The financial community invited John Mercurio, the chief technology officer of the Bitfury Group, to answer all your questions about the blockchain.
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Blockchain will seamlessly link multi-party e-commerce
The financial world: What changes do you think will happen to the business services industry in the next five years due to the use of blockchain technology?
John Mercurio: We will see the emergence of small and medium-sized companies that use new technologies to challenge existing large companies. You may also see applications for the best emerging technologies of blockchain, Internet of Things , and artificial intelligence . We will also see more and more governments around the world adopting blockchain technology to help improve the service systems and lives of local citizens.
As for the impact of blockchain technology on e-commerce, blockchain can accelerate e-commerce by improving supply chain management and smart contracts. For example, blockchain technology can establish new levels of trust and security, seamlessly linking e-commerce processes across parties.
Over the next five years, when we apply these new technologies to established processes, there are many changes in business operations. Currently. Blockchain technology is being implemented as a built-in cloud service that is easy to deploy and manage. This shift will enable more companies to use the technology and make its processes transparent to end customers and partners. This will improve business compliance and help enable efficient data exchange across global business services and reduce the cost of auditing and control operations.
Technology core: the ability to transfer funds without centralized authorization
The financial world: We know that cryptocurrency is one of the earliest applications of blockchain technology. Do you think this application perfectly reflects the characteristics of blockchain technology? What are the other applications of blockchain technology?
John Mercurio: The core of blockchain technology is that users can transfer assets to each other without centralized authorization. Therefore, the condition of the patent application is the ability of people to transfer funds. Other applications can be found in multi-party interactions that require security, trust, and transparency. Blockchain technology accelerates, improves and simplifies business practices. Today's IT infrastructure is complex and slows down after multiple verifications, checks, and balancing. When someone embeds authentication, trust, and security into the system itself, it becomes a changer in the rules of the game.
Potential government and businesses can take advantage of technology including document verification, government registration, supply chain, procurement, financial services, e-auction, digital rights management, digital ID, KYC and voting.
Blockchain accelerates financial services industry development
The financial world: How will blockchain technology affect the financial industry? Is it possible for the blockchain to reshape our financial services industry? How long have you thought about the large-scale application of blockchain technology in the financial industry?
John Mercurio: This is possible, and it has already happened. Blockchain technology has improved the financial industry by reducing transaction costs and the time required to execute transactions. It also increases transparency and simplifies auditing. We are at least a few years away from the full mainstream application of blockchain technology in the financial industry, but it will happen very quickly.
Cryptographic currency: the risk of entry to borderless transactions is difficult to avoid
The financial world: The effective regulation of cryptocurrency transactions is a common problem for governments around the world, and some places in the United States have even recently called for a ban on cryptocurrencies. In your opinion, what are the advantages and risks of cryptocurrency trading compared to traditional payment methods? Do you need strict government regulation?
John Mercurio: As regulators try to understand new technologies and legislate, a relatively new market, such as cryptocurrencies, will inevitably encounter initial pain points. The cryptocurrency provides an opportunity for decentralized, borderless transactions that can facilitate transactions fairly quickly. The digital asset market challenges the status quo and is instigating traditional economic standards. Of course, traditional regulators are struggling to keep up with this fast-growing industry and will find compromises. As in the traditional financial industry, criminals may also engage in illegal activities in the cryptocurrency market. Our Bitfury Crystal blockchain analysis platform is working to make cryptocurrency transparent to everyone.
Unbreakable regulatory system
The financial world: Will the digital identity of the blockchain cause difficulties for regulation? How do you view the regulation of the “blockchain era”?
John Mercurio: The challenge of digital identity in the “blockchain era” still exists, but as with the introduction of effective regulation, an effective KYC process will also be part of Crystal's analysis. The digital identity associated with the encryption trade has created new challenges for regulators, but it has also spurred a traditional system.
Source: Financial sector