What is the relationship between central bank digital currency and blockchain?

With the introduction of blockchain technology for personal funds such as Bitcoin, blockchain-style distribution is often seen as a technological process for digital transactions. Existing central banks have focused on identifying blockchain technology without exception in the benefits of a digital pilot or pilot project. Blockchain technology is a new technology and has many features and benefits. Using blockchain technology as an example, its technological process is the distribution of stored data. Point-to-point exchange does not depend on one or more bases.

This will increase the impact of digital payments, reduce stress on payment intermediaries, reduce litigation and the elimination of traditional financial processes, and improve exchange rates and payment capacity. The updated data must be recognized by each node, and the updated data is tagged with the technology of the time to ensure that the blockchain data is not compromised and the data is compromised. data can be tracked, making the most of the blockchain. Systems and information security. However, the features and benefits are a double-edged sword, and the awareness of the risks of security and poor performance deserves special attention, even without considering the negative effects of the distribution of technological equipment that works on storage and energy consumption.

First, the security of distributed data technology needs to be identified and improved. In today's business, payments are often multiple and large, and security and reliability are paramount. The distribution of high tech products has been around for over 10 years, unrecognized for high volume products, high volume industry and many unknown risks. Research has shown that in terms of the security system, the source code of blockchain technology, cryptographic algorithms, and authentication mechanisms will all be security risks. . For example, the simple rules of blockchain are open space, the structure of the loopholes in the system is easy to attack, and there are issues where it is very difficult to correct the loopholes due to the incompatibility of the blockchain.

In August 2018, BitCoinABC created a poor market, resulting in fierce competition. Depending on the application, security risks such as smart card, digital wallet, and personal protection should be carefully considered. Similar situations have occurred with personal digital offerings such as Bitcoin and ETHereum. For example, in 2016, the Ethereum crowdfunding project TheDao came under attack due to the poor performance of smart contract benefits, resulting in the theft of around 3.6 million ETH worth around 60 million. of dollars.

Second, the dissemination of technological data has its own “negative” function. Decentralization is considered the most important and efficient part of distributing technology products such as blockchain, but 'performance' has become the most disadvantageous of blockchain technology in output because data has to be transmitted to across the network and identified on multiple packages. Taking the Bitcoin market as an example, it takes on average at least 10 to 60 minutes for a contract to be confirmed, and sometimes more than a day. As more and more Bitcoins are mined in the future, the number of Bitcoin blockchains and the size of the general list has increased, and the increase in the size of the list will continue to increase. According to the Bank for International Settlement study, even compared to PayPal online payment, there is still a huge difference in the performance of financial services and personal currencies such as Bitcoin. . If the central bank were to deal with technologies like blockchain, it would be difficult to meet the needs of large-scale, high-volume utilities. current and current solutions in modern financial affairs.

The security of digital technology is the cornerstone of a digital banking system. Distributed technology products like blockchain are widely believed to have a 'triangle can't' paradox. In other words, there are only two options: security, high performance, and distribution. The central bank digital currency is an important infrastructure for the digital finance of the future, and when choosing the technology for banking financial digital advertising, the security process should be prioritized and the work needs should be determined. Account. Considering the security risk of exporting digital banking information, contracts and agreements for the distribution of information technology, we need to be more careful before using more and improving the distribution technological data.

The digital banking company is a new development of benefits and payments. Innovation itself is risky and negatively affected, and the subprime financial crisis is a prime example of too much monetary change. As the development of our country's finances on the Internet in recent years, the inability to control the development of new business information and the timely monitoring of new developments, making the financial economy more vulnerable to cross-border impacts and financial irregularities, innovation. dangerous. Stakeholders and financial security. In particular, in recent years, the hype, illegal token sales, financial fraud, and fraud involving virtual currencies such as Bitcoin and Ethereum have been repeatedly banned, affecting the economy and finances. The evolution of currency is a long-term development, the release of digital currency from the central bank has a large and huge impact. In the short term, start from the whole development of the financial system, save time and be successful. Innovation, centralized digital currency Tone, advancement and ease of publicity.

From the point of view of technology itself, we are now in an era where the development of new information technology has accelerated, and urine technology itself can change rapidly as well. Using blockchain technology as an example, Bitcoin uses blockchain 1.0 and Ethereum uses blockchain 2.0, which adds smart contract tools. Blockchain 3.0 in the discussion is based on the physical body, based on high-speed parallel distributed smart grid metering technology. . As technology itself improves rapidly and continuously, management security and digital banking security must be constantly supported for paper.

Due to the change in advertising method, the digital money wallet is different from the traditional money account. It leads to innovation, or even to “disruptive innovation”. “Disruptive innovation” can also be called “disruptive innovation”. Outside of commercial companies, the greatest impact will be on new applications and existing users. From a payment perspective, convenient payment methods such as credit cards and bank cards are not yet popular in Korea, but in response to the needs of e-commerce, third-party payment accounts, such as Alipay and WeChat Pay, have been developing rapidly. , resulting in the development of digital finance and digital finance in Korea has played an important role in accelerating the digital economy and consumer acceptance.

If a bank-to-bank transaction is profitable with cash-based peer-to-peer transactions, a third payment will be the most influential in new applications. From a user's perspective, a digital bank has to rely on digital devices such as computers, smartphones, connected devices and the Internet of Things, and some users may find it difficult to use it. In addition, some users may be concerned about data protection such as change of identity, address and data, as there is no consensus on data retention. disclose names and privacy concerns when using central bank digital currencies. The announcement of digital currency banking does not affect the exchange of cash and traditional electronic money. In the benefits of digital marketing, it is necessary to secure a growth environment for different types of business players and to manage the needs of different types of users. Balance Digital Times and Digital Gap Services for all entrepreneurs and consumers by transforming digital banking into a truly digital business.