technology: boosting social progress!
The has passed through an early stage where the direction of development is not clear and is entering a wider field. It has the potential to undermine traditional methods, especially in the areas of cross-border settlement, procurement and supply chain. It also reduces operating costs, increases efficiency, and stimulate new sources of revenue.
Although the is a technology that every business should pay attention to, it is indeed over-hyped. Just like big data, if you think that you can implement overnight without a reasonable approach , it will lead to failure, embarrassment and even budget collapse.
In the whole, the methods of total denial and everything takes the as the starting point are doomed to failure. To better test and improve the capabilities of application, a series of rigorous explorations and attempts are required. By taking a disciplined approach to the , you can test the technology within the parameters of existing processes and systems to expand or improve the specific areas of your business.
The so-called success does not require a major overhaul of the existing technology, and does not need to regard the as a phase-out and replacement technology. The more effective approach is to change the weaknesses on the basis of the original traditional approach. Today we will explore innovation in cross-border settlement with technology.
The traditional settlement system has some defects such as centralization, centralized account management and so on. There are also some weaknesses, such as low payment efficiency, high remittance cost, difficulty to ensure the privacy and security of transaction information, slow centralized settlement process, long financing cycle in supply chain finance, large amount of capital consumption and so on.
took the initiative to meet the needs of the industry that is in urgent need of change, and perfectly connected the fourth-generation technology with cross-border settlement, achieving a perfect innovation in the development of the industry!
So, how does revolutionize traditional cross-border settlements, let us analyze them one by one:
Real-time cross-border payment,is a block chain of underlying technologies derived from Bitcoin. adopts a consensus mechanism based on the Byzantine fault-tolerance algorithm. Through the voting mechanism to confirm the transaction request, the transaction can be confirmed in a few seconds, realizing cross-border real-time clearing.
Decentralization to improve settlement efficiency. Compared to traditional cross-border payments, uses a to provide a decentralized way of creating credit. It relies on cryptography and mathematically distributed algorithms, and the parties can reach a consensus without the intervention of any third-party center. In this way, the parties to the transaction can directly make end-to-end payments, without involving intermediaries, not only eliminating the time cost of liquidation between different payment institutions, but also significantly shortening the trading cycle. From the time of arrival, the can basically achieve real-time arrival. At the moment when all the transactions are completed, the account information of both parties of the transaction will be updated synchronously, that is to say, liquidation has been achieved.
Low cost and transparency. cross-border payments is only required to cover the gateway handling charges for peer-to-peer transactions and the cost of currency exchange, which greatly reduces the cross-border payment costs. In the transaction process, gateway fees and exchange rates need to be confirmed by the user, which improves the transparency of the costs.
Reduce the cost of clearing. Traditional cross-border payment costs are mainly spent on intermediaries, and can save a lot of this cost because it does not require the involvement of intermediaries in the payment and clearing process. At the same time, due to the entire network accounting, time order and non-tampering, all transaction records can be traced back, so that the does not require additional costs to establish a credit system, thereby greatly reducing the credit in traditional cross-border payments. Maintenance costs.
Strengthen financial liquidity. On the one hand, in traditional cross-border payment, due to the slower flow of funds, the efficiency of the use of funds has been reduced. As a decentralized peer-to-peer system, can handle transaction processing almost in real time, greatly reducing the amount of funds in transit and helping to improve financial liquidity. On the other hand, in the based cross-border payment model, banks only need to use some kind of digital currency recognized by both parties, without the need to reserve additional legal currency, thus reducing the occupation of other currencies.
Support for multiple currencies. introduces market maker mechanism and as a bridge currency, supports for virtual currencies such as Bitcoin, and multi-currency cross-border payment of legal currencies such as US dollar, Euro, and .
Provide a powerful means for payment supervision.In the traditional payment field, the central bank acts as a payment information exchange center to supervise all electronic transactions between banks. However, with the rise of Internet payments, some payment behaviors are not effectively regulated.The non-tamper and traceable characteristics of technology provide a strong support for risk monitoring and prevention and control. With technology, any payment behavior can be tracked, abnormal transactions can be discovered in time, and the transparency of payment activities can be increased. The network provides a unique interface for supervision.
The reason why the “bloody storm” changes can be made in the traditional field is that the traditional industry does have considerable weaknesses and pain points, and on the other hand, it is also comes from the powerful practicality of technology. I believe that with the development of society, the potential of technology will continue to be stimulated, boosting social progress!