"At present, China's" Internet + supply chain finance "is developing rapidly and playing an increasingly significant role in alleviating the financing difficulties and high costs of smes." Yang nong, deputy secretary-general of the China mutual fund association, said at the 2019 Beijing news fintech forum.

As a basic technology, blockchain plays an important role in the field of fintech. Yang dong, director of the fintech and Internet security research center at renmin university of China, said that among all the technologies, blockchain can better transform and make breakthroughs in finance than other technologies such as artificial intelligence and big data. "Blockchain is very closely linked to big data and artificial intelligence. If you compare big data and artificial intelligence to a river, blockchain is like a riverbed, because artificial intelligence needs data and algorithms. Without a riverbed, data cannot flow like a river." Yang dong said.

The combination of block chain technology and financial industry provides a new technical solution for supply chain finance. Blockchain technology has the characteristics of traceability and tamper-proof. It can transfer the incoming and outgoing data of goods to relevant systems through the blockchain, ensuring the authenticity and reliability of the transaction information on the supply chain.

Pan xinghua, deputy secretary of the communist party committee of the jiaxing branch of citic bank, said the block chain technology has become an effective way to connect the upstream and downstream information of enterprises and unlock the "key" of financing difficulties for small, medium and micro customers. Under the guidance of the jiaxing banking and insurance regulatory bureau, citic bank has launched new derivative platforms and products such as "block chain forfaiting trading" and "double chain trading" for corporate clients.

Deng junyi, senior project director of the strategic development department of the head office of ping an bank, said that in the field of supply chain finance, both ends of the supply chain can be extended by means of "block chain + Internet of things + artificial intelligence" to provide financing business credit for upstream multi-level suppliers or downstream distributors and dealers.

According to deng junyi, the practical combination of blockchain and supply chain finance can help enterprises improve efficiency and quality in three aspects.

The first is to improve industry transparency. The process of supply chain upgrading is also fully integrated with the block chain. In the process of supply chain upgrading, the block chain, Internet of things, artificial intelligence, big data and other fintech will form a synergy. The second is to improve trading efficiency. In the past, all parties involved in supply chain finance would sign a series of offline texts to ensure the authenticity of the transaction, including the debtor, creditor, guarantor, fund party, etc., but the signed texts did not guarantee the final effective execution, and it was difficult to obtain evidence and obtain recourse. Through block chain and cloud contract, there will be a great improvement in the true sharing of information and tamperability. The third is to foster product innovation. The underlying technology of block chain is distributed database, which realizes the process and rule landing in the application layer through intelligent contract. When these technologies are combined with business scenarios, there are opportunities for innovation.

According to Yang nong, the China Internet finance association is taking blockchain technology application security, connectivity, risk prevention and control as the starting point to promote the development of blockchain supply chain finance application, cross-chain protocol and other key standards.

Source: sina finance and economics