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Combination of finance and blockchain

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  • Combination of finance and blockchain

    In recent years, "blockchain finance" has gradually become increasingly popular. Fundamentally, blockchain finance refers to the application of blockchain technology in the financial field, which is also the first application scenario of blockchain. So, how does the blockchain integrate with finance, how to promote and what kind of landing application scenarios can it achieve? Let us talk about the mystery of "blockchain finance".

    As we all know, blockchain is a low-level technology based on Bitcoin, which is essentially a decentralized trust mechanism, and collectively maintains a sustainable database by sharing at distributed nodes to achieve information security and accuracy. Finance is an economic activity that uses the currency itself as the operating target and aims to increase the value of the currency through currency accommodation. One of its essence is credit transactions. Credit is the foundation of finance, and finance best reflects the principles and characteristics of credit. In a developed commodity economy, credit has been integrated with currency circulation. We can clearly see the repeated appearance of "credit and trust", which is the basis of the overlap between blockchain and finance, and is also the starting point of the combination.

    The first product of the integration of blockchain and finance is Bitcoin. The concept of Bitcoin was originally proposed by Satoshi Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to Satoshi Nakamoto's idea, Bitcoin is a virtual encrypted digital currency in the form of P2P. Point-to-point transmission means a decentralized payment system. Through the characteristics of anonymity, irreversible and traceable, we can see the fundamental role of trust and credit mechanisms in blockchain technology and financial concepts. It is only based on trust that Bitcoin can be circulated freely among different people and different countries. Trust has laid the foundation for the value of Bitcoin and also provided a good start for the development of digital currency and blockchain finance.