The blockchain synthesizes multiple fields, covering information science, cryptography, and economic models. Its most important breakthrough is in consensus algorithms, giving it the moniker of the “trust machine.” It is characterized by decentralization, anonymity, finality, traceability, and encryption. As a result, it can be widely applied in the financial services industry to optimize transactions. For instance, without compromising privacy, blockchain can help establish a trust mechanism in cases where the parties do not know each other, reduce the costs of centralization, make information transparent and traceable, and record data chronologically.
There are many opportunities for the Taiwanese financial sector within the nascent blockchain space: blockchain alliances amongst different banks, collaboration with fintech firms to develop new core applications, use of blockchain in peripheral banking functions, implementing pilot schemes and even developing new banking bases focused on fintech innovation and blockchain development. Applications introducing blockchain technology do not need to be tied to any particular strategy, and different strategies may even be employed concurrently.