Wider Application of Blockchain, a Promising New Technology
Which technologies are you looking at in relation to FinTech?
NishizawaOne such technology is the blockchain. As well as being on the board of the Hyperledger* Project that is jointly developing global de facto standard technologies, we are also working on research and development to acquire a competitive advantage in areas like performance and security. This includes the joint development with the Bank of Tokyo-Mitsubishi UFJ of a system based on the blockchain for transactions such as issuing electronic checks or making transfers. Proof of concept testing is now underway in Singapore. This trial will facilitate the development of applied solutions by identifying the issues associated with the practical use of the blockchain as part of the financial infrastructure.
We have also embarked on an initiative that utilizes the blockchain as an IoT platform. We are looking into new applications that include combining collected data with technologies like big data analytics and artificial intelligence (AI).
SakataThe mechanism of the blockchain, whereby trust and transparency are maintained by holding distributed copies of a shared ledger, means that it can be used to build highly flexible and low-cost platforms that do not require management to be consolidated in a centralized system. There is scope for using these platforms in a wide variety of industries, not only finance.
PinskiWe, too, have started investigating solution concepts with highly receptive customers interested in the blockchain application. The sharing of datasets as blockchains is expected to bring changes to the markets by, for example, enabling faster inter-corporate settlement in proprietary trading or reinsurance markets. Our corporate customers have a high level of expectation for the possibilities this opens up.
Speaking of the IoT, a model already exists in predictive maintenance or fleet management systems for industrial equipment, vehicles, and similar. This can potentially be utilized for asset-backed lending, new types of insurance, or to create unprecedented financial services.
SakataAI is another technology seen as having great potential. Along with helping boost productivity in the financial industry by performing work in place of people, it also has the potential to uncover new facts, rules, or other financial insights in diverse data. We are looking at various ways it can be put to use.
Concepts behind financial innovation at Hitachi
- See the list of "Trademarks."