The following is a CCTV financial report.
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- Depth | How does the blockchain cross the Valley of Death?
- Academic to big coffee | Hu Jie: Blockchain is just a tool, awesome for finance
- Ling listened to Wu Xiaobo channel, and found these 5 opportunities in 3000 blockchain articles.
- An article to understand edge computing and blockchain
Trust and security are the core
Text / Luo Mei
The traditional online transaction is that the transaction parties have their own books, and the transaction records are not interoperable. The merchants who join the blockchain network have basic credit. If they don't have any trust with each other, they will not use blockchain technology to build the alliance chain. Under the blockchain technology, both parties to the transaction need to put the books in a common visible network, and all kinds of historical records can be seen. This realizes that the information cannot be tampered with, open and transparent, and collectively maintain a reliable database. The intangible change of information reflects one of the characteristics of the blockchain – security, so the current blockchain is more of a financial application.
For people with non-technical backgrounds, the core of the blockchain is the consensus mechanism under distributed networks. This sentence has implied that the application of the blockchain will be reflected in the following three main aspects. First, distributed systems. It means how to build a distributed network, who will participate, who's network, and who can get a reduction in credit costs in the network. The so-called alliance chain is the application of distributed networks. How to establish an alliance needs to be specifically designed for the application scenario. Many application scenarios of the alliance chain are based on the design of a distributed network. Second, the consensus mechanism. What kind of governance mechanism is set up by the participating parties so that everyone can maintain the books by consensus. Third, combine the two, how to build a distributed system and set up an incentive mechanism that is recognized by everyone. The application of the blockchain traceability that is now seen is actually the application of distributed systems, and there is no design of any governance mechanism. The application of supply chain finance is also distributed, and there is no design of governance mechanisms. It is worth mentioning that the Digital Finance Asset Research Center of Tsinghua SEM recently conducted high-end training on the digital economy development of the Bank of China for the senior management of the bank's chairman, and found that in certain aspects of Gansu Bank's business, it was found in supply chain finance. Blockchain technology does not optimize bank benefits in all scenarios.
The use of blockchain technology by traditional financial institutions can expand the scale of loans, and loans to small and micro enterprises can be “from scratch”. For example, the upstream manufacturers have no money. When the banks participate, they feel that the risks are very high. They are unwilling to lend money to the upstream manufacturers, so the manufacturers must find ways to reduce their credit costs and let the banks be willing to lend them. Through blockchain technology, it uses the credit of large downstream merchants to reduce its own credit costs. Banks are willing to lend to these risk-reducing companies at a higher interest rate and have one more business. Moreover, upstream manufacturers do not need to find higher-interest loan funds with higher interest rates, get lower-interest bank loans, win-win between the two parties, and blockchain technology to achieve effective incentives.
However, in another scenario, for example, the Gansu Bank has the incentive to accelerate poverty, and it needs to make loans to farmers, and the loan interest rate cannot be particularly high. Even blockchain technology can help build trust between banks and farmers, and reduce the cost of trust. However, after the reduction, the loan interest rate that Gansu Bank can collect from farmers is not enough to support the interest rate loss caused by the corresponding risks. For the inclusive financial sector, how much cost can be saved by blockchain technology, and how to empower small and micro loans is a scenario that needs to analyze specific supply chain finance.
The area in which the blockchain will achieve explosive growth in the future must be an area where both distributed systems and consensus mechanisms are well integrated. However, it is very difficult to design a distributed system and a consensus mechanism very well at the same time. People with non-technical backgrounds need to spend a lot of time learning the knowledge of blockchain technology and understand the advantages and disadvantages and applicability of blockchains. The talents who master blockchain technology do not know the pain points of various industries. To combine the two aspects requires interdisciplinary high-end talents, which poses new challenges for talent cultivation.
Looking forward to the future, when blockchain technology is integrated into the real estate industry and business innovation is experiencing a large-scale growth, it is certain that industrialization experts and technical experts will jointly research and create retail products facing the public, so that the general public can be used. The general public does not need to know that the underlying technology behind the product is the blockchain.