BitSE was invited to Everbright Securities for technical exchanges and to discuss the application of blockchain technology in the securities industry

On the afternoon of April 8, at the invitation of Dr. Wang Yong, Chief Risk Officer of Everbright Securities, BitSE CTO Shuai Chu exchanged and discussed blockchain technology with nearly 100 people from various business departments of Everbright Securities at the headquarters of Everbright Securities in Shanghai.

That afternoon, Dr. Wang Yong first introduced the reasons why Everbright Securities held a blockchain technology seminar. He mentioned:

“With the development of Internet technology and software technology, the financial industry has also ushered in more changes. During the previous chat with Vitalik, the founder of Ethereum, he found that blockchain technology has many excellent concepts and designs that can be used by the financial and securities industries, but blockchain technology is not familiar to everyone. Therefore, technical training and communication is the first step, and then we will consider how to implement and use related technologies.”

Next, Shuai Chu gave a report entitled "An Initial Exploration of Blockchain Technology and Its Impact on the Financial Industry". The report is divided into two parts. The first part is an introduction to blockchain technology, and the second part is the impact of blockchain technology on the financial industry.

In the technical introduction of blockchain, Shuaichu made a brief summary of the origin, development and current status of the Bitcoin network, and then extended the origin of blockchain technology and how to use blockchain technology to build a financial service. He also forked the Bitcoin source code on site and compiled it into his own private Bitcoin network, so that all personnel can experience the mining, mining pools, wallets and other industries in the Bitcoin industry. In just half an hour, he mined nearly 20,000 private chain bitcoins on his own Bitcoin private chain.

In the technical introduction, Shuai Chu introduced the development of blockchain technology abroad and the technical implementation methods of major public blockchains, including Ethereum, Bitshare, SideChain, DriveChain, RootStock, etc. He also pointed out the applicable scenarios and inapplicable scenarios of blockchain technology, and summarized the potential and shortcomings of smart contract technology.

Regarding the impact of blockchain on the financial industry, which is of great concern to the audience, Shuai Chu cited the registration and issuance of OverStock's corporate stocks, Nasdaq LINQ private equity transactions, and BitSE's ongoing digital asset issuance and trading work. Shuai Chu mentioned that BitSE is working with an oil and gas license company to digitize and tokenize the relevant licenses, and complete the mapping and trading of assets from the physical world to the blockchain.

At the same time, combined with BitSE's experience in the blockchain industry, Shuai Chu believes that the main impact of blockchain technology on the financial industry is mainly based on two dimensions:

1. Blockchain technology has greatly reduced the issuance, clearing and settlement costs of digital assets, but it faces problems with digital asset trust and laws and regulations. 2. Smart contract technology makes complex financial contracts and financial derivatives possible, which will greatly reduce the cost of contract construction and the impact of human errors, but smart contract technology also has its limitations, for example: the state machine maintained by all nodes globally causes a lot of waste of resources; some other contracts that cannot be pre-reviewed will cause serious waste of resources, such as halting problems in the computer field, etc. These need more exploration.

At the same time, both parties agreed that blockchain technology will have a huge impact on the financial industry and summarized nine sub-industries that may be affected:
1. Digital Currency and Equity Tokens (Bank of England, Citibank)
2. Payment industry (secure, real-time, traceable, programmable money)
3. Cross-border remittance (visa/west union)
4. Equity crowdfunding and equity crowdfunding (divisible and tradable)
5. Clearing and Settlement Industry (DAH, Australian and Canadian Exchanges)
Issuance and trading of VI securities (digital assets, digital trust, Linq)
7. Tokenize and Digitalize
8. Preservation and authenticity of important data (time series, timestamp services)
IX. Registration, bonds, collateral, mutual insurance, etc.

At the end of the symposium, both parties said that the blockchain industry is currently in its early stages. Although there are no killer applications yet, nearly 500 startups around the world are now engaged in this industry and exploring more than 60 fields. It is more worthy of research and exploration in China. The two sides also discussed the possibility and plan of cooperating on some specific projects. BitSE recently had in-depth exchanges and cooperation with PWC China. As one of the few blockchain full-stack technology developers in China, its business areas include blockchain authenticity verification platform, enterprise private chain and smart contracts, blockchain operating system and other services. It is willing to discuss the application and implementation of blockchain technology in China's financial field with securities companies.

Editor: Meng Dada
Source: Babbitt Information (http://www.8btc.com/bitse-everbright)