Blockchain financial industry standards are expected to establish technology to endorse the industry's credit

Recently, the news that the China Internet Finance Association decided to set up a blockchain research working group has attracted much attention. It is reported that the working group will be headed by Li Lihui, former president of the Bank of China, and will conduct in-depth research on the application and impact of blockchain technology in the financial field.

It is understood that the working group will focus on conducting research on technical difficulties, business scenarios, risk management, industry standards, etc. in the application of blockchain in the financial field, follow up on the development of blockchain technology at home and abroad and its application innovation in the financial field, and pay close attention to the financial risks and regulatory issues brought about by innovation.

After the establishment of the research group, China Merchants Securities stated in a report it released that the establishment of the research group shows that the domestic "blockchain + finance" research trend is emerging, and the authoritative organization has brought a strong later driving effect and is expected to establish unified industry standards.

The report believes that the development of Internet finance in recent years has provided a good breeding ground for "blockchain + finance". If the Internet has achieved "open source" in the financial industry's revenue, then blockchain is expected to systematically reconstruct the entire business of the financial industry, significantly reduce costs and improve efficiency, and bring about a "cost-saving" effect. Therefore, finance is expected to become the first industry to be implemented.

The significance of blockchain technology to the field of Internet finance lies in its potential to change the existing trust system. iQianjin Chief Technology Officer Guan Liang told reporters: "At present, the Internet financial industry basically adopts a centralized and private credit data storage model, and the authenticity and accuracy of the data are more distrustful. Therefore, companies spend a lot of resources to verify the credibility of credit data, which increases the operating costs of companies. Once blockchain technology can become the underlying design, the data will be public and accurate, and cannot be tampered with, deleted, or replaced. This will help promote mutual trust in the entire credit system and solve the credit problem in the Internet financial industry. At the same time, blockchain technology will also become a strong credit endorsement for the Internet financial industry."

According to Ge Linbo, CEO of Golden Toss , blockchain technology is actually similar to an application protocol on the Internet. "The free transfer of trust and value is the core of blockchain technology, which can meet the central issue of trust in human transactions and is the best technical means for humans to effectively solve the trust problem in the future. In the future, it will play a priority role in places with 'weak credit', such as the online loan market. If blockchain technology can be used to solve the current problems in the online loan market, it will bring greater development opportunities to the online loan industry." Ge Linbo added.

However, regarding the possible risks of blockchain, Fang Liang believes that innovative technology itself does not carry any moral or legal attributes, and its risks lie in how and in what direction it is applied. In particular, the application of new technologies in emerging financial fields such as Internet finance requires more unified guidance and regulation from supervision and the market. However, the current Internet financial industry is still in a transition period from disorder to orderly development, and the regulatory environment and market competition status cannot provide soil for the popularization of this technology for the time being. In addition to proving to the market the maturity of its technology and the stability of its applications, blockchain technology suppliers should also increase investment in legal compliance and industry education.