Research Of Impact Of Block Chain Technology On Traditional Commercial Bank's Trade Settlement Method

Block Chain as a technical solution,is an innovative application of computer technology such as the Distributed Date Storage,Point-to-Point Transmission,Consensus Mechanism,Encryption Algorithm in the internet age.The main features of Block Chain includes decentralization,safe,effectiveness and reliability as well as flexibility of application to a variety of fields,especially in financial area.Since 2015,Block Chain has experienced rapid development throughout the world,institutions including Central Banks,Government Departments,Commercial Banks,IT Giants are all accelerating their exploration on Block Chain,and investment on Block Chain related R&D departments and start-up companies also shows explosive growth.This paper takes Impact of Block Chain Technology on Traditional Trade Settlement Methods of Commercial Bank as study object,and reviews the development of Block Chain technology and Block Chain Finance as well as explained and summarized the related concepts and application scenarios.At the same time,this paper analyzes the characteristics and processes of three typical kind of traditional trade settlement methods,including Remittance,Collection and Letter of Credit,by SWOT analysis.Based on which,this paper combines traditional trade settlement and the Block Chain Technology to apply for all kinds of scenarios in the traditional trade settlement process.This paper also presents the case of a start-up company Bubichain,including the current situation and existing problems,and then studies the positive and negative impact of Block Chain Technology on traditional trade settlement.On the above mentioned basis,this paper concludes with suggestions and solutions to the development of Block Chain Technology in China.