Development and Supervision of Financial Technology Based on Blockchain

Area of Science:

• Computer Science
• Financial Technology
• Distributed Systems

Background:

• Blockchain technology offers decentralization, security, and immutability, crucial for modern financial systems.
• Existing financial technologies face challenges with data complexity, time consumption, and systemic risks.
• Consensus algorithms are vital to blockchain functioning and impact overall system performance.

Purpose of the Study:

• To propose a blockchain-based development and supervision method for financial technology.
• To apply blockchain technology to commercial settlement, reducing complexity and time.
• To introduce a novel consensus algorithm, delegated Proof of Work (dDPoS), for enhanced blockchain performance.

Main Methods:

• In-depth investigation of Proof of Work (PoW) principles.
• Integration of PoW competition concepts into Delegated Proof of Stake (DPoS).
• Development of a new consensus algorithm, dDPoS, featuring an upgrade mechanism.

Main Results:

• The dDPoS consensus method achieves a block efficiency of approximately one block every 10 seconds.
• This efficiency significantly surpasses that of Proof of Work (PoW) and Proof of Stake (PoS) algorithms.
• The proposed method reduces data complexity, time consumption, and structural chain issues in transaction settlement.

Conclusions:

• Delegated Proof of Work (dDPoS) presents a viable solution for enhancing blockchain-based financial technology.
• The algorithm addresses concerns regarding high brokerage costs and insecure central storage in traditional financial institutions.
• dDPoS demonstrates broad application potential in revolutionizing commercial settlement and other financial services.