区块链技术对传统金融业的影响和帮助,区块链技术对传统金融业的影响论文

区块链技术作为一种新兴的技术，已经开始对传统金融业产生了深远的影响。本文将探讨区块链技术对传统金融业的影响和帮助，以及它在传统金融业中的应用，以及它对未来金融业的发展潜力。

区块链技术是一种新兴的技术，它改变了传统金融业的模式，把金融服务从中心化转变为去中心化，把金融服务从传统的纸质合同转变为电子合同，这样可以大大减少金融服务的成本，提高金融服务的效率。

区块链技术的安全性是其最大的优势之一，它采用了分布式账本技术，每个参与者都可以参与到交易的记录中，交易记录是不可篡改的，可以有效地防止金融犯罪，保证金融安全。

区块链技术已经在传统金融业中得到了广泛的应用，它可以提供更安全、更快捷、更便捷的金融服务，如支付、资产交易等，以及智能合约等，未来，区块链技术将进一步改变传统金融业，为金融服务提供更多的可能性。

A. What is blockchain technology and what impact does it have on the banking industry

Blockchain is a technology that can completely change the underlying design of the financial system because it can All market participants have undifferentiated records of ownership and transaction records of all assets in the market, so the intermediate links of liquidation and custody that confirm ownership before, during and after transactions can be completely eliminated; in addition, blockchain, as a kind of electronic information Records can be combined with computer algorithms to automate transactions, that is, smart contracts. Blockchain has many derivative applications combined with other financial technologies, each of which can replace a type of market intermediary. Blockchain is to financial services what TCP/IP is to the Internet: once the underlying standards are recognized and popularized, specific applications like Bitcoin and R3 will appear in every corner of financial services. Bitcoin uses blockchain technology to query and record. For example, if I register an account with Haobtc and then transfer money, I need to go to the block browser in the account to query or go to the BTC block. The browser can query the status, so that blockchain technology can help me solve the problem of daily transfer currency query.

B. Why blockchain has always played a huge role in the financial world

We all know that blockchain is a very important tool in the investment industry. The same investment of 10,000 yuan ten years ago will reap extraordinary returns. But at that time, I bought 10,000 yuan of Kweichow Moutai stock, and now I only hold 150,000 yuan. But if you hold 10,000 yuan in Bitcoin until now, congratulations, you have assets of over 100 million yuan. Why does blockchain always play a huge role in the financial world?

To prevent single points of failure and systemic risks, the financial industry needs to conduct audits to control financial risks. And the current regulatory intensity is gradually increasing, especially the previous financial crisis that made the threshold for controlling this platform higher. The entire financial system has increased costs in many aspects. The technology of blockchain plays a role in reducing a large number of costs in finance by preventing tampering and being transparent.

Blockchain is like our commonly used ledgers. Whoever keeps accounts has a certain reason and strength. WeChat’s ledger is kept by the large platform Tencent, and the same is done by small Internet companies. It will also have its own ledger. But in the blockchain, everyone in the system can be the owner of the ledger. If there is a change in the data when you are in charge of this ledger, the system will record the person with the best accounting and the highest efficiency, so that the entire system It will allow everyone to have a complete ledger. This is the impact of simple and abstract blockchain technology.

The best time to learn blockchain was 10 years ago and now. Cai Kangyong once said: "At the age of 18, you find it difficult to speak English, so you give up English. At the age of 28, a great job, but you have to say "I can't." "But when we return to the topic of blockchain,Its value lies in whether it can make a difference in our lives. The peer-to-peer blockchain allows you to complete payments between two countries within 5 seconds, reducing your transaction costs. But the blockchain that cannot be traded twice can prevent you from being "violently evicted". The secure blockchain allows you to protect your secrets to the maximum extent, and there are no more harassing phone calls. Blockchain also allows you to enjoy the large-scale development of the sharing economy platform. Therefore, although blockchain is not a perfect technology, as long as it can change our lives, its value, like mobile phones, cannot be ignored.

We all know that it is the winners who change the world. These winners are Tencent, Alibaba, Google and Facebook, as well as many Internet companies that we are familiar with. They are changing the world while delivering staggering returns to investors.

We must know that Rome was not built in a day. Similarly, the value of blockchain also needs to be explored and utilized by ourselves. Blockchain is also developing slowly amid fluctuations and doubts. Most Bitcoin holders were not able to earn the maximum profit. Only a few people who truly understood the blockchain and had firm confidence in it persisted until the end. Only those who had an in-depth study of the blockchain Only after you understand it can you have your own ideas. Learning blockchain is not just about learning its operating model and concepts, but also applying it to actual work, so that it can continue to exert value in finance.

C. Why should blockchain technology be used in the financial field, and what are the substantial benefits?

The main advantages of blockchain technology in the financial field are disintermediation and great cut costs.

First of all, the financial industry currently needs to conduct layer-by-layer audits to control financial risks to prevent single points of failure and systemic risks, but this also results in high internal costs. And due to the increasing number of regulatory regulations, especially the 2008 financial crisis, the threshold for financial control has continued to rise, and the war on terrorism has led to the scope of anti-money laundering and counter-terrorism financing, which has gradually expanded the breadth and depth of supervision, resulting in the entire financial The regulatory costs of the system have increased dramatically. In this case, blockchain technology can greatly reduce costs for the entire financial system through tamper-proof and highly transparent methods.
According to a report released by Santander, Spain’s largest bank, if all banks around the world use blockchain technology internally around 2020, they will save approximately US$20 billion in costs per year. Such data is enough to illustrate the tremendous changes and breakthroughs that "blockchain" has brought to the traditional financial field.

In addition, due to historical reasons, traditional financial institutions rely on central clearing houses for settlement and clearing, and the resulting problem is low efficiency. Traditional cross-border settlements go through institutions like SWIFT, so cross-border wire transfers are often calculated on a daily basis. However, when Bitcoin uses blockchain technology, there is no centralized operating organization at all.It has been running flawlessly for seven years, not only able to achieve real-time settlement and liquidation, but also without any accounting errors.
So, if all financial systems can achieve decentralized real-time settlement and clearing, it will not only greatly improve global financial efficiency, but also change the pattern of global finance.

D. What is blockchain technology and how does it affect the financial and monetary system?

What is blockchain technology and how does it affect the financial and monetary system? "Cratonic Destruction and Terrestrial Biological Evolution" led by Zhou Zhonghe, an academician of the Chinese Academy of Sciences and a researcher at the Institute of Vertebrate Paleontology and Paleoanthropology, Chinese Academy of Sciences, became one of the first three projects to receive this funding in 2016. He told China News Weekly that the project's funding management is relatively loose, but the problem is that this kind of project is too scarce. Although this is a model of stable support, it is still essentially a type of competition. Very strong project. Zhuang Ci also believes that the proportion of support for such projects is very small and is still targeted at a very small number of people. Competition has become increasingly fierce. "When eating barbecue in Jinzhou, 70% of people come here to drink and relieve stress. For example, the guy who came last night showed off eight bottles of Harbin beer while having barbecue. Their children earn more than 2,000 a month, which is better. The houses are only 7,800 to 8,000 square meters. Even if the family pays for the down payment, the children will have a hard time paying off the mortgage. Not only the parents are worried, but the children themselves are also anxious." said Brother Li, who opened Qiechun BBQ restaurant in Jinzhou.

E. What is blockchain technology and how it changes business and financial models

Blockchain technology is a distributed ledger technology that Allows multiple participants to jointly maintain a secure, transparent and immutable record on a decentralized network. Blockchain technology was originally designed for the digital currency Bitcoin, but is now widely used in many other fields.

The core features of blockchain technology include:

Decentralization: Blockchain has no central control agency, and data is distributed on various nodes in the network, which makes it decentralized. The centralization feature reduces the risk of single points of failure.

Transparency: Transaction records on the blockchain are public to all participants, and anyone can view these records. This helps increase trust and reduce the risk of fraud.

Immutable: Once a transaction is recorded on the blockchain, it cannot be easily modified or deleted. This guarantees data integrity and security.

Smart contracts: Transactions on the blockchain can be automatically executed to implement "smart contracts", which automatically execute corresponding operations when specific conditions are met. This helps simplify complex business processes and reduce costs.

Blockchain technology has had a profound impact on business and financial models, which is mainly reflected in the following aspects:

Reducing costs: Blockchain technology can reduce intermediary links and reduce costs. transaction costs and operating costs. For example, by adopting blockchain for cross-border payments, remittance fees can be significantly reduced.

Improve efficiency: The automation and smart contract features of blockchain technology help improve the efficiency of business processes, reduce manual intervention, and reduce error rates.

Enhance trust: The transparency and non-tamperability of blockchain technology help to establish a reliable trust system, reduce the risk of fraud, and provide better protection for business activities.

Innovative business models: Blockchain technology has spawned many new business models, such as decentralized finance (DeFi), digital asset trading, supply chain finance, etc. These new business models have brought disruptive changes to existing industries.

In short, blockchain technology, as an emerging technical means, is gradually changing the landscape of business and finance. With the continuous development of technology and the in-depth promotion of applications, blockchain is expected to have a more extensive and far-reaching impact in the future

F. What impact will the rise of blockchain have on future finance

On August 6, 2018, Mr. Cai Yi, financial industry consultant of Huawei and founder and CEO of Huaxuan Technology, gave a special sharing at DAGA | Blockchain & AI (Core Group), with the theme: Current Situation of Blockchain Finance and outlook. The following text is organized based on the audio of the lecture and has been reviewed by the author.

Cai Yi: Financial industry consultant of Huawei, founder and CEO of Huaxuan Technology, founder of the shared reading club, member of the Chinese Writers Association, has been engaged in financial technology research for more than ten years, and is a senior expert in the digital transformation of banks .

Good evening everyone, I am very happy and honored to be able to share some thoughts with you here.

Let me introduce myself briefly: My name is Cai Yi. I was a writer in my youth. I wrote some books, magazines and novels in the 1990s. There was no Internet at that time. Since then, I have been engaged in informatization work in the financial industry. From financial channels to data centers, from outlets to technology, I have witnessed the development of financial technology and discovered some problems. He has been an investment partner since 2014, and has also worked as a financial industry consultant for Huawei in recent years. From a cognitive perspective, he serves as a consultant for talent development in the digital transformation of the financial industry.

I came into contact with blockchain in 2015, when I founded Huaxuan Technology and Shared Reading Club. At present, we mainly focus on the understanding of blockchain and the implementation of financial technology solutions. At the cognitive level, book clubs are used for interactive sharing and knowledge management. At the technical level, blockchain, big data, AI and other technologies are combined to reshape the processes and scenarios of the financial industry, starting from a local perspective. My relationship with blockchain stems from my own interest in blockchain, which I often study and discuss with some friends. Of course, some of the views are still relatively superficial. I hope everyone can share their opinions and make more comments and corrections.

Elite think tanks in the United States once believed that the core of maintaining global leadership is technology, technology must rely on the economy, and the core of the economy is finance. So, what is the future of finance?

Today’s topic is: The current situation and prospects of blockchain finance. I would like to introduce it mainly from three aspects:

Briefly introduce finance and the financial system;

The current situation of blockchain finance;

The outlook for blockchain finance.

1. Finance and financial system

1 The concept of finance

First of all, let’s talk about the concept of finance. The word “finance” originated from the Meiji Restoration (1868 Japan after 1897, this is somewhat related to the gold standard established by Japan in 1897. It was introduced to China from Japan in the early 20th century and was first proposed by Finance Minister Liang Qichao in 1902. At that time, Zhang Zhidong raised objections. Therefore, China has remained on the silver standard after the Sino-Japanese War of 1884-1899, but this also allowed China to avoid the 1929 decade of the Great Depression.

The original meaning of finance is "money financing", which refers to the circulation of funds in society. Later, its meaning was expanded to indicate transactions and economic activities related to currency and credit. There is actually another reason why it is translated as "finance": gold was once the only medium in international trade, and value and wealth were based on gold as the basis and standard. Therefore, when people make standard gold bars, they need to melt the gold into shape. This may be the original meaning of the word "finance", which is to melt the metal.

Finance is the general term for currency circulation and credit activities and the economic activities associated with them

Let’s take a look at our later definition of finance: Finance is the currency circulation and credit activities and the economic activities related to them. A general term for the economic activities related to it. Finance in the broad sense refers to all economic activities related to the issuance, custody, exchange, settlement and financing of credit currency, even including the purchase and sale of gold and silver. Finance in the narrow sense refers specifically to the financing of credit currency.

To put it simply, the content of finance can be summarized as the issuance and withdrawal of currency, the absorption and payment of deposits, the issuance and recovery of loans, the purchase and sale of gold, silver and foreign exchange, the issuance and transfer of securities, Insurance, trust, domestic and international currency settlement, etc. To put it more bluntly, finance feeds back in both directions. The institutions engaged in financial activities mainly include banks, insurance, securities, trusts, financial leasing, etc. We all know this quite well and have frequent contact with it. Therefore, after understanding the meaning and institutions of finance, you also need to understand China’s financial system.

2 China’s financial system

The development stage of my country’s financial system can be roughly divided into five stages:

Initial formation stage, the first five years ( 1948-1953): The People's Bank of China was established (1948). The People's Bank of China at that time was far from what we imagine now. But it marked the beginning of the new Chinese financial institution system.

The second five years (1953-1978) of the "grand unification" system in which the central bank unified revenue and expenditure: the People's Bank of China was the only financial institution in the country that handled various banking businesses, integrating the central bank Integrated with ordinary banks. In fact, the great unification is that we copy the foreign model. I will not talk about the specific countries.

Initial reforms and breakthroughs in the "unified" financial institution system, the third five years (1979 to August 1983): Bank of China (established in 1912),The Agricultural Bank of China (established in 1951) and the China Construction Bank (established in 1954) were restored or established one after another, but the People's Bank of China still integrates currency issuance and credit. We have seen that China’s financial industry has developed very rapidly after reform and opening up.

The diversified financial institution system began to take shape. In ten years (September 1983 to 1993): it formed with the People's Bank of China as the core and four major majors in industry, agriculture, China and construction. A system of financial institutions with banks as the main body and various other financial institutions coexisting and cooperating with each other. After 1987, Bank of Communications, China Merchants Bank, Shenzhen Development Bank, CITIC and Hengfeng emerged one after another. In 1988, Ping An, Guangfa and Xingye emerged. In 1992, Everbright, Huaxia and Pudong Development Bank emerged and the China Securities Regulatory Commission was established in the same year.

The stage of building and improving the social market financial institution system (1994 to present): It has formed a system led by "one bank and three committees", with large, medium and small commercial banks as the main body, and a variety of non-bank financial institutions. A relatively complete financial institution system as an auxiliary wing. In 1994, three major policy banks (China Development Bank, Export-Import Bank of China, and Agricultural Development Bank of China) were established. In 1995, Minsheng Bank, the first private commercial bank, was established (this is of great significance). In 1998, city commercial banks appeared. and established the China Insurance Regulatory Commission. The China Banking Regulatory Commission actually appeared relatively late, and was only established in 2003. From then on, the pattern of one bank and three conferences was formed. However, not long ago, the China Banking Regulatory Commission and the China Insurance Regulatory Commission merged to form the China Banking and Insurance Regulatory Commission. You can pay attention to it.

From an evolutionary perspective, normative research in finance is often linear.

That is, we often use a certain evolutionary form as the standard (usually a developed market economic system, such as the Soviet Union, Germany, the United States, and even Japan, etc.) to describe the financial system from non-marketization to marketization, from financial The path to progress from inefficient allocation of resources to efficient allocation, and focusing on explaining the GAP and reasons for this standard form.

In fact, we can find from the development history of China’s financial system just now: Since 1978, China’s financial system has evolved in the direction of marketization, standardization, diversification, and internationalization. Both scale and complexity are rising rapidly and non-linearly:

Various financial institutions have shown a "networked" and "strongly related" business format, that is: today's banks and banks, banks The correlation with other financial institutions and various financial sub-markets has increased significantly, and credit connections have become increasingly tight, intertwined, and intricate.

The ecological environment of the financial industry has also seen some significant changes. On the one hand, traditional formal financial institutions seek to accelerate transformation and innovation, and strive to seize opportunities in innovations such as business strategies, market positioning, management structures, business formats, and products. On the other hand, various emerging financial institutions have emerged in large numbers.

The financial industry also presents new characteristics such as real estate financialization, "banking" of non-bank institutions, and asset securitization.

The above changes are beyond the common imagination of the industry, regulators and policymakers.It will bring a series of impacts:

On the positive side, the scale and composition of the financial system have expanded, the business expansion and financial service capabilities of financial institutions have improved, the financial market has developed, and innovative payments have developed. fast. This is the case with financial technology, which we will talk about later.

To use a popular saying, there are all kinds of birds in the forest. Then, the negative aspects are mainly reflected in the following aspects:

The interactive relationship between the financial system and the real economy tends to be complicated, and the role of the financial system in spawning and amplifying asset bubbles has been underestimated.

The network and strong connections of the financial system have widened the gap between the financial industry and financial supervision, weakening the effectiveness of traditional supervision. my country's current financial regulatory system has only been in operation for more than ten years.

The paths and mechanisms through which monetary policy is transmitted through the financial system have changed (the transmission chain of monetary policy has been lengthened or deformed, and its conductivity and effectiveness have declined), and the initiative and effectiveness of regulation are facing new constraints. The current monetary policy framework has been continuously improved in response to economic and financial market developments since its establishment in 1996. However, the complexity of the financial system in recent years has posed new challenges to it. Broad money M2 has also been impacted by factors such as financial deepening and electronic payments, and has been further weakened by the shadow banking system.

Various cross-market, cross-business, and cross-border behaviors that avoid supervision make multiple risk factors intertwined, such as: capital pool operations with serious mismatches in terms of terms and products hide greater liquidity risks, product Nesting leads to risk transmission, insufficient shadow banking supervision, local debt, real estate, external shocks, etc., which all pose great challenges to the stability of the financial system.

There is no harm without comparison. my country's financial system as a whole is still relatively backward. This backwardness is mainly reflected in the lag in banking innovation: the People's Bank of China announced the cancellation of "interest spread protection" in October 2015, while the United States had completely marketized interest rates as early as April 1986, and China was nearly 30 years late.

3 The institutional framework and basic issues of China’s financial system

Of course, my country’s current financial system is based on three basic institutional frameworks:

The first is to rely on business trust existing in legal provisions, that is, policy guidance;

The second is to rely on a third party as a credit intermediary to ensure the realization of asset transfer transactions;

The third is to rely on centralized The clearing house is the center and handles the settlement and clearing of completed transactions.

Based on this, four issues have been raised:

1) The issue of integrity system and trust mechanism. Traditional finance must have strict transaction records to accumulate credit. Without transaction records, it is difficult to achieve financing or loans because there is no technical means to ensure the security of transactions between both parties.

2) Transaction settlement takes a long time. Traditional financial transaction times continue to speed up, but settlement times are still relatively long, especially cross-border transactions, which often cannot arrive immediately.

3) The cost of intermediary services is high. The important source of income of the traditional financial trading system relies on collecting transactionsHandling fees or loan interest; in cross-border transactions, you have to pay the cost caused by exchange rate changes.

4) Poor security. Traditional finance has many human involvement links, which means that the probability of human errors and omissions is also higher.

Faced with this series of problems, financial institutions have actually been looking for solutions. When we communicated with ICBC and China Merchants Bank two years ago, they were already exploring big data, artificial intelligence and blockchain. And its crisis awareness is very strong.

4 Financial Technology

As the positive aspects just mentioned, financial institutions have been seeking solutions to financial informatization and financial digitalization.

So, let me mention what is happening in financial technology. Whether it is FinTech proposed by JD.com or TechFin proposed by Ant Financial, I think it is essentially a better combination of technology and finance, just like what we will discuss next is how to better combine finance and blockchain.

Financial Technology 1.0 Era

At this stage, the financial industry and the technology industry exist as parallel industries. The two sides have not yet truly integrated, but technological progress has begun to promote the globalization of the financial market. change. Since World War II, the rapid development of communication technology and information technology has enabled finance to break national boundaries, and the cross-border investment of financial institutions has also greatly accelerated. The main providers of financial services in this era were banks.

Financial Technology 2.0 Era

Technology is promoting finance and strengthening the trend of globalization, making financial services more and more digital. The financial industry realizes the electronicization and automation of offices and business through the application of traditional IT software and hardware, thereby improving business efficiency. During this period, financial institutions have significantly increased the adoption of IT technology in internal operations and have successfully implemented paperless offices in many processes. Core systems, credit systems, clearing systems, etc. that are often discussed in banks and other institutions are representatives of this stage.

Financial Technology 3.0 Era

In the Internet financial stage, the main force of financial technology at this stage is entrepreneurial enterprises of non-financial institutions, relying on Internet technology and information and communication technology to provide financial services or Cooperate with financial institutions to launch financial services. The financial industry builds online business platforms and uses the Internet or mobile terminal channels to bring together massive users and information to realize the interconnection and interoperability of any combination of the asset side, transaction side, payment side, and capital side in financial business. This is essentially a change from the traditional The transformation of financial channels enables information sharing and business integration.

Fintech 4.0 Era

The financial industry uses new IT technologies such as big data, cloud computing, artificial intelligence, and blockchain to change traditional financial information collection sources and risk pricing models. , investment decision-making process, and the role of credit intermediary, it can greatly improve the efficiency of traditional finance and solve the pain points of traditional finance. The representative technologies are big data credit reporting and intelligent investment advisory.

Having said that, let’s summarize a little bit: Finance is trustUsing an intermediary, finance provides two-way feedback. We talked about China's financial system and learned that ICBC, China Merchants Bank and Ping An were established at the same time, so we know why ICBC is more active and innovative than the other four major banks. Then we talked about the development of financial technology, which has led to better development of financial technology in information and digitalization.

Excerpt related to: Article: Current Situation and Prospects of Blockchain Finance

G. What is the relationship between blockchain technology and the financial industry

Blockchain Technology It has the advantages of being difficult to tamper with and easy to trace, and can play a role in identity information management, trust mechanism construction, and small and micro enterprise credit information chain integration.

Here is an example of a bank in Nanping:

Due to the explosion of online business, the original offline signing method can no longer satisfy the bank. With the demand for rapid business changes, the digital construction of banks is urgent, but bank risk control departments have strict compliance requirements:

Is the online business data sensitive and private, and is the transmission safe?

Does electronic signature have legal effect?

Is electronic evidence admissible in court?

These concerns have become obstacles for banks to introduce electronic contracts and carry out digital transformation of their businesses.

After adopting the unique ENA active evidence collection patented technology of the "Real Hammer" trusted electronic evidence platform, a bank in Nanping used the notary office to clean the server to preserve and store the electronic data of the target system online in real time. With the issuance of certificates, the entire process of electronic data from generation, transmission to storage is recorded. Finally, the notary office issues an evidence collection and preservation report stamped with the official seal. The document is a notarized document and can be directly accepted by the court. Since the report is issued by the notary public office, it is relevant. Compared with the self-certification of third-party electronic contract platforms, it is more credible and solves the concerns of bank risk control departments in one fell swoop. The entire process is online and automated, and front-end customer operations are imperceptible.

At the same time, combined with the "real hammer" middle and back-end case-like system and outsourced execution services, the bank has achieved rapid dispute resolution in Internet business. It not only ensures the compliance and effectiveness of the electronic contract signing process, but also solves the problems of bank cases being scattered across the country, high legal travel costs, long litigation cycles, and no efficient disposal channels.

H. What impact does blockchain technology have on financial infrastructure

Blockchain technology uses a decentralized mechanism for value exchange, which will lead to centralization. Characteristics of the existing financial infrastructure have undergone earth-shaking changes.

Assets such as collateral, pledges, stocks, bonds, and derivatives usually require a trustworthy core institution for registration or custody, but blockchain can use new The way to record and save the data of these products will have an impact on the registration system of these products.

Blockchain can receive and respond to information and value through smart contracts, automatically complete the transfer of value, and automatically complete transactions, clearing and settlement, which will impactExisting financial infrastructure such as existing large-value trading systems, securities depository, securities settlement and over-the-counter derivatives trading.

I. How is blockchain technology used in the banking industry?

The biggest feature of blockchain technology is decentralization, and this feature will reduce a lot of costs for the banking industry. .

First of all, decentralization means that intermediaries are no longer needed to establish a trust mechanism between banking systems, saving intermediary costs.

Secondly, the development of digital currency will make it possible to realize real-time digital transactions in banks. For example, in bill transactions, bank bill transactions have always relied on a third party to realize the transfer of valuable certificates. Even electronic bill transactions require interactive authentication through information from the central bank's ECDS system. Blockchain technology can realize point-to-point transfer of value and no longer requires centralized system control. This not only speeds up the speed of ticket transfer, but more importantly, it can reduce errors caused by human factors and reduce processes. Naturally, it will reduce the bank's demand for personnel and save the bank's labor costs.

Finally, it will also have an impact on clearing and settlement. The bank's clearing and settlement business has always been completed by central clearing, which is inefficient. Settlement through blockchain technology will greatly improve the efficiency of banks.

Blockchain technology also plays a major role in banks’ cross-border payment services. Today, when global trade is highly developed, cross-border payments are becoming more and more frequent, and banks often act as third-party services in cross-border trade, such as electronic transfers, asset custody, etc. However, cross-border payments generally take about 2 days to arrive, which is very inefficient and reduces the utilization of funds in transit. In blockchain technology, both parties of cross-border payments can be completed in a point-to-point manner, achieving round-the-clock payment and real-time arrival, thereby speeding up clearing and settlement, thereby improving the efficiency of bank processing business.

Another feature of blockchain technology is de-risking. Banks can build their own blockchain, which can ensure that bank customers’ transaction information and transaction records are true and valid and will not be compromised. Without any tampering, the bank can effectively identify the customer's information, understand all aspects of the customer's situation, identify the customer's abnormal transactions, prevent being deceived by the customer, thereby reducing the bank's supervision costs.

J. What role can blockchain play in traditional enterprises

Blockchain is a new application of computer technologies such as distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithm. model. Blockchain is essentially a decentralized database.
The application fields of blockchain include digital currency, certificates, finance, anti-counterfeiting and traceability, privacy protection, supply chain, entertainment, etc. With the popularity of blockchain and Bitcoin, many related top domain names have been registered. , which has had a relatively large impact on the domain name industry.
Take agriculture as an example, what problems does blockchain solve in agriculture?
1. Traceability of agricultural products
The traceability of agricultural products has always been a pain point in agriculture. Blockchain technology can make records non-tamperable, so there is detailed data from the production end of agricultural products to the circulation end and consumers, which can realize consumers' clear consumption and increase consumers' willingness to buy.
The traceability of agricultural products can improve the safety of agricultural products and food.
2. Information transparency
In addition to traceability in the agricultural field, there is also the problem of opacity in the information between producers and demanders.
Once blockchain technology is applied to agriculture. We can use big data analysis to establish credit rating references for growers and purchasers; use smart contracts to ensure fair transactions between growers and purchasers. At the same time, blockchain technology can improve the contractual spirit between buyers and sellers of agricultural products.
Also, with the advent of blockchain in the food supply chain, this could streamline the process as the data management system integrates a range of brokers, farmers, processors, distributors, regulators, retailers and Data management systems are becoming more transparent for consumers to put on their radar.
3. Reduce costs
After the application of blockchain technology, the costs of production and circulation will be greatly reduced. For example, blockchain technology solves the functions of automatic information storage and database, thus reducing manual investment and investment in other facilities.
In addition, blockchain and applications realize the interconnection of everything, helping manufacturers and distributors reduce various expenses. At the same time, reductions in production and distribution costs will also reduce the prices of agricultural products, ultimately benefiting consumers.
Of course, in addition to the above three reasons, blockchain technology can also be applied in agricultural subsidies, land registration, etc. to solve problems such as corruption and rights and interests.
Therefore, the application of blockchain technology in the agricultural field has been recognized by people at all levels.
The core advantage of blockchain technology is decentralization. It can achieve decentralized credit in a distributed system where nodes do not need to trust each other by using data encryption, timestamps, distributed consensus and economic incentives. Point-to-point transactions, coordination and collaboration, thus providing solutions to the problems of high cost, low efficiency and insecure data storage common in centralized institutions.
Future development and application scenarios of blockchain
1. Digital identity
When many people apply for various certificates, they will encounter "prove that my grandma is an adult", "my mother is my mother" "The dilemma, with blockchain, you no longer have to worry about it. It turns out that our birth certificates, real estate certificates, marriage certificates, etc. need a central node for everyone to recognize them. Once cross-border, contracts and certificates may become invalid because of the lack of a global central node.
The non-tamperable nature of blockchain technology has fundamentally changed this situation. Our birth certificates, real estate certificates, and marriage certificates can all be notarized on the blockchain and become things trusted by the world. Of course, It can easily prove "prove that my grandma is an adult" and "my mother is my mother".
2. Health care
To put it simply, it is to use blockchain to establish a universal record repository with timestamps, so that different databases can extract data information.
3. Travel consumption
When traveling, we often use apps such as Ctrip and Meituan to find and place orders for hotels and other services, and each platform gets commissions from them. The application of blockchain is to remove middlemen and create a secure and decentralized way for service providers and customers to connect and trade directly.
4. More convenient transactions
Blockchain can make payments and transactions more efficient and convenient. The blockchain platform allows users to create smart contracts that become active when certain conditions are met, meaning that automatic payments can be released when both parties to a transaction agree that their conditions are met.
5. Strictly control product quality
If you buy an apple, with blockchain technology, you can know the entire process from the production of the fruit farmer to the circulation link. Among them are government regulatory information, professional testing data, enterprise quality inspection data, etc. A smart supply chain will make the food we eat and the products we use every day safer and give us more peace of mind.
6. The Art of Property Rights Protection
The creator puts his work on the blockchain, and once someone uses his work, he can know it immediately. Corresponding royalties will also be automatically paid to the creator. Blockchain technology not only protects copyright, but also helps creators sell their works to consumers better and more directly, without requiring the assistance of distribution companies.