AI going to replace Blockchain?

Originally published in China Press on 5 August 2024

TS Wong: No Competitive Relationship Between The Two

In recent years, the market has enthusiastically embraced artificial intelligence (AI) topics. Blockchain, once a top ten buzzword in 2019, seemingly fading from the public eye. However, AI and blockchain are not mutually exclusive technologies; the retreat of blockchain does not imply it has no future relevance to the general public.?

TS Wong, founder and managing director of MYEG Services Bhd, believes that AI and blockchain are not interchangeable. The two are complementing each other and will drive disruptive developments in the next-generation digital ecosystem.

Blockchain and AI each have unique advantages. Blockchain, with its decentralised, secure, transparent, and immutable characteristics, provides a trustworthy foundation for data management. AI, through learning and simulating human intelligence, offers powerful decision support for various applications.

In an email interview with China Press, TS Wong pointed out that the current global hype around AI has indeed reduced the attention on blockchain and cryptocurrencies. However, it is crucial to "distinguish between hype and reality."

"The reality is that blockchain and cryptocurrency are still actively being developed for real-world applications."

He emphasised that as the world moves towards full digitalisation, all assets will need to be digitised. Blockchain serves as the platform enabling digital asset ownership while asserting personal ownership.

"Blockchain plays a crucial role in realising digital asset ownership, a function that AI cannot replace."

Foundation for Enhanced Security

TS Wong believes that AI and blockchain are actually complementary technologies. Successfully integrating AI into blockchain will enhance the functionality and efficiency of decentralised systems, simplify operations, and enable personalised user experiences. Meanwhile, blockchain will serve as a cornerstone for data privacy, enhanced security, and predictive maintenance.

For many years, MYEG Services Bhd has been at the forefront of blockchain applications through its Layer-1 blockchain platform, Zetrix. Additionally, ZTrade leverages Web3 technology to provide a reliable solution for secure and efficient trade clearance management digitisation. MYEG's long-term goal is to lead the global transition to a decentralised, secure, and efficient digital ecosystem, continually offering innovative solutions to address challenges across various industries.

Driving Three Major Applications to Mainstream

TS Wong pointed out that MYEG remains committed to pushing blockchain technology into the mainstream and effectively applying it in the real world, by implementing digital ID, trade digitalisation, and central bank digital currencies.

"These projects require the digitisation of a wide range of assets, not just money, but anything of value, necessitating blockchain technology."

The company is currently collaborating with the University of Malaya and the China Academy of Information and Communications Technology (CAICT) to explore integrating AI into blockchain technology. For example, ZTrade, which was developed with China, is expected to improve cross-border transaction speed and convenience by incorporating AI.

With Zetrix integrated into China’s national blockchain, Xinghuo, and China’s role as a global trade powerhouse, Zetrix has an advantage in driving the digital transformation of cross-border trade.

TS Wong also mentioned that the company would continue integrating AI into existing business products. For instance, their online platform, Compare, uses AI algorithms to analyse user preferences and behaviour patterns, offering personalised recommendations for various insurance products, thereby simplifying the decision-making process for users.

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Actively Expanding the ASEAN Market

MYEG continues to expand its business footprint in China, but TS Wong emphasised that the company's focus is not limited to China. They are also actively expanding into ASEAN countries and those in the Regional Comprehensive Economic Partnership (RCEP).

"In addition to using ZTrade in Malaysia and China, we are collaborating with the Philippine Ports Authority and the Cargo Data Exchange Center to implement ZTrade in the Philippines, facilitating the country's accelerated online customs clearance services for exports to China."

Furthermore, the widely used digital certificate platform, ZCert, in China will also be extended to other countries to support government digital transformation initiatives. ZCert allows users to digitise identity cards or driving licenses, store them as verifiable credentials (VC) on Xinghuo, and through Zetrix's integration with the Xinghuo blockchain, these credentials can be verified abroad.

In Malaysia, following the successful pilot tests for the automated training and driving test system, MYEG Services is making good progress in the development of the Driving Test System (MYDTS).

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Zetrix Still Has Great Potential

Having pursued blockchain technology for many years, TS Wong believes that MYEG is gradually realising its vision of discovering disruptive technologies that can reshape daily life.

"In line with this vision, we have developed our own blockchain platform and positioned ourselves as the early adopters of Web3 technology, particularly in our region, and this vision has been realised through the development of Zetrix."

He emphasised that Zetrix still holds significant potential. In addition to expanding its services to other countries, the company is considering introducing additional features to enhance ZTrade's functionality, such as improving supply chain financing for cross-border trade.

He believes that these features will further enhance MYEG's global impact, reducing reliance on any single country or specific service area.