In recent years, with rapid development of 5G, Internet of Things, cloud computing and other technologies, the whole society has been evolving and upgrading on the road of informationization, digitization and intelligentization, and the data has become the key factor in the production process. As the value of data resources is gradually recognized, the demand for data circulation and sharing is increasing.
Although entities such as platform enterprises can set up algorithm analysis teams, use crawlers and terminal equipment and other technologies to obtain external data and process the same, provide relevant data to the outside world or provide data services, and overcome their own development problems in a centralized processing mode, from the perspective of the whole society, the data that can be acquired and processed by the centralized processing mode is still limited. The current digital infrastructure cannot meet the urgent needs for data transaction and sharing. Moreover, the inherent protection policy of trade secrets in the industry and the concerns of government departments on security interests restrict the maximum use of data value.
The emergence of blockchain and privacy computing technology provides guarantee and incentive for protecting data privacy and promoting data sharing transactions, and is gradually disrupting the traditional centralized governance model, creating the possibility for building a “decentralized” digital infrastructure.
“Decentralization” Reform And Development Trend In The Financial Field
The financial industry depends on big data, and its essence is in effective allocation of resources on the basis of mutual trust. As the traditional financial system is based on the centralized mode, it is highly dependent on intermediaries such as banks and arbitrators such as courts, which makes the market transaction cost high and the system efficiency low. It requires a lot of paperwork and it is difficult to manage vouchers. Introducing blockchain technology into the financial industry will break through the traditional centralized capital transaction mode and build a scattered and decentralized financial service system, which is called distributed finance (Defi).
Defi is not bound by central financial intermediaries such as banks, exchanges and brokerage companies, and uses blockchain intelligent contracts, which can specify in advance how to deal with all possible disputes and eliminate the necessity of third-party arbitrators, thereby reducing the provision and use of intermediary services and reducing transaction costs within the system. Compared with the traditional financial system, Defi transactions are smoother, and the financial services it provides will not be affected by a single point of failure.
Although Defi has many advantages in technology and business model, its development still faces many challenges. Security, as the first element of financial infrastructure, is also an unavoidable topic in Defi development. Within the financial system, the underlying network carries the transaction flow and payment settlement, while the vast amount of data flowing on nodes is related to customer privacy and trade secrets. In addition to that, whether it is institutional coordination and financial supervision in the short term or profit sharing in the future financial scenario, it is necessary to make a trade-off between data sharing and protection. All these cannot be separated from the escort of private computing technology.
Exploration Of PlatON In Constructing Financial Infrastructure
As a global leader in blockchain + privacy computing, PlatON will provide public infrastructure services under the open-source architecture for global AI and distributed application developers, data providers and various communities, institutions and individuals with computing needs through a new generation of private computing architecture consisting of verifiable computing, secure multi-party computing, zero-knowledge proof and homomorphic encryption.
At present, PlatON technology application scenarios have been extended to credit reporting, payment and clearing, key management and other fields. Facing the future all-digital era, one of PlatON’s core strategies is to explore possible paths for building a new generation of financial infrastructure by relying on privacy computing and its technical endowment, so as to promote large-scale transaction services and liquidity governance of data assets. To this end, PlatON officially launched the meta-network Alaya in October 2020. As the prototype network and “business sandbox” of PlatON’s new generation financial infrastructure, Alaya is committed to becoming the “pioneering demonstration area” of the next generation privacy computing and data asset computing infrastructure in the world.
PlatON is also a decentralized and fully open-source project, and anyone who is willing to support its development can contribute and get rewards. Recently, PlatON launched Hackathon activity on DoraHacks developer platform Hackerlink and set up a bonus pool of 170,000 US dollars, aiming at encouraging developers to emerge new inspiration and create new value, and further enriching the ecological application of PlatON and its meta-network Alaya around the private AI computing network. This activity was officially launched on July 21st and is expected to last until the end of September. The idea is tested on the Alaya development and test network or main network to continuously verify the completeness of the basic functions of the network. PlatON welcomes developers from all over the world to submit blockchain projects based on Alaya network to build a secure and credible digital infrastructure.
Abigail White is brilliant author; she is written some books of poetry, article, and essay. She went to Oxford University. She also knew throughout the world as the writer of article. She has more than 2 years experience in digital news publication. Now she works news writer on Herald Port.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Herald Port journalist was involved in the writing and production of this article.