Chen Wei pointed out that the essence of asset securitization business is to replace subject credit with asset credit, and with the help of blockchain technology, technical mutual trust can replace institutional mutual trust, which makes blockchain technology meet the needs of asset securitization business scenarios. Based on this, Bank of Communications launched the first domestic blockchain asset securitization platform-"Chain Finance". Chen Wei also said that blockchain technology will also play an active role in promoting the integration of the Yangtze River Delta and building an international asset management center in Shanghai.
The problem of "efficiency+trust" needs to be solved.
"China Business News": Although many banks have explored and studied the blockchain, few projects have finally landed. What do you think is the reason why blockchain technology is difficult to land?
Nathan Chen: As the blockchain mainly adopts alliance chain technology, banks mainly face the following four problems when exploring the application of blockchain technology in specific businesses:
The first is safety. Commercial banks are important participants in the infrastructure construction of the whole financial system, and have particularly high requirements for reliability and security. In the application of new technology, safety requirements are the most important and must be met. Because the application of blockchain technology is still in the exploratory stage, this may affect the application of blockchain technology in specific businesses.
The second is efficiency. Under the decentralized setting, it takes a lot of time for all nodes to reach * * * knowledge and process data, so it is difficult to effectively balance business efficiency at present. Some traditional business scenarios of banks, such as payment, transfer and remittance, require high time efficiency and data storage, so it is still difficult to combine blockchain technology with these business scenarios.
The third is cross-institutional knowledge. Alliance chain needs the unanimous consent of all parties in the alliance, which is the same as promoting the formation and expansion of the chain. However, in the actual business promotion process, different organizations have different understanding of blockchain and demand for alliance chain, which brings difficulties to coordination and promotion.
The fourth is the economic cost. The application of blockchain requires high technical development ability of banks, and also requires a lot of software and hardware resources. For example, the alliance chain needs to deploy nodes to form a series of services such as * * * identification algorithm; Banks need to invest a lot of manpower and financial resources to develop. These inputs may not directly produce visible economic profits in the short term, and there will be inter-temporal mismatch between costs and benefits. Any financial institution, whether listed or not, will face the problem of current assessment, which makes the lag of current costs and benefits exist certain contradictions.
Of course, despite these four contradictions, many banks are crossing the river by feeling the stones and constantly groping. It can be said that in this respect, Bank of Communications actively responded to the call of the state and took the lead in the application of blockchain technology, especially in the field of asset securitization.
Chen Wei: Efficiency is a matter of time, and trust is a matter of security.
Regarding the efficiency problem, combined with the exploration and practice of Bank of Communications, it can be solved in the following three ways: first, through the automation of intelligent contracts in the chain, the efficiency of business processes can be improved; Second, study the high-performance public chain technology to meet the computing and storage capabilities under concurrent transactions; Third, with the help of cloud computing, the storage capacity of the cloud can be used to improve efficiency and reduce economic costs.
There are three main ways to solve the trust problem: first, participants must sign an agreement before going online to avoid the situation that efficiency is reduced and it is difficult to land because they can't reach the knowledge of * * * in the process of business development; Secondly, digital signature and asymmetric encryption technology are adopted to encrypt the data before uploading it, so as to ensure that only the authorized party can see the data and realize the control of data rights; Third, blockchain technology uses distributed account books to realize that data cannot be tampered with and can be traced back at the same time, ensuring that all participants in the chain maintain a high degree of trust in data.
Promote the "same city" of asset funds in the Yangtze River Delta
China Business News: What are the characteristics and highlights of Bank of Communications in exploring blockchain scenarios?
Chen Wei: At present, there are many discussions about the usage scenarios of blockchain in the market. As far as blockchain authorized financing is concerned, asset securitization business is one of the most suitable schemes. Based on the practical exploration and first-Mover advantage in the asset securitization market, Bank of Communications began to explore the application of blockchain in asset securitization business scenarios on 20 16, and officially released the first domestic blockchain asset securitization platform-"Chain Fusion" on 20 18. The platform won two technical patents ―― the inter-agency process solution based on smart contract and the Fabric blockchain management solution based on smart contract, and won the 20 18 Shanghai Financial Innovation Achievement Award and the China Banker's Top Ten Blockchain Application Innovation Award.
There are many participating institutions in asset securitization business and the issuance cycle is long. At the same time, the transaction structure is complex. How to make business more efficient needs to solve the problem of information asymmetry. Blockchain technology has four characteristics: decentralization, transparency, * * enjoyment and non-tampering, which means that blockchain technology can be perfectly combined with asset securitization.
From the business itself, the essence of asset securitization business is to replace the main credit with asset credit; At the same time, with the help of blockchain technology, technical mutual trust can replace institutional mutual trust, which makes blockchain technology and asset securitization business perfectly fit. Blockchain technology can realize the openness, transparency, non-tampering, non-forgery of all data information in the system, and can trace the information without the endorsement of a third party.
China Business News: In practice, how does blockchain technology empower asset securitization business?
Chen Wei: On the "chain integration" platform, with the help of blockchain technology, the basic assets and the best adjusted statements are permanently stored in the chain through digital fingerprints, and with the help of the characteristics of blockchain, such as transparency, * * * * enjoyment and non-tampering, the problem of mutual trust among many participants in asset securitization business is solved to achieve credit penetration; Through some algorithms, the encryption protection of files on the chain is realized, which effectively alleviates the risk of information leakage.
At the same time, the application of blockchain technology has also reduced some maintenance costs and the pressure of system operation. Since the first credit asset securitization project in Asia "Bank of Communications 20 18 Phase I Personal Housing Mortgage Asset-backed Securities" was issued, up to now, the scale of projects issued by Bank of Communications through this platform is about 780 billion yuan. We have also been committed to promoting more high-quality sponsors, professional investors and other users of the asset securitization ecosystem, such as Guodian Power.
"Chain integration" is the incubation result of the "Joint Laboratory of Financial Innovation" and the product of the linkage between the front, middle and back offices of Bank of Communications. In the early stage of research and development, the business department takes the lead in the whole project with market sensitivity, and the middle and back office departments cooperate. After the application of blockchain technology, we constantly keep pace with the times and iteratively upgrade the system.
In addition to the internal cooperation between Bank of Communications and R&D, Bank of Communications also took the lead in establishing an asset securitization business ecosystem-"Lujiazui Asset Securitization Alliance". * * Cultivate and develop the ecosystem system through cooperation with peers, which is also the embodiment of Bank of Communications' social responsibility and realization of social value.
"China Business News": Apart from empowering the specific business of banks, what help can blockchain technology provide for banks to participate in the "Yangtze River Delta integration" and serve Shanghai to build an international asset management center?
Chen Wei: The application of blockchain technology in asset securitization business scenarios actually shortens the information distance between asset holders and fund holders and breaks the boundaries of administrative divisions. With the help of blockchain technology, all participants in the "chain mixed" platform have reached an understanding of assets and prices. For example, Shanghai's assets can match the funds received from Jiangsu, which promotes the "urbanization" of assets and funds in the Yangtze River Delta region to a certain extent.
At the same time, blockchain technology can also help Shanghai build an international asset management center. Building an international asset management center is to attract a large number of overseas funds or fund management institutions to Shanghai. Only by providing a wealth of high-quality assets to choose from can overseas funds or institutions not be left behind. Asset securitization business has been relatively mature and large-scale in the international market. In contrast, asset securitization business is still in the development stage in China. With the continuous improvement of China's opening to the outside world, more and more foreign capital will enter China to invest in some domestic high-quality assets in the future, and the "chain integration" platform will play a more important role.
Generally speaking, blockchain technology is closely related to Shanghai's Yangtze River Delta integration construction, free trade zone construction, global financial technology center and asset management center, and will also make new and greater contributions to serving the national strategy.
Source: China Business Network