the brand value of their companies. In this respect, schools play a key role in a way that differs from other countries.

Questions:

***What are the ways to combine human and machine? What role does artificial intelligence play in the integration of humans and machines? What impact do they have in real life? ***

Li Guoquan:

There are many ways to combine humans and machines, and we are already using them extensively in real life. The main combination methods can be divided into the following types.

The first is Human-computer interface, which is the most direct way. For example, we use computer keyboards and mice every day, as well as hearing aids, etc. Artificial intelligence can further improve the efficiency and convenience of human-machine interfaces. Now, we can assist devices through voice recognition, gesture recognition, etc. to help us complete tasks better.

In addition to this, we now have smart watches and health monitoring devices that can automatically adjust by learning the user's habits and needs, including language and device adaptability. What's more, they can provide personalized services instead of being limited to a single product, which is very important for our needs.

Blockchain is another important area where we need to improve personal experiences through personalization. AR/VR technology can change people's perception of the real world through computer-generated images, and artificial intelligence can also help create more virtual environments and provide a better user experience, which is the most critical.

Robots, including self-driving technology, can better assist humans in various activities, enabling machines to understand and adapt to the complex real world. Advances in brain-computer interfaces allow us to more directly connect brains to machines, although the fusion of the human brain and the machine may still be in its early stages. However, the research and application of these aspects will play an important role in the future.

In terms of medical care, privacy protection, employment security, social dependence, etc., our schools are currently most concerned about the collaboration between humans and machines. For example, some schools believe that the GPT model should not be used because it may involve privacy protection issues, while others believe that fully automated collaboration should not be used because students may forget how to perform calculations manually.

Schools in Singapore are currently teaching ways to work effectively with machines, and every student needs to be transparently announced when using generative AI. Transparency is important for the union between humans and machines, but the technical aspect alone is not enough. This is the way education in Singapore is, with its focus on ethics, morals and professional standards.

I think that the combination of humans and machines will generate and drive many research projects, but all of these design ideas must consider ethical, moral, and professional standards, which cannot be ignored. The school encourages various colleges to conduct interdisciplinary research, not only the School of Computer Science, but also the School of Business needs to participate. Business schools have always been interdisciplinary, covering areas such as law, finance, sales and the humanities. Now, business schools also include computing schools, so I encourage all business schools to quickly promote interdisciplinary research, which is very important.

Questions:

***Can you share why Web3 and the foundation of the government's digital economy are inseparable? What specific scenarios do we need to focus on? ***

Li Guoquan:

There are some common goals between Web3 and governments, the most important of which is to develop the infrastructure of the digital economy, including central bank digital currencies, which are the most basic digital infrastructure tools. **However, the real goal is to make all production and products fair, which is our ultimate goal. From the government's perspective, there is no government without taxation, so taxation is crucial to the government. If there is a more transparent and fair digital economy, the government will definitely support this approach.

In addition, governments need to consider the relationship between taxation and carbon credits, taxation is one of the important sources of government, and every government is looking for ways to increase taxation and improve transparency. Therefore, the government has invested a lot of energy in building digital infrastructure, but the digital infrastructure that can really help multinational companies is the infrastructure that a country can self-discipline and become a node. This is very important for the promotion of blockchain, just like Satoshi Nakamoto, who disappeared after creating Bitcoin. If a public chain is controlled by a specific person or entity, it will no longer be a truly decentralized public chain. A true public chain should be a process in which the initiator gradually dilutes himself.

**The government must actively embrace decentralization. If it does not, the government will face external threats and internal pressure. **The government needs to help the business sector expand markets and create jobs for people. In Singapore, we have taken steps such as the introduction of a new digital identity verification system so that everyone has an independent identity.

The government is beginning to gradually decentralize, first by building a decentralized online infrastructure. Then the government provides a copy of the identity verification for the business, the global company only needs to register on the decentralized registrar, and Singapore will provide certification that these companies have no money laundering or fraud, and digital banks will be willing to provide loans to these companies. This infrastructure is not just to attract companies to Singapore, but also to help other countries build decentralized infrastructure.

Regarding some application scenarios that need to be focused on, I think there are these key areas:

The first is Digitalization. We are gradually going digital and this is the first step to focus on.

The second step is Decentralization. We need to determine which institutions need to be decentralized, which is also a potential outlet.

The third is the democratization (Democratization) ***. We need to democratize technology so that more people can access and benefit from it, which is very important for achieving sustainable development.

The fourth is *** Self-shrinking (Self-Shrinking) ***. This means that governments or institutions gradually fade out in the decentralization process so that communities and markets can function better.

The most important and biggest outlet is Data Security ***. Data security and privacy protection are key areas of long-term and sustained attention, and must not be compromised. Governments will be aggressive in promoting data security, so positioning in this area is critical.

Question:

***What opportunities do you think there will be for cooperation between China and New Zealand in the fields of AI and blockchain in the future? What advice do you have for Chinese entrepreneurs who want to develop in Singapore? ***

Li Guoquan:

I want to emphasize that China is the largest market in the world. If you plan to succeed in the Web3 field, China must be a key market. China is the market of the future. There is no doubt about this.

I would like to remind everyone that Singapore has also gone through a period of instability. In the 1980s, the Singaporean government at the time took a very neutral and strict regulatory approach, which, while somewhat controversial at the time, was actually the right thing to do. This period can be seen as a transitional period, and when the government stabilized, Singapore's development was a great success.

China is definitely the largest market in the world, and I am personally optimistic about China's future. I know that some people may choose to leave China to find opportunities, but I think China is the direction of future development. In fact, China and Singapore already have extensive cooperation. In Chongqing, our School of Fintech has signed an agreement with a partner unit of the Chongqing government, and the Chinese government has made it clear that it welcomes this kind of cooperation.

As for the development of Web3 abroad, I am very clear that you can establish exchanges and conduct Web3-related businesses abroad, but please do not interfere with the stability of China. Financial stability and social stability are crucial to China.

The Chinese government has always encouraged talents to go out, and this time we really went out. The government hopes that these Chinese talents who have accumulated experience abroad can make greater contributions to the country's development after returning to China. In the development of a country, it is important to accumulate international experience.

Finally, I would like to emphasize that the cooperation between Singapore and China is constantly deepening. The United States and Singapore are also actively cooperating. This is exactly Singapore's advantage, being able to build partnerships between different countries, whether it is with China or the United States.