In the 2008 Sub-Prime Crisis, overrated Asset-Backed Securities as the inducement
had attracted massive amount of money flow to the uncertain assets. In the meanwhile, the SMEs (small and medium-sized enterprises) in the industry of financial supply chain were not capable to get loans since the difficulties in proving the authenticity of trade. Outside of trading markets, assets such as E-Commerce, inclusive finance, ABS, etc., are difficult to become circulated and exchanged to currency due to the unclear information of the object. Uncertainties and risks of these financial transactions had implied the Pain Point: TRUST which is hard to establish! And this is exactly what blockchain technology is good at.
Blockchain technology is still not perfect; the costs of technology development and operation are high. Most cases can’t afford the high costs of such expensive system. However, it is affordable to start with financial scenarios due to the sufficient income. According to Credit Suisse, the total value of global financial assets reached $280 trillion at the end of 2017, which is equivalent to 15 US GDP or 22 Chinese GDP. In addition, it is not that complicated to have technology transferred in financial scenarios: the financial data structure of each industry is homogeneous. It would not challenge current blockchain technology much. Therefore, blockchain technology can be extensively adopted in finance which makes it one of the most suitable scenarios.
Most of the public blockchain projects are facing trilemma in technology, which are Security, Fairness and Efficiency. Mostly the focus would be on efficiency and fairness. However, Security has to be the first priority in the financial scenarios. Because the general public blockchains are lack of focusing on security issues that made them miss the huge market where blockchain technology could be applied rapidly. In fact, the current stablecoin in blockchain world cannot be used as a bridge connecting the real economy with the digital economy. The reason is unstable value of the cryptocurrency caused by the cryptocurrency supply either too high or not enough. Another reason is unreached consensus on the matter of collateral.
Therefore, there are few financial practitioners have ever used stablecoin to transact. That has left a market worth billions of U.S dollars needs to be discovered and developed. Based on the current situation, an elite team from Wall Street–Seal Chain, is determined to use blockchain technology and their decades of financial experiences to create a security-oriented public blockchain project especially for the financial industry. Seal Chain fully aims to create a secure and reliable freeway for global asset transactions by using consortium chain and gold which is highly trusted. Seal Chain is confident in the process of accelerating human society to enter the new generation of Finance: “Machine Finance”!