Opinions | How does the blockchain trust mechanism promote the development of inclusive finance and help solve the financing difficulties of small, medium and micro enterprises?

Source of this article: Securities Daily, original title "Zhao Yongxin, National Outstanding Innovative Entrepreneurship Instructor, Professor of Hebei University of Finance: Blockchain Trust Mechanism Promotes Inclusive Financial Development and Helps Solve Financing Problems for Small, Medium and Micro Enterprises

Reporter Xing Meng

Taking advantage of the blockchain boom, support policies have been issued successively throughout the country to explore the development direction of "blockchain +". How does the blockchain optimize government administration? What impact will it have on inclusive finance? With these questions in mind, a reporter from the Securities Daily interviewed Zhao Yongxin, a national outstanding innovation and entrepreneurial mentor and professor at the Hebei University of Finance.

Blockchain technology

Speed ​​up the modernization of government governance

"Securities Daily" reporter: Local governments are increasing their support for the blockchain industry. Combining blockchain technology with government governance is the focus of your academic research. Can you talk about the actual case you know, what role will the blockchain play in government governance?

Zhao Yongxin: Since the State Council promoted the "Internet +" action plan in July 2015, government departments at all levels have actively used the Internet and mobile Internet to improve government governance capabilities, and have achieved important results in allowing "data to run more" and "let people run less." progress. However, due to the problems of the Internet itself, each government department in the e-government system as a natural centralized management organization forms an information island between government departments. It is difficult to promote data sharing. There are inconsistent entry points, incomplete platform functions, and asynchronous Internet access. , Inaccurate service information and many other pain points.

The distributed storage of the blockchain can realize the cross-department and cross-regional maintenance and utilization of government affairs data. Smart contracts can promote the coordinated processing of multi-departmental business, further promote simplified administration and decentralization, optimize the administrative approval system, improve the business environment, and stimulate various types of business. The vitality of market players further promotes the modernization of government governance. For example, the "Government Service Chain" launched by the Hangzhou Municipal Government has provided multiple "Government + Blockchain" scenarios with autonomous and controllable underlying support for the blockchain, deepening the "run at most once" reform, bringing more Good government service experience, realizing citizens' "zero-legging" and "paperless" handling.

"Securities Daily" reporter: The digital economy is playing an increasingly important role in the national economy. Digital assets are an important part of the digital economy. At present, the supervision of digital asset transactions is imminent. What are your suggestions on domestic digital asset transaction supervision?

Zhao Yongxin: On the one hand, regulatory innovation is an effective way to deal with financial innovation. Digital asset transaction is a third financial financing model that is different from indirect financing of commercial banks and direct financing from the capital market. Compared with the characteristics of traditional financial diversification, mixed operation, scenarioization and ecologicalization, it highlights non-recurring risks of traditional finance such as product design risks and legal compliance risks. For example, the use of sandbox monitoring can ensure the compliance of business operations in the testing phase through real-time communication links between regulatory agencies and institutions, thereby achieving the purpose of protecting innovation and preventing risks.

On the other hand, financial institutions can also consider embracing supervision while innovating, simultaneously introducing supervisory authorities as one of the nodes, sharing relevant data, and excluding illegal activities from innovation through smart contracts and other technologies, and more effectively encouraging innovation. And protect the legitimate rights and interests of consumers.

Blockchain trust mechanism

Accelerating the development of inclusive finance

"Securities Daily" reporter: As a new generation of information technology, the combination of blockchain and finance is generally optimistic about the industry and outside. Could you please tell me if there is any hard demand for blockchain technology in finance? What transformative impact will the blockchain bring?

Zhao Yongxin: Blockchain is of great significance to the financial industry. Blockchain is an integrated technology that brings together computer science, mathematics, cryptography, economics and other related disciplines. For the financial industry, the distributed storage technology of the blockchain solves the problem of information symmetry, the consensus mechanism algorithm solves the problem of data credibility, asymmetric encryption solves the problem of user privacy protection, and smart contracts solve the efficiency improvement The problem. These four technical characteristics are precisely the most important issues in the financial industry.

The essence of finance is risk, and the essence of risk is information asymmetry. Blockchain solves the problem of information asymmetry and credibility between the financial industry and the real economy. This will greatly reduce the due diligence costs of the financial industry and help prevent financial risks, while smart contracts will more effectively improve the efficiency of the financial services real economy.

"Securities Daily" reporter: As early as 2016, you proposed that blockchain technology plays an important role in promoting loans for small and medium-sized enterprises and developing inclusive finance. How do you understand this sentence?

Zhao Yongxin: As everyone knows, it is a global problem that it is difficult for small and medium-sized enterprises to raise funds. This is no exception in China. Despite the frequent support policies of various regulatory authorities, commercial banks also continue to innovate loans for small and medium-sized enterprises, and the growth of inclusive finance is also fast, but there is still a long way to go to meet the financial needs of the real economy. The reason is that for financial institutions, when the source of repayment for small, medium and micro enterprises cannot be determined, they can only use the mode of mortgage or guarantee to prevent risks. Hidden risks caused by information asymmetry are the fundamental reasons why it is difficult for small and medium-sized enterprises to raise funds.

Blockchain is a trust-building machine, which not only allows strangers to establish trust through distributed ledgers and consensus algorithms, but also allows financial institutions to establish trust relationships with small, medium and micro enterprises. Through the supply chain financial platform jointly constructed by the government, enterprises and financial institutions, it can truly and credibly share the operating data of small, medium and micro enterprises under the premise of corporate authorization. Risk, smart contracts can also realize smart lending, smart interest collection and smart risk control, etc., thereby helping finance to better serve the real economy and solve the problem of small and medium-sized enterprises' financing difficulties.