A recent Chinese study reaffirms that blockchain technology improves financial services.
Blockchain technology will further improve the transparency of financial transactions, the flexibility of the system and automated processes. It will be very important in fields like payment and settlement. The Academy of Information Technology and Communications and the Ministry of Industry and Information Technology of China emphasized the positive impact of blockchain technology on the transformation of traditional financial services.
Tencent Holdings, an Internet service provider, published a report which includes eight basic conclusions about the implementation of blockchain in China on July 24th. According to the report, blockchain technology will further improve
“the transparency of financial transactions, the flexibility of the system and automatic processes that affects the methods of record keeping, accounting and agreements of financial services payments.”
The study makes another asseveration,
“In addition to digital currency, the characteristics of blockchain can play an important role in the fields of payment and settlement, financing of the supply chain, securities trading, insurance and credit reports”.
The report points out that during the blockchain application process it is necessary to differentiate between the “currency” application and the “chain” application, a reference to the basis of blockchain technology for most cryptocurrencies,
“For the application of the ‘currency’, the financial risk must be strictly guarded. For the application of the ‘chain’, it must be legally regulated.”
Recently, three Chinese telecom operators created a blockchain research group to build a “next-generation telecommunications network”. China will also lead an international research group which will study the internet standardization of objects and blockchain technology, according to news disseminated in that country.
China downplayed blockchain technology in early July. As China was the first country to establish a general prohibition of the Initial Offers of Currencies (ICO) and its exchanges, now the country has some difficulties with the decentralized characteristic of blockchain technology and cryptocurrencies.
An Amazing Tool
A group of Chinese researchers from Tshinghua University presented a blockchain-based program in June that safeguard digital versions of important cultural objects, which could be shared through a network of blocks. Those objects will be scanned to generate a virtual representation.
Blockchain technology is more than a system to preserve digital transactions security and the previous new is an example of this. Around the world there are people investigating how they can make a good, and also different, use of blockchain technology.
Cryptocurrencies and blockchain technology are part of traditional payments transformation and a key to predict the evolution of human life.
by María Victoria Rodríguez