Research On The Application Mode Of Blockchain In Financial Industry

Blockchain originated from the concept of digital currency,but it's current application has been extended to many industries,which has attracted the attention of many governments,financial companies and technology giants.As a newly emerging distributed database protocol,blockchain uses cryptography,timestamped chained data structures,and distributed consensus mechanisms to make system becomes decentralized,non-deterrable,easily traceable,and programmable.Such advantages provide a possible solution to solve the problems of traditional centralized organizations,which makes blockchain has broad application prospects.This article starts with the analysis of the basic model of blockchain system.Taking bitcoin and Ethereum blockchain system as examples,the model is divided into data layer,block layer,network layer,consensus and excitation layer,and application layer from bottom to top.In five parts,the basic technologies and operating mechanisms for each layer are introduced.In this model,chain including time stamp,distributed networking,consensus mechanism based on computational competition,and programmable smart contract are the most representative innovations of blockchain system.Currently,blockchain technology still faces many technical bottlenecks that hinder its large-scale application,including inefficiency,high storage costs,waste of resources,and privacy security issues.Now there are possible solutions for each problem,including the offline payment channel for efficiency issues,and the PoW mechanism for resource waste issues.Summarizing the advantages and challenges of blockchain,this paper proposes that blockchain system will face many challenges when it's applied in large-scale commercialization scenarios.The advantages of blockchain make it possible to solve some of the problems in the financial industry.This article proposes that blockchain is expected to land first in the application scenarios with low-frequency transactions,high trust requirements,and high intermediary costs.This paper uses the bills and cross-border payment services as examples to analyze the improvement of using blockchain on traditional business model,as well as the challenges and suggestions.On the whole,the application of blockchain in the financial sector is still in its infancy.It still faces problems and challenges in legal supervision,financial market system construction,and commercial operations.In this regard,this article also proposes suggestions such as promoting standard research and policy support.