The Impact Mechanism of Blockchain Technology on Financial Risk

The three stages of the development of block technology are blockchain 1.0 – the application of digital currency; Blockchain 2.0 – Smart contracts, smart assets; Blockchain 3.0 – Decentralized trust mechanisms. Nowadays, both foreign and domestic scholars have studied many fields on the application of blockchain technology. General Secretary Xi Jinping gave a specific implementation path at the 18th Group study of the Political Bureau of the CPC Central Committee in October 2019, stressing that China’s financial industry should take blockchain technology as an important tool for global financial competition. And the blockchain technology is extended to digital asset transaction, digital economy, digital finance, supply chain finance, inclusive finance, Internet of Things and intelligent manufacturing and other fields. At present, most of the applications of blockchain are carried out around the financial industry. It is particularly important to realize a safe and controllable transition and ensure the stability of the overall financial system during the large-scale application of blockchain technology. In order to solve the problems of how to achieve a safe and controllable transition and how to ensure the stability of the overall financial system in the process of large-scale application of blockchain technology mentioned above, this project will analyze the influence mechanism of blockchain technology on financial risks in detail from the perspectives of public perception, application scenarios and virtual currency bubble.