Blockchain: A step in financial innovation

Economic Daily · China Economic Net reporter Qian Wei

Source: Economic Daily

In the financial sector, part of the blockchain technology business scenario has gradually moved from proof of concept to business practice, including supply chain finance, cross-border payments, asset securitization, and securities settlement. As institutions increasingly value blockchain technology and technology development and application continue to mature, more new models and new formats will be developed in the future, creating more industry and social values.

Shanghai Bank and Ant Financial's “Double Chain Link” blockchain platform cooperation supply chain financing project officially landed on the last day of October.

Through the application of ant blockchain technology and online merchant bank credit technology, the platform has broken the troubles of upstream enterprises in the supply chain, and the financing time cost of small and micro enterprises has changed from 3 months to 1 second. This is the typical scenario in which the blockchain promotes financial innovation and helps the real economy.

Many industry insiders said that in the financial sector, the blockchain technology part of the business scenario has gradually moved from proof of concept to business practice, including supply chain finance, cross-border payment, asset securitization, securities settlement, etc., blockchain technology in finance The application potential of the field is expected.

Reduce financial integration costs

“The blockchain is an innovative application mode of computer technology such as distributed data storage, multi-center point-to-point transmission, consensus mechanism, and encryption algorithm in the Internet era.” Dong Xiwei, chief researcher of the Zhongguancun Internet Finance Research Institute and a special researcher at the National Finance and Development Laboratory, said Due to the salient features of blockchain technology, such as distributed, difficult to tamper, traceability, openness, and algorithmic trust, it has broad application prospects in digital finance, public services, and people's livelihood, but its technological development is still at present. Exploration phase.

At 12:39 on October 30 this year, Mr. Liang from Liuzhou, Guangxi, received the 10 million blockchain electronic invoices after purchasing Huawei mobile phones at Lexin's installment store. This is the 100,700,749 invoices issued by the installment Le Mall in June this year as the country's first installment e-commerce platform to access the blockchain electronic invoicing system. It is also a milestone in the national blockchain electronic invoice pilot.

It is understood that the blockchain electronic invoice is a key project implemented by the Shenzhen Taxation Bureau under the direct guidance of the State Administration of Taxation and applying the underlying technology of the Tencent blockchain. Since the opening of the country's first blockchain electronic invoice in August last year, blockchain electronic invoices have been gradually catering, retail, retail, finance, rail transit, property, e-commerce and other scenarios, currently connected to the enterprise More than 7,600, the number of invoicing exceeded 10 million, and the invoiced amount exceeded 7 billion yuan.

The relevant person in charge of the stage music mall said that after the online invoice block electronic invoice, experienced a lot of convenience, such as the blockchain electronic invoices used on demand, without the need to regularly purchase invoices from the tax bureau, greatly reducing the work of the company's taxpayers. The burden has increased the efficiency of work; the free use of tickets also allows companies to reduce the additional financial costs. In addition, when users shop on the platform, they apply for invoicing themselves without manual intervention, which reduces the manpower input of the company.

Industry experts say that in essence the blockchain is a technological revolution and innovation. Blockchain technology, especially the alliance chain, is suitable for cross-institutional financial business scenarios and can promote the business. The relevant person in charge of China Postal Savings Bank said that business models including financial asset transactions, payment settlement, supply chain finance, etc., through blockchain technology, can fill the trust gap between the parties at a low cost. The trading environment is more secure and credible, effectively improving the operational efficiency of financial institutions, simplifying business processes and reducing costs.

Integrated financial supply chain

In fact, the exploration of blockchain technology in supply chain finance has already begun to take effect.

In August 2017, Zheshang Bank launched a receivables chain platform based on blockchain technology to realize the pioneering innovation of “blockchain+supply chain finance”, making full use of the decoupling, anti-tampering and non-repudiation of blockchain. characteristic. At the same time, with the rigid trust ability guaranteed by this technology, the functions of issuance, acceptance, confirmation, payment, transfer, pledge and redemption of receivables are realized, so that the core enterprise credit can be reliably and credibly with the receivables. Synchronous circulation on the blockchain has realized the circulation of receivables in the upstream and downstream of the supply chain, effectively revitalizing the accounts receivable of the enterprise.

Not only traditional banks, but also private banks that are “fresh blood” in the banking industry, Weizhong Bank and Suning Bank have also increased their investment in blockchain technology. Among them, Suning Bank has broken through the difficulties of low value of goods and difficult management in the past supply chain finance through the "Internet of Things + blockchain" technology and scientific risk pricing system.

According to reports, the core of Suning Bank's supply chain finance lies in the cooperation with the designated warehouse and the corresponding digital transformation. When the trusted company sends the goods to the designated warehouse of Suning Bank, the consumer goods are automatically converted into collateral. Relying on Suning Logistics' national warehousing and distribution capabilities, the whole process of video storage; real-time monitoring of specific positions through machine vision, GPS, 3D laser scanning, IoT product electronic code, barcode, graphic computing and other sensing technologies of the Internet of Things , you can always give an early warning of unauthorized actions.

At the same time, due to the traceable and non-tamperable characteristics of the blockchain technology, the inbound and outbound data of the goods and the storage organization will be transmitted to the relevant system through the blockchain after real-time synchronization, ensuring timely and accurate data and on the supply chain. The transaction information is true and reliable.

Accelerate trade scene fusion

At present, an industry consensus is that the application potential of blockchain technology in the financial field is promising, but the blockchain application still has risks such as security and stability, privacy leakage, difficulty in identifying the responsible subject, compliance, etc. The underlying technology needs to be matured. Insufficient and problematic.

"In the next step, China should increase the research and application of blockchain technology, and use the blockchain as an important breakthrough for independent innovation of core technologies." Dong Xizhen said that at the same time, the whole society should eliminate the blockbuster blockchain, especially Blockchain technology is distinguished from virtual currency such as Bitcoin. Strictly crack down on financial fraud in the name of blockchain, such as illegal token financing (ICO).

The application of blockchain technology in the field of trade finance is one of the exploration directions of many banks. Just last month, China Construction Bank officially released the “BCTrade2.0 Blockchain Trade Finance Platform”.

"Trade finance as an important carrier of financial services in the real economy, due to the large number of participants, long transaction process, many businesses, especially cross-bank business, rely on semi-manual operations; information transmission, identity authentication, data security, etc. need to be improved, the trade background is authentic The technical characteristics of blockchain distributed storage, point-to-point transmission, and algorithm encryption make it naturally resistant to tampering and non-repudiation. These attributes are integrated with trade finance scenes, and many problems are solved.” CCB Information Director Jin Yushi Say.

In the view of Zhao Guoqing, founder and CEO of Consumer Finance, the introduction of blockchain technology is expected to fundamentally solve the problem of fraud risk prevention and control faced by consumer finance business, thereby greatly reducing the risk cost of the platform, so that small and medium platforms can also provide "low" Consumer finance products with thresholds and low interest rates form the strength of sustained competition and are expected to significantly slow down or even change the speed and trajectory of the consumer finance industry.

From a practical point of view, the financial and risk control data partners immediately exchange blacklists based on blockchain technology, and use the characteristics of unforgeable and hashed data stubs on the chain to protect user data privacy and share among partners. Reliable wind control information has greatly improved the precision of the consumer credit approval process. "I believe that with the increasing emphasis on blockchain technology by various institutions and the continuous maturity of technology R&D and application, more new models and new formats will be derived in the future, creating more industry and social values." Zhao Guoqing said.