What is a blockchain?

Blockchain is equivalent to a de-intermediated database, which consists of a series of data blocks, each of which contains a bitcoin network transaction information, which is used to verify the validity of its information and generate the next block.

Blockchain can be viewed from two aspects, one is broad and the other is narrow.

Broadly speaking, blockchain is actually a distributed infrastructure and computing method to ensure the security of data transmission and access.

In a narrow sense, blockchain is a chained data structure, which combines data blocks in an orderly way according to time sequence, and ensures that it cannot be tampered with and forged through cryptographic technology.

What are the specific functions of blockchain in the financial field?

Specific functions include digital currency, securities trading and payment and settlement.

① digital currency: Compared with traditional currency, issuing digital currency can effectively reduce the cost of currency issuance and circulation, and enhance the convenience and transparency of economic transactions.

(2) Securities trading, in the traditional securities process, is complicated and lengthy, mixed with human control factors. Blockchain can avoid many middleman links in securities issuance, avoid manipulation behaviors that often occur in traditional securities, and reduce the issuance, tracking and transaction costs of encrypted securities.

(3) payment and settlement. Financial institutions provide cross-border real-time payment initiation services in any currency for access banks through distributed protocols constructed by blockchain technology, which will make cross-border payment more convenient and low-cost.