Blockchain Technology Begins to Enter the Financial Sector

Thu Mar 29 11:20:00 CST 2018

As the underlying technology and infrastructure have gradually improved, blockchain technology has begun to leap into the financial sector.

(1) Trading

Despite the tightening of the policy of digital currency transactions at home and abroad, the enthusiasm of market participants remains unabated, and a large number of trading platforms are involved. Especially for all kinds of small token investments, the above trading platform can better alleviate its liquidity problems. Take Airswap as an example. It is a decentralized electronic currency exchange that is built using Ethereum smart contracts. Users can complete anonymous transactions globally through their smart contracts without registration. Although decentralized exchanges avoid the custody of personal assets and can improve safety to some extent, their characteristics are in conflict with anti-money laundering rules and may face greater policy risks. Outside the exchange, 0x provides a decentralized exchange protocol based on the Ethereum blockchain, using replayer to host the order book model, which requires a chain of matching transactions. Compared to the completely decentralized mode on the pure chain, a certain Gas cost is reduced and the transaction speed is accelerated.

In addition to electronic money, some exchanges that use traditional financial assets as the subject also began to appear. EverMarkets has opened up a channel for trading futures with blockchain technology, which can effectively reduce transaction costs. At the same time, the platform is also planning to cooperate with the futures exchange.

In the current environment, regulators around the world are cautious about the development of digital currencies, especially tokens. On the one hand, they encourage the development of digital currencies. On the other hand, there are irrational factors in the digital currency market. Therefore, from the external environment, exchange projects will face greater risks of policy uncertainty. And it itself has problems such as complicated shareholders background, weak beliefs, and easy to break capital chain.

(2) Loans

Blockchain technology also has applications in the area of lending. WeTrust's first product, Trusted Lending Circle, uses blockchain technology to implement a cycle of borrowing in a trusted group. SALT allows users to obtain cash loans using their digital currency assets as collateral. ETHLend needs to use the ENS domain name as collateral for loans to obtain an ether loan. Currently, blockchain technology is applied to the loan scenario. It is a large innovation in the asset side, and it also improves the efficiency of obtaining customers. However, it does not play a subversive role in the development of loans, especially online loans. .

(3) Insurance

The application of blockchain technology in the insurance field is relatively decentralized. Among them, InsureX selected smart contracts based on Ethereum, which is an insurance market based on blockchain technology. It solves the problem of non-trust between parties, and combines insurance companies, reinsurance companies and brokers to form an insurance market. Efficient and transparent market. Aigang uses blockchain technology to establish an insurance-oriented DAO framework for the Internet of Things. Among them, insurance coverage and claims processing will be automatically executed by smart contracts. And other contributors can develop new modules based on Aigang's agreement to support various innovative loT insurance products.

(4) Investment

The hot virtual currency market has prompted more and more blockchain companies to focus on the development of digital currency investment value. As a digital asset management platform, ICONOMI can provide a variety of digital asset arrays (DAAs) for investment users. Numerai built an artificial intelligence hedge fund using the Ethereum blockchain and its token Numeraire. Cindicator combines a large number of different types of financial analysts and a full set of machine training models, and has designed "mixed intelligence" strategies for effectively managing traditional financial and cryptocurrency investor capital.