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Financial technology blockchain + Finance (learning summary)

Time : 06/03/2022 Author : d3fbq6 Click : + -
        The essence of blockchain is a decentralized accounting system, and bitcoin is the currency "existing in digital form" carried on this system. The relationship between blockchain and currency can be understood as the relationship between bookkeeping currency and currency mentioned by Keynes in monetary theory. Mishkinf's understanding of currency can also be used to explain the relationship between the two & mdash& mdash; Bit is only a token of accounting, and the blockchain is a system composed of a set of credit records and the clearing of credit records behind it. From the perspective of technical implementation, blockchain is a technology that can reach consensus on jointly maintained ledger records among participants who do not trust each other or have weak trust without intermediary participation.
        At the beginning of the birth of blockchain, ledger means the history of transactions; With the development of blockchain, the contents recorded in the ledger can be almost anything, such as the status of each other, the progress of events, etc. From the perspective of system, blockchain represents a credit system that can transmit value point-to-point. In this system, there are no authoritative centers and third-party organizations, and the participants can achieve safe and reliable consensus and value transmission under the guarantee of mathematical algorithms. In the white paper on China's blockchain technology and application development (2016), the development of blockchain is simply divided into three stages: blockchain 1.0 represented by digital currency and blockchain 2.0 represented by smart contracts.
        Blockchain 1.0 is represented by bitcoin. The developers of blockchain 1.0 have developed a variety of competitive coins, most of which are simple imitation of bitcoin or improvement in some aspects. On the whole, they still aim at digital currency. Ethereum is the representative of blockchain 2.0. Around 2014, people recognized the important value of blockchain technology and applied it to other than digital currency, such as distributed domain name system and distributed autonomous organization. These applications are called distributed applications. Ethereum tries to use Turing's complete language to provide a public technology platform for distributed applications and provide baas services to developers.
        The typical feature of blockchain 2.0 is smart contract. The public chain is not controlled by any organization and is completely open. The status of each node is completely fair. It can freely join and exit the network and participate in the reading and writing of data on the chain. The alliance chain has more strict permission control. Each node usually has its corresponding entity organization. Only through authorization can it join and exit the network. Various institutions and organizations form a stakeholder alliance to jointly maintain the healthy operation of the blockchain. In the private chain, the write permission of each node is under internal control, and the read permission can be selectively opened to the outside according to the demand. This private chain still has the general structure of multi node operation of the blockchain and is suitable for internal data management and audit of specific institutions.
        Literally, the blockchain is a chain composed of "blocks". Blocks are generated by the blockchain network and record the "account book" information recognized by the whole network. These blocks that record ledger information are connected back and forth in chronological order, forming a blockchain. Blockchain has many important features that subvert tradition:. First, decentralization. Due to the decentralized consensus mechanism and shared data storage, each node of the blockchain network can realize the verification, transmission and storage of information without relying on a third party. This feature can be widely used in many real scenarios to reduce intermediate links, reduce costs and improve efficiency.
        Second, transparency. The blockchain realizes the openness and transparency of data through sharing data and consensus on data consistency. System participants can query blockchain data and develop relevant applications through open interfaces. Third, privacy protection. Although the blockchain has the characteristics of transparency, due to the characteristics of decentralization and the use of encryption technology, the identity of users and other privacy information can be protected at the technical level. Fourth, it is difficult to tamper with. Once the data is recorded by the blockchain, it will be spread, agreed and stored throughout the network. Since the data is widely distributed among the nodes of the network, it is impossible for anyone to unilaterally tamper with the data. It is extremely difficult to overturn the consensus reached by the whole network through malicious means.
        Fifth, high availability. Due to the decentralized characteristics of the blockchain, it is impossible to paralyze the blockchain system by destroying a central node, and it is impossible to affect the function and safety of the system due to the reason of a certain node, and no single point of failure will occur. Sixth, autonomy. The blockchain adopts an open and transparent consensus mechanism, which enables all nodes in the system to automatically share data and reach consensus in a trustless environment. Trust in people becomes trust in machines and algorithms. Seventh, intellectualization. Based on the above-mentioned blockchain features and the programmable nature of computer language, people can easily create and deploy intelligent contracts on the blockchain according to the needs of specific application scenarios, and execute complex logic according to the corresponding control conditions.
        Digital currency originated from blockchain technology. Due to the technical advantages of the blockchain, the folk digital currency has the characteristics of decentralization, global circulation, high anonymity and high security. Therefore, it has quickly attracted the attention of financial institutions and regulatory authorities. The research of legal digital currency has also been put on the agenda of many countries. According to incomplete statistics, at present, there are more than ten central banks in the world that are conducting research and testing of legal digital currency. Typical examples are: the Bank of England has completed a version of the proof of concept of digital currency system based on blockchain technology, known as rscoin; The monetary authority of Singapore is testing the issuance of digital currency; The Reserve Bank of India said that the time for blockchain to be used for Indian digital currency was ripe.
        According to the traditional definition, settlement refers to the monetary receipt and payment behavior caused by economic activities such as commodity trading, labor supply and capital transfer. According to different payment methods, it can be divided into cash settlement, bill transfer and transfer settlement. In current practice, settlement is closer to the process of property rights transfer in real estate liquidation or the process of financial institutions exchanging consideration after a transaction is executed. While clearing mostly involves inter-bank fund calculation, generally refers to inter-bank business. Audit refers to the independent economic supervision activities that are conducted by special institutions in accordance with the law to examine the major projects and financial revenues and expenditures of governments at all levels, financial institutions, enterprises and institutions before and after the audit.
        Payment is the most important infrastructure in the financial market. The traditional cross-border settlement method needs to pass through the opening bank, central bank, overseas bank, agent bank, clearing bank and other institutions. Each institution has its own account system, and needs to establish agency management and credit lines. Each transaction does not need to be recorded, cleared and reconciled among institutions. In addition, each transaction shall be connected to the swift system for message transmission. This leads to long settlement time, high handling fees, unstable exchange rate, weak universality, impossible to exclude the possibility of money laundering and many intermediate links in cross-border transactions. Because each country has different liquidation procedures, a remittance may require 2 & mdash; It takes 3 days to arrive at the account. The efficiency is extremely low, and the amount of funds in transit is relatively large.
        In August 2016, Credit Suisse released the report blockchain: trust disrupter, which stated that "cross border payment may be the most likely application of distributed ledger technology". As for the so-called cross-border payment based on blockchain, the current practice is to use virtual currency (token) as an intermediary, first convert the legal currency of the remitter's location into tokens, and then convert the tokens into the legal currency of the payee's location at the receiving end, and finally complete the cross-border payment process. Compared with traditional cross-border payment methods, the most intuitive benefit of cross-border payment based on blockchain is that cross-border payment is faster and cheaper. The cross-border payment based on the blockchain is close to "real-time" and automatic. It can provide "7x24" round the clock service.
        The remitter can quickly know whether the payee has received the payment, so as to know whether the payment has been delayed or there are other problems. In the traditional cross-border payment mode, a cross-border payment often takes several working days. The decentralized and automated features of the blockchain can effectively reduce the cost of cross-border payment. According to McKinsey's report blockchain: a subversion of the rules of the banking game, the application of blockchain technology in B2B cross-border payment and settlement business will reduce the cost of each transaction from about $26 to $15. Bill is a kind of credit instrument used in currency or commodity flow to reflect the occurrence, transfer and repayment of creditor's rights and debts. It can be used for payment and settlement in trade and short-term financing of enterprises.
        Bills mainly include promissory notes, bills of exchange (bank bills, commercial bills) and cheques. Different bills have different characteristics. According to the nature of acceptors, commercial bills can be divided into bank acceptance bills (hereinafter referred to as "silver bills") and commercial acceptance bills (hereinafter referred to as "commercial bills"). The bank acceptance bill shall be accepted by the commercial bank or qualified financial institution, and the commercial acceptance bill shall be accepted by the enterprise itself. At present, the number of domestic bills accounts for more than 90% of the total amount of bills (on the contrary, commercial bills account for more than 90% in foreign countries). As a long-term payment instrument, bank acceptance bill is very easy to be financed and circulated by discounting because it has obtained bank credit endorsement.
        With its advantages of low risk and stable income, bank acceptance bill has become an intermediate business category vigorously developed by many commercial banks. For a long time, paper bills have been the mainstream of the bill market. In 2009, ECDs (China electronic commercial bill system) was officially launched. This system is a centralized registration and data exchange system led by the central bank. Other banks or enterprises access it through direct connection or online banking agency. All links such as bill acceptance, transaction and collection need to use ECDs as a data channel. It is not only a centralized data storage platform, but also a third-party credit authentication platform. Electronic commercial bills are issued and circulated in the form of data messages, and electronic signatures replace physical signatures. Theoretically, it can reduce operational risks in bill business, improve bill resource management efficiency and business transaction efficiency.
        However, e-bills can only be circulated among enterprises that have opened ECDs application, and the circulation is restricted; Due to the centralized architecture, it is impossible to eliminate the risks of data loss, system paralysis, network attack, virus invasion, etc; China's bill law has no relevant provisions on the electronic bill, and lacks legal protection. Therefore, there are certain disadvantages in the traditional bill business. The reasons are as follows:. First, 70% of the domestic bill business is still paper transactions, and the probability of manual errors in the operation is high. Moreover, due to the participation of more intermediaries, the management is very difficult, and the falsification of bills occurs from time to time; As the electronic ticket system operates centrally, once the central server fails, it will have disastrous consequences for the entire market.
        Second, because banks naturally lack actual control over the trade background and only conduct formal requirements review, there are natural defects in the penetration of risk control. The phenomenon of "multiple sales of one ticket" in cheques and asynchronous payment and endorsement in e-bills occur from time to time. First, guarantee the authenticity of bills. Non forgeability is the core feature of the blockchain. The use of blockchain technology can completely solve the core pain point in the bill field of counterfeiting, and the phenomena of fake tickets and cloned tickets will be eliminated. Second, it does not rely on the third engine. In paper bills, the trust of both parties to the transaction is based on the authenticity of the bill. Even in the existing electronic bill transactions, it is necessary to conduct interactive authentication through the ECDs information of the central bank.
        However, the use of blockchain technology does not require specific physical bills or central systems for control and verification, and the number of third-party intermediaries and human intermediaries will be reduced. Third, improve efficiency. The characteristics of the blockchain system, which is real-time and free from space-time constraints, can change the current organizational structure and management system. A series of business types such as Invoicing, inter enterprise circulation, discount, rediscount, rediscount, and repurchase, as well as the requirements and restrictions in transactions, can be realized through the transformation of smart contracts. Process automation can provide the operation efficiency of the entire bill market. Fourth, reduce regulatory costs. At present, there are different operation modes in the bill market, and supervision can only be carried out through on-site audit.
        With the intelligent contract system on the blockchain. It can conveniently achieve a variety of regulatory purposes, such as limiting that the discount must have a real trade background, and setting that the asset management bill cannot bypass the credit scale.
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