Can Internet finance be decentralized

1. From the perspective of Internet development, decentralization is the form of social relationship and content generation formed in the process of Internet development, and is a new network content proction process relative to "centralization"
with the diversification of network service forms, the decentralized network model becomes more and more clear and possible. After the rise of Web2.0, the services provided by Wikipedia, Flickr, blogger and other network service providers are decentralized. Any participant can submit content, and Internet users can create or contribute content together
decentralization is a phenomenon or structure, which can only appear or exist in a system with many nodes or in a group with many indivials-- Cloud financial services for you

2. Q: What is blockchain technology? A: Blockchain technology can be understood as a public accounting mechanism. It is a technical solution rather than a specific proct. The basic idea is to establish a set of public account books on the Internet, in which all users in the network keep accounts and check accounts together, so as to ensure the authenticity and non tamperability of information. The reason why it is called "blockchain" is that the structure of blockchain storage data is composed of a chain of "storage blocks" on the network. Each block contains all the information exchange data in the network within a certain period of time, and the chain continues to grow over time. Q: What is the relationship between blockchain and bitcoin? A: Bitcoin used to be one of the most successful applications of blockchain technology. Specifically, the blockchain is a series of data blocks generated by the use of cryptography Association, and each data block contains the information of effective confirmation of multiple bitcoin network transactions. It can be said that bitcoin is a "killer application" of blockchain idea. Blockchain is the underlying technology of bitcoin, but its role is not limited to bitcoin. Q: What are the technical features of blockchain? A: Based on open source software and peer-to-peer network, blockchain can bring more advantages than traditional network in currency related fields such as transaction payment. These advantages include: decentralization, no need to trust the system, disintermediation, tamper proof, encryption security. Q: How does blockchain technology improve the authenticity and non tamperability of data? A: The newly added data blocks are linearly added to the end of the original block in chronological order, which constitutes the blockchain. In this process, the data is distributed in each computer. This decentralized storage method improves the authenticity and non tamperability of the data. When a transaction occurs, users all over the world can act as regulators. If we do not recognize the legitimacy of the transaction, the transaction cannot be concluded, and the data on the blockchain is maintained by us collectively. Q: Is there any potential defect in such a brain burning "blockchain"? A: Blockchain also has some defects to be solved, such as security risks, work efficiency and resource consumption. Since the supervision of blockchain depends on all nodes in the network, theoretically speaking, if you master more than 50% of the computing power of the whole network, you will be able to successfully tamper with and forge blockchain data. Secondly, e to the distributed storage, each node in the blockchain needs to keep a database, and any transaction in the network needs to be authenticated and recorded by other nodes, so the efficiency of the system is low. Finally, because the operation of the blockchain relies on the computing power contributed by the network nodes, these computing power do not proce actual social value, so it is generally considered that these computing power resources are "wasted". Application of blockchain in various fields when blockchain technology is published, many people think it is possible to realize DAC. DAC (full name) can be translated into distributed autonomous system, which refers to an organization system that runs autonomously without intervention and management through a series of open and fair rules. DAC has many forms. It may be a digital currency, a system or an entity, or even a driverless car. This kind of organization system can provide valuable services for customers in the form of currency transfer (such as bitcoin), asset transaction, domain name service, or any other business model. Therefore, through the idea of information sharing, blockchain technology is likely to bring profound changes in cost rection and security improvement to various instries. Application scenarios that existing blockchain technology can achieve: proof of existence can be used to confirm rights in the field of Internet finance, that is, blockchain can really realize "proving your mother is your mother". The smart contract guarantees the validity of the contract, such as the generation required by the electronic signature law; Reliability of methods for storing or transmitting data messages; The reliability of the method of maintaining content integrity; The reliability of the method used to identify the sender. The blockchain of the Internet of things can solve the problem of the coding standard interaction interface of the Internet of things. When an e-signature is signed by identity verification, the signature data is only under the exclusive control of the signer. Any changes to the e-signature after signing can be found, and any changes to the content and form of the data message after signing can also be found. The market forecasting community, August, is an example. Anyone can access and use August anywhere in the world, which may bring unprecedented liquidity and trading volume to the market. Asset trading NASDAQ OMX Group Inc is testing blockchain technology, which NASDAQ believes has the opportunity to transform traditional financial trading methods into bitcoin like ones. The bitcoin mode of e-commerce can be applied directly. Is it possible for e-commerce to become a "harmonious" market without supervision? Social news magmavc has invested $400000 in getgems (formerly known as gems), a start-up project for decentralized social communications applications. File storage directly impacts and even subverts the traditional cloud computing architecture. Chain, a data API blockchain API service provider, has received a $9.5 million investment led by Khosla ventures. Wall Street's financial companies are investing in blockchain and seizing the beach. Visa, NASDAQ and Citigroup also invested in chain, an old Jinshan blockchain start-up, with a financing amount of US $30 million. In the financial field, what can blockchain do? Specifically, in the financial field, in addition to providing a trading platform for bitcoin, Jiuding investment believes that blockchain technology can also greatly improve various asset trading systems other than the existing digital currency. For example, it plays an important role in the post transaction market proceres such as the liquidation and settlement of financial derivatives, foreign exchange, private equity, energy credit linked investment procts and other assets. In terms of speed, the time required for settlement audit in the U.S. securities market is 2 to 3 days. The application of blockchain technology is expected to rece the settlement audit time from hour level to minute level or even second level, thus recing the settlement risk by 99%, and recing the capital cost and system risk. In the blockchain, transaction confirmation and settlement are carried out at the same time. After the node transaction is confirmed by the system, it is automatically written into the distributed ledger, and the corresponding distributed ledgers of all other nodes are updated at the same time. The automatic operation mechanism can greatly shorten the settlement cycle. In terms of expenses, under the current settlement mechanism, in order to achieve a shorter settlement cycle, it is necessary to increase the settlement cost and initial investment expenses significantly. The emergence of blockchain technology makes it possible to rece the settlement cycle more efficiently and quickly, and rece the transaction intermediate proceres, so as to save a lot of money, which is the market space of the related blockchain instry. In terms of security, the integration of blockchain technology into smart contract technology can process complex derivatives transactions programmatically, making clearing more standardized and automated. The time linear stacking feature of the block itself can help the regulators identify and discover illegal operations. At the same time, the smart contract can change the compliance inspection into automation and minimize the possibility of violation from the beginning of liquidation. The 24-hour uninterrupted operation of blockchain technology can also make the data exchange processing of Pan state exchange more stable and reliable. In addition to securities transaction settlement, blockchain can also be used to register and issue digital asset ownership. Blockchain technology can greatly enhance program automation, while smart contract can write many complex derivatives trading terms into the registration and issuance program supported by blockchain technology. When a transaction occurs, blockchain network can quickly and correctly execute. In November 2015, LINQ, a new blockchain technology project cooperated by Nasdaq and chain, has completed the first private equity transaction using the blockchain based issuance and trading platform. The application prospect of blockchain in the field of accounting has also attracted the attention of a large number of people in the instry. Accounting, auditing and compilation cost a lot for global enterprises and the four accounting firms. Automatic accounting based on blockchain technology can greatly rece the relevant costs. The company does not need to recruit special auditors to audit the account book, and all transactions can be stored in the internal blockchain. Due to the irreversibility and time stamp function of the blockchain, the external auditors and regulators of the four major accounting firms can monitor the company's account books in real time by tracking these blockchains. At the same time, the institutions can greatly rece the dependence on the auditors to audit financial transactions and make the audit business more efficient. With the increasing maturity and application expansion of blockchain technology, blockchain start-ups in developed countries have sprung up. At present, the world's leading blockchain companies generally focus on transaction, payment, clearing, Internet of things and other pain point businesses. Some companies have achieved a certain scale, and have developed a relatively clear business model. At the same time, many companies have extended their business in the blockchain instrial chain, covering payment, transaction, risk control, etc., making full use of the multi-point coordination effect. At present, Jiuding investment is also focusing on the projects and applications of various blockchain technologies.

3. At present, China's Internet finance is still in the primary stage of development, the business model is not mature, and it is easy to break through the regulatory bottom line of illegal fund-raising. " On the one hand, in the economic downturn cycle, Internet finance is facing greater risk pressure. On the other hand, Internet leads to disintermediation and decentralization, which is easy to be used by money laundering and other criminal acts
with the rapid development of the instry, there are many problems. For the incessant trend of P2P collapse, people in the instry say that this double phenomenon is a "worry" in the growth period. There is a bright future for us to get rid of these "troubles" and conct timely and rapid supervision
1. It is necessary to strengthen supervision and take preventive measures; 2. Internet financial companies that run away with the money should step up efforts to recover their illegal gains.

5. 1、 Low cost
with the support of big data and cloud computing, Internet Finance successfully realizes the networking, decentralization and disintermediation of bilateral transactions, breaks the information asymmetry, weakens the role of transaction intermediary, and gets rid of the dependence on a large number of professionals and physical outlets. In this way, the supply and demand sides of funds can complete information screening, matching, pricing and trading by themselves through the network platform. There is no traditional intermediary exploitation, no transaction costs, and no monopoly profits of enterprises. Traditional finance not only requires personnel expenditure cost, network construction cost, daily operation cost (rent, water and electricity, equipment, etc.), but also various additional costs. In this way, the cost of Internet finance is much lower than that of traditional finance, which will naturally make more consumers choose Internet finance< Second, high efficiency. Looking back on the history of payment, the initial financial terminal is controlled by the bank. People need to bring their certificates and wait patiently to complete some financial transactions. However, Internet financial business is mainly processed by computer, the operation process is fully standardized, customers do not need to wait in line, the business processing speed is faster, and the user experience is better< Third, transparency. One of the biggest criticisms of investors for traditional financial procts is that the proct structure is too complex, there are too many technical terms, and the proct description is too messy. This is why traditional finance is questioned and there are a lot of misleading information rumors. But Internet finance has changed the traditional financial business closed, information is not open. For example, how much is a proct's sales volume, how about its earnings, how do you evaluate it, and what are the advantages compared with other funds? In the traditional financial environment, it is difficult for users to obtain these real-time information, but in the Internet financial system, it becomes extremely simple

financial market is an information driven market, and Internet Finance provides investors with more convenient information access channels and trading platform. Real time and rich information acquisition essentially solves the problem of people's trust in financial proct investment. With more trust, Internet finance will be more favored by investors.

6.

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1. Low cost
with the support of big data and cloud computing, Internet finance has successfully realized the networking, decentralization and disintermediation of bilateral transactions, breaking the asymmetry of information, weakening the role of transaction intermediary, and getting rid of the dependence on a large number of professionals and physical networks. In this way, the supply and demand sides of funds can complete information screening, matching, pricing and trading by themselves through the network platform. There is no traditional intermediary exploitation, no transaction costs, and no monopoly profits of enterprises. Traditional finance not only requires personnel expenditure cost, network construction cost, daily operation cost (rent, water and electricity, equipment, etc.), but also various additional costs. In this way, the cost of Internet finance is much lower than that of traditional finance, which will naturally make more consumers choose Internet finance

7. Now there are two modes of finance, one is the bank mode, the other is the capital market mode. The capital market model is direct financing, through the Shanghai stock exchange for stock trading, one is the bank model, a typical deposit and loan payment. I think Internet finance is likely to be the third model alongside these two models

Internet finance does not follow either the bank mode or the Shanghai Stock Exchange Mode in the capital market. It is possible that all depositors and borrowers can trade directly through the Internet platform

the form of the Internet is internet currency

big
everyone knows bitcoin. No matter how human beings pay and how they buy and sell commodities, all our transactions must be in the currency of the central bank, so as to form a pricing and a price composition. However, e-commerce, data goods, consumption function and purchase of data goods, human beings invented point-to-point currency, which is not a centralized distribution system, but bitcoin, which is subversive and accepted by more and more people

in the monetary system of human beings, in addition to the credit currencies issued by the central bank, such as the US dollar and RMB, there are also Internet currencies with bilateral, non centralized and private currencies. Moreover, everyone agrees that this currency can be used as a trading medium and a basis for commodity pricing. In addition to bitcoin, there are other currencies to use, completely anonymous, completely non central bank control, this trend has emerged<

the principle of Internet Finance

the coverage of Internet finance is the transition from traditional banking, securities, insurance, exchange and financial formats to all financial transactions and organizational forms of general financial system with Internet technology and Internet spirit. Now you all understand that the Internet is just my tool, but it's not a tool. What form Internet finance can develop in the future does not depend on the development of finance, but on the development of Internet technology. And what form can Internet technology develop? We don't know

when understanding Internet finance, we must understand the spirit of the Internet. Understand the key of Internet finance, payment and clearing, the unification of super payment system and indivial mobile payment system. From the micro point of view, there is no credit card, and mobile phones replace all currencies. From the abstract point of view, if everyone and every enterprise can directly open an account online, there is no need to open an account in a commercial bank

at present, the theory of Internet analysis in financial and economic circles is basically enough. The core of finance has not changed. For example, term matching, resource allocation under uncertainty, and space-time allocation will not change

Internet Finance depends on the influence of Internet technology. People in the financial sector think it's nothing. I'm not afraid of it, because I don't know what kind of Internet technology has developed. The development of Internet technology is far beyond our imagination. Mobile devices, big data, search networks, cloud computing, which are currently invisible. You can't see how many Internet technologies there will be in the future. Breakthroughs in these technologies may affect people's understanding of finance

so Internet Finance depends on the development of Internet technology, which is different from my academic view. They think that no matter what they do, it's just my tool. Maybe finance is a tool of the Internet. We should rece the cost of financial transactions and the degree of information asymmetry, improve the efficiency of financial resource allocation, change the organizational form of financial transactions, and improve the efficiency of financial risk pricing and risk management. The supply and demand of funds are direct and the transaction is transparent. These are the huge impact that Internet technology may have on the financial instry

the Internet spirit is different from the financial spirit

the Internet spirit is open, sharing, decentralization, equality, choice, inclusiveness and democracy. The financial instry is the elite, mystify, create information asymmetry, and then make money

the macro background of the rise of Internet finance is as follows: firstly, the Internet has a subversive impact on many instries that do not need logistics; secondly, the whole society is moving towards digitalization, which lays the foundation for Internet finance, because social information is digitalized. Third, the real economy accumulates a lot of data and risk tools

Fourth, formal finance has not found effective ways to finance for small and micro enterprises, agriculture, rural areas and farmers, and private enterprises. The rapid development of Internet Finance in China also has this macro background


the problem that needs to be studied now is to systematically analyze the Internet financial model. The impact of Internet Finance on currency. Once there is a currency that is completely independent of fiat money and everyone is willing to accept on the Internet, what about monetary policy, monetary statistics and monetary price? Everyone, every family consumption function, how to do when the proportion of online goods must be large?

8. Compared with traditional finance,
(1) the core function of Finance remains unchanged. Internet finance still allocates resources in time and space to serve the real economy in an uncertain environment. The specific performance is as follows: 1) payment and liquidation; 2) Financing and equity refinement; 3) To provide channels for the transfer of economic resources; 4) Risk management; 5) Information provision; 6) Solve the incentive problem
(2) the connotation of financial contracts such as equity, debt, insurance and trust remains unchanged. The essence of financial contract is to stipulate the rights and obligations of all parties in the case of uncertainty in the future, mainly for the future cash flow
(3) the connotation of financial risk and externality also remains unchanged. In Internet finance, risk still refers to the possibility of losses in the future. The concepts and analytical framework of market risk, credit risk, liquidity risk, operational risk, reputation risk and legal compliance risk are still applicable. At the same time, Internet finance also has the problems of misleading consumers, exaggerating publicity, fraud and so on. Therefore, the basic theory of Internet financial supervision remains unchanged, and prudential supervision, behavioral supervision, financial consumer protection and other major supervision methods are also applicable, but the specific supervision measures are different from traditional finance
the "change" of Internet finance is mainly reflected in the penetration of Internet factors into finance
the first is the impact of Internet technology, which is mainly reflected in mobile payment and third-party payment, big data, social network, search engine, cloud computing, etc. The Internet can significantly rece transaction costs, alleviate the problem of information asymmetry, improve the efficiency of risk pricing and risk management (which will far exceed the efficiency of human brain), expand the possibility boundary of transaction, so that both the supply and demand of funds can trade directly, thus affecting the financial transaction and its organizational form. Three technical trends should be emphasized here: one is the digitalization of information. The second is the continuous improvement of computing power. In the future, cloud computing, quantum computing and biological computing will help to break through the physical boundaries of IC performance. Third, the development of network communication. These three technological trends will not only affect the financial infrastructure, but also promote the breakthrough of financial theory
the second is the influence of Internet spirit. Traditional finance has a certain elite temperament, which stresses professional qualification and access threshold. Not everyone can enter and enjoy financial services. The core of the Internet spirit is openness, sharing, decentralization, equality, free choice, inclusive and democracy. Internet Finance reflects the rise of Renren organization and platform model in the financial instry, the weakening of financial division and specialization, the simplification of financial procts, the disintermediation and disintermediation of finance, and the democratization and inclusiveness of finance
therefore, the theoretical logic and innovation path of Internet financial innovation are different from that of traditional financial innovation, which implies regulatory differences.

9. In the Internet environment, the core property of finance can be divided into four levels:
the lowest level of financial payment and settlement system, decentralization, and internet currency, which can be used as the foreign exchange of virtual countries
the second is debt innovation, P2b, supply chain finance. Its essence is the generation, discrimination, transfer and resale of creditor's rights
the third is equity financing innovation. This is a very open financial behavior of inclusive policy. Crowdfunding platform avoids two obvious defects. Free riding and herding are inevitable
the fourth is Internet investment and innovation. Recently, many hot funding, social investment, snowball as the representative of the website. Do tracking trading, online portfolio, strategy, etc. Innovation is made in the investment level market
when it comes to the core of Internet finance, P2b decentralization, a lot of social crowdsourcing, social investment, crowdfunding and so on, as well as big data, I believe that these are the core points of Internet Finance by making use of the nature of the Internet and the innovation of financial assets
in terms of risk control, online business is the trend, and now most of the customers are financing customers or small and medium-sized enterprises. In the future, who has the technology to build the supply chain information system, realize the four stream unification, and seamless docking, and ensure the authenticity and accuracy of the information, can restrain the risk and carry out the business in batches.