At present days, in the actual settlement, examination and approval, deposit and withdrawal, currency exchange and other banking business, in order to ensure the implementation of the business, it is necessary to set up various departments and commissioners to carry out the actual operation. In the process of business implementation, due to the wide variety of banking business, involving a wide range of departments and personnel, and complex process, there are many challenges that need to be solved. Blockchain can effectively solve the problems related to centralized deployment, long settlement and circulation process, poor data backtracking ability and low openness, and information security.

Block chain technology and characteristics

Chain storage structure: Block chain adopts a linked list data structure. Block is composed of block header and block body. All blocks form a chain structure according to the hash value, which together constitute the distributed data storage system of block chain.

Distributed data storage systems and the decentralized, distributed data storage system refers to the information data by distributing in different business domain of each node coordinate together, and each node is complete data record, so they can participate in supervision of the legitimacy of the business information, at the same time can also be the testimony of together. Since each node of blockchain storage is independent and equal in status, the consensus mechanism is relied on to ensure the consistency of storage, so as to avoid the possibility of a single data maintainer being controlled or bribed to record false information. Because there are enough information nodes, in theory, information will not be lost unless all nodes are destroyed, so as to ensure the security of data.

Consensus mechanism: Due to the high network latency in peer-to-peer networks, the transaction sequence observed by each node cannot be completely consistent. Therefore, the blockchain system needs to design a mechanism to reach a consensus on the sequence of transactions occurring in a similar time. This algorithm to reach a consensus on the sequence of transactions within a time window is called "consensus mechanism". To determine the validity of a record, this is not only a means of identification, but also a means to prevent tampering.

Data encryption and anonymity: Data information stored on the blockchain is public, but for example, account identity and transaction data are highly encrypted and can only be accessed with the authorization of the data owner, thus ensuring data security and personal privacy. Common encryption methods in blockchain include hash algorithm, Merck tree, digital signature, etc.

Application of blockchain technology in banking industry

(1) Digital currency

Compared with traditional currency, digital currency has many advantages such as low cost, convenient use, safety and reliability, programmable and traceable, and has gradually become an important currency in the Internet era.

(2) Cross-border payment and settlement

After the introduction of blockchain technology, cross-border payments can be completed within seconds. Traditional payment methods require a certain percentage of processing fees, while blockchain payments have negligible processing fees, so the cost of payment is lower. At the same time, the blockchain payment omits the third-party intervention, and both sides of the transaction directly participate in the settlement, and the transaction process is usually not affected.

(3) Digital ticket

With the support of blockchain technology, the verification control of the third party is omitted, and the paper bill is gradually transferred to the point-to-point bill value transmission, avoiding the influence of human factors. At the same time, the bill cost is reduced, and the transaction security and reliability are improved.

(4) Construction of credit system

The credit investigation system of all countries is built on the central bank credit investigation platform as the center, and there are some problems, such as asymmetric credit information, imperfect data sharing mechanism, too single data collection channel, too fierce competition of data sources, and improper data security prevention. Using blockchain technology to build a new credit investigation platform can better solve the difficulties and pain points of the traditional credit investigation system, reduce the risks and costs of credit transactions, and improve the collection, storage and transfer efficiency of credit data.

Future expectation

At present, blockchain technology research is in full flow. The banking industry should take the initiative to seize the opportunity, actively carry out innovation, accelerate the integration of blockchain technology and banking business, and gradually make breakthroughs in improving customer experience, preventing security risks, optimizing business processes and other aspects. It is believed that in the future, blockchain technology will cooperate with artificial intelligence, quantum communication, biological storage technology, big data and other emerging technologies to shape a new future.