One of the key elements of new financial technologies is blockchain. Many countries around the world are successfully applying this technology in many areas. Read in my article how China applies it.
So, the blockchain is a kind of library cabinet, where data about any operations is encrypted and recorded in a special way.
What are the benefits of blockchain?
The advantage of the system is the fact that, firstly, the entries in this card index are extremely difficult to forge (for this you will have to rewrite the entire encrypted file), and secondly, data on making any new records to it almost instantly appear visible for all people involved in it.
Top blockchain projects in China
China began to actively use the blockchain technology. First Chinese blockchain platform was launched by Dianrong together with the manufacturer iPhone Foxconn. The new technology must ensure uninterrupted and rational financing of supply chains. The buyer sends the list approved shipments to the blockchain platform, then the supplier selects those that need to be financed. The credit institution finances specified chains. The buyer sends funds to the bank for repayment of debts of financed supplies. The whole process is automated, which excludes any glitches and delays.
2.Assets accounting in bank
Postal Savings Bank of China (PSBC) announced the launch its blockchain-based assets accounting system in partnership with IBM. The bank has more than 40 thousand branches and about 500 million clients, its assets are more than $ 1 trillion. New technology enabled participants to instantly share information among themselves using the registry, without wasting time on credit checks.
3.Blockchain-based national insurance
It was also announced that with the assistance of the Swiss bank UBS China plans to transfer the National Social Insurance Fund to the blockchain, in which manages about $ 250 billion.
4.Fight against counterfeit products
Chinese e-commerce giant Alibaba has gone a step further. The company is trying to use the blockchain to solve the long-standing problem of China with supply of counterfeit food products. In 2008 milk mixtures containing a toxic substance poisoned thousands of children, duck meat was sold as mutton, ink-dyed noodles – scandals of this kind happen almost every year. Alibaba in partnership with Pricewaterhouse Coopers, Blackmores and Australia Post announced about development blockchain platform that will allow you to control the entire logistics supply chain of products from the manufacturer to the final consumer. So it is supposed to exclude the possibility of substitution of normal products counterfeit.
Mobile payments have quite widespread use in the Chinese domestic market. This is not surprising, since 425 million Chinese use phones as e-wallets, and the mobile payments market has reached $ 5.5 trillion. A smartphone can now pay for goods on almost any vegetable market by simply scanning the QR code on an electronic scale. China has already proven its ability to dominate payment technologies. Thus, mobile payments by QR code and transfers in the WeChat messenger itself have long become a daily routine for hundreds of millions of Chinese. The ability to “jump” over several steps is very typical for this country.
Blockchain technologies increase the availability and efficiency of receiving financial services by the population and businesses, increase the competitiveness of the business and, as a result, increase its profitability. I would be happy to answer any questions or submit your project to my team at Astorts Group for evaluation.
Authored by Product Managers from Google, Microsoft, and Facebook, Bubble or Revolution cuts through the hype to offer a balanced, comprehensive, and accessible analysis of blockchains and cryptocurrencies.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.