Impact of blockchain on future industries

2. Blockchain is the biggest trend in the next decade
if you look at the problem with the thinking of 30 years ago, you will think that others are crazy, but in fact you are out of date
the concept of blockchain can be traced back to the end of 2008. In the forum, a mysterious personage named "Nakamoto Tsung" published a paper "bitcoin: a peer-to-peer e-cash system" and proposed the concept of blockchain for the first time
on January 3, 2009, the first block of the blockchain was born, which is called the "Founding block"
almost with the birth of blockchain technology, bitcoin became the first thing to play its role. In the following years, bitcoin graally swept the world. In 2017, its crazy market made blockchain technology known to all
the idea of blockchain first appeared in the famous bitcoin open source project. In the process of its birth and development, bitcoin project draws on the technical achievements from digital currency, cryptography, game theory, distributed system, cybernetics and other fields. It can be said that bitcoin project is good at all. As its core supporting structure, blockchain technology is a remarkable innovation achievement
blockchain is a distributed database system with different nodes, which is an open ledger system<
three characteristics of blockchain
compared with the traditional centralized scheme, blockchain technology mainly has the following three characteristics:
the core idea of blockchain is decentralization
in the blockchain system, the rights and obligations between any node are equal, and all nodes have the ability to vote with computing power, Thus, the result recognized by more than half of the nodes is guaranteed. Even under serious hacker attacks, as long as the number of nodes controlled by hackers does not exceed half of the total number of nodes in the world, the system can still operate normally and the data will not be tampered with
block chain's biggest subversive is the establishment of credit
the collective maintenance of blockchain can rece the cost
in the centralized network system, the maintenance and operation of the system depend on the operation and operation of platforms such as data center, and the cost cannot be omitted. Anyone can participate in the nodes of the blockchain. Each node can verify the correctness of the results of other nodes' records while participating in the records, which improves the maintenance efficiency and reces the cost
in a word, blockchain touches money, trust and power, which are the fundamental basis for human survival< Its development has gone through three stages
1. Brewing period: from 2009 to 2012, bitcoin and its instrial ecology are the main economic forms
2. Embryonic period: from 2012 to 2015, with bitcoin entering the public view, new wallet payment and remittance companies appeared, and blockchain economy spread to the financial field. The underlying technology of blockchain is constantly innovated. Blockchain technology is separated from bitcoin system
3. Development period: in 2016, we began to explore instry applications, and a large number of blockchain start-ups appeared. The popularity of ICO in 2017 has given blockchain unprecedented attention
"blockchain 2.0 era" is coming
the application service layer is the driving force for the sustainable development of blockchain, which is divided into three stages of application: 1.0, 2.0 and 3.0
programmable currency: blockchain 1.0 application
programmable currency is the digital currency represented by bitcoin, but it is not the legal tender of any country or region, and there is no government authority to provide guarantee for it
programmable Finance: blockchain 2.0 application& quot; Smart contract& quot; Using program algorithm to replace the concept of contract execution. This enables blockchain to expand from the original monetary system to the registration and transfer of equity, creditor's rights and property rights, the transaction and execution of securities and financial contracts, and even the financial fields of gambling and anti-counterfeiting
programmable Society: blockchain 3.0 application
blockchain is the core of value Internet, which can confirm, measure and store the property rights of information and bytes representing value in each Internet. It can not only record the transactions of the financial instry, but also record almost anything valuable that can be expressed in the form of code. Its application can be extended to any field with demand, and then to the whole society
at present, the application of blockchain has begun to surpass bitcoin (blockchain 1.0), enter the era of blockchain 1.5, and transition to the financial field (blockchain 2.0)
in the next 3-5 years, blockchain may go beyond the financial field and enter the field of social notarization and intelligence (blockchain 3.0), including identity authentication, notarization, arbitration, audit, domain name, logistics, medical care, mail, visa, voting and other fields. Its application scope will be expanded to the whole society, and blockchain technology is likely to become a new technology& quot; All things are connected& quot; It's the lowest level protocol
at present, blockchain technology has been recognized by the world, and its development has become an inevitable trend. Accompanied by more people's attention, "in the next 30 years, new technologies will be integrated into all aspects of traditional instries, and human society will turn upside down. No matter who you are, no matter where you are, all of us will be a part of this great change."
this is the current situation. Blockchain has given the post-90s an opportunity. However, if you want to control blockchain technology without being affected by negative factors, the most important thing is to have a clear understanding of it, whether it is regulators, researchers, speculators or bystanders
it's time to devote more energy to blockchain technology
in China, the average annual salary of blockchain positions has reached more than 300000, and that of some enterprises has reached more than 1 million. The monthly salary of blockchain instry graates in Beijing, Shanghai and other places has exceeded 20K! If the post-90s seize the bonus of the times, they may become the next Alibaba in the future! If you miss it, you may regret it for ten years.

3.

On August 6, 2018, Mr. Cai Yi, financial instry consultant of Huawei Company and founder and CEO of Huaxuan technology, was in daga | blockchain & amp; AI (core group) made a special topic sharing, the theme is: the current situation and Prospect of blockchain finance. The following text is arranged according to the speech of the lecture and has been reviewed by the author

Cai Yi: Consultant of financial instry of Huawei, founder and CEO of Huaxuan science and technology, founder of shared reading association, member of China Writers Association, engaged in financial science and technology research for more than ten years, and is a senior expert in digital transformation of banks

good evening, everyone. I'm very glad and honored to share some thoughts with you here

let's make a simple self introction: my name is Cai Yi. I worked as a writer in my youth. I wrote some books, magazines and novels in the 1990s. At that time, there was no Internet. After work, I have been engaged in the information work of financial instry, from financial channels to data centers, from outlets to technology, witnessed the development of financial technology, and also found some problems. After 2014, I worked as an investment partner and in recent years as a financial instry consultant in Huawei. From the cognitive level, I worked as a consultant for the talent development of digital transformation in the financial instry

in 2015, I started Huaxuan technology and sharing reading club. At present, we mainly focus on the cognition of blockchain and the implementation of financial technology solutions. At the cognitive level, interactive sharing and knowledge management are carried out in the way of book club. At the technical level, the process and scene of the financial instry are reshaped by combining blockchain, big data and AI technologies. I am interested in blockchain and often study and discuss with some friends. Of course, some views are still superficial. I hope you can exchange more criticisms and corrections

the elite think tanks in the United States once believed that the core of maintaining global leadership is science and technology, which must rely on economy, and the core of economy is finance. So what is the future of finance

today's topic is: the current situation and Prospect of blockchain finance. I would like to introce it mainly from three aspects:

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briefly introce finance and financial system

the current situation of blockchain finance

prospect of blockchain finance

First of all, let's talk about the concept of finance. The word "finance" originated from Japan after the Meiji Restoration (1868), which is somewhat related to the gold standard established by Japan in 1897. At the beginning of the 20th century, it was introced into China from Japan. It was first proposed by Finance Minister Liang Qichao in 1902. At that time, Zhang Zhidong raised his objection. Therefore, after the Sino Japanese War of 1894, China remained in the silver standard, but it also made China avoid the Great Depression of 1929

The original meaning of finance is "money accommodation", which refers to the circulation of funds in the society. Later, its meaning has been expanded to indicate transactions and economic activities related to money and credit. In fact, there is another reason: gold used to be the only medium in international trade, and its value and wealth were based on gold. Therefore, when making standard gold bars, people need to melt gold into shape, which may be the original meaning of the word "finance", that is, to melt metal

Finance is the general name of currency circulation and credit activities and the economic activities associated with them.

let's look at the definition of Finance later: finance is the general name of currency circulation and credit activities and the economic activities associated with them. In a broad sense, finance generally refers to all the economic activities related to the issuance, custody, exchange, settlement and financing of credit currency, Even including the trading of gold and silver, the narrow sense of Finance specifically refers to the credit currency financing

In short, the contents of finance can be summarized as the issuance and withdrawal of money, the absorption and payment of deposits, the issuance and recovery of loans, the trading of gold, silver and foreign exchange, the issuance and transfer of securities, insurance, trust, domestic and international currency settlement, etc. To put it more bluntly, finance has two-way feedback. The institutions engaged in financial activities mainly include banking, insurance, securities, trust, financial leasing, etc. We all know this better and have frequent contact with it. Therefore, to understand the meaning and institutions of finance, we also need to understand China's financial system

2 China's financial system the development of China's financial system can be roughly divided into five stages:

initial formation stage, the first five years (1948-1953): the establishment of the people's Bank of China (1948). At this time, the PBC is far from what we want now. But it marks the beginning of new China's financial institution system

In the second five years (1953-1978), the people's Bank of China (PBC) is the only financial institution in China that deals with all kinds of banking business, integrating the central bank and ordinary banks. In fact, reunification means that we the model of foreign countries. I will not talk about specific countries

In the third five years (1979-1983), the Bank of China (established in 1912), the Agricultural Bank of China (established in 1951) and the Construction Bank of China (established in 1954) were restored or established one after another, but the people's Bank of China still integrates currency issuance and credit. We can see that after the reform and opening up, China's financial instry has developed very fast

the diversified financial institution system has begun to take shape. Ten years (from September 1983 to 1993): it has formed a financial institution system with the people's Bank of China as the core, the four major professional banks of instry, agriculture, China and construction as the main body, and other financial institutions coexisting and cooperating. After 1987, there were Bank of communications, China Merchants Bank, Shenzhen Development Bank, CITIC and Hengfeng. In 1988, Ping'an, Guangfa and Xingye appeared. Everbright, Huaxia and Shanghai Pudong Development Co., Ltd. appeared in 1992, and the Securities Regulatory Commission was set up in the same year

the stage of building and improving the social * * market financial institution system (since 1994): it has formed a relatively complete financial institution system with "one bank, three meetings" as the leading role, large, medium and small commercial banks as the main body, and a variety of non bank financial institutions as the auxiliary wing. In 1994, three major policy banks (China Development Bank, Export Import Bank of China and Agricultural Development Bank of China) were established. In 1995, Minsheng Bank, the first private commercial bank, was established (which is of great significance). In 1998, urban commercial banks emerged and CIRC was established. In fact, the CBRC appeared relatively late, and it was only established in 2003. Since then, the pattern of "one party, three meetings" has been formed. However, not long ago, the China Banking Regulatory Commission and the China Insurance Regulatory Commission merged into the China Banking and Insurance Regulatory Commission. You can pay attention to this

from the perspective of evolution, the normative research of finance is often linear

that is, we often take a certain evolution form as the standard (usually developed market economy system, such as the Soviet Union, Germany, the United States and even Japan), describe the progress path of the financial system from non marketization to marketization, from inefficient allocation of financial resources to efficient allocation, and focus on explaining the gap of the standard form and the reasons

In fact, we can find from the development process of China's financial system just now: since 1978, China's financial system has evolved in the direction of marketization, standardization, diversification and internationalization, All kinds of financial institutions show a "network" and "strong connection" business form, that is, the connection degree between banks, banks and other financial institutions, as well as financial sub markets has increased significantly, and the credit connection is increasingly close, mixed and complicated

the ecological environment of financial instry has also undergone some obvious changes. On the one hand, traditional formal financial institutions seek to speed up transformation and innovation, and strive to seize the opportunity in business strategy, market positioning, management structure, format and proct innovation. On the other hand, a large number of emerging financial institutions have emerged

financial format also presents new characteristics such as real estate financialization, non bank institutions "banking" and asset securitization

The above changes are beyond the imagination of the instry, regulators and policy makers, and will bring a series of impacts:

on the positive side, the scale and composition of the financial system have been expanded, the business expansion and financial service capacity of financial institutions have been improved, the financial market has been developed, and innovative payment has developed rapidly. That's what we're going to talk about in financial technology

in a common saying, when the forest is big, there are all kinds of birds. The negative aspects are mainly reflected in the following aspects: the interaction between the

financial system and the real economy tends to be complex, and the role of the financial system in promoting and amplifying asset bubbles is underestimated. p>

the reticulation and strong correlation of the financial system widen the gap between the financial instry and financial supervision, and weaken the effectiveness of traditional supervision. China's current financial supervision system has only been in operation for more than ten years

the transmission path and mechanism of monetary policy through the financial system have changed (the transmission chain of monetary policy has been lengthened or deformed, the conctivity and effectiveness have declined), and the initiative and effectiveness of regulation are facing new constraints. Since its establishment in 1996, the current monetary policy framework has been constantly improved in response to the development of economy and financial market, but the complexity of the financial system in recent years has put it to a new test. Broad money M2 is also impacted by financial deepening, electronic payment and other factors, and further weakened by the shadow banking system

all kinds of cross market, cross business and cross-border behaviors to evade supervision make a variety of risk factors intertwined, such as: capital pool operation with serious mismatch of maturity and procts hides large liquidity risk, proct nesting leads to risk transmission, insufficient shadow banking supervision, local debt, real estate, external shocks, etc., all of which bring great challenges to the stability of the financial system

without comparison, there is no harm, and China's financial system as a whole is relatively backward. This kind of backwardness is mainly reflected in the backwardness of bank innovation: the people's Bank of China announced in October 2015 to abolish the "interest margin protection", while the interest rate of the United States had been completely marketized as early as April 1986, and China was nearly 30 years late

3 the institutional framework and basic problems of China's financial system

Second, the * * third party acts as a credit intermediary to guarantee the realization of asset transfer transactions

the third is the transaction settlement and clearing completed by the centralized clearing organization

Based on this, there are also four problems:

1) credit system and trust mechanism. Traditional finance must have strict transaction records to accumulate credit. Without transaction records, it is difficult to achieve financing or loans, because there is no technical means to ensure the safety of transactions between the two sides

(2) transaction settlement takes a long time. The time of traditional financial transactions has been speeding up, but the settlement time is still relatively long, especially for cross-border transactions, which often can not arrive immediately

(3) the cost of intermediary service is high. The traditional financial transaction system is very important

4. Chongqing jinwowo analyzes the impact of blockchain technology on the instry: blockchain will determine the relationship between people and all the Internet including artificial intelligence. The change of this relationship will have a subversive impact on the mainstream Internet business model and create a new era of decentralization.