Compared with big data, artificial intelligence, cloud computing and other technologies, the banking department has always maintained a more cautious attitude towards blockchain technology, “focusing on hard work and rarely publicizing”. However, with the recent achievements of many banking departments, the use of blockchain technology has rapidly increased. In the future, under the trend of expanding the “friend circle” of the banking system using blockchain technology, the potential of this technology for banking business will continue to be tapped.
Recently, banking industry blockchain application messages have frequently appeared. On October 9, the Construction Bank released the “BCTrade2.0 Blockchain Trade Finance Platform”, which has attracted various institutions including large commercial banks, joint-stock commercial banks, city commercial banks, rural commercial banks, foreign banks, and non-bank financial institutions. More than 40 financial peers participated in the industry. Not long ago, CITIC Bank, Bank of China, Minsheng Bank, and Ping An Bank were simultaneously upgraded and upgraded to the blockchain Forfeiting Transaction (hereinafter referred to as “BCFT”) platform. More than 30 banking institutions have joined or clarified. Join the intention.
Just as the construction bank's information director, Jin Yushi, said at the bank's October 9 conference, the banking system has always been more cautious about blockchain technology than big data, artificial intelligence, cloud computing and other technologies. Focus on hard work, rarely publicity." However, with the recent achievements of many banking departments, the use of blockchain technology has rapidly increased. In the future, under the trend of expanding the “friend circle” of the banking system using blockchain technology, the potential of this technology for banking business will continue to be tapped.
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Participation in heat is rapidly heating up
The characteristics of “blockchain' distributed storage, traceability of transactions, and non-tamperability” are highly compatible with the application scenarios of trade finance,” said Ji Zhihong, deputy governor of CCB, at the press conference.
Specifically, the Financial Times reporter told the relevant person in charge of CCB that the blockchain can effectively solve many pain points in the trade finance business. In view of the difficulties in the transaction process and the complex information interaction, the blockchain technology can support multiple parties to participate in transactions and realize multi-type information transmission. For the long-term transaction process and the opacity of transactions, the blockchain technology can provide a consensus mechanism. And to ensure that the transaction is transparent; the characteristics of the technology transaction can be traced, can not be falsified, it solves the problem that the authenticity is difficult to verify and the information is easy to tamper.
These advantages have made the blockchain trade finance platform built by CCB shine. Since the first version of the platform was launched in April last year, it has successively opened functions such as domestic letter of credit, Forfaiting, international factoring, and re-conservation, providing basis for three types of customers: interbank, non-bank, and trading companies. The traded financial services of the blockchain platform have now exceeded 360 billion yuan.
The 2.0 version of this upgrade has completed several optimizations. On the one hand, the platform adds new factoring functions, and commercial factoring companies can trade on the market; on the other hand, CCB’s technology subsidiary, Jianxin Financial Technology, which was established last year, provides operation and maintenance services to ensure efficient operation of the platform.
The BCFT platform designed and developed by China Bank, China CITIC Bank and Minsheng Bank was not to be outdone. It is understood that since the launch on September 30 last year, the cumulative transaction volume of the BCFT platform has reached 20 billion yuan, which is another major blockchain trade financial trading platform in the domestic banking industry.
After the recent upgrade, the BCFT platform integrates blockchain technology and a number of banking business consensus, providing a solution for online contracting between banks. The main agreement is innovatively adopting a unilateral open form, and the signed master agreement is signed after signing. Effective between the various signatories, a single bank uploads the blockchain platform after signing the main agreement. This solution solves the problem of mutually signing agreements, which not only facilitates the establishment of inter-bank business relationships, but also facilitates the expansion of bank alliance blockchains.
In fact, the recent upgrade of the blockchain trade finance platform of the two major banks is only one manifestation of the application of blockchain technology. According to the Zero Think Tank and the WIPO database, the proportion of blockchain financial patents (blockchain finance/blockchain patent applications) increased from 2.71% in 2015 to 10.97% in 2018. ICBC, Agricultural Bank of China, Ping An Bank, Weizhong Bank and many other banks have applied for blockchain financial patents.
Improve the "friend circle" to become a consensus
“At present, 17 banks have implemented transactions on the platform. In the future, we hope to further expand the 'friend circle' so that more financial institutions can participate and achieve win-win cooperation.” Jin Shishi said that CCB will adhere to “open, The principle of co-construction and sharing, together with the banking associations and the industry to promote the development of “blockchain + trade finance”, sincerely invites the industry to participate in the construction and promotion of the platform, with technology to enable finance and cooperation for development. To build an ecosystem with sharing, and to improve the ability to serve the real economy.
“The successful practice of the third-party payment institutions such as Alipay and WeChat to build an ecological circle on the C-end allows the banking industry to see the importance of building a shared economic business model, build a platform, and realize the “acquisition, living, and staying” is the banking industry. The key to the next step of development.” Jin Lanshi said.
In order to better achieve cooperation with the industry, in this upgrade, CCB also proposed a “partner growth plan” to empower each other and explore and coordinate the promotion of blockchain trade finance. At the same time, the bank also said that it should promote cross-chain cooperation with banking associations and peers to achieve interconnection and integration between different platforms.
Actively seeking cooperation with the industry and constantly improving the "friend circle" has become the consensus of the banking department. In May, CCB and Bank of Communications signed a blockchain trade finance cooperation framework agreement, and the two sides will establish a long-term and stable cooperative relationship.
It is worth mentioning that the BCFT platform also contributed its wisdom to the deepening of cooperation. It is understood that the platform adopts the "cloud + blockchain" business model, which can reduce system development costs, overcome difficulties such as coordination and communication difficulties, assist small and medium-sized banks to sort out standard business processes, and effectively build an ecosystem for small and medium-sized banks to participate. The business is digital, systematic, convenient, and unified; on the other hand, it can integrate the technologies and specialties of each bank, promote the improvement of the overall industry standards, and finally connect the banks with banks, banks and other institutions and enterprises, and share and build together. In the trading circle, learn from each other's strengths, let a long board become a long chain of alliances, and build a financial ecosystem with high efficiency, cooperation and win-win.
Application potential needs to be developed
With the further exploration of blockchain technology by various lines, innovation in this field is worth looking forward to. According to the statistics of the Zero Think Tank and the WIPO database, from 2009 to 2018, the number of blockchain financial patent applications totaled 2,424, and the number of smart contract patent applications ranked first was 1,105, accounting for 38%; subsequent payment and cryptocurrency There are 863 and 687 each, accounting for 30% and 24% respectively; the number of patents for supply chain finance and digital papers is the smallest, only 132 and 88, accounting for 5% and 3% respectively.
It is worth noting that although the proportion of patents related to supply chain finance is not high, the growth rate has increased year by year in recent years. The White Paper on China's Blockchain Industry Development published by the Ministry of Industry and Information Technology shows that blockchain technology can achieve credit penetration in the supply chain financial system and solve the problem of financing difficulties and financing for secondary supplier distributors.
The technical advantages of the blockchain have also attracted many organizations including ICBC, Agricultural Bank of China, China Construction Bank, Industrial Bank, Ping An Bank and Weizhong Bank to research and develop their application in the supply chain finance field. In the case of work behavior, the bank used blockchain technology to convert accounts payable into digital assets for trading, which solved the problem of credit transfer in supply chain finance.
Another area of potential for development is the blockchain digital notes. Zhang Lizhou, general manager of Minsheng Bank's bill business unit, believes that blockchain digital bills have significant core advantages over electronic bills. First, system setup and data storage do not require central servers and central-level applications, saving costs and reducing risk. Second, under blockchain technology, data integrity, transparency, and verifiability through timestamps make any Value exchange can be tracked and queried; again, the intelligent contract form of the blockchain allows the ticket to be programmable and controllable throughout its lifecycle.
Source: Financial Times
Author: Lu Aerospace