2017GMIC: Blockchain Helps Move from T+1 to T+0
The opening ceremony of 9th Global Mobile Internet Conference(GMIC) was staged at China National Convention Center on April 27. The meeting brought together 500 talents worldwide, including Stephen William Hawking, Kai-Fu Lee, Jet Li, Zhang Yaqin, president of Baidu and Zhu Jiawei, COO of Huobi.
In recent years, the growth of blockchain startups has been exciting, catching the attention of entrepreneurs, investors and the government alike. These startups are harnessing new technology, which lower costs and the barriers to entry and are catalyzing change in the financial services sector.
Yao Le, president of CIO times, Tang Xuepeng, vice president of Neo Capital and Zhu Jiawei shared their insights about the blockchain technology and the potential of blockchain in asset management during a panel discussion on April 28.
First, differences between transactions on blockchain and traditional financial products.
Take stock for example, a common pain point talked about in the context of stock is that it takes one day to settle, or T+1. Blockchain, on the other hand, is T+0 that can adjust ownership in real time. Additionally, it could help lower the investment threshold. For example, users can buy 0.01 bitcoin or 0.001 bitcoin, but they have to buy at least 100 shares of a stock.
Plus, a blockchain system provides a higher level of security using hot wallets and cold wallets.
A hot wallet is a bitcoin address that users can spend money from at any given time. It is virtually always connected to the internet and thus remains susceptible to attack, which is why users should only store a minimal amount of funds in it. The cold wallet, on the other hand, is not intended to be used for regular expenses, yet can still receive money at any given time. A cold wallet will not connect to the internet directly, as it is used for offline bitcoin storage. If there is no connection between the bitcoin wallet and the internet, hackers cannot steal funds from the wallet.
For ordinary users, how to secure their blockchain assets?
A safe and reliable exchange is always a must-be for ordinary users. Besides, they should learn something or even everything about the investment product. Most importantly, don’t put all eggs in one basket.