Under the globalization view, supply chain system continuously expands. Driven by consumers’ requirement, technology has empowered digital transformation of supply chain, while new technologies such as AI, 5G and blockchain have become new industrial value point, thus reformation trend of smart supply chain starts to grow obvious.
Based on this background, 4th China Smart Supply Chain and Logistics Innovation Summit 2021 organized by Smart Logistics Professional Committee of China Communications and Transportation of Association had successfully held on 25th – 26th of August in Shanghai. Theme of this year’s summit is “Reinvention and Reunion in the Digital World” which encourages people to practise current logistics supply chain and focuses on industrial development trend.
As the platform sponsor of this year’s summit, Vonechain Technology introduced VoneCredit, self-developed and researched blockchain cloud credit supply chain finance platform in this seminar. Furthermore, Vonechain Technology also discussed about the development and application of blockchain in smart supply chain and logistics sector with industry leaders and experts.
Vonechain Technology's booth
Policy Benefit: Blockchain + Smart Supply Chain has Wide Prospects
Recently, “digitization” has become an important issue in global business environment. As one of the significant technologies during Industry 4.0 era, blockchain plays a big role in digital industrial reformation, and blockchain application will be facing full outbreak period.
Our country’s “14th Five-Year” Plan and Long-Range Objectives Outline Through the Year 2035 which officially issued at the beginning of this year had emphasized blockchain as the key industry of digital economy. The plan mentioned that, “promoting blockchain technological innovation such as smart contract, consensus algorithm, encryption algorithm, distributed system and etc., developing sector application solutions such as blockchain service platform and fintech, supply chain management, government affair services based on consortium chain and completing supervisory mechanism” are required.
Thus, this shows that as a new technology, blockchain provides technical support for supply chain industrialization.
Supply chain finance is regarded as an important sector in improving business ecology based on blockchain. According to data, currently 30% of supply chain in our country has already issued on chain, while approximately 60%-70% of accounts receivable will achieve circulation via blockchain in the next 5 years. Till year 2025, financing scale of accounts receivable released through blockchain may reach 3.6 trillion.
Brief procedure of Blockchain + Supply Chain Finance Services
Blockchain’s technical advantages can directly hit the pain points of supply chain and solve problems such as privacy safety protection, information traceability, transaction compliance, data authenticity and procedure processing efficiency in nature. Via blockchain trust system, core enterprises with upstream and downstream enterprises in complete set can be seen as a whole, while transforming uncontrollable risks of single enterprise to overall controllable risks will be achieved. The establishment of trust mechanism and innovation of risk control method not only expand the business scale of commercial bank, but also overcome circulating capital requirement of SMEs from the source, hence this has provided solutions for financing difficulties among SMEs.
Technical Implementation: Vonechain Technology Proposes Solutions of Financial Scenarios
As the representative of technical innovation, Vonechain Technology has been actively responded to national policy, looked up to development problem in industry and traditional industry, strived to empower industry via blockchain as a breaker and tried hard to overcome financing difficulties in SMEs so that digital transformation in industry is achieved.
In supply chain finance sector, VoneCredit, the blockchain cloud credit supply chain finance platform self-researched and developed by Vonechain Technology has provided targeted implementation solutions for industry. Via the effectiveness of application, VoneCredit obtains acknowledgment from industry and clients and was awarded “Excellent Case Award of China Blockchain Industry Year 2020-2021” in “China Industry Supply Chain Innovation Summit 2021 and 14th China Industry Chain and Supply Chain Finance Summit”.
Clients are enquiring on VoneCredit
Under the support of blockchain technology, VoneCredit has constructed a supply chain finance system which can break information island effectively and achieve mutual trust and proof. Through supply chain finance platform, processes such as real-time circulation and clearing of assets, on chain data record and storage, mutual file transmission between agencies, automatic data correction when identifying identity card and receipt and complete record of online agreement, payment and document can be achieved. Furthermore, trust system and value network between multi-party alliances which consist of financial institution, core enterprise in industry chain, chain enterprise, manufacturer and etc. are established too.
Supply chain finance that naturally matches with blockchain is one of the important application scenarios in blockchain technology. However, currently application of blockchain in supply chain finance has not provided with complete ecosystem yet. Therefore, in future, Vonechain Technology will continue to strive hard and play the role as an industry leader, conduct research on innovation, explore more commercial models and implementation scenarios, focus on comprehensive deployment of technology and practice, facilitate industry ecology establishment and expand the usage of blockchain technology in supply chain finance sector.