区块链对金融体系的影响有哪些,区块链对金融体系的影响论文

随着技术的发展，区块链技术不断渗透到金融行业，其对金融体系的影响也越来越大。区块链技术可以帮助金融机构更有效地管理金融资产，提高金融机构的运营效率，并为客户提供更安全、更可靠的金融服务。

首先，区块链技术可以提高金融机构的运营效率。区块链技术可以提高金融机构的数据处理能力，使金融机构可以更快更准确地处理金融资产，减少人工干预，提高运营效率。

其次，区块链技术可以帮助金融机构更有效地管理金融资产。区块链技术可以将金融资产存储在分布式数据库中，使金融机构可以更快更准确地跟踪资产，减少资产流失的风险。

此外，区块链技术还可以为客户提供更安全、更可靠的金融服务。区块链技术可以使金融机构更安全地存储客户的数据，使客户的资产更加安全，同时还可以更快更准确地处理客户的金融交易，为客户提供更可靠的金融服务。

总之，区块链技术对金融体系的影响是巨大的，它可以提高金融机构的运营效率，帮助金融机构更有效地管理金融资产，并为客户提供更安全、更可靠的金融服务。因此，金融机构应该加快接受和应用区块链技术，以更好地适应金融行业的发展。

Ⅰ A paper analyzing the prospects of blockchain in the financial field

A paper analyzing the prospects of blockchain in the financial field

Blockchain technology was born in In 2008, the first application was Bitcoin. Blockchain technology uses a decentralized consensus mechanism to maintain a complete, distributed, and non-tamperable ledger database, allowing participants in the blockchain to implement a unified ledger system without establishing a trust relationship. . In 2015, many mainstream financial institutions in Europe and the United States recognized the application prospects of this technology and explored the application of blockchain technology in the financial field. The International Monetary Fund pointed out in a report that "it has the potential to change finance." Some people believe that blockchain technology will change human society as profoundly as double-entry accounting and shareholding.

Blockchain will make it possible for all individuals to become important nodes in the allocation of financial resources. It will also promote the improvement of the existing financial system and financial rules, and build a shared and win-win situation. type of financial development ecosystem. The emergence of blockchain technology is a revolution in human credit creation. It allows both parties to the transaction to carry out economic activities without the need for third-party credit intermediaries, thereby achieving low-cost value transfer. It can be said that blockchain technology is a more efficient value exchange technology in the Internet era. The Internet has evolved from an information Internet that transmits information to a value Internet that transfers value. This is conducive to traditional financial institutions taking advantage of the opportunity to transform and transform endogenous businesses. Processes and application scenarios are Internetized.

1. Characteristics and shortcomings of blockchain

(1) Main characteristics of blockchain

(1) Decentralization. In the blockchain, there is no centralized hardware or management organization. The distributed structure system and open source protocol allow all participants to participate in the recording and verification of data, which is then sent to various nodes through distributed propagation. Each participant The nodes are all "self-centered", and the rights and obligations are equal. Blockchain is not simply decentralized, but multi-centered or weakly centered. When the Internet of Things makes it possible for all individuals to become central nodes, the central status of traditional financial intermediaries changes, transforming from a monopoly-type, resource-advantaged center and strong intermediary to an open platform, becoming a service-oriented multi-center. Center of differentiation.

(2) To trust. From a trust perspective, blockchain uses a set of open and transparent mathematical algorithms based on consensus specifications and protocols to enable all nodes to automatically and securely exchange data in a trustless environment. Blockchain essentially solves the problem of trust through mathematical methods. All rules are expressed in the form of algorithmic programs. Participants do not need to know the credit level of the counterparty, and do not need transaction endorsement or guarantee verification from a third-party institution. They only need trust. A common algorithm creates credit, generates trust, and reaches consensus for participants through the algorithm.

(3) Timestamp. A block is a period of data andGenerated by code packaging, the header of the next block contains the index information of the previous block, and a chain is formed by connecting the end to the end. The blocks that record the complete history and the chain that can be completely verified form a timestamp that can trace the complete history. It can provide retrieval and search functions for each piece of data, and can use the blockchain structure to trace the source, one by one. verify. Therefore, the blockchain is timestamped when generated, forming a database that cannot be tampered with or forged. Modifications to the database on a single node are invalid unless more than 51% of the nodes in the system can be controlled at the same time, so the data reliability of the blockchain is very high.

(4) Asymmetric encryption. The blockchain uses an asymmetric encryption algorithm, that is, a "key pair" is used in the encryption and decryption process. The two keys in the "key pair" have asymmetric characteristics. In the application scenario of blockchain, on the one hand, the key is the public key visible to all participants. Participants can use the public key to encrypt a piece of authenticity information, and only the owner of the information can use the private key to decrypt it. On the other hand, the private key is used to sign the information, and the signature is verified by the corresponding public key to ensure that the information was sent by the real holder. Asymmetric encryption minimizes friction boundaries in value exchange, enables transparent data anonymity, and protects personal privacy.

(5) Smart contract: Since the blockchain can realize point-to-point value transfer, corresponding programming scripts can be embedded during transfer. This smart contract method is used to handle some unforeseen transaction patterns and ensure Blockchain can continue to be effective. This kind of programmable script is essentially a list of many instructions to achieve pertinence and conditionality in value exchange and to achieve specific uses of value. Therefore, any value exchange activity based on the blockchain can achieve hard control over its use, direction and various restrictions through intelligent programming, eliminating the cost of soft constraints by law or contract.

(2) Main problems of blockchain

(1) High energy consumption problem. There is an impossible triangle in the traditional currency and banking system, that is, it is impossible to achieve decentralization, low energy consumption and high security at the same time. The impossible triangle also exists in the construction of blockchain. For example, in the actual application of Bitcoin, its development has brought about the rapid expansion of computer hardware, and the main costs in the "mining" process have shifted to hardware costs and electricity costs. Therefore, after applying blockchain technology to achieve equity cost benefits, maximizing its technical efficacy has become an urgent problem to be solved.

(2) Storage space problem. Since the blockchain records every transaction information from the initial information in the system, and each node has to download, store and update data blocks in real time, if the data of each node is completely synchronized, the network pressure will be great, and each node will The storage space capacity requirements of each node may become a key issue restricting its development.

(3) The problem of stress resistance. The system built based on the blockchain follows the barrel theory and must take into account the worst processing speed and network environment among all network nodes. Therefore, if the blockchain technology is promoted toIn a large-scale trading environment, its overall ability to withstand pressure has yet to be verified. If the transaction volume generated per second exceeds the design capacity of the system (the weakest node), transactions will automatically enter the queue and be queued, resulting in a poor user experience.

2. Application of blockchain in the financial field

(1) Financial infrastructure

Blockchain may serve as the infrastructure of the Internet in many fields. All show broad application prospects. In the financial industry, blockchain technology will first affect financial infrastructure such as payment systems, securities settlement systems, and transaction databases. Later, the technology will also expand to general financial services, such as credit systems, "anti-money laundering," etc. This is because, based on the characteristics of blockchain technology, it will first enter the infrastructure field with high trust requirements and high cost of traditional trust mechanisms. In the past, infrastructure was a public product, but new technologies and new systems of blockchain make it more It is possible for multiple people to participate in the provision of public goods. The future of Internet finance will use Internet technologies such as blockchain to transform the core production systems of traditional financial institutions and build financial enterprises on the Internet.

The current information Internet can be collectively referred to as the TCP/IP model, and HTTP is the most important application protocol in the application layer. In the Internet of Value, blockchain is a point-to-point transmission protocol in the application layer. Its value is the same as that of the HTTP protocol in the information Internet. The huge potential and prospect of blockchain is that it can reconstruct the infrastructure and core production systems of the traditional financial industry, not just at the application level such as APPs. This is because, at the network level, the blockchain is based on the IP communication protocol and the distributed network; at the data level, the blockchain database system is brand new and is significantly better than the existing one. There is a database for the financial system; at the application level, blockchain-based registration, settlement, clearing systems, smart contracts, and the Internet of Things can greatly improve efficiency. Financial activities on the blockchain are programmable finance. .

(2) Digital Currency

From the perspectives of security and cost, it is a general trend that banknotes will be replaced by new technologies and new products. The establishment of digital currency issuance and circulation systems is very necessary for financial infrastructure construction and economic development. Following the idea of ​​integrating traditional currency and digital currency, the issuance, circulation and trading of digital currency should be led by the central bank, reflecting convenience and security, and achieving a balance between protecting privacy, maintaining social order, and combating illegal and criminal activities. It is conducive to the effective operation and transmission of monetary policy. It is necessary to retain the control of monetary sovereignty. Digital currency is freely convertible and controllable.

The success of blockchain technology on Bitcoin proves the feasibility of programmable digital currency. Research from the Bank of England suggests that central banks could consider issuing blockchain-based digital currencies, which could increase financial stability. The technical routes of digital currency can be divided into two types: account-based and non-account-based. They can also be used in layers to try to coexist. districtThe characteristic of blockchain technology is distributed bookkeeping, which is not account-based and cannot be tampered with. If the digital currency focuses on protecting personal privacy, this technology can be used. However, the current blockchain occupies too many computing resources and storage resources and cannot cope with the current scale of transactions. This problem needs to be solved before it can be promoted and applied.

(3) Self-finance

From the perspective of services and non-monetary creation, modern finance is realized through intermediaries. In the Internet era, it is possible to achieve direct finance in the true sense of disintermediation. However, this possibility is not complete. The main reason is that the current Internet finance is based on the original finance and cannot be jumped out. Blockchain technology provides a possibility. Blockchain can be divided into public blockchain and private blockchain. Public blockchains are like Bitcoin. Once the protocol is approved, it becomes an integral part of the blockchain. Private blockchains still need to be permissioned, and blockchain technology in banking systems requires auditing of each participant. Private blockchain is very similar to a form of self-finance, and public blockchain is more similar to the support and guarantee for the bottom layer of private blockchain. When blockchain technology is widely used and third-party financial management technology is generally available, self-financing based on blockchain technology will become completely possible.

3. Blockchain Application and Financial Supervision

Blockchain technology is currently the only tool that can be used to record and prove transaction consistency and company financial accuracy without the need for a third party. Therefore, it can meet the requirements of potential regulators and the public for audit effectiveness, accuracy and timeliness, and has broad application prospects in the financial field. However, its development is still restricted by the current system. On the one hand, blockchain has had an impact on the current system because its decentralized and autonomous characteristics dilute concepts such as the state and supervision. For example, digital currencies represented by Bitcoin challenge the country's right to issue currency and regulate monetary policy, causing monetary authorities to take a conservative attitude towards the development of digital currencies. On the other hand, regulatory authorities also lack full understanding and expectations of this new technology, and the establishment of laws and systems will be seriously delayed, resulting in the lack of necessary institutional norms and legal protection for blockchain applications, increasing the risks for market entities.

Once blockchain financial technology is widely deployed in the financial industry, the de-financial nature of supervision will occur, and supervisory functions, supervisory methods and supervisory means will be redefined. For example, if securities lending, repurchases, and margin trading can be traded through the blockchain, regulatory authorities can consider using the information from this public ledger to monitor systemic risks in the market, which is not only efficient but also reliable. From a macro-financial perspective, after the emergence of the financial era, the currency creation and transmission mechanism and the credit creation pattern will change. From a micro-finance perspective, with the further development of blockchain technology, finance and business have become difficult to distinguish, and will transcend the meaning of separate and mixed industry supervision. The reform of the financial supervision system needs to be discussed from this perspective.

Blockchain technologyThe "decentralization" brought about still requires centralized departments to provide regulatory and guarantee support. Regulators can proactively embrace new technologies in Internet finance. U.S. Securities and Exchange Commission member Kara Stein believes that regulators need to be in a leading position, taking advantage of the advantages of blockchain technology and quickly responding to its potential weaknesses. For example, blockchain technology hopes to break privileges and human manipulation and allow computer algorithms to achieve "free credit notarization." But in practice, due to the lack of supervision, digital currency transactions such as Bitcoin face high risks of speculation and money laundering. Therefore, the application of blockchain technology requires regulatory authorities to formulate relevant standards and specifications to ensure that financial innovative products are used appropriately. At the same time, it is necessary to improve the protection of consumer rights and interests, strengthen education on the protection of financial consumer rights and interests, and improve consumers' awareness of risk prevention.

II 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, it has been running perfectly for seven years without a centralized operating organization. Not only can it achieve real-time settlement and clearing, but there has been no accounting error.
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.

Ⅲ What impact will blockchain have on future finance

1. Blockchain in the field of payment: reconciliation and settlement between financial institutions, especially cross-border financial institutions The cost is relatively high and a lot of manual processes are involved; the application of blockchain technology can reduce the cost of reconciliation and dispute resolution between financial institutions.cost, significantly improving the efficiency in the payment field, and making it easier for financial institutions to process small-amount cross-border payment services, which will help realize inclusive financial services.
2. In the field of clearing and settlement: different financial institutions have different infrastructure structures and business processes, involving many manual processes, which greatly increases business costs and is prone to errors. Applying blockchain technology, combined with the on-chain assets mentioned in the second point, can complete point-to-point real-time clearing and settlement, thereby reducing value transfer costs, shortening time, improving efficiency, and both parties to the transaction can obtain good privacy protection.
3. Asset management field: Equity, bonds, bills and other assets are managed by different intermediaries, which increases the transaction cost of assets and brings about the problem of certificate forgery. Apply blockchain technology to digitize such assets and turn them into digital assets on the chain. With the irreversible, non-tamperable, and public characteristics of the blockchain, it can improve the efficiency of asset transactions and reduce asset management costs.
Because the characteristics of the blockchain are irreversible and non-tamperable, it makes information confidential and secure, point-to-point transaction transmission, decentralization, and reliable traceability of information; thereby reducing intermediate costs and improving efficiency, it is not only used for accounting and auditing , and can also be applied to all walks of life. Now we can also see the collaborative operation model of blockchain from behind the operation of all walks of life. Therefore, blockchain will definitely change human life extensively and profoundly. Therefore, The entire life service will enter the blockchain era. In this Internet development process, blockchain + physical industries, blockchain e-commerce, and blockchain community operations can all apply blockchain technology.

IV What impact will the rise of blockchain have on the future of finance

On August 6, 2018, Mr. Cai Yi, financial industry consultant to Huawei and founder and CEO of Huaxuan Technology Made a special sharing at DAGA | Blockchain & AI (Core Group), with the theme: Current Situation and Prospects of Blockchain Finance. 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 blockchainCognitive and financial technology solutions are implemented. 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:

A brief introduction to 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. However, 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 related to 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 stages of my country’s financial system can be roughly divided into five stages:

Initial formationThe first five years (1948-1953): the People's Bank of China was established (1948). The People's Bank of China at this 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), Agricultural Bank of China (established in 1951) , China Construction Bank (established in 1954) have been 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 in a non-linear manner:

All types of financial institutions have shown a “networkThis means that the correlation between banks and banks, banks and other financial institutions, and various financial sub-markets has increased significantly, and credit connections are becoming increasingly close, 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, On the other hand, various emerging financial institutions have emerged in large numbers.

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

These changes above Beyond the common imagination of the industry, regulators and policymakers, it will have a series of impacts:

On the positive side, the scale and composition of the financial system have expanded, and financial institutions have expanded their business and financial services. Capacities have improved, financial markets have developed, and innovative payments are developing rapidly. This is the case with financial technology, which we will talk about later.

In a layman's terms, 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 correlation 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 supervision system has only been in operation for more than ten years.

Monetary Policy Through changes in the transmission paths and mechanisms of the financial system (the transmission chain of monetary policy is lengthened or deformed, and the conductivity and effectiveness are reduced), the initiative and effectiveness of regulation are facing new constraints. The current monetary policy framework has continued to change since its establishment in 1996 It has been improved in response to the development of the economy and financial markets, but 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 payment, and has been further weakened by the shadow banking system.< /p>

Various cross-market, cross-business, and cross-border behaviors that evade 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 embeddedness, etc. Risk transmission caused by arbitrage, insufficient supervision of shadow banking, local debt, real estate, external shocks, etc. have all brought 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 bank 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 the commercial trust that exists in legal provisions, that is, policy guidance; the second is to use a third party as a creditAn intermediary is used to ensure the realization of asset transfer transactions;

The third is a centralized clearing institution as the center to handle the completed transaction settlement and clearing.

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 transaction system relies on collecting transaction fees or loan interest; in cross-border transactions, costs caused by exchange rate changes have to be paid.

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,Using 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 is essentially a transformation of traditional financial channels and the realization of 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 investigation and intelligent investment advisory.

Having said this, let’s briefly summarize: Finance is the intermediary of credit, and 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.

Excerpts from: Article: Current Situation and Prospects of Blockchain Finance

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

Blockchain Chain is a technology that can completely change the underlying design of the financial system. Because it can achieve undifferentiated records of ownership and transaction records of all assets in the market by all market participants, it can completely eliminate clearing and custody before, during and after transactions. The intermediate link for ownership confirmation; in addition, the blockchain, as an electronic information record, can be combined with computer algorithms to realize transaction automation, 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.

VI What impact does blockchain technology have on financial infrastructure

Blockchain technology uses a decentralized mechanism for value exchange, which will lead to centralization. The existing financial infrastructure has 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.

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

VII What is the relationship between blockchain technology and the financial industry

Blockchain technology has the advantages of being difficult to tamper with and easy to trace. It can be used in identity information management, trust mechanism construction, small and micro enterprises, etc. The corporate credit information chain will play a role.

Here we can give 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 channel.

VIII Application of Blockchain in the Financial Field

1. Application and Development of Blockchain

Some Internet, Internet start-ups and traditional financial industries Started to try out applications in some projects

2. Domestic financial institutions are testing the waters of blockchain

Various financial institutions are testing the waters one after another, and they are basically in the conceptual experimental stage and have not yet reached a large scale. Commercial scale.

3. Panorama of the application of blockchain in the financial field

4. Ghostwriting

5. Digital Bills

Bills are an important financial product in the financial market. They have dual functions of payment and financing. They are of high value and bear bank credit or commercial credit. Once a bill is issued, its face amount, date and other important information cannot be changed. Bills also have circulation attributes and can be accepted, endorsed, discounted, rediscounted, collected and other transactions within a specific life cycle. Once the transaction is completed, the transaction cannot be revoked. There are two characteristics in the circulation of bills: First, the circulation of bills mainly occurs through bank acceptance bills, and the number and circulation of commercial acceptance bills are small; second, each bank independently conducts credit granting and risk control on the bill business, and a single bank's Risk control results may affect other participants in the bill market transaction chain.

The experimental production system of the digital bill trading platform uses SDC (Smart Draft Chain) blockchain technology to protect privacy through cryptographic algorithms such as homomorphic encryption and zero-knowledge proof. The Byzantine Fault Tolerance Protocol (PBFT) performs consensus and uses a see-through mechanism to provide data monitoring.

The experimental production system includes four subsystems: stock exchange, bank, enterprise and monitoring: the stock exchange subsystem is responsible for managing the blockchain and monitoring the digital bill business; the bank subsystem has Digital bills have business functions such as acceptance and receipt, discount signing, rediscounting, and collection and repayment; the enterprise subsystem has business functions such as issuance, acceptance, endorsement, discounting, and prompt payment of digital bills; the monitoring subsystem monitors the status of the blockchain in real time and business happenings

6.

Ⅸ 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 helpsTo 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.

Improving 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 commercial 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