The first blockchain mobile digital bill is put into use

On January 3, the first working day of 2017, the mobile digital bill product based on blockchain technology of China Zheshang Bank was officially launched and completed its first transaction, marking the real application of blockchain technology in the core business of the bank. Subsequently, China Zheshang Bank will also actively explore the establishment of joint cooperation among banks to strengthen promotion, and will continue to deepen the practical application of blockchain technology in financial fields such as letters of guarantee and accounts receivable.

Customer Xiao Wu purchased digital products worth 1,600 yuan from a merchant at the large digital mall Bainaohui in Hangzhou through the digital mobile bill APP. The merchant received the first digital mobile bill of exchange on the platform and can choose to hold it for payment or transfer it for future use. As an IT practitioner, customer Xiao Wu lamented:

"I heard that this APP uses the currently popular blockchain technology. The issuance of bills can be completed by scanning a QR code, and it supports payment and collection of various bank cards. It feels very novel and easy to operate."

Digital bill settlement is safe and efficient

It is understood that China Zheshang Bank has successfully built a mobile digital bill platform based on blockchain technology in December 2016, which can provide customers with the functions of issuing, signing, transferring, buying, selling and redeeming mobile digital bills on mobile clients, and realize open and secure accounting on the blockchain platform.

Different from traditional paper and electronic bills, mobile bills use blockchain technology to store and trade in the form of digital assets, circulate within the blockchain system, are not easy to lose, cannot be tampered with, and have stronger security and non-repudiation. In addition, the electronicization of paper bills solves problems such as anti-counterfeiting, circulation, and loss.

A relevant person in charge of the Information Technology Department of China CZ Commercial Bank said that the realization of the first real transaction at the merchant will truly verify that blockchain technology can reduce transaction costs, improve settlement efficiency, and achieve security and mutual trust, thereby highlighting the value of blockchain in upgrading and building the underlying technical architecture of the financial system. It is another solid step taken by China CZ Commercial Bank in leading the forefront of Fintech practice in the banking industry and innovating online financial services.

"Our research and development fully utilizes the decentralized and distributed accounting characteristics of blockchain, using the platform to provide trust and a single node to complete transaction confirmation, rather than relying on bank credit."

Song Shizheng, general manager of the Information Technology Department of China Zheshang Bank, told reporters that other banks will be able to quickly access and participate in this business in the future, and conduct real-time clearing of funds through the decentralization, trustlessness, and natural clearing characteristics of blockchain, eliminating the current third-party credit, time cost, and capital consumption required for reconciliation between different institutions, and effectively improving clearing efficiency.

Build a third-party credit ecosystem

According to research data from securities firms, in terms of the regional distribution of blockchain projects, the United States accounted for more than 80% of the investment in 2015, Europe accounted for about 10%, and Asia accounted for only about 4%. Internationally, the R3 blockchain alliance is testing an international cross-border payment system based on blockchain, and Citibank has launched a digital currency based on blockchain. Most domestic financial institutions began to pay attention to and study blockchain technology at the end of 2015, and are in a situation of fighting each other.

Only one year later, domestic blockchain technology has rapidly developed from conceptual discussion to commercial application. However, in the application of blockchain finance, multiple parties need to participate to form a multi-center and multi-node network, decentralized settlement and clearing can be realized, and financial assets can flow. The reporter learned that the issuance and circulation of small mobile bills is only the first stage of the application of blockchain technology by Zheshang Bank.

In the future, based on this platform, China Zheshang Bank will explore application scenarios in a multi-path and gradual manner, focusing on solving trust issues between institutions of the same size, such as between banks and between enterprises.

On the one hand, we will work with peers to enrich the application of mobile digital bills, use the characteristics of blockchain to provide mutual trust in account records among peers, and explore the use of funds on the chain to complete online clearing and settlement. We will achieve quasi-real-time fund clearing with other banks' systems and build a bank credit ecosystem in which multiple peers participate and bills of exchange from all banks can circulate.

On the other hand, relying on the "YiQiyin" platform of Zheshang Bank, blockchain is used to form a mutual trust mechanism between different core enterprises, so that the multiple single financial ecosystems originally formed around the core enterprises can communicate and benefit each other through this platform, and the corporate credit between the various financial circles can be circulated, circulated and exchanged on this platform, aggregating multiple single ecosystems into an equal, decentralized, real-time clearing corporate credit ecosystem and corporate credit trading system.