GuShiio.com In the fourth industrial revolution represented by blockchain, finance plays an irreplaceable and key role in multiple dimensions from transaction settlement and value transmission to innovation stimulation, production relations transformation and industrial upgrading.
Written by: far, Centreless
When discussing the significance and value of finance to the fourth industrial revolution represented by blockchain, what does the industrial revolution mean? From the perspective of historical development, every industrial revolution is a deep reshaping of production methods, economic models and even social structures. The fourth industrial revolution has opened a new chapter due to the integration of emerging technologies such as information technology and blockchain. The role of finance in this process deserves in-depth analysis.
Why does traditional financial transaction settlement fall into the dilemma of cumbersome processes and long cycles? This is because it relies on many intermediate links, from transaction confirmation to fund clearing, which must go through layers of review by multiple institutions. But let’s look at blockchain’s distributed ledger technology, which 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, under the traditional model, funds need to be transferred to multiple agent banks, and each passing through one will take time to check and process. Under blockchain technology, both parties to transactions are directly connected, and information is recorded simultaneously at each node. This is like express delivery that originally required multiple transfers, but now can be delivered 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 transmission, the essence of finance is to realize 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 uses distributed accounting and encryption algorithms to break these limitations. Take decentralized finance (DeFi) as an example. In the traditional financial system, it is difficult for small and micro enterprises and individuals to obtain financial services due to lack of collateral and imperfect credit records. But in the DeFi model, through smart contracts, lenders and lenders can directly connect. The logic behind this is that blockchain ensures the authenticity and reliability of transaction information without relying on credit endorsements from traditional intermediaries. In this way, more people can participate in financial activities, and the scope of value transmission is broadened, providing a guarantee for value circulation for digital and intelligent production relationship innovation.
Let’s explore the innovations spawned by the integration of finance and blockchain. Why can their integration lead to new financial businesses and models? We know that the financial industry has extremely high requirements for safety, stability and efficiency. The emergence of blockchain technology provides new ways to meet these requirements. Take the consensus mechanism as an example, which solves the problem of how to get various nodes to reach an agreement in a decentralized environment. In traditional finance, centralized institutions assume the role of credit guarantees, but this also brings risks such as single points of failure. The consensus mechanism of the blockchain allows various nodes to verify each other, improving security. This technological innovation not only meets the needs of financial transactions, but also provides reference for the digital transformation of other industries. For example, in the medical industry, blockchain can ensure the secure sharing of patient medical record information. Therefore, it can be seen from this logical chain that the integration of finance and blockchain has stimulated innovation vitality and promoted the process of social digitalization.
Further think about the transformation of production relations by finance through blockchain. In terms of resource allocation, the flow of funds in the traditional financial system is often affected by information asymmetry, human factors, etc., resulting in resource mismatch. But how does blockchain’s distributed financial network improve this situation? Through blockchain, information on fund demanders and suppliers is more transparent, and smart contracts automatically perform fund allocation according to preset rules. This is like in a large market, where the product information and prices of each stall are clearly visible. Buyers can directly find the products that best meet their needs, resources can be more rationally allocated, promote the development of productivity, and promote the direction of production relations to be efficient., flexible and shift.
From the perspective of trust mechanisms, traditional financial trust relies on centralized institutions and a large number of intermediaries, which is costly and inefficient. The openness, transparency and non-tamper characteristics of blockchain allow both parties to transactions to directly establish trust. For example, in Supply Chain Finance, in the past, suppliers and purchasers needed to establish trust through intermediaries such as banks. Now, the circulation information of goods is recorded through blockchain, and both parties can directly view it without intermediary guarantees. This change in the trust mechanism has naturally promoted cross-organization and cross-industry cooperation and reshaped production relations.
Finally, consider the promotion of the integration of finance and blockchain to industrial upgrading. Taking Supply Chain Finance and digital assets as examples, why can they become important supports for industrial digital transformation? In Supply Chain Finance, blockchain realizes the collaboration of capital flow, information flow and logistics. In the past, small and medium-sized enterprises had difficulty obtaining financing due to opaque information. Now, relying on real transaction information on the blockchain, financial institutions can provide financing with confidence and promote the integration and upgrading of the industrial chain. In the field of digital assets, the development of financial technology promotes the circulation of digital assets and provides financial support for emerging industries. The logic behind this is that digital assets are an important form of assets in emerging industries, and their circulation requires the support of the financial system, and blockchain technology ensures the security and credibility of digital asset transactions. From the case of the integration of traditional industries such as energy, manufacturing, and agriculture with blockchain, they are all based on this logic. Through the combination of finance and blockchain, industrial processes are optimized, industrial competitiveness is enhanced, and industries are promoted to digitalization. Intelligent transformation and upgrading.
To sum up, after a series of thinking and logical reasoning, we clearly realize that finance plays an irreplaceable key role in the fourth industrial revolution represented by blockchain, from transaction settlement and value transmission to innovation stimulation, production relations transformation and industrial upgrading. It is the core driving force for promoting the sustained and in-depth development of the fourth industrial revolution.
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