China Securities Journal: Artificial Intelligence and Blockchain Reshape Future Financial Forms

The speed of scientific and technological progress exceeds human imagination. Just a few years ago, when discussing the topic of technological innovation, the most mentioned were the mobile Internet, cloud computing, big data and social networks. But now, the topic has long turned to artificial intelligence and blockchain. “Blockchain Finance Era” is a book that is more in line with the prevailing taste. Regardless of whether the work you are doing is related to finance, you should read it and think about how artificial intelligence and blockchain will affect people’s lives? Where should you position yourself in the future?

Artificial intelligence applications have blossomed everywhere

Artificial intelligence is a comprehensive discipline involving multi-field knowledge. Its main goal is to realize the simulation and expansion of human intelligence by studying the phenomenon, nature and generation mechanism of human intelligence, and finally to develop new machines with human intelligence. In other words, it is a discipline that studies how to simulate and extend advanced animal intelligence methods, technologies, and related theories. His main research areas include: language processing, automatic theorem proof, reasoning, intelligent search engine systems, robot vision, analysis and solution systems for complex problems, artificial intelligence methods and programming languages, and automation of programming. Turing, a pioneer of computer science that people are more familiar with, is known as the “father of artificial intelligence.” Real-world applications include driverless cars, speech recognition systems, and AlphaGo, the first artificial intelligence robot to defeat human professional Go players.

The application of artificial intelligence in the financial field has blossomed everywhere. For example, intelligent customer service, an application based on speech recognition and natural language processing, integrates external customer service models of financial institutions (including web pages, text messages, phone calls, WeChat, applications, etc.) to enable intelligent service robots to provide intelligent customer service online. Another example is the application of computer vision and biometric technology-face recognition and security monitoring, which enables the machine to more accurately identify the identity and behavior of customers, helping financial institutions to more easily identify customers and implement security monitoring. Another example is the application of machine learning and neural network technology-predictive analysis and intelligent investment consulting. Through data processing and analysis, complex models can be automatically constructed for judgment and appropriate decisions can be made in advance. There is also the application of intelligent robot technology-computer room inspection and website intelligent robots, which help to realize 24-hour robot monitoring in the core area of ​​the computer room and server, so that staff can discover potential risks in time.

Blockchain is a new application model that integrates distributed data storage, point-to-point transmission, consensus mechanisms, encryption algorithms, and other computer technologies. Blockchain technology is also known as distributed ledger technology, which is a decentralized solution by jointly maintaining a reliable distributed database. In this technical solution, a block refers to a data block, and a chain refers to a linked list technology. The data block contains two parts, one is the block body, that is, from the end of the previous data block to the time when the data block generates all transaction records, this part also contains the data fingerprint used to verify the validity of the data information; the other One part is the block header, which connects the isolated data blocks in order to form a data chain that records everything. Therefore, the blockchain is a decentralized general ledger. The well-known Bitcoin is the successful application of blockchain technology.

Challenges and opportunities for the traditional financial industry

The impact of blockchain technology on the financial industry is upside down. First, in terms of financial transaction data, the data stored in the blockchain system is more secure, and the blockchain technology itself can effectively ensure the security and authenticity of transaction data. The decentralized characteristics of blockchain technology can make data more transparent and fundamentally solve the problem of large amounts of data being concentrated and forming information silos in third-party financial institutions. Secondly, the blockchain technology itself can not only realize the permanent storage of data information, but also can add additional information to the data to realize the identification of the data information and the confirmation of the property rights. This mechanism can effectively solve the big data sharing and privacy protection Internal contradictions. This means that each individual can have its own data assets, which can also bring corresponding credit and other derived values. Finally, blockchain technology relies on program algorithms to achieve open and transparent trading rules, enabling all participating nodes to run automatically, maintain together, and support credit together, break the elite monopoly in the traditional financial system, and enable the public to participate in the development of inclusive finance. .

Finance is the lifeblood of a country’s economy, and it also affects everyone’s daily life. From the issue of national currencies, the settlement of bonds between banks and exchange rate conversion, to the electronic payment and daily wealth management of everyone, they are all part of financial activities. The financial industry is also the industry with the highest level of informationization. As early as 1849, Paul Julius Reuters, born in Kassel, Germany, began to use pigeons to pass stock prices between Ahern, Germany, and Brussels, Belgium. By November 1851, the laying of the submarine cable between Dover, England and Calais, France, Reuters established the submarine telegraph line office in the United Kingdom, and signed a paper contract with the London Stock Exchange to provide the stock market in continental Europe. In exchange for the right to obtain information on the British stock market, and to provide data on the British stock market to traders in Paris, France via submarine cables. In that era, there was a huge leap from carrier pigeons to submarine cables.

Today, artificial intelligence and blockchain technology will bring even greater challenges and opportunities to the financial industry. Such a challenge may lead to two results: first, new technologies are integrated into traditional businesses, thereby realizing the upgrading of information technology, further improving efficiency and reducing costs; and second, new technologies completely subvert traditional businesses. Whether artificial intelligence technology and blockchain technology can completely upend traditional financial services will depend on the maturity and application depth of the technology, and it remains to be seen.


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