Application Scenarios of Digital Finance

Cross Border Digital Currency Settlement, Clearing and Mobile Payment

It is commonly recognized that the current banking system is not sufficient enough in terms of functionality and architecture for cross border settlement and payment service. New technologies provide new choices of solution modules to solve the long existed issues such as database structure of ledger, data privacy, open loan and money lending, expansion of credit risk level, etc.

The module of DLT together with biometric and machine learning technologies provide us with new tools for convenient and speedy global distributed ledger service provisioning to financial institutions, businesses and individuals at affordable price, that cannot be carried out by traditional banks before.

This brand new service is independent of ledger database, ICT infrastructure and currency services. It can effectively stimulate micro economic development, and, at the same time, take care the operation of both digital and legal currency in various marketplaces of currency exchange, stocks, bonds, clearing and settlement in compliant with global regulations, that ensure the protection of consumer rights.

There are some issues with current SWIFT cross border clearing system which only supports the exchange between bank’s head office and overseas branches. There is no direct linkage to support cross border exchange between overseas branches. Besides, the long and tedious process of review and investigation, sometimes manually operated, hinders timeliness and efficiency of cross border clearing, not to mention the complex system involved in the whole process.

On the contrary the distributed architecture of Blockchain enables other nodes to still work even a node is malfunctional. With this feature Blockchain cross border clearing system demonstrates superior advantages in terms of high efficiency, second speed in decentralized message passing from normally at least 6 minutes. Due to being highly expansible and extensible architecture new comers could swiftly deploy their service systems and join the whole ecosystem to do business.

eyeball FinTech has selected various open source oriented digital technologies and tools including DLT, big database, AI algorithm, GPU high speed computing, AI cloud, Open API, IoT, R/Phython, ect. to build up the following solutions:

• Platform infrastructure of multilateral exchange for cross border settlement and clearing services;
• Financial service system used in the digital currency ecosystem of RMB pricing, issuing, transaction, transfer, payment, settlement, etc.

The server (eyeM5 5500) developed by eyeball FinTech are inserted with AI LSTM algorithm and eyeball55 FPGA chip supporting IPFS protocol for distributed file system, which is distributed cloud servers providing security and storage for any types of data. The server also enables end-to-end encryption to the stored data and prevents unauthorized clients to open the key for data access.

eyeball FinTech, in the future, will provide customized IDC cloud services to varied financial institutions by collaborating with the local communication carriers and Equinix Inc.’s Equinix Ecosystem for Financial. The clients are global financial center’s IDCs operators located in London, New York, Tokyo, Singapore, Shanghai, and Hong Kong, who are users of the infrastructure of global banking ecosystem for data exchange in the optical fiber network. eyeball FinTech partners with CFH Clearing, Barkley, HSBC, and other 8 global banks to establish an environment for circulating digital currencies, foreign currency and the exchange rates for providing financial services of settlement, clearing, transaction, hedging for risk management to banks, insurance and trust companies, as well as listed public corporates.

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In more details, the clients of digital financial application services are described as below:

• Financial institutions in banking, insurance, stock exchange, trust, etc.: Using GO language based “smart contract” covering Etherum and hyper-ledger related financial services for mobile and portable cross border account opening, deposit, loan, settlement, payment, L/C issuing, proof of funds, clearing, etc.
• Listed public corporates: providing risk management of currency exchange, trend warning of currency exchange rate, hedging transaction, multi-currency asset management, ultrahigh computing power, AI algorithm models, smart financial investment, etc.
• Innovative startups and personnel of quantitative transaction services: providing financial historical database, real time marking data, IDC infrastructure for high frequency transactions, SDKs of R/Phython/Go languages, etc. The integrated database and infrastructure facility are used by the clients in various stages of operation such as R&D, testing and verification, validation, simulation, reconstruction in Bandbox, real transaction, transaction performance analysis, dynamic risk management, etc. The above service suite is branded AI inside60 with stringent security management and role-based data access mechanism.
• Specialized research institutes and universities: providing faculties and students with advanced AI inside60 financial service platform together with financial big database, R-based SDK for financial commodity pricing, Phython-based SDK for AI algorithm models, GO-based SDK for smart contracting for the purpose of teaching and research.

Interactions between Traditional and Digital Financial Applications

Due to continuous development in eCommerce, social media and new digital technologies the emerging new banking services such as digital banking, virtual banking, internet banking, direct marketing banking, etc. are getting popular. All of them are digitalized.

Through facial recognition and digital certification, issuing ledger by the bank of trustees and adopting smart contract mechanism, the data of ledgers can be encrypted and stored on distributed blockchains, which are connected to “AI big data ledger high speed IDC” in order to analyze and find out the needs from customers.

Generally speaking, the traditional banking services need to change in order to cope with the change of financial markets, because they are not flexible enough to adapt to the needs for “smart finance” and “digital currency” in terms of cross border settlement and clearing service provided to micro- and SMEs. eyeball FinTech, under this circumstance, aims at providing to the mentioned clients with totally different services by redefining the digital currency of the digital economy, and banking infrastructure of a cashless society. The features of service that eyeball FinTech offers can be listed as below:

• Actively link and streamline the services of deposit, transfer, payment, loan, asset and risk management, settlement, asset trust, etc.
• Actively enable clients to launch smart services based on the digital assets such as smart supply chain management, green and smart finance, cross border settlement and clearing, mobile payment, etc.

Enabling Inclusive Finance by Blockchain Solutions

The services of currency exchange hedging, trend warning of currency exchange rate, hedging transaction, multi-national assets management, and commodity pricing by smart contract provided by banks, insurance companies, securities, trust companies, and other financial institutions, all have cross chains and portable characteristics.

Smart banks can issue digital certificates, open digital accounts, and design smart contracts for private and alliance chains for cross chain transaction. They can also provide Ethereum and hyper-ledger services covering all relevant inclusive financial services including account opening, deposit, loan, currency settlement, payment, L/C issuing, proof of funds, cross border settlement and clearing, etc.

Hyperledger service is one of core modules in the eyeM5 suites branded AI inside60, which can conduct transactions between ledger systems through ILP protocol. It is basically a payment protocol designed for value transfer between distributed and non-distributed ledger systems. The financial IT payload defined by Fixprotocol 4.4 can be received and transmitted on Hyperledger 1.2 brokering platform to solve the issue of interoperability between ledgers of digital and legal currencies.

We believe that the issuance of currency, stocks, bonds, insurance policies, invoice, vouchers, bill of lading and bonus vouchers, etc. by the Central Bank, within 10 years, will inevitably be carried out by adopting distributed ledger blockchain technology that is promoted as token economy to exchange and transact the sharing of value amongst individuals, corporates, communities, religious bodies and, even, governmental agencies.

Eyeball55 Digital Assets Clearing Center different from others in that it tries to define the function of “digital assets clearing center”, which not only provides currency exchange and transaction, but also combines AI, big data, algorithms with blockchain to serve the real world economy by providing business financial services like investment consulting, robot financing, wealth management, cross border settlement and clearing, supply chain financing, and loan to micro business. Eyeball55 Digital Assets Clearing Center is an open service portal developed for supporting an intelligent data service ecosystem.