New Chinese Committee Bids on Blockchain to Disrupt Logistics

Content provided past times BitKan.

At the 2016 China Shenzhen Fintech Summit held on Dec 20, 2016, the China Federation of Logistics as well as Purchasing (CFLP) announced the establishment of the Blockchain Application Sub-Committee inwards an crusade to convey the logistics manufacture into the digital era past times leveraging blockchain technology.

The Sub-Committee, a collaborative first past times the CFLP, several Chinese logistics companies, fiscal institutions as well as local blockchain startup, Shenzhen Digital Singularity, has devoted itself to transforming the logistics manufacture past times introducing the run of blockchain technology. The Sub-Committee volition actively promote blockchain education, it said at the conference.

Liu Yang, CEO of Shenzhen Digital Singularity, told Bitcoin Magazine that manufacture could greatly produce goodness from blockchain, which has the potential to significantly streamline logistics as well as provide chains past times cutting out intermediaries as well as upgrading traditionally paper-based as well as time-consuming processes for the digital age.

In add-on to cost savings as well as greater efficiency, the blockchain could convey an unprecedented degree of transparency to all processes past times allowing amend tracking of orders as well as assets, reducing errors, as well as enabling provide chain entities to position attempted fraud to a greater extent than easily.

"The procedures of logistics are then long that problems occur constantly," said Yang. "Problems similar losses as well as cargo transportation mistakes require powerful tracing ability. It is obvious the blockchain engineering scientific discipline tin perform good for logistics inwards that regard."

Shenzhen Digital Singularity, the alone blockchain companionship participating on the Sub-Committee, volition piece of occupation amongst traditional logistics as well as provide chain companies to educate comprehensive blockchain solutions that address existent problems, the companionship said. It volition also endure responsible for setting standards as well as regulations for the field. Yang said he volition run for “the Presidency of the Standard Committee.”

Supply chain needs inwards China take away hold changed dramatically inwards recent years equally China has shifted from beingness an underdeveloped manufacturing terra firma to becoming a basis leader inwards exports.

China overtook Nippon equally the leading Asian exporter inwards 2004, iii years after its accession to the World Trade Organization (WTO). The terra firma surpassed the U.S.A. inwards 2007 as well as Federal Republic of Federal Republic of Germany inwards 2009 to instruct the world's leading exporter.

In 2012, China's merchandise exports accounted for 12 per cent of the world's merchandise merchandise exports, according to the WTO.

Blockchain for Financial Supply Chains

Initially known equally the underlying engineering scientific discipline powering Bitcoin, the blockchain has caught the attending of the fiscal services industry, as well as immediately the logistics industry, past times promising greater efficiency. Applications as well as run cases for the blockchain take away hold greatly expanded beyond Bitcoin, Yang said.

Yet, the blockchain is inwards its infancy, he acknowledged, as well as players are silent exploring the opportunities as well as challenges related to the technology.

Nevertheless, Yang believes that inwards the nearly future, "the perfect combination of blockchain engineering scientific discipline as well as logistics manufacture volition tackle the fiscal hindrances inwards logistics, as well as significantly improve efficiency."

The Sub-Committee said it is working on a "blockchain-based companionship credit mechanism." The arrangement would run blockchain to "tag as well as anchor the credit rating of provide chain companies."

The grouping said it volition endure targeted at pocket-size as well as medium sized companies which cannot rely on traditional lenders for loans. Big corporations impose tough payment terms on smaller vendors, forcing them to expect for weeks, if non months, earlier beingness paid.

"On-credit orders are a big draw of piece of occupation concern for the industry. Upper current companies cannot have timely payments from big companies. Influenza A virus subtype H5N1 ane calendar month of delay is ordinarily seen," Yang said.

"That's why pocket-size companies are struggling. Banks volition but plow away: they take away factories as well as warehouses equally collateral. Blockchain technology, however, tin aid past times making companionship financials transparent to the extent that the fiscal institutions tin sympathise their operational condition thus, ultimately, removing the hindrance for loan."

Founded inwards 2013, Shenzhen Digital Singularity was launched past times old employees of China-based information technology as well as cyberspace giants, Huawei as well as Tencent. The companionship operates BitKan, a pop all-in-one app that lets users rails bitcoin’s price, gear upward alerts, maintain upward amongst manufacture tidings as well as merchandise bitcoins over-the-counter.

This article constitutes sponsored content as well as equally such does non necessarily correspond the opinions or whatever endorsements of or past times Bitcoin Magazine, its affiliated publications, staff or bring upward companies.

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