How to apply blockchain technology? What role can it play?

Take buying a house as an example: buying a house is a complicated transaction process, and the participants include sellers, buyers, intermediary companies, housing management bureaus, banks, appraisal companies and tax bureaus. During the whole transaction, all participants should keep separate records of their own books. Checking these books is a very time-consuming and laborious task, and the verification cost is high. This is why the whole process of buying a house now takes an average of two months.

In addition to time-consuming and laborious, because a single participant can find very little information, there is also the risk of being cheated by two intermediary companies or selling more than one room. However, the blockchain provides a solution: all participants' books are assembled into a credible tamper-proof digital book that all participants can query. In this way, every link of the purchase process is clearly visible, and everyone saves time and effort in trading.

Bitcoin is the first application of blockchain technology. Bitcoin has maintained stable operation for many years without any centralized organization operation and management, without any problems. Through this case, everyone has seen the potential of blockchain technology.

At present, in order to prevent single-point failure and systemic risks, the financial industry needs strict supervision and layer-by-layer auditing to control risks, which also causes high internal costs. The traditional cross-border settlement method is through an intermediary such as SWIFT, so the settlement speed is very slow. Bitcoin has been running perfectly for many years without any centralized agency operation, which not only can realize real-time settlement and liquidation, but also has not issued an account.

A report released by Santander, Spain's largest bank, shows that if blockchain technology is used in global banks around 2020, it will save about $20 billion a year. Such data is enough to illustrate the tremendous changes and breakthroughs that the "blockchain" has brought to the traditional financial sector.