Including Visa, Nasdaq, Citigroup, including financial industry chiefs are bringing money to pound called block chain technology. The technology not only created bitcoins, and is expected to subvert the existing financial markets, opening a new "decentralized" era.
For financial ecological banks, brokerages, clearing center, trading center in the playe
rs, the block chain technology will fundamentally change their existing business models.
The industry believes that if the technology can be widely used in the financial industry, then clearing time, transaction costs and counterparty risk in financial transactions will be substantially reduced.
Today, the block chain technology has attracted, including Wall Street, including a large number of people CDS Queen, and may "change everything" (Changes Everything).
Block Chain (Blockchain) is bitcoin underlying technology, referring to a string associated with the use of cryptographic methods generate data blocks, each block contains the last ten minutes of all Bitcoin network transactions for verification By the effectiveness of their information (security) and generate a block.
Compared with the conventional technique, in order to represent the block chain based P2P to the center of the new system. As the technology website TechCrunch columnist Jon Evans said:
Bitcoin block chain by relying on a new agreement to the center of the system, it can be safely stored in the transaction or other data, and without any centralized audit institutions, because these are tested by the entire network. Those transactions are not necessarily financial transaction, data is not necessarily money. Block chain technology can be applied in many applications being ..... "
Further, today’s network architecture, there is a centralized mechanism (such as exchanges, clearing house) as the data processing center. But the block chain technology by addressing the issue of trust between network nodes, providing a mutually connected to the center of the distributed cloud network. Every transaction by the joint verification of these nodes, thereby to complete without the help of banks, exchanges such intermediaries. IBM has done a detail:
Consists of a centralized data center to collect all the information of the device has been connected, but this way, there are serious flaws in the life-cycle cost, revenue --IBM that in order to solve this problem, each device had to be able to self-management, so They often do not need the artificial maintenance - which means that the operating environment equipment should be decentralized, connected to each other to form a distributed cloud network.
This model is sustainable - as long as the device exists, the entire network life cycle can be very long, running costs can be significantly reduced. And to build such a distributed cloud network nodes have to resolve the issue of trust - in the traditional center of the system, the trust mechanism is relatively easy to set up, after all, there is a central agency to manage the status of all devices and each node. However, the potential number of ten billion networked devices, it is almost impossible to do. IBM believes Nakamoto Bitcoin block chain technology can satisfactorily solve this problem: "solution is the core of the block chain technology, which is the underlying technology bitcoin."
Block chain technology has long been known to solve the Byzantine fault tolerance - it provides a single node without trust, but also to create consensus Network. Bitcoin using the algorithm engineering to ensure the safety of the entire network, with it, the device can be in the financial markets is completely independent of any human intervention. It generates its own set of algorithms Bitcoin wallet, allowing it with other algorithms (other wallet) transactions.
Bitcoin payment companies ColaPay founder Luo Jinhai block chain technology for prospects looking forward to:
"Bitcoin block chain credit foundation technology is a huge technological breakthrough, which, it revolutionized the Internet with the financial industry, now Bitcoin industry, just as in 1994, around the Internet, is still in the proposal stage basis But over the next decade, the Internet is likely to replace the block chain. "
Nothing CDS Queen switch block chain technology more persuasive.
Blythe Masters, a former Wall Street commodities trading community, "a sister", 28-year-old became the managing director (MD), JP Morgan Chase hit the youngest female executives records.
Masters held various executive positions at Morgan Chase, including as CFO. In 2007 she began to spot large department in charge.
As a "CDS" Mother, financial derivatives market scale was developed her idea to up to $ 58 trillion, it is considered to boost the 2008 financial crisis.
2014, JP Morgan’s commodities business beyond all competitors, Wall Street’s top spot. But in this year, JP Morgan Chase for regulatory pressure to sell $ 3.5 billion in the sector. Masters subsequently announced his resignation.
After a year of silence, she reappear, became encryption currency (Cryptocurrency) company Digital Asset Holdings (DAH) of the CEO.
DAH swaps Exchange trueEX by founder and CEO Sunil Hirani and proprietary trading firms DRW Trading CEO Don Wilson, founder and co-founded. Its goal is to become a financial asset trading venues, facilitate investors at a lower price and time costs money and a bit of traditional currency conversion.
Blythe Masters DAH now led the development of a chain of blocks of securities and funds transfer system is based.
Today’s Masters still usual high profile. She not only warned the United States may be lagging behind in the block chain competition, and vowed to tell the banking sector, the block chain will change everything.
She said: "You should seriously this technology, it’s like the Internet in the early 1990s it means wealth beckons to you.."
Capital is always keen sense of smell, especially in the "fine people" get together Wall Street.
Masters is not the only smell opportunity. US financial industry bigwigs have started waving checkbooks, landing blocks chains This brings endless imagination gold mine.
According to the British "Financial Times", Visa, Nasdaq, Citigroup Venture has invested in a start-up company in San Francisco block chain Chain, involving financing amounted to $ 30 million.
Wall Street had knowledge previously mentioned, Nasdaq OMX Group Inc is testing block chain technology. The technology has the opportunity to overturn the traditional financial transactions into a similar Bitcoin transactions. If successful, the NASDAQ Group hopes the so-called block chain technology (blockchain technology) can be applied to the stock market into.
Swiss bank UBS AG Oliver Bussmann, chief investment officer at the time of last year, said the financial sector block chain will be the biggest disruptive force, which means that its success might be banks and trading companies have a profound impact. Bank where he also set up a laboratory to study the application of the block chain technology.
Former Merrill Lynch Europe, Middle East, Africa director Bob Wigley has recently praised the block chain technology advantages in cost reduction, and said he invested in a British block chain technology companies.