China Internet Finance Blue Book: Blockchain is expected to dominate shared finance

On September 23, the “New Norms? New Technologies? New Developments – 2016 China? Beijing Internet Finance Innovation Forum and the New Book Launch of “China Internet Finance Development Report (2016)”” was held in Beijing, hosted by the Institute of Finance of the People’s Bank of China and Tsinghua University’s PBC School of Finance, undertaken by Beijing Zhongke Jincai Technology Co., Ltd., co-organized by Jiufu Internet Finance Holding Group Co., Ltd. and Zhongshan Dahua Intelligent Technology Co., Ltd., and jointly supported by the China Internet Finance Association, the Institute of Finance of the Chinese Academy of Social Sciences, the School of Finance of Nankai University and the China Social Sciences Press.

The Blue Book points out that blockchain-led shared finance. Blockchain finance may be an advanced form of shared finance in the future. Blockchain is essentially a perfect mathematical solution for transaction parties to build a trust mechanism, and Bitcoin is the first great application of blockchain technology. The basic structure of blockchain is to package information within a period of time, including data or code, into a block, stamp it with a timestamp, and connect it with the previous block. The page header of each next block contains the index (hash value) of the previous block, and then write new information in the page to form a new block, which is connected end to end and finally forms a blockchain. Based on blockchain and a series of auxiliary methods built on blockchain, people have established a complete set of Internet governance mechanisms on the Internet.

Including proof of work mechanism, Internet consensus mechanism, smart contract mechanism, Internet transparency mechanism, social network interactive scoring mechanism, cryptographic public and private keys, etc. After these technologies mature, blockchain finance may have the following characteristics in the future: First, intelligence, the financial exchange carrier changes from data to code, and traditional finance becomes programmable smart finance; second, decentralized organizational structure, point-to-point, end-to-end, P2P; third, algorithm-driven, friction coefficient close to zero; fourth, integrated features, identity recognition, asset registration, transaction exchange, payment settlement are all connected on a blockchain system; fifth, real-time, scenario-based, 7×24 hours, seamless connection between the real world and the virtual world, the physical world and the digital world.