Viewpoint: How the blockchain empowers financial technology

In the past decade, financial technology has become the target of people in the post-Internet era. Especially after the rapid development of mobile payment, the Internet giants have expressed that financial technology is not regarded as finance, but a technology. This concept can peep into the impact of technological development on the traditional financial sector.

The addition of blockchain technology will undoubtedly make financial technology even hotter. Thinking about the financial technology trends under the blockchain bloc, people will be more clear and thorough in the future development of technology and finance.

So, how does the blockchain empower financial technology? Under the blessing of the blockchain, what will happen to the development of financial technology?

On April 20th, at the salon of Zinc Huoyuan Shanghai Station, the theme of “Tomorrow World, Blockchain-led Financial Digital Migration”, Zinc Link invited a number of in-depth blockchain and financial technology industry insiders to How does the blockchain empower financial technology? A round-table discussion on the topic, opening a journey of thinking about blockchain technology and financial technology concepts.

Zinc Fire Original Photograph Zinc Link Shoot

Zinc Link: Is the current combination of blockchain and finance more from business innovation or technological innovation?

Ma Liang, founder of Hurricane Technology: Whether it is technology promotion business or business promotion technology, I think these two are complementary. Because technology will be based on the needs of the business, new technology is to help improve the business. On the other hand, if the business has new development needs, it needs corresponding technology to support, so I think the two are complementary.

For example, some examples of supply chain financial applications, the data is chained, allowing upstream and downstream to build trust faster. However, the credibility of the original data is not achieved through blockchain technology, but through integration with enterprise application systems, such as financial or supply chain management systems in traditional ERP.

After verifying the authenticity of the original data, blockchain technology can help participants in the entire supply chain system quickly establish a trust mechanism to build a trustworthy ecosystem. In terms of business logic, it can be used in other scenarios.

Xu Weiwei, manager of the supply chain development room of Weizhong Bank: From a technical perspective, the blockchain contains some computer technologies such as distributed storage, peer-to-peer communication, cryptography, and consensus mechanism. It integrates these things together like a Swiss. The saber can be transformed into magic, which is an innovation and breakthrough in terms of practicality, convenience, efficiency, and even appearance and aesthetics.

From a business perspective, the blockchain injects innovative blood into traditional businesses. Assets digitization, generalization, safe multi-party calculation, anti-tampering, traceability and other characteristics, there is still a lot of space for innovation in the entire business model.

Today's theme is tomorrow's world. Tomorrow's world, from a technical or business perspective, blockchain technology is a road to Rome and a highway.

Shi Yixue, head of Tencent's supply chain finance: First of all, we know that the essence of finance is business risk. Under the scenario of supply chain finance, what are the two most important risks of supply chain finance? It is credit risk and operational risk.

In the supply chain financial application scenario, the blockchain's distributed records, non-tamperable, non-repudiation and other features can actually help the main body's credit risk to be released.

In terms of operational risk prevention, it actually does more. After doing the supply chain finance business, we know that the supply chain financial operation is very trivial and complicated. Some core links should be completed online, and the blockchain technology can guarantee the authenticity of online information. Therefore, the essence of the combination of blockchain technology and supply chain finance is that blockchain technology helps the supply chain financial credit risk and operational risk to be prevented.

Wang Wei, Executive Chairman of Shanghai Blockchain Technology Association: In my opinion, blockchain technology mainly solves two aspects. One is to create a trust mechanism to solve the crisis of trust, and the other is to innovate in production relations.

China's financial market is different from other foreign countries, and we have a very strong financial system. Is it business model innovation or technology innovation?

Technological innovation is definitely a trial and error, but people who understand finance will have a relatively low trial and error rate. Trial and error must be painful, but if you want to develop faster and better, trial and error is inevitable, and you must stick to it.

Another point is that we cannot innovate for technological innovation and must land.

Li Wei, general manager of Zhongan Technology Security Chain Business Unit: Is the financial branch chain more financial innovation or business model innovation? These two modes should be two legs, just like the two legs of a human being, which are the fulcrums. Finance actually includes insurance, securities, banking, financial behavior, etc. The pain points of each industry are different. There are payment, borrowing, risk control, etc. in financial behavior, and the pain points in each link are also different.

The innovation ratios of these different scenarios and business models are different from those of the technology model, but from the perspective of the entire industry, the entire financial sector must be mutually reinforcing. With new technology but no business model to support, technology is empty talk. With this new business model, technology can't support and business can't be done, so I think both are important.

Zinc Link: Let's talk about the application of blockchain technology in supply chain finance. In fact, how effective is the cost reduction of our business? Can it be expressed in terms of relevant data?

Li Wei, general manager of Zhongan Technology Security Chain Business Unit: You can share a ratio. That is, after such an operation occurs on our platform, the rate will decrease by a certain percentage, but this is only an initial data. With the expansion in the later stage, more companies have joined, and the platform functions have been continuously improved. I believe this ratio can be higher. If the scale is large enough, it is actually a big number, which obviously reduces costs and increases efficiency.

Ma Liang, founder of Hurricane Technology: In terms of application maturity, if it is a percentage system, it is only 5%, a very low level. For the application of a new technology, there are problems such as governance issues and architecture, not to mention the requirements in different commercial areas. In the future, blockchain technology will be used in many fields, and the evolution of blockchain technology will certainly take a long time.

Wu Tao, founder of Zinc Financial Technology: The core of the problem lies in the real-time acquisition and real-time monitoring of data. In terms of cost reduction and efficiency increase, for example, Li Fuhao issued one million credit certificates, of which the procurement cost of upstream first-tier suppliers is about 800,000, while the highest gross profit of manufacturing industry is only about 20%, and the net profit is 8%. It is a relatively low level. If you go to a bank or a private institution to do discounting, then the net profit will be reduced by nearly half. If we use our method to discount, the final cost is about 1000, and the cost is greatly reduced.

Therefore, the use of blockchain technology is not only to reduce the rate, but it is actually through various business model innovations and its own technological innovation, so that small and medium-sized enterprises in the upstream supply chain can significantly reduce costs.

Zinc Link: In terms of the membership of the blockchain industry, to what extent does the entire blockchain empower the financial industry?

Meng Tian, ​​deputy secretary general of Shanghai Internet Finance Association: The emergence of supply chain finance for small and medium-sized enterprises and the use of blockchain in supply chain finance, I think it is two topics. Supply chain finance itself relies on leading enterprises to do things. There are many supply chain finances that do better than banks. Because leading enterprises are very familiar with the whole system and upstream and downstream enterprises, the cost of wind control will be relatively low, but it is not necessary to use the district. Blockchain, where is the business logic and drive, is it rigid demand, good technology is sure to have good business, this is a question worth considering.

Wang Wei, Executive Chairman of the Shanghai Blockchain Technology Association: As a new technology, the blockchain must be integrated with entities and financial technology. The first 10 years may be finance at the front line and technical services at the back end. The next ten years are different, the technology will be ahead, and finance will be served at the back end.

There are indeed many pain points in the financial field. To rely on blockchain technology to solve problems, it is necessary to establish blockchain ecology across lines, across boundaries, and across fields.

Since 17 years, the association has been doing entrepreneurial advanced seminars for traditional entrepreneurs, financial institutions, government officials, and later with the Shanghai Stock Exchange and listed companies for industry + blockchain training, aiming to let more people outside the industry understand the district. Blockchain.

We don't know how the blockchain policy will change in the future, but we can push the technology forward and further promote the financial industry to achieve change.

Text: Yi Baizhen

Editor: Wang Qiao

Photography: Huang Shuo