证券公司需要区块链吗知乎,证券公司需要区块链吗
现在，越来越多的人开始关注区块链技术，而证券公司也不例外。证券公司需要区块链吗？本文将介绍三个相关关键词，以深入了解证券公司需要区块链的相关信息。
去中心化交易：去中心化交易是指没有中心化机构或者中介机构参与的交易，而是通过一种去中心化的网络系统实现交易。区块链技术可以帮助证券公司实现去中心化交易，因为区块链技术可以在不受中心化机构控制的情况下实现交易。例如，证券公司可以使用区块链技术来实现去中心化的证券交易，从而减少了交易成本和交易时间。
数字资产管理：数字资产管理是指通过数字化手段来管理资产的过程。区块链技术可以帮助证券公司实现数字资产管理，因为区块链技术可以帮助证券公司实现安全可靠的数字资产管理。例如，证券公司可以使用区块链技术来实现对数字资产的安全存储和安全交易，从而提高了资产管理的效率。
跨境支付：跨境支付是指在不同国家和地区之间进行货币交易的过程。区块链技术可以帮助证券公司实现跨境支付，因为区块链技术可以在不同国家和地区之间实现安全可靠的货币交易。例如，证券公司可以使用区块链技术来实现跨境支付，从而提高了货币交易的效率和安全性。
从上述内容可以看出，证券公司实际上是需要区块链技术的，因为区块链技术可以帮助证券公司实现去中心化交易、数字资产管理和跨境支付，从而提高了交易效率和安全性。因此，证券公司未来将会更多地使用区块链技术，以提高其业务效率和安全性。
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『一』 Is it too late to engage in blockchain work? Where can I start?
Currently, blockchain is not only applied in the financial industry, but can also be applied in the following industries. Simple For example, banking, payments and cash transactions, cybersecurity, academic records and academia, elections, networking and the Internet of Things, predictions, copyright, and many more. There are still many fields that require blockchain technology, so it is conceivable that the Internet+ that we all mentioned before will become a blockchain+ situation in the future.
From the demand side, finance, medical care, notarization, communications, supply chain, domain name, voting and other fields have begun to realize the importance of blockchain and began to try to use it. Connect technology with real society.
From the investment side, the supply of investment funds in the blockchain is gradually increasing, the investment enthusiasm of venture capital is also rising, and the investment density is getting larger and larger. The supply of funds on the supply side is expected to promote the further development of the technology.
From the perspective of market application, blockchain can become a market tool to help society reduce platform costs and make intermediaries a thing of the past; blockchain will prompt the company to shift the focus of its existing business model, and is expected to Accelerate company development.
From the perspective of underlying technology, blockchain is expected to promote the transformation of data recording, data dissemination and data storage management methods; blockchain itself is more like an open source protocol at the bottom of the Internet. In the future, it will touch or even completely replace the underlying basic protocols of the existing Internet.
From the perspective of social structure, blockchain technology is expected to integrate law and economics, completely subverting the original social supervision model; the organizational form will change as a result, and blockchain may eventually It will lead people towards a distributed autonomous society.
Where should I start if I want to learn blockchain?
First of all, we need to have a comprehensive understanding of the origin and cognition of blockchain from a macro perspective, and why we need to do this. Because without understanding, we have no right to speak. Without understanding, how to judge the next trend is to differentiate. Blockchain, even if others follow what others say, still needs its own learning and understanding as support. So, what do you need to know? The content I have listed is for your reference only. If you are already in the currency circle, you will have something to learn. If you understand, you can skip this step:
1), basic theory of blockchain
2), introduction to basic programming (basic of computer software and hardware, character set and character encoding, HTML5+CSS3 and other front-end technologies, ECMAScript+BOM+DOM, jQuery, node.js, Ajax and Express framework)
3), Go programming language and database operations
4), Blockchain 1.0 programming ——Bitcoin
5), Blockchain 2.0——Ethereum
6), Nebulas Chain and EOS development practice
7), District Blockchain 3.0 - Fabric of Hyperledger
Zhizhi is still struggling in the blockchain trendYou: Where there is demand, there is a market. There is no shortage of outstanding technical talents in society. After understanding it well (you can refer to Qianfeng’s blockchain video tutorial), you must be sure to start carefully.
『二』What is the most important application of blockchain
Financial field
Blockchain has inherent advantages in the financial field. The financial industry is a company that is committed to security, In industries with extremely high stability requirements, if the application of blockchain in the financial field is verified, it will have a huge demonstration effect and be quickly promoted in other industries.
(1) Insurance business: With the development of blockchain technology, personal health status, accident records and other information may be uploaded to the blockchain in the future, allowing customers to obtain insurance in a more timely and accurate manner. Risk information, the shared and transparent characteristics of blockchain reduce information asymmetry and reduce the risk of adverse selection; and its history traceability characteristics are conducive to reducing moral hazard.
(2) Securities market: The securities trading market is a very suitable application field for blockchain. The fit between the two is very high. Traditional securities transactions need to go through central clearing institutions, banks, securities companies and exchanges. Only the coordination of the four major institutions can complete stock transactions. The efficiency is low and the cost is high, but the blockchain system can independently complete one-stop services.
(3) Notarization: There is no need to go into more details about how traditional certificates are issued. It is too common to falsify academic qualifications. It is normal to buy fake things in life. Because of the open and transparent nature of blockchain, blockchain is perfect to solve this problem!
(4) Payment system: Logically speaking, it should be the most difficult to use blockchain for such an application. It has too much resistance. Currency is no joke! The strange thing is that banks have gone from being dismissive in the past to now scrambling to study blockchain. I can’t comment on the possibility of this disruptive idea that electronic cash systems will replace banks. What I see is that banks have realized the sense of crisis, and perhaps private chains are the defensive walls they have built.
Of course, whether you want a blockchain wallet for payment or an exchange to make money, you need an excellent and reliable blockchain development company to serve you. I recommend you Chongqing Anonymous Technology. Hope this helps.
『三』Chile Central Bank Governor: CBDC monetary policy channel may be faster and more powerful, but blockchain is not necessary
According to foreign media reports, last week the OECD global blockchain At the panel discussion of the Chain Policy Forum, Mario Marcel, Governor of the Central Bank of Chile, delivered a speech titled “Panel Discussion on Advanced Policy on Central Bank Digital Currency”. In his speech, Marcel said that a central bank digital currency (CBDC) could provide additional flexibility during periods of unconventional monetary policy. He also said that while a central bank digital currency may have many benefits, it does not necessarily require blockchain.
Mario Marcel believes that cryptocurrencies such as BitcoinDisruptive financial technologies such as digital currency solve some gaps in traditional finance, which can be roughly divided into five categories: access, speed, cost, transparency and security. At the same time, distributed ledger technology can provide some benefits that traditional currency technology cannot provide. Not only that, because the central bank’s real-time gross settlement (RTGS) system now exists, the central bank’s digital currency itself is not a novel concept. He explained that blockchain technology may be more useful when participants who don't trust each other need to access a ledger of information, but when a central bank issues currency in physical or digital form, trust is already a "given" .
In addition, Mario Marcel also cited the digital currency of the Central Bank of Uruguay as an example. The country’s central bank digital currency called “e-Peso” is not based on blockchain. Interestingly, the Central Bank of Chile is exploring other use cases for blockchain, such as bonds. Mario Marcel said that the Central Bank of Chile has cooperated with the country’s Central Securities Depository (CSD) to explore the feasibility of issuing blockchain bonds, which is expected to be released in November.
He also pointed out that distributed ledger technology and central bank digital currencies can "improve market efficiency". In an "unconventional" monetary policy environment, these digital currencies can be more flexible and can provide more central banks. Intervention tools to reduce the risk of bank runs. But at the same time, he also pointed out that central bank digital currency does not necessarily require blockchain, but in a world with central bank digital currency, monetary policy channels may be faster and more powerful.
『四』Financial technology can empower securities companies from several aspects to form technological support
1. The English translation of financial technology is Fintech, which is the abbreviation of Financial Technology. It can be simply understood as Finance + Technology, which refers to using various technological means to innovate the products and services provided by the traditional financial industry, improve efficiency and effectively reduce operating costs.
2. Mainly use cutting-edge scientific and technological means including artificial intelligence, credit reporting, blockchain, cloud computing, big data, mobile Internet and other means
Expand information
(1) Using big data, cloud computing, artificial intelligence The new industrial revolution and technological revolution led by , blockchain and mobile Internet will lead to the boundaries and research paradigms of financial disciplines being constantly broken and reconstructed.
(2) The current round of science and technology explosion has caused a disruptive impact on the traditional development model of the financial industry. The main reasons are as follows: on the one hand, the global data accumulation stock has reached the scale and level that triggered a new round of industry changes. Global data is growing rapidly at about 40% per year. In 2017, the total amount of global data was 21.6ZB (1 ZB is equal to ten trillion bytes). Financial data accounts for a high proportion of it. In addition, the financial market naturally has Massive standardized big data is suitable for cutting-edge technology to take root.
(3) On the other hand, there are cutting-edge technologies such as artificial intelligenceThe use of algorithms, computing power, and revolutionary breakthroughs in hardware technologies such as GPU, TPU, and NPU have gradually brought an end to "Moore's Law" that has been stable for 50 years. Technology has profoundly changed the financial industry and has begun to become the commanding heights of future financial development. Fintech is actively deploying in various fields of the traditional financial industry and has become a new trend.
(4) The technologies involved in financial technology have the characteristics of rapid iteration, cross-border, and mixed industry. It is the superposition and integration of cutting-edge disruptive technologies such as big data, artificial intelligence, and blockchain technology with traditional financial businesses and scenarios. It mainly includes four core parts: big data finance, artificial intelligence finance, blockchain finance and quantitative finance.
(5) Big data finance focuses on the acquisition, storage, processing, analysis and visualization of financial big data. Generally speaking, the core technologies of financial big data include the basic underlying layer, data storage and management layer, computing processing layer, and data analysis and visualization layer.
(6) The data analysis and visualization layer is mainly responsible for simple data analysis, advanced data analysis (which has some overlap with artificial intelligence) and the visual display of corresponding analysis results. Big data finance is often also committed to using Internet technology and information and communication technology to explore the research and development of new financial business models of financial financing, payment, investment and information intermediary.
(7) Artificial intelligence finance mainly uses artificial intelligence technology to deal with problems in the financial field, including stock price prediction, assessment of consumer behavior and willingness to pay, credit scoring, intelligent investment advisory and chat robots, underwriting and claims settlement in the insurance industry, Risk management and stress testing, financial supervision and identification monitoring, etc. Artificial intelligence technology mainly includes cutting-edge computer science knowledge such as machine learning theory, which is mainly based on algorithms. Machine learning theory is a subset of the conceptual category of artificial intelligence, which mainly covers three major theories: supervised learning, unsupervised learning and reinforcement learning.
(8) Blockchain technology is a decentralized big data system, a public ledger of all valuable things in the digital world, and a specific application of distributed cloud computing networks. Once blockchain technology becomes the underlying organizational structure of the future Internet, it will directly change the governance mechanism of the Internet, eventually completely subverting the existing underlying protocols, leading to the intelligence and decentralization of Internet finance, and the emergence of new financial formats driven by algorithms. Once mature blockchain technology is implemented in the financial industry and forms an ecological business closed loop, financial transactions may have a near-zero-cost financial transaction environment.
『五』What is blockchain and can it be invested in?
What is blockchain and can it be invested in?
Blockchain technology is an emerging concept after the introduction of the Internet concept. It mainly solves the information asymmetry in society and provides decentralized services. Give an example to explain what blockchain technology is:
Usually we deposit cash into the bank. Every time we withdraw money, the transfer must go through the bank system to complete. So if we use blockchain technology goTo solve this problem, then our money does not need to be placed in the bank. When transferring money to others, we only need to transmit data on the chain. The transfer record data will be recorded by the entire network, and the consumption path of the amount can be found at any time. There is no need to go through any intermediary to complete the intermediate recording.
This is just one of the scenarios where blockchain technology is applied. At present, the payment industry, gaming industry, lottery gambling industry, etc. are the most widely used blockchain technology.
In the nascent stage of the development of blockchain technology, many investors will naturally see the development potential and prepare to invest in blockchain. So how to invest in blockchain? Everyone knows that with the emergence of blockchain technology, digital currency will be generated, and the circulation of digital currency will generate value. Ordinary people can invest in blockchain by purchasing digital currency. Common digital currencies include Bitcoin, Ethereum, Yuzi, etc. However, the risk is extremely high. The return is much higher than that of stock investment, but the risk is also several times higher. Therefore, when investing in blockchain, the choice of digital currency is also very important. For novice investors, it is recommended to choose mainstream currencies, such as Bitcoin, Ethereum and Ripple. Their value has been basically recognized, they have a consensus mechanism, and the price will not drop significantly. However, the corresponding blockchain technology is still the best. Ethereum.
For professional risk control investors, you can choose to invest in blockchain companies, taking a fancy to their long-term value and tokens. Nowadays, blockchain companies will issue coins, which are so-called digital currencies. However, their value is zero and they have no actual circulation significance. Therefore, when choosing to invest in a blockchain company, you still need to clearly see the content of the company's projects, whether they can be truly implemented, and how much potential they have for changing human life in the future.
『Lu』 How can blockchain technology be correctly applied to the financial industry
Looking back to 2008, blockchain technology has demonstrated the changes it can bring in different business fields. . Although this technology is still in its infancy, it has already changed many industries. Various properties of blockchain, such as decentralization, immutability, and transparency, can transform business models. Especially for the banking and finance industry.
Although there are still many problems, blockchain has the potential to reduce costs and labor for the financial and banking industries. According to a Deloitte report, 24% of financial institutions around the world are familiar with blockchain technology, and North America will be more familiar with these technologies than other places. Considering the broad applicability of this technology, companies are gradually looking for different areas where blockchain can be applied.
Especially in the banking and finance industry, hundreds of funds are moving from one end of the world to the other every day. This makes the global financial system one of the industries that can profit from blockchain applications. The banking and financial industry requires a lot of manual labor. If there are any errors at this time, it will have a great impact on the financial system. According to the Global Fintech Report, in 2017, 77%of fintech institutions hope to use blockchain as a financial production system in 2020.
Application of blockchain in banking industry
For a basic understanding of blockchain technology and operation methods, the real question in your mind may be: Is blockchain really Can the land be applied in the banking industry? If so, how can we best leverage blockchain technology? And, most importantly, will blockchain stay where it is or move forward?
According to a report from Harvard Business School, blockchain is now to the banking industry what the Internet is to the media. Blockchain can solve many problems in the banking and financial industry. Blockchain technology has all the characteristics that reliable technology should have, including financial-related businesses.
Blockchain can provide a high level of security, especially when it comes to exchanging data, information and money. At the same time, this also allows users to take advantage of a transparent network architecture with very low operating costs, and at the same time, get decentralized help. These characteristics will make blockchain a very stable, reliable and popular solution for the banking and financial industry.
If financial institutions want to ensure the safety of funds, they need many intermediaries. Yet these intermediaries make the entire industry more expensive. And, because there are so many people involved in the process, the chances of errors increasing. Blockchain technology can ensure the security of transfers, while also providing users with a better experience and lower costs.
Cases of banks using blockchain technology
Although banks and financial institutions were still skeptical about blockchain technology in the early days, things have changed now. . With the success of blockchain in many fields, the banking industry is looking for new areas and applications of blockchain.
Some large companies, such as JP Morgan, are confident about the future development of blockchain. The U.S. investment bank headquarters has also begun research and implementation of blockchain technology. The Quorum project is an enterprise distributed ledger and smart contract platform that can support fast transfers and throughput to solve problems in the financial industry, banks, etc. According to current news, they have issued annuity certificates with different interest rates based on distributed registries.
In addition to these, major US banks have obtained patent certificates issued by the US Patent Office. The document talks about the deployment of permissioned blockchains to ensure the security of records and to authenticate corporate and personal data.
This system will allow certified members to obtain data and record all individual members. In addition, the system will use blockchain technology to integrate multiple existing data storage platforms. This secure single networkIt will provide overall efficiency while also reducing the number of storage addresses for user data.
Another institution is Goldman Sachs. Goldman Sachs is also actively integrating into the research of distributed registration technology. In order to serve startups in the blockchain industry and solve the volatility of digital currencies, Goldman Sachs has invested in digital currency projects.
Goldman Sachs Group aims to become Wall Street’s leader in digital currencies. Setting up their own digital currency transactions can help them manage digital transactions well.
Cases of using blockchain technology in finance
As more application cases emerge, blockchain technology has the potential to change the current financial and banking industry. This technology can change the current banking industry through the following points:
Reduce fraud
In any financial-related project, there will be fraud. In addition, from the most basic financial model point of view, security is also the most important. More than 40% of financial entities and intermediaries, such as stock exchanges, suffer significant losses every year due to financial theft incidents.
Centralized database systems are used for financial management and operations. However, centralized databases are easy to be invaded. If there is a problem at a single point, a cyber attack will occur. Once a hacker gains access to such a system, it is easy to steal funds. This will create a need for more secure systems, with adequate security guarantees to prevent such attacks.
Since the blockchain is distributed, there is no single point of destruction. Each transfer stored in the form of blocks will be protected by an encryption mechanism and is difficult to be attacked.
Moreover, all blocks are connected to each other. Due to the mechanism of this connection, if a block is changed, all other blocks on the blockchain will immediately reflect the change. Therefore, this will help track the intrusion while also giving the hacker no chance to make changes to the entire system. With a secure blockchain system, we can prevent cyberattacks and now attacks on the banking and financial industry.
Customer identity verification Banks and financial institutions are very worried about this, so they must perform AML and KYC to reduce losses. All these processes take a lot of time, and all banks and financial institutions need to conduct all verifications independently.
According to investigation reports, this type of process costs between US$6 million and US$50 million every year. Some customer due diligence is to reduce money laundering and attacks. Currently, banks need to upload customers' KYC data to a centralized registration agency, which is used to verify the information of old or new customers.
With the application of the blockchain system, the customer verification of each bank or financial institution can also be used by other banks, and these KYC certifications do not need to be performed multiple times.
In other words, through blockchain technology, a lot of duplication of work can be eliminated. Moreover, in the not-too-distant future, all financial institutions will have access to updated customer information, reducing costs for administrators and management agencies.
Smart Assets
Trade finance becomes difficult when all assets need to be recorded with clear date and time stamps. The global supply chain includes many institutions and individuals, and participants are constantly conducting transactions. The documentation here is more complex. Blockchain can store records of these smart assets in digital form. The smart asset system will not only move items, but also track the trajectory of items.
Intelligent asset tracking systems for banks and financial institutions are also now facing a lot of competition. Banks with rich data can turn this data into customer value through blockchain.
Smart Contracts
The application of smart contracts can prove the importance of the banking and financial industry. Smart contracts are codes that can execute themselves when certain conditions are met.
When using financial transfers, smart contracts are very helpful to increase speed and simplify complex processes. Only when the conditions in the code are met, the contract will be executed and the transfer information will be ensured to be very accurate. And since these terms are visible to everyone, the chance of errors is much reduced.
Trade Finance
Trade finance is considered to be one of the most useful applications of blockchain technology in the banking industry. All parties involved, such as complex transfers, can be recorded on the blockchain network, and traders and banks share this information through a common ledger. Once a certain condition is met, the smart contract will run automatically and relevant parties can see all actions that occur.
According to relevant news, some start-ups have successfully conducted blockchain-based transaction transfers. This process usually takes 7-10 days, but now it only takes 4 hours. Compared with current infrastructure, using blockchain can significantly reduce the generation of certificates, tickets, and other fees.
Why does the banking industry need blockchain?
1. The current banking system is highly dependent on paper documents and current systems. Trustworthy and stable system upgrades are now needed to prevent any fraud and solve expansion and security issues. Blockchain technology and its decentralized nature can give the banking system the highend technology.
2. Banks cannot operate independently, and many transfers now go through intermediaries. Cross-border transfers take 5 days and involve many risks. Through the blockchain system, banks can make transfers very fast without taking any risks. The banks themselves are enough to solve these problems.
3. The world is moving towards digitalization. The speed of economic development is also gradually increasing, and there is no doubt that this speed will be faster. Blockchain technology will make small-amount transfers faster, while ensuring lower fees and transfer scalability.
4. In addition to banks, financial service companies are gradually using the latest technology to reform their systems and ensure market security by providing reliable services and lower rates. Banks and other financial institutions should embrace new blockchain technologies to make their ecosystems secure.
There are still many challenges to the integration of blockchain technology
Blockchain technology certainly has its advantages, but it also contains many challenges, especially for the financial and banking industries. of institutions.
Interoperability: Blockchain technology will not be bound by any international regulations, so there are no standards. As large industries, such as banks, increase their interactivity requirements, blockchain needs to be compatible with different systems and be accepted by the public. The integration of existing systems and blockchain is a very big challenge for the current system, because the existing system cannot be completely replaced. If blockchain technology can allow multiple systems to work perfectly together, then operational feasibility will be fully met.
Privacy: The endorsement of banks and financial institutions is the trust people place in depositing funds into them. If you want blockchain to replace them, it is important to ensure that the data stored in the blockchain is stored securely and does not change anyone's identity. Since transfer information is conducted publicly on the blockchain, private chains also need to be studied, which will also help solve interactivity issues.
Encryption: Private keys are a necessary element of the blockchain system because they play a very important role in ensuring personal data on the blockchain. However, once the private key is obtained, it must be stored very securely because if lost, there is no way to get it back. Moreover, there are loopholes in the encryption method used to store data, which also makes the blockchain easily vulnerable to hackers.
Security: The blockchain network is safe and reliable because it incorporates cryptography technology. In order to prevent hacker attacks, any encryption performance in this type of system requires a lot of computing power. . When a blockchain network is used in any banking institution, it must be encrypted through multiple security protocols. The network needs to be able to have enoughComputing power prevents anyone from taking control except under specific access permissions. Depending on these requirements, such systems or institutions integrated into blockchain can be permissioned or permissionless. People within these organizations need to be able to handle different levels of access permissions to save the entire network from fraud and cyber attackers.
Scalability: The growth of existing data is undeniable. As the population grows, so does the size of the database. This will bring great challenges to the application of blockchain. Networks created through blockchain should be able to handle increasing traffic while also maintaining the speed of network participants. If blockchain technology can be applied to current banking systems and institutions, it must be able to guarantee the ability to handle these data flows.
Energy consumption: Most blockchain networks are based on a proof-of-work mechanism, where network participants are rewarded based on how quickly they solve problems, which is also based on how quickly they solve problems. This puts new blocks into the network. This allows the entire network to operate stably while also increasing energy consumption. This type of computing power consumes a lot of electricity and has an impact on the environment. These issues need to be addressed through other incentive mechanisms before blockchain technology can be embraced.
Legal supervision: If blockchain is applied to the banking industry, international regulatory regulations are very necessary. Now, as the most popular application of blockchain, digital currency has no regulatory regulations, which has pros and cons. However, if blockchain is applied in the banking and financial industry, then regulation will be needed to prevent people from causing trouble due to losses.
Conclusion
Although regulations are very strict for the banking industry, financial institutions have also begun their journey to adopt blockchain technology as a solution. Banking giants have begun testing to find potential uses for decentralized technology.
Institutions are investing heavily in research into blockchain solutions. By allowing blockchain to enter the current industry, many problems will be solved. Because this technology makes the system more transparent, reliable, and easy to use.
『撒』 One article to understand the securities firm industry
1. The meaning of securities firm
Brokerage firm is the abbreviation of securities company. It refers to a financial institution with legal personality established by the securities regulatory authorities to operate securities business in the securities market. They play an important role in the securities market.
In different countries, securities companies have different names. In the United States, securities companies are called investment banks or brokers; in the United Kingdom, securities companies are called commercial banks; in continental Europe (represented by Germany), investment banks are the only universal banks.OK, because they have been operating under a hybrid system. A branch of a bank; in East Asia (represented by Japan), it is called a securities company.
2. The role and functions of securities companies
Securities companies (also known as investment banks or securities companies) are the product of the development of the securities and joint-stock company systems to a certain stage. They are the mainstay of developed securities markets and mature financial systems. In the development of modern social economy, they play an important role in communicating capital supply and demand, building securities markets, promoting corporate mergers and acquisitions, and promoting industrial concentration and standardization. The formation of model economy and the optimization of resource allocation play an important role.
As intermediaries for securities issuance and trading, securities firms play an extremely important role in the securities issuance and trading market. It can be said that the existence, development and functions of the securities market completely depend on the business activities of securities companies. In developed countries and regions with securities markets, there are a huge number of securities companies and related employees and institutions, making them one of the most important industries in society. Securities companies play an important role in the social economy.
(1) Issuance intermediary function
The original intention of the securities market is to raise long-term and stable funds for economic development. In the issuance market, companies need to maximize the amount of funds they can raise for corporate development through public issuance of securities. However, this attempt to raise funds through the issuance of securities would not be successful without the role of securities brokers as issuance intermediaries. As intermediaries, securities companies can provide consulting services for issuers to issue securities and help issuers determine the quantity, type, form and method of issuance. Corporate securities can be underwritten through underwriting, entrustment, distribution, retail, etc. For investors, securities companies provide them with advisory services. Through the many branches of securities companies and various securities retail companies, the most convenient and convenient investment method is to publicize and promote securities to the public to the greatest extent, thereby completing the issuance of securities in the primary market. Through this important intermediary role, social idle funds are continuously pooled into the field of social reproduction, turning savings into investment. All sectors of society have widely mobilized idle funds for long-term investment, which not only prospered the securities market, but also promoted the growth of investment and economic growth, providing extremely important financial guarantee for the continued expansion of products. scale and sustainable socioeconomic development.
(2) Circulation intermediary function
In the securities circulation market, there are a large number of various stocks and bonds. In the trading market, there are various stocks and bonds available for purchase and sale at all times. The prosperous securities circulation market is the main place for people to invest in securities. In the circulation market, there are various securities companies and bonds. Various securities intermediaries provide services to investors; in the securities circulation market, any individual or institution must buy and sell securities through securities dealers. Securities dealers can provide customers with full-process services, such as consulting, buying and selling warrants, and entrusted trading. Transactions handle stock transfers, custody, etc. This intermediary function of securities companies,The flow of funds between supply and demand promotes the continued maturity and development of the circulation market.
In addition to the above two basic functions, securities firms also have the following functions:
First, securities firms perform resource allocation functions. As the degree of specialization and socialization of modern economic development increases, and the pace of technological and industrial innovation accelerates, it is impossible for capital owners (investors) to have enough knowledge and experience to understand which industries or enterprises require investment to ensure the security of capital. Security and value-added, while also enabling capital demanders. For (fundraisers), especially those in emerging industries, they are also unlikely to have the reputation and ability to raise the large amounts of capital they need. As an intermediary between investors and fund-raisers, investment banks can use investors' credit, information, business technology and experience to quickly transfer investors' funds to fund-raisers, forming an effective allocation of social resources.
Second, securities firms provide risk pricing for capital assets. When a securities company issues new securities, it shall determine the price of the new securities based on the intrinsic value of the new securities, the return or value level of the secondary market, and the prediction of market risks, so that the new securities can be accepted by the market.
Third, securities firms play an important role in promoting liquidity in the capital market. Investment banks continue to introduce new securities into the circulating market. Expand market capacity, update market trading varieties, and increase market liquidity. As American financial expert Robert Sobel said, "Investment banks are the heart of Wall Street and the most important reason for the existence of Wall Street." This sentence vividly illustrates the important role and core of investment banks in the capital market. status.
Fourth, it is to diversify securities market risks. Securities companies in the securities market can diversify the risks of the securities market to a certain extent. For example, when underwriting securities as a lead underwriter, there is a period of time between purchasing the securities the issuing company intends to issue and reselling them to the public. During this period, unexpected changes in market conditions may occur, resulting in the underwriting and underwriting of securities being unable to be successfully sold. In this case, the securities dealer actually bears the risk of the securities issuance. It is precisely because some securities companies bear the risks of securities issuance that it is conducive to promoting the issuance and issuance of new securities.
Therefore, in order to increase the capacity of the securities market and create a continuous market, it is necessary to ensure the relative stability of securities prices. Securities companies have the responsibility and ability to control securities prices. For example, the Securities and Exchange Commission of the United States requires professional brokers to have sufficient capital and a large number of securities, and requires professional brokers to play a role in stabilizing the securities market and preventing sharp rises and falls in the securities market. Security prices. Securities are sold in large quantities forWhen excessive demand may cause security prices to fall, professional brokers will come out to buy them to narrow the gap between supply and demand and keep prices stable. On the contrary, when there is a rush for a certain security and the supply of that type of security exceeds the demand in the market, professional brokers should sell that type of security. Ease buying and selling conflicts.
3. Establishment of securities firms
In accordance with the provisions of China’s Securities Law, the establishment of a securities company (hereinafter referred to as a securities company) must be approved by the securities regulatory authority of the State Council. No unit or individual may engage in securities business without the approval of the securities regulatory authority of the State Council. To establish a securities company, the following conditions must be met:
(1) Have company articles of association that comply with laws and administrative regulations.
(2) The major shareholders continue to make profits and have a good reputation. In the past three years, no major violations of laws and regulations have occurred, and the net assets are not less than 200 million yuan.
(3) Have registered capital that complies with the provisions of this Law;
(4) Directors, supervisors, and senior managers have the qualifications to hold office, and the practitioners have the qualifications to practice securities;
(5) Have a sound risk management and internal control system;
(6) Have qualified business premises and facilities;
(7) Laws and administrative regulations and other conditions approved by the securities regulatory authority of the State Council.
4. Business scope of securities companies
Securities companies may operate some or all of the following businesses: securities brokerage; securities investment consulting; financial consultants related to securities trading and securities investment activities; securities Underwriting and underwriting; securities self-operation; securities asset management; securities financing, securities trading services and other related businesses; other securities businesses.
The general business of securities companies is introduced as follows:
(1) Securities brokerage business
Securities brokerage business, also known as agency securities trading business, refers to securities companies Accept clients’ entrustment and engage in the business of buying and selling securities on behalf of clients. In the securities brokerage business, securities companies only charge a certain percentage of commissions as operating income. Securities brokerage business is divided into over-the-counter securities trading business and stock exchange securities trading business. At present, my country's securities companies mainly engage in securities brokerage business and buy and sell securities through stock exchanges. The OTC securities trading business of securities companies mainly provides agency services for OTC securities transactions.
In the securities brokerage business, the establishment of the brokerage entrustment relationship is represented by the two links of account opening and entrustment.
The establishment of a brokerage relationship only establishes a direct agency relationship between investors and securities companies, and has not yet formed a substantial entrustment relationship. When an investor goes through specific entrustment procedures, that is, the investor fills out a power of attorney or a self-service power of attorney, the securities company accepts the entrustment, and both parties establish a trust agreement that is protected and restricted by law.entrustment relationship. A master order in brokerage is essentially equivalent to a master contract. It not only contains the main contents of the main contract, but also clarifies the agency business of the securities company as the trustee.
(2) Securities investment consulting business
Securities investment consulting business refers to institutions engaged in securities investment consulting business and their consultants providing securities investment analysis, forecasts or Suggestions and other activities that provide direct or indirect paid consulting services. client.
Securities investment consulting business refers to business activities in which securities companies and securities investment consulting institutions accept clients' entrustment and provide clients with securities and securities product investment consulting services in accordance with the provisions of the Securities Investment Consulting Business Law. Assist customers in making investment decisions and obtain direct or indirect economic benefits. The service content of investment solutions includes the selection of investment varieties, investment portfolios and financial planning solutions.
Securities investment consulting business generally serves investors by issuing securities research reports. Securities research reports are issued by securities companies and securities investment consulting institutions, analyzing the value, market trends or related factors of securities and securities-related products, and forming investment points such as securities valuation and investment ratings. Analyze opinions, prepare securities research reports, and publish them to clients. Securities research reports mainly include value analysis reports, industry research reports and investment strategy reports involving securities and securities-related products. Securities research reports may be in the form of written or electronic documents.
(3) Financial consulting services related to securities trading and investment activities.
Financial consulting business refers to consulting, advice and planning business related to securities trading and investment activities. Including: providing consulting services such as restructuring and reorganization, asset restructuring and preliminary guidance for companies applying for securities issuance and listing; providing consulting services for listed companies on major investments, mergers and acquisitions and related transactions. ES; provides consulting services for legal persons, natural persons and other organizations in the acquisition of listed companies and related asset restructuring; debt restructuring and other consulting services; provides consulting services for listed companies to improve corporate governance structures, design management stock options, and employee Stoc. k Equity plan, investor relations management; financing planning, program design and roadshows for capital operations such as refinancing, asset restructuring, debt restructuring of listed companies; providing consulting services to creditors and debtors in debt restructuring of listed companies; asset restructuring, related equity Reorganization and other business forms recognized by the China Securities Regulatory Commission.
(4) Securities underwriting and sponsorship
Securities underwriting refers to the behavior of securities companies issuing securities on behalf of issuers. When an issuer publicly issues securities to unspecified objects and the securities company is underwritten by laws or administrative regulations, it shall sign an underwriting agreement with the securities company.
Securities underwriting business can take the form of agency sales or underwriting. Securities underwriting refers to an underwriting method in which a securities company, at the end of the underwriting period, purchases all the issuer's securities in accordance with the agreement or purchases all the remaining securities on its own after the sale. The former is full underwriting and the latter is balance underwriting. securitiesUnderwriting refers to an underwriting method in which a securities company sells securities on behalf of the issuer and returns all unsold securities to the issuer at the end of the underwriting period. The Securities Law of the People's Republic of China also stipulates the underwriting methods of underwriter groups. According to the provisions of the Securities Law of the People's Republic of China, if the total par value of securities issued to unspecified objects exceeds 50 million yuan, the underwriting syndicate shall consist of the lead underwriter and the securities companies participating in the underwriting. writing.
(5) Securities self-operation
Securities self-operation business refers to the securities company’s own name, its own funds or funds raised in accordance with the law, buying and selling stocks and bonds issued in accordance with the law. , warrants, securities investment funds and other securities approved by the China Securities Regulatory Commission. Securities self-management activities are conducive to activating the securities market and maintaining the continuity of transactions. However, in self-operated activities, we must guard against improper behaviors such as market manipulation and insider trading. Due to the high profitability and high risks of the securities market, many countries have formulated laws and regulations for the self-operation of securities operating institutions and implemented strict management.
A securities company that conducts self-operated business or establishes a branch to engage in self-operated business must obtain a business license from the securities regulatory agency. Securities companies are not allowed to provide financing or guarantees to their subsidiaries. At the same time, it requires a sound corporate governance structure, effective internal management, and effective control of business risks; it requires qualified senior managers and an appropriate number of employees; it requires the safe and stable operation of the information system; it requires the establishment of a complete business management system. Management system, investment decision-making mechanism, operating procedures and risk monitoring system.
(6) Securities asset management business
Securities asset management business means that securities companies, as asset managers, in accordance with relevant laws, regulations and asset management contracts signed with investors, Provide investment management services to investors in securities and other financial products. Comply with the methods, conditions, requirements and restrictions specified in the asset management contract to achieve asset returns. maximizing behavior.
To engage in asset management business, a securities company shall obtain business qualifications approved by the securities regulatory authority, its net capital shall not be less than 200 million yuan, and its risk control indicators shall comply with relevant regulatory regulations. ONS; the net capital limit for establishing a limited collective asset management plan is 300 million yuan, and the net capital limit for establishing a non-limited collective asset management plan is 300 million yuan. The capital limit is 500 million yuan, and the asset managers must have securities qualifications and no records of bad behavior. Among them, no less than 5 must have experience in securities self-operation, asset management, and securities investment funds. Management: The company has good corporate governance and complete internal controls and risk management. mechanism.
If a securities company conducts targeted asset management for a single client, it shall sign a targeted asset management contract with the client and provide asset management services to the client through the client's account. The characteristics of directional asset management business are: securities companies and customers must provide one-on-one investment management services; the specific investment direction is agreed in the asset management contract; it must be provided to a single customerclosed in special securities. S account.
Securities companies shall formulate collective asset management plans, serve as managers of collective asset management plans for multiple clients, sign collective asset management contracts with clients, and submit clients’ assets to commercial banks or the China Securities Regulatory Commission. Qualified for legal person custody business of client transaction settlement funds. Other institutions may provide asset management services to clients through special accounts. The characteristics of the collective asset management business are: aggregation, that is, securities companies and customers are one-to-many; the investment scope is limited, qualitative, and non-restrictive; customer assets must be trusted; the investment operations of special accounts are more stringent. Information Disclosure.
Securities companies handling collective asset management business may formulate limited collective asset management plans and non-limited collective asset management plans.
(7) Margin and securities lending business
Securities companies operating margin trading and securities lending business shall meet the following conditions: sound corporate governance structure, effective internal control; risk control indicators meet the requirements, financial , compliance status is good; professionals, technical conditions, finance, and financial status are good. Fund and securities business; improve business management systems and implementation plans. etc.
According to the "Measures for the Administration of Pilot Margin and Securities Lending Business of Securities Companies", securities companies applying for the pilot program of margin trading and securities lending business should meet the following conditions: a higher-level company that has been operating brokerage business for 3 years and has a medium classification level , the company has sound corporate governance, effective internal control, and can effectively identify, control and prevent business risks. Internal management risks; the company's credit is good and there have been no violations of laws and regulations in the past two years; the financial status is good; customer assets are safe and complete, and transactions, clearing, customer accounts and risks are managed in a centralized manner. Achieve monitoring, have a complete and feasible business implementation plan and internal management system, and business development is in place. The people, technology, capital and securities required for the business.
(8) Intermediary introduction business of securities companies
Introducing brokers refer to the business model in which institutions or individuals accept the entrustment of futures brokers, introduce customers to futures brokers, and receive a certain commission. . The intermediary introduction business of securities companies refers to the business activities in which securities companies accept the entrustment of futures brokers to introduce customers to participate in futures transactions and provide other related services. According to my country's current relevant systems, securities companies cannot directly engage in futures trading on behalf of customers, but can engage in intermediary business for futures trading.
5. Characteristics of the securities industry
Since securities companies (securities companies) have been engaged in the securities business, the characteristics of the securities industry have basically reflected the characteristics of the securities companies (securities companies) industry. At present, my country's securities industry has the following characteristics:
(1) It is a cyclical industry. my country's capital market (especially the stock market) has a great impact on the performance and income of securities companies. Affected by overall economic development, macro policy environment and investor psychology, my country's capital market has a certain degree of cyclicality. With the cyclical changes in the securities market, my country’s securities companiesThe profitability fluctuates greatly and has a certain periodicity.
Chinese securities companies derive most of their revenue from capital markets. Their management and business development are affected by risks inherent in China's capital market, such as market price fluctuations, overall investment environment, market value and trading volume fluctuations, liquidity supply and the credit status of the securities industry. In addition, macroeconomic and sociopolitical environments such as monetary policy, fiscal and taxation policy, foreign exchange policy, and exchange rate fluctuations, capital costs, and interest rate fluctuations will also affect the operations and business development of securities companies. ions, business and financial trends, inflation, sources of funds, laws and regulations, and sociopolitical stability. and other factors.
(2) Securities market risks are high
First of all, securities investment activities are based on investors’ expectations of future returns, and investors face the risk of not realizing their expected returns or even losing their principal. . Second, the operating mechanism of the securities market is complex, and information asymmetry and investor irrationality intensify market risks. Therefore, the securities industry is an industry with operational risks. The core business of securities companies is to identify, measure, transfer, disperse, control and manage various risks.
(3) The securities industry is capital intensive.
(4) The securities industry is a typical knowledge-intensive industry.
High-quality talents and high-quality services are important components of the core competitiveness of securities companies. Professional talents such as sponsor representatives, researchers, investment managers, sales staff, and investment consultants have become important factors in measuring the business level of securities companies. With the advancement of securities marketization, the importance of talents will be further fully reflected.
(5) Barriers to entry
As an important part of my country’s financial system, the securities industry is a typical capital-intensive and knowledge-intensive industry and is subject to strict supervision by regulatory agencies. For new entrants, they face barriers to industry entry, capital and talent.
At present, the securities industry is continuing to flourish. The strategic position of the capital market has received top-level support and recognition. The operating environment of securities companies is gradually improving. Various favorable policies have been introduced. Securities companies are in the next stage. On the cusp of a round of financial system reform, it is the backbone of promoting my country's shift from indirect financing to direct financing. With the birth of the new technology blockchain, it has also accelerated a new round of financial system. In the new economic wave, the industry There may be greater development opportunities. Against this background, many new blockchain brokerage companies have entered the market, such as the currently popular CPOS. Big bosses from all parties have begun to make plans, and I believe that a number of great companies will be born in the securities industry in the near future.
『8』 The financial industry must have sufficient understanding of blockchain
A survey report released by PricewaterhouseCoopers in mid-April 2017 showed that China’s financial practitioners have not yet fully understood the financial industry. Technology has received sufficient attention. Among the already widely used blockchain technologies, 30% of the respondents said they did not know about blockchain technology at all, and 40% of respondents have only read about blockchain technology in the news, indicating that the popularity of financial technology is still low.
I often say that with the birth of Yu’ebao as a symbol, China’s Internet finance is surging, ahead of the trend, and making countries around the world look at it with admiration. However, due to a lack of understanding of the nature of Internet finance, the conservative thinking in the traditional financial industry vigorously counterattacked. The regulatory authorities were faced with a formidable enemy and the supervision dominated by conservative thinking ultimately caused this industry to be almost strangled.
As China launches rounds of rectification and regulatory "movements" targeting Internet finance, developed countries in Europe and the United States have taken the opportunity to increase investment and vigorously develop technology finance. Artificial intelligence investment advisors, digital currency supported by blockchain technology, and various artificial intelligence financial services including facial recognition, fingerprint encryption, intelligent voice and other technologies have begun to be applied to the financial field.
The development of science and technology finance can be described as changing with each passing day. The world's largest asset management companies, insurance companies, etc. have gone from R&D to production in smart investment advisory and have now begun to put it into use; Bitcoin, the blockchain digital currency, has begun to enter the field of settlement means in Japan, Canada, etc., and the United States has already Blockchain is used in oil market transactions.
China has obviously fallen behind in the development of science and technology finance. This can be seen from the above PwC survey of bank employees. The current research and use of blockchain in Chinese commercial banks are conceptualized at a shallow level.
In early January 2017, Postal Savings Bank launched an asset custody system based on blockchain. The asset custody system is based on the four major mechanisms of blockchain, including shared ledgers, smart contracts, privacy protection, and consensus mechanisms. An asset custody business scenario is selected in which five roles, including asset entruster, asset manager, asset custodian, investment consultant, and auditor, participate together to realize the information sharing of the custody business and the supervision of asset usage. It is particularly worth noting that the blockchain solution enables real-time sharing of information among multiple parties, eliminating the need for repeated credit verification processes and shortening the original business process by about 60%-80%
Chairman of ICBC Yi Huiman also said at the 2016 annual report performance conference, "For blockchain technology, our bank's research and development and application are very smooth, and it is expected to be put into practical application in 2017. We have completed a financial product trading platform based on blockchain technology The construction of a prototype system, which provides customers with point-to-point financial asset transfer and transaction services based on the traditional transaction model, is expected to be available to everyone soon."
China Everbright Bank has applied blockchain technology to actual business, and its technology innovation laboratory has successfully hatched a blockchain charity donation system for the bank’s “Mother’s Water Cellar” charity project. Li Fan, general manager of the Information Technology Department of China Everbright Bank, said that the development of new information technology in the financial technology era has brought new transformative forces to technological innovation, which has also affected the sources and sources of charitable funds.The use of this system enables more effective supervision, improves the transparency of public welfare donations, and helps promote the healthy development of charitable and public welfare undertakings. From a bank's perspective, delivering the public's love to charitable organizations safely and reliably enhances the bank's social image and credibility.
Li Jianhong, chairman of China Merchants Bank, also revealed in the 2016 performance report that the bank invests 5 billion yuan in IT every year, which is already ahead of its peers, but it will still invest 1% of its profits every year starting from 2017. Financial innovation and fintech.
For digital currency, which is the most important component of technological finance, blockchain technology is extremely important. Blockchain technology has the potential to reconstruct the underlying structure of the financial industry. Blockchain has the advantages of reducing trust risks, having a flexible structure, reducing operating costs, and realizing shared finance. It can be widely used in peer-to-peer transactions, registration, rights confirmation, intelligent management and other businesses. among. There can be no doubt about this.
We must understand blockchain technology from a higher level. The global future trend is decentralization. Financial institutions must grasp this general trend. Blockchain is the core technology of financial decentralization, and whoever masters it takes the initiative.
Why is it said that the global future trend is decentralization? We need to start with the great prediction of Kevin Kelly, the most popular “prophet” in the global Internet field. Many future technologies mentioned by KK in the book "Out of Control" published in 1994, such as WEB2.0, Bitcoin, P2P, social media, etc., have been implemented one by one. The current popular wisdom, cloud computing, Internet of Things, virtual reality, agile development, collaboration, win-win, symbiosis, co-evolution, online community, network economy, sharing economy, etc. all come from the book "Out of Control".
KK believes that in the future, it is best for the network to be evenly distributed, that is to say, the network connections are free connections between individuals. In this way, when the network is attacked, it will basically not suffer a big impact. It can even be said that such a network cannot be defeated. But the above is based on an ideal state. For now, the Internet is not so developed that it can allow one individual (also a small collective center) to generate so many connections. Secondly, a uniformly distributed network makes the path for individuals to visit a node longer. If the network is not developed enough (such as now), the network response will be very slow.
On the other hand, if the network is concentrated on certain large nodes, as long as these large nodes are protected, the stability of the network will not be greatly affected. From an individual point of view, as long as I can access Google and the Internet, the Internet will not be paralyzed for me.
However, the trend of decentralization will always be there. The network will change from the current hundreds of large nodes to millions of large nodes. Each small network will be regarded as a node, and the connections between nodes will extend in all directions. For example, the connection between the two major networks of China and the United States will no longer be countless submarine optical cables, butThere are countless links, and the topology cannot be calculated. I am afraid that the wall will not be built by then.
One of the characteristics of blockchain technology is point-to-point decentralization. The world is increasingly decentralizing from bureaucracies. We have already witnessed many processes of decentralization in technology and business, and it can be assumed that this trend will continue to occur in the next 20 years.
As long as there are still some centralized things, we can discuss how to decentralize them. For example, the banking industry. Banking has always been a very centralized industry, so we can talk about how to decentralize financial services and turn them into a sharing economy model while sharing influence.
One response to the decentralization process is sharing. Sharing is the verb expression of decentralization process, which is why we have many sharing communities. We can share data, processes, influence, and information. The result of decentralization is an increase in sharing behavior. Experts of the past did not share financial information. If we want to study why people start sharing now, we must emphasize the quality and ability of "sharing".
Returning to the digital currency supported by blockchain technology, decentralized trading is a technological change. Users can trade on this platform with authorization codes, so that individual-to-individual transactions will occur. P2P lending and other behaviors. Banks will no longer exist. Bitcoin is an electronic currency with great potential, but it has many unrecognized problems, such as security issues, but we should still pay attention to it, because currency decentralization is also a future trend. KK believes that this field has great potential.
We must believe in the predictions of prophets like KK no matter what. China’s tech finance industry can’t get up early and catch the market late!
Yu Fenghui
A survey report released by PricewaterhouseCoopers in mid-April 2017 showed that China’s financial practitioners have not paid enough attention to financial technology. In the already widely used blockchain technology, , 30% of the respondents said they were completely unaware of blockchain technology, and 40% of the respondents had only read about blockchain technology in the news, which shows that the popularity of financial technology is still low.
I often say that with the birth of Yu’ebao as a symbol, China’s Internet finance is surging, ahead of the trend, and making countries around the world look at it with admiration. However, due to a lack of understanding of the nature of Internet finance, the conservative thinking in the traditional financial industry vigorously counterattacked. The regulatory authorities were faced with a formidable enemy and the supervision dominated by conservative thinking ultimately caused this industry to be almost strangled.
As China launches rounds of rectification and regulatory "movements" targeting Internet finance, developed countries in Europe and the United States have taken the opportunity to increase investment and vigorously develop technology finance. Artificial intelligence investment advisor, digital currency supported by blockchain technology, variousArtificial intelligence financial services, including facial recognition, fingerprint encryption, intelligent voice and other technologies, have begun to be applied to the financial field.
The development of science and technology finance can be described as changing with each passing day. The world's largest asset management companies, insurance companies, etc. have gone from R&D to production in smart investment advisory and have now begun to put it into use; Bitcoin, the blockchain digital currency, has begun to enter the field of settlement means in Japan, Canada, etc., and the United States has already Blockchain is used in oil market transactions.
China has obviously fallen behind in the development of science and technology finance. This can be seen from the above PwC survey of bank employees. The current research and use of blockchain in Chinese commercial banks are conceptualized at a shallow level.
In early January 2017, Postal Savings Bank launched an asset custody system based on blockchain. The asset custody system is based on the four major mechanisms of blockchain, including shared ledgers, smart contracts, privacy protection, and consensus mechanisms. An asset custody business scenario is selected in which five roles, including asset entruster, asset manager, asset custodian, investment consultant, and auditor, participate together to realize the information sharing of the custody business and the supervision of asset usage. It is particularly worth noting that the blockchain solution enables real-time sharing of information among multiple parties, eliminating the need for repeated credit verification processes and shortening the original business process by about 60%-80%
Chairman of ICBC Yi Huiman also said at the 2016 annual report performance conference, "For blockchain technology, our bank's research and development and application are very smooth, and it is expected to be put into practical application in 2017. We have completed a financial product trading platform based on blockchain technology The construction of a prototype system, which provides customers with point-to-point financial asset transfer and transaction services based on the traditional transaction model, is expected to be available to everyone soon."
China Everbright Bank has applied blockchain technology to actual business, and its technology innovation laboratory has successfully hatched a blockchain charity donation system for the bank’s “Mother’s Water Cellar” charity project. Li Fan, General Manager of the Information Technology Department of China Everbright Bank, said that the development of new information technology in the fintech era has brought new transformative forces to technological innovation. More effective supervision of the source and use of charity funds has improved the transparency of public welfare donations, which will help Promote the healthy development of charity and public welfare undertakings. From a bank's perspective, delivering the public's love to charitable organizations safely and reliably enhances the bank's social image and credibility.
Li Jianhong, chairman of China Merchants Bank, also revealed in the 2016 performance report that the bank invests 5 billion yuan in IT every year, which is already ahead of its peers, but it will still invest 1% of its profits every year starting from 2017. Financial innovation and fintech.
For digital currency, which is the most important component of technological finance, blockchain technology is extremely important. Blockchain technology has the potential to reconstruct the underlying structure of the financial industry. Blockchain can reduce trust risks,With the advantages of flexible structure, reduced operating costs, and shared finance, it can be widely used in peer-to-peer transactions, registration, rights confirmation, intelligent management and other businesses. There can be no doubt about this.
We must understand blockchain technology from a higher level. The global future trend is decentralization. Financial institutions must grasp this general trend. Blockchain is the core technology of financial decentralization, and whoever masters it takes the initiative.
Why is it said that the global future trend is decentralization? We need to start with the great prediction of Kevin Kelly, the most popular “prophet” in the global Internet field. Many future technologies mentioned by KK in the book "Out of Control" published in 1994, such as WEB2.0, Bitcoin, P2P, social media, etc., have been implemented one by one. The current popular wisdom, cloud computing, Internet of Things, virtual reality, agile development, collaboration, win-win, symbiosis, co-evolution, online community, network economy, sharing economy, etc. all come from the book "Out of Control".
KK believes that in the future, it is best for the network to be evenly distributed, that is to say, the network connections are free connections between individuals. In this way, when the network is attacked, it will basically not suffer a big impact. It can even be said that such a network cannot be defeated. But the above is based on an ideal state. For now, the Internet is not so developed that it can allow one individual (also a small collective center) to generate so many connections. Secondly, a uniformly distributed network makes the path for individuals to visit a node longer. If the network is not developed enough (such as now), the network response will be very slow.
On the other hand, if the network is concentrated on certain large nodes, as long as these large nodes are protected, the stability of the network will not be greatly affected. From an individual point of view, as long as I can access Google and the Internet, the Internet will not be paralyzed for me.
However, the trend of decentralization will always be there. The network will change from the current hundreds of large nodes to millions of large nodes. Each small network will be regarded as a node, and the connections between nodes will extend in all directions. For example, the connection between the two major networks of China and the United States will no longer be countable submarine optical cables, but countless links, which are topologies that cannot be calculated. By then, I am afraid that the wall will not be built.
One of the characteristics of blockchain technology is point-to-point decentralization. The world is increasingly decentralizing from bureaucracies. We have already witnessed many processes of decentralization in technology and business, and it can be assumed that this trend will continue to occur in the next 20 years.
As long as there are still some centralized things, we can discuss how to decentralize them. For example, the banking industry. Banking has always been a very centralized industry, so we can talk about how to decentralize financial services and turn them into a sharing economy model while sharing influence.
Advancing to decentralizationOne response from Cheng was to share. Sharing is the verb expression of decentralization process, which is why we have many sharing communities. We can share data, processes, influence, and information. The result of decentralization is an increase in sharing behavior. Experts of the past did not share financial information. If we want to study why people start sharing now, we must emphasize the quality and ability of "sharing".
Returning to the digital currency supported by blockchain technology, decentralized trading is a technological change. Users can trade on this platform with authorization codes, so that individual-to-individual transactions will occur. P2P lending and other behaviors. Banks will no longer exist. Bitcoin is an electronic currency with great potential, but it has many unrecognized problems, such as security issues, but we should still pay attention to it, because currency decentralization is also a future trend. KK believes that this field has great potential.
We must believe in the predictions of prophets like KK no matter what. China’s tech finance industry can’t get up early and catch the market late!
