区块链金融英文文献,区块链金融英文缩写

Blockchain technology has revolutionized the financial industry, and its impact is now being felt in a wide range of areas. From banking and payments to investments, blockchain-based financial services are becoming increasingly commonplace. But what exactly is blockchain finance?

Blockchain finance, also known as distributed ledger technology (DLT), is a system of digital records that are securely stored on a distributed network of computers. Each record, known as a block, contains a cryptographic hash of the previous block, a timestamp, and transaction data. This data is secured using advanced cryptography and is virtually impossible to alter or delete. The result is a secure, immutable, and transparent system of record keeping that is ideal for financial services.

One of the most important benefits of blockchain finance is its ability to facilitate peer-to-peer (P2P) transactions. By removing the need for a third-party intermediary, such as a bank or payment processor, blockchain-based financial services enable users to make direct payments to one another. This can significantly reduce transaction costs and increase the speed of payments.

Another advantage of blockchain finance is its potential to reduce the risk of fraud. By using a distributed ledger, all transactions are recorded and verified in real-time. This makes it much harder for fraudsters to manipulate the system or steal funds. In addition, blockchain-based financial services are typically encrypted, making them even more secure.

Finally, blockchain finance has the potential to revolutionize the way we invest. By using smart contracts, investors can create and manage digital assets in a secure, transparent, and automated way. This could open up new opportunities for investors, as well as reduce the costs and risks associated with traditional investments.

In conclusion, blockchain finance is a revolutionary technology that has the potential to revolutionize the way we manage and invest our money. With its ability to facilitate P2P transactions, reduce the risk of fraud, and open up new investment opportunities, blockchain-based financial services are becoming increasingly popular. As the technology continues to evolve, it is likely that blockchain finance will become even more widespread in the future.

请查看相关英文文档

『一』What is blockchain and what is its relationship with Bitcoin

Blockchain in English is Blockchain, which is distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithm and other new application models of computer technology. The so-called consensus mechanism is a mathematical algorithm that establishes trust and obtains rights and interests between different nodes in the blockchain system. Blockchain is the underlying technology of Bitcoin, which is like a database ledger that records all transaction records. This technology has gradually attracted the attention of the banking and financial industries because of its safety and convenience. It is a very important concept in the blockchain world. Many models, such as ledger maintenance, currency issuance, timestamp design, network maintenance, competition between nodes, etc., all rely on this central idea.

The first application of blockchain was Bitcoin, and many countries have recognized the legal status of Bitcoin. There is no Bitcoin organization or central bank in the world to issue Bitcoin. The credibility it relies on is the algorithm. It relies on testing the algorithm and an account book and fair mechanism to ensure circulation. It develops a currency that everyone recognizes and trusts. A mechanism, that's how it works.

Nowadays, people’s concept of blockchain is still very general, and its applications are not very wide. However, in the next ten years or even decades, when it comes to blockchain, it will definitely be the most high-end technology that affects people of all ages. Everyone knows!

『二』Blockchain --- Distributed Finance (DeFi)

DeFi is the abbreviation of decentralized finance (distributed finance), usually referring to Ethereum-based Digital assets and financial smart contracts, protocols, and distributed applications (DApps).

Simply put, DeFi is to move traditional finance to the blockchain network, but compared with traditional finance, it achieves decentralization through the blockchain, which means removing the role of the middleman, thus Reduces the huge costs caused by intermediate links.

What DeFi ultimately wants to achieve is the tokenization of assets, replacing traditional centralized financial institutions with smart contract functionality, allowing users to enjoy financial services at a lower cost, and improving the operation of the entire financial system. efficiency and reduce operating costs. At the same time, we will create a borderless financial system that is open to the world to create a new decentralized system that is open, transparent, and secure, so that everyone can trade freely.

With the rapid development of blockchain, DeFi application scenarios are constantly enriched, and the financial industry is one of the most promising industries.

Similar to a bank, usersIt is possible to save money and earn interest from other users who borrow their assets. However, in this case, the assets are digital and smart contracts connect lenders to borrowers, enforcing the terms of the loan and distributing interest. This all happens without trusting each other or a middleman bank. And, thanks to the transparency provided by blockchain, by cutting out middlemen, lenders can earn higher returns and gain a clearer understanding of risks.

Decentralized exchange, referred to as DEX, DEX is a cryptocurrency exchange that uses smart contracts to implement trading rules, execute transactions and securely handle funds when necessary. When trading with a DEX, there is no centralized exchange operator, no registration required, and no identity verification or withdrawal fees.

DEX can use the order book for transactions. For example, if you want to exchange 10 A for 15 B, then I will write it down. Then a while later another person came and said I wanted to exchange 15 B's for 10 A's. I said great, it was a perfect match. So, I generated a transaction on the chain to exchange your coins. At this time, the exchange rate is actually used as a reference for both parties to the transaction - it is recommended that you use this exchange rate to easily find a match. In this way, the decentralized exchange only matches the needs of both parties and puts them on the chain, and there is no problem of smart contracts reading off-chain exchange rate information.

This method has many flaws. No matter how user-friendly this DEX is, its efficiency must be very poor compared to centralized exchanges. First of all, it is difficult to find a match when currency prices fluctuate. Secondly, it is definitely difficult to find a match for small currencies. Then there should be no transaction delays. Small. But compared to central exchanges, it still has the only advantage-reliability.

DEX can also use AMM (automatic market maker) transactions, which calculate the exchange rate according to its own supply and demand relationship to ensure that the coins in your hand will not be shorted by others at a low price. The simplest way is to always ensure that the number of your A coins and B coins is a fixed value. In this way, even if you sell short, the loss will be limited, and the market will always adjust the price to an appropriate level - because anyway, if the exchange rate is low If the exchange rate is high, some people will buy it, and if the exchange rate is high, some people will sell it.

Through this simple method, a market can be obtained that can automatically adjust according to supply and demand without obtaining exchange rate information from outside the chain. Of course, the weakness of this thing is also obvious - if the initial exchange rate is not close to the market exchange rate, you will suffer a lot of losses. Moreover, there are “gratuitous losses” in AMM.

  Stablecoins are tokens designed to maintain a specific value, often pegged to a fiat currency such as the U.S. dollar.

For example, DAI is a stablecoin pegged to the U.S. dollar and collateralized by digital assets on the Ethereum (ETH) chain. Its issuance is realized through a lending smart contract: everyone can mortgage a certain amount of ETH (Ether) in exchange for DAI anchored at 1:1 with the US dollar. Here, DAI takes the form of over-collateralization. For each DAI, $1.50 of Ethereum is locked in the MakerDAO smart contract as collateral.

If you pledge Ether worth $150, you can only get $100 worth of DAI. Then, it is written in this smart contract that if you return the $100 DAI within a certain period of time and pay part of the interest, then you can get back your mortgaged Ethereum.

But there is a problem here - the price of Ethereum will change. Moreover, the price changes of virtual currencies are quite drastic. What if Ethereum plummets? Then Ethereum, which was originally worth 150 US dollars, may instantly be less than 100 US dollars. At this time, the mortgaged assets are not as much as the assets I loaned out, and the price of DAI can no longer be anchored to the US dollar, because everyone can see: DAI is not It’s worth so much money.

How to solve this problem? The role of over-collateralization is revealed - no matter how much the price of Ethereum fluctuates, it will still take some time to fall from $150 to $100. And this gives room for asset liquidation: First of all, we stipulate that the collateral must not be less than 150% of the loan, that is, it does not matter if Ethereum rises, but once it falls, you must immediately cover your position to 150%, otherwise your collateral Smart contracts that will enter liquidation.

Used to install DeFi virtual assets, which can be used for transfers, etc.

The asset management tool (also called the Kanban) is a wallet scanning service that allows you to view wallet details and history.

The three most important asset management tools are Debank, Zerion and Zapper.

Generally speaking, there will be many mining opportunities in the market, which is also an opportunity for everyone to manage their finances and make money. At this time, robots that do asset management or provide financial services will come forward and say, I am here to help you make money, as long asIf you give me money, I will go to the market to find opportunities to make money and help you make money.

YFI is one of the most important financial management tools.

Robots in the blockchain world are all managed in a decentralized manner, that is to say, there is no clear definition of who they belong to. In this case, if the robot malfunctions, who should we hold responsible? What should be done? Who is responsible for the losses? In this case, an insurance robot is needed, which is specifically designed to insure other robots.

Robots in the blockchain world are decentralized, open and transparent, and execute automatically. How should these robots be upgraded and maintained? How to ensure the decentralization of robots?

Generally, many people negotiate around the same robot and vote to decide how to let the robot upgrade and provide services. The DAO robot is a robot that helps these people and robots form a decentralized governance relationship.

A robot that specializes in providing an asset price. For example, when the little C robot just gave an example receives a Bitcoin, it needs to know how much a Bitcoin is worth. Otherwise, there is no way to calculate how much loan should be given to Xiao Ming. At this time, the oracle robot will run to Little C, enter a price, and tell Little C that Bitcoin is now worth $10,000.

Ethereum is a blockchain network that maintains a shared ledger of digital value. Almost all DeFi applications (called smart contracts or Dapps) are built on the Ethereum blockchain, consisting of In place of a central authority, the network’s participants control the issuance of the network’s native cryptocurrency, ether (ETH), in a decentralized manner.

DeFi ranking published by defipulse, which tracks the real-time value locked in global DeFi smart contracts.

MakerDAO is the undoubted leader in the field of DeFi. MakerDAO is to DeFi what Bitmain is to the mining industry.

Founded in 2014, MakerDAO is an automated mortgage loan platform on Ethereum and a stable currency Dai.provider. MakerDAO is a decentralized derivative financial system built on Ethereum. It adopts a dual-currency model, one is the stable currency Dai, and the other is the equity token and management token MKR. Dai was launched on the mainnet in December 2017. Through the dual-currency mechanism, MakerDAO enables the entire decentralized pledge loan system to operate.

Dai is anchored 1:1 to the US dollar. Like other stablecoins, Dai also experiences price fluctuations. Unlike other stablecoins, Dai obtains value through over-collateralized encrypted digital currencies. Centralized stablecoins such as USDT, TrueUSD and GUSD have 1 USD of fiat currency as reserves behind every 1 USD of tokens issued, while 1 Dai is backed by more than 1 USD of digital assets as reserves.

Unlike USDT, TrueUSD, etc., Dai’s operating mechanism is open and transparent, which is also one of Dai’s advantages. Not only is Dai itself transparent, but the value fluctuation and quantity of Ethereum, the collateral used in exchange for Dai, are also transparent and publicly visible.

The Compound protocol creates a loan platform without an intermediary, where the borrower obtains benefits and the lender pays interest. (First Class Note: Usually we call the party who deposits tokens into the lending pool a borrower, and the party who borrows tokens from the lending pool is called a lender.)

Compound’s new ERC-20 token is referred to as cToken. , making it easier for users to perform lending operations. For example, cDAI and DAI exchange is supported, and DAI holders can lend tokens to cDAI users. Not all wallets support exchange, but in Eidoo wallet, users can easily exchange cDAI for DAI, thus lending DAI in exchange for interest. Today, Compound supports a total of 8 cTokens, with total locked assets equivalent to approximately US$200 million: cDAI, cETH, cUSDC, cBAT, cWBTC, cSAI, cREP, and cZRX.

Borrowers can withdraw tokens from Compound at any time, and interest is calculated automatically and instantly. If you withdraw coins through a non-custodial wallet like Eidoo, no intermediary is needed (because Ethereum’s decentralized protocol can do it).

Lenders must lock tokens as collateral and obtain 50-75% of the credit based on the strength of the underlying assets.

The Compound protocol also has 10% interest as a reserve, and the remaining 90% interestReturn to the borrower. No fees, no protocol tokens. The credit market based on Ethereum forms a truly decentralized liquidity pool to issue and obtain loans in an unintermediary, autonomous and fast way.

Synthetix is ​​a synthetic asset issuance protocol based on Ethereum. Synthetix currently supports the issuance of synthetic assets including fiat currencies, cryptocurrencies, and commodities. Among them, the main legal currencies are the US dollar (sUSD), the euro (sEUR), and the Japanese yen (sJPY), but currently sUSD is the main currency. In terms of cryptocurrencies, there are Bitcoin (sBTC) and Ethereum (sETH). In addition, there are inverse crypto assets such as iBTC. When the price of BTC falls, the price of iBTC rises, thereby making a profit. In terms of commodities, gold (sXAU) and silver (sXAG) are currently the main commodities.

Transactions on Synthetix are conducted in a decentralized manner and do not require the existence of counterparties, and there is no need to worry about liquidity and slippage issues. Trades on its exchange are executed through smart contracts and are trades on smart contracts rather than order book trades. Each of these has its own unique trading experience and some advantages.

Synthetix, like other asset issuance protocols, also requires asset mortgage to be issued. For example, the MakerDAO protocol needs to mortgage ETH to generate dai. Synthetix is ​​similar, but it stakes its native token SNX. Users can issue synthetic assets simply by locking a certain amount of SNX in their smart contracts. Among them, its pledge rate is very high, which is 750% of its issued assets. Only when it reaches the target threshold of 750% can it have the opportunity to obtain transaction fees and rewards of new SNX tokens.

TVL is the total locked value of each DeFi protocol, the higher the better.

Dex is the trading volume, the higher the better.

The number of active addresses represents the number of DeFi users on Ethereum, the more, the better.

The lower the handling fee, the better.

As an infrastructure, Ethereum’s market value can be very high. However, when it comes to its ratio to DeFi’s market value, the lower the market value of Ethereum, the better. The higher it is, the better it is. The more mature.

Reference link:
https://zhuanlan.hu.com/p/206910261
https://zhuanlan.hu.com/p/ 366412971
https://zhuanlan.hu.com/p/377856331
https://www.hu.com/question/324838085/answer/1526607416

If there is something wrong, please point it out, thank you~

『三』Blockchain English

AMA——Ask Me Anything, usually refers to the question and answer activity held by the project party or the person in charge of the transaction

AMM——Automated Market Maker, automatic market maker model

AML——Anti-Money Laundering, anti-money laundering

BTC——Bitcoin, Bitcoin

『四』 defi What is

DeFi (short for Decentralized Finance), also known as open finance, refers to the financial application ecosystem created with the help of blockchain networks (especially Ethereum) .

Users in the DeFi ecosystem have complete control over assets and participate in DeFi with the help of P2P networks and decentralized applications (DApps).

Advantages of DeFi

DeFi is so popular because of its unique advantages. DeFi mainly includes:

1. Open lending protocol

Compared with traditional credit structures, open and decentralized lending has many advantages, including: integrating digital asset lending, digital assets Collateralization, instant transaction settlement and novel secured lending methods, no credit checks, standardization and interoperability. Collateralized lending using open protocols such as MakerDAO and Dharma aims to reduce counterparty risk without the need for an intermediary, relying on the minimization provided by Ethereum.

2. Issuance platform and investment

Famous security token issuance platforms such as Polymath and Harbor provide issuers with the ability to issue tokenized tokens on the blockchain. Securities frameworks, tools and resources. They have prepared their own standardized token contracts for securities (i.e. ST-20 and R-Token), which are uniquely positioned to meet regulatory requirements with automated compliance and customizable trading parameters. Likewise, they integrate with service providers (such as broker-dealers, custodians, legal entities, etc.) to assist issuers with their offerings.

3. Decentralized prediction market

Decentralized prediction market is one of the most compelling components of open finance. It is highly complex but has huge potential. Augur launched a censorship-resistant prediction market last year, and other platforms like Gnosis have begun to follow suit. Predict the long-term markethas long been a popular financial tool for hedging risk and speculating on world events, and decentralized prediction markets can do the same.

4 Exchanges and Open Markets

Exchanges in open finance mainly consider decentralized exchange (DEX) protocols and P2P markets. First, a DEX is a P2P asset exchange on Ethereum between two parties, where there is no third party acting as an intermediary for the transaction, such as Coinbase or other centralized exchanges. DEXs also use some highly innovative methods to exchange tokens, such as atomic swaps and other non-custodial methods to exchange one asset for another with minimal settlement time or risk. The most popular DApp of all time on Ethereum is the decentralized exchange IDEX. While many “DEXs” claim that they are indeed decentralized or non-custodial, it’s still wise to be cautious before using them.

P2P markets on Ethereum have huge long-term potential and may eventually encompass markets for native digital assets and tokenized real-world assets.

5. Stablecoins

Stablecoins are taking off in the digital asset market through a new model of issuing tokens, auditing their reserves, and managing their price-linking. Stablecoins are simply tokens issued on the blockchain that are designed to be stably pegged to external assets (mainly the U.S. dollar, gold, or other assets). Crypto-collateralized stablecoins include Maker's Dai, where the underlying asset (e.g. ETH) is over-collateralized relative to the lending asset (Dai) based on the current collateralization rate. Stablecoins collateralized by fiat currencies are by far the most popular due to regulatory compliance and no audit risk, such as Tether, USDC and Gemini Dollars.

Disadvantages of DeFi

On the one hand, the development of DeFi is limited by the performance of the underlying public chain. The current DeFi projects are mainly built on the Ethereum network. At present, the performance bottleneck of Ethereum is quite prominent, and there is still a long way to go before it can break through the bottleneck. Under such circumstances, those DeFi projects with higher performance requirements will be in a rather embarrassing situation. On the other hand, decentralized financial projects are much more difficult to use than traditional financial products and have higher cognitive requirements for users, which will also greatly affect the development speed of DeFi. In addition, the rollercoaster-like ups and downs of DeFi projects (sushi, Yam, Yfii, etc.) have also made people wary of their security. How to continuously accumulate user trust is also a focus that needs to be paid attention to in the future.

『五』What does iCO mean?

ICO (abbreviation of Initial Coin Offering), initial coin offering, originated from the concept of initial public offering (IPO) in the stock market, and is a block Chain projects issue tokens for the first time and raise general digital currencies such as Bitcoin and Ethereum.

ICO is simpleIntroduction:

ICO is a blockchain industry term and a common way to raise funds for cryptocurrency/blockchain projects, from which early participants can receive the initially generated cryptocurrency as Return.

Because the tokens have market value, they can be exchanged for legal tender, thus supporting the development costs of the project. The tokens issued by ICO can be based on different blockchains. Common ones are issued based on the Ethereum (ETH) and BitShares (BTS) blockchains, with the blockchain providing accounting services and value consensus to achieve global issuance and circulation.

ICO participants are very important to the success of a project. They will promote the blockchain project in the community so that the tokens it generates gain liquidity before they start trading. However, what ICO participants value most is still the potential income brought about by the development of the project or the price appreciation after the token issuance.

(5) Blockchain finance English extended reading:

Domestic ban:

September 4, 2017 at 3 pm At this point, the People's Bank of China led seven ministries and commissions including the Cyberspace Administration of China, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission to issue the "Announcement on Preventing Token Issuance Financing Risks" (hereinafter referred to as the "Announcement").

The "Announcement" points out that token issuance financing is essentially an illegal public financing without approval. It requires that all types of token issuance and financing activities should be stopped immediately from the date of the announcement. At the same time, it has Organizations and individuals that have completed token issuance financing will make arrangements for liquidation and other arrangements.

『Lu』 What is the English version of blockchain

Blockchain (blockchain), as the name suggests, is composed of countless blocks (blocks). As far as the blockchain is concerned, more than 400,000 blocks have been generated so far. The entire blockchain is like a shared decentralized ledger, jointly maintained by multiple computing nodes participating in Bitcoin transactions, and each node has its own Have a complete ledger backup (complete blockchain data), and each block in it is like a page in the ledger, recording several different transaction information, and these records cannot pass through it A node to tamper with.
Blockchain-related applications include the digital currency crowdfunding platform Biying China and the asset custody system developed by China Post based on blockchain technology.

『撒』 What is data blockchain (BlockChain)

Blockchain is a new application model of distributed data storage, point-to-point transmission, consensus mechanism, encryption algorithm and other computer technologies . Blockchain is an important concept of Bitcoin.

It is essentially a decentralized database. At the same time, as the underlying technology of Bitcoin, it is a series of related data using cryptographic methods. Each data block generated contains a batch of Bitcoin network transaction information, which is used to verify the validity of the information (anti-counterfeiting) and generate the next block.

(7)Blockchain Finance English Extended Reading

Most public blockchain chains are limited by scalability. The biggest feature of blockchain technology is decentralization, which requires all ledgers in the network to handle the accounting process. Distributed accounting has high security, low misoperation rate, and is also politically neutral and correct.

However, while blockchain technology embraces these characteristics, it sacrifices scalability, cannot meet personalized supervision, and is slightly insufficient in protecting data privacy. Moreover, as the number of ledgers increases, the interaction delay will increase exponentially, which means that the more ledgers in the blockchain network, the higher the latency will be.