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Why is finance ahead of every production change?
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Why does the traditional financial transaction settlement fall into the dilemma of cumbersome procedures and long cycles? This is because it relies on many intermediate links. From transaction confirmation to fund settlement, it has to go through multiple levels of review by multiple institutions. But let's look at the distributed ledger technology of blockchain. It is based on the concept of decentralization, allowing each participating node to have a complete copy of the ledger. Imagine that in a cross-border payment scenario, in the traditional model, funds need to be transferred to multiple correspondent banks, and each one takes time to check and process. Under blockchain technology, the two parties of the transaction are directly connected, and the information is recorded synchronously at each node. This is like a courier that originally required multiple transfers, but can now be sent directly from the shipper to the consignee, greatly shortening the time and reducing costs. In this way, we can clearly see that blockchain has built an efficient bridge for global economic exchanges and laid a solid foundation for transaction settlement for the global economic activities of the Fourth Industrial Revolution.
Thinking deeply from the perspective of value transfer, the essence of finance is to achieve the transfer of value across time and space, but traditional finance is limited by time and space in this regard. So what changes has blockchain technology brought? Blockchain breaks these restrictions by using distributed accounting and encryption algorithms. Taking decentralized finance as an example, in the traditional financial system, small and micro enterprises and individuals find it difficult to obtain financial services due to lack of collateral and imperfect credit records. But in the DeFi model, through smart contracts, borrowers and lenders can connect directly. The logic behind this is that blockchain ensures the authenticity and reliability of transaction information without relying on the credit endorsement of traditional intermediaries. In this way, more people can participate in financial activities, the scope of value transfer can be broadened, and the value circulation guarantee is provided for the innovation of digital and intelligent production relations.
Let's explore the innovations brought about by the integration of finance and blockchain. Why can their integration give birth to new financial businesses and models? We know that the financial industry has extremely high requirements for security, stability and efficiency. The emergence of blockchain technology provides a new way to meet these requirements. Take the consensus mechanism as an example. It solves the problem of how to make each node reach a consensus in a decentralized environment. In traditional finance, centralized institutions play the role of credit guarantee, but this also brings risks such as single point failure. The consensus mechanism of blockchain allows each node to verify each other and improve security. This technological innovation not only meets the needs of financial transactions, but also provides a reference for the digital transformation of other industries. For example, in the medical industry, blockchain can ensure the safe sharing of patient medical records. Therefore, from this logical chain, it can be seen that the integration of finance and blockchain has stimulated innovation vitality and promoted the process of social digitalization.
Further thinking about the transformation of production relations by finance with the help of blockchain. In terms of resource allocation, the flow of funds in the traditional financial system is often affected by information asymmetry and human factors, resulting in resource mismatch. But how does the distributed financial network of blockchain improve this situation? Through blockchain, the information of capital demanders and suppliers is more transparent, and smart contracts automatically execute capital allocation according to preset rules. This is like in a large market, the commodity information and prices of each stall are clearly visible, and buyers can directly find the commodities that best meet their needs, so that resources can be more reasonably allocated, promoting the development of productivity and promoting the transformation of production relations to an efficient and flexible direction.
From the perspective of trust mechanism, traditional financial trust relies on centralized institutions and a large number of intermediaries, which is costly and inefficient. The open, transparent and tamper-proof characteristics of blockchain allow both parties to establish trust directly. For example, in supply chain finance, suppliers and buyers used to need to establish trust through intermediaries such as banks. Now, the flow information of goods is recorded through blockchain, and both parties can view it directly without the need for intermediary guarantees. This change in the trust mechanism naturally promotes cross-organizational and cross-industry cooperation and reshapes production relations.
