PwC and BitSE join hands to promote the development of blockchain in China

As one of the Big Four, PwC has long been paying attention to disruptive technologies such as blockchain. After forming a strategic partnership with blockstream in the United States, it will also form a business and technology partnership and strategic combination with BitSE in China. In response to the special needs of the Chinese market, they will jointly explore and promote the application and implementation of blockchain technology in China, and contribute to the development of blockchain technology in China.

On March 23, 2016, the partners of PwC Financial Technology and High-tech Industry met with the founder of BitSE (Shanghai Dingli Information Technology Co., Ltd.) in Shanghai. During the meeting, the two sides conducted a lively discussion on the latest development and application of blockchain in the world, how blockchain can be implemented in China, and the potential applications and prospects of different industries.

Bitcoin originated from the global financial crisis in 2008. It was not until the surge in Bitcoin in 2013 that most people became aware of the existence of encrypted digital currencies. Since 2015, more technology developers have shifted their attention to the technical concepts and technology collection behind Bitcoin - Blockchain technology.

From the very beginning, we have built different applications based on the characteristics of blockchain technology on the Bitcoin network, such as: 1. Through the colorcoin protocol, we can color Bitcoin and issue digital assets, which, to a certain extent, increases the scalability and application scenarios of the Bitcoin network. 2. Based on the timestamp and network consistency of the Bitcoin network, we have developed related electronic data preservation and authenticity applications. 3. By utilizing the limited expansion capabilities of the Bitcoin scripting language, we can support some simple contract applications, etc.

Since then, blockchain technology has continued to be a hot topic and has attracted global attention today. In addition to many large international banks in the financial sector (such as Goldman Sachs, JPMorgan Chase, Citigroup, Morgan Stanley, etc.) that have invested in blockchain research, blockchain has also received attention and active responses from other non-financial industries, investment institutions, as well as governments and regulatory agencies of various countries.

Mr. Ji Ruihua, Partner of Financial Technology of PwC China, said: "Blockchain technology supports innovative business models. Its openness, decentralization, equality and transparency are exactly the original intention of the creation of the Internet." Mr. Lu Yang, co-founder and COO of BitSE, said: "Blockchain was born in finance and goes beyond finance." The essence of blockchain is a transparent and public ledger that all parties to the transaction achieve network consistency through a consensus mechanism, and Bitcoin is only its first successful application. Through a decentralized, distributed, open and transparent ledger, transactions can be fast, efficient, open, transparent, and cannot be tampered with. Therefore, its advantages are not limited to the financial field, but can also be expanded to the transformation of IT systems of traditional financial institutions, the Internet of Things, social welfare, emerging Internet business models, social fields, etc.

Among the global blockchain applications, the ones that have received more attention are:
• In October 2015, stock exchange giant Nasdaq officially announced their blockchain product at the Money 20/20 conference in Las Vegas – the new trading platform Linq, which can be used for share management in the private equity market;
• In December 2015, the U.S. Securities and Exchange Commission (SEC) officially approved the plan of online retailer Overstock.com to issue stocks on the Internet through blockchain technology;
• In March 2016, the Republican Party of Utah, USA, used a blockchain-based online voting system to vote for presidential candidates.

BitSE was founded in Shanghai in 2013. It is committed to building a global blockchain service platform based on the concept of Blockchain as a service and powerful computing power, and providing business solutions based on blockchain technology to global customers, especially Chinese customers. In addition to the company's powerful computing power that can provide secondary value-added services for corporate private chains, the company's products include: Vechain, Satoshichain, Colorcontract, and Qtum. They are committed to providing authenticity verification platforms, private chain services, smart contract platforms, blockchain operating systems, and other services through blockchain technology.

Mr. Gao Jianbin, PwC China’s Communications, Media and Technology Industry Leader, said:

"China's economic environment, business models, and transaction habits are more complex and diverse than those abroad. We need to conduct research and customization of blockchain application scenarios based on the characteristics of different industries and businesses and in combination with regulatory requirements to better assist companies in using new technologies to achieve their own development and goals."

BitSE co-founder and CTO Shuai Chu said:

“Domestic commercial organizations and the public are slightly behind Europe and the United States in understanding blockchain, but we are not behind in the international technology research frontier. Through an international technology research and development team, we have also accumulated certain technologies in the field of blockchain technology, which helps companies to quickly launch various blockchain application solutions. In China, with the attention of mainstream media, more and more companies have recently begun to pay attention to and study blockchain technology, including governments and regulatory agencies.”

China has established many blockchain research alliances, and regulators and the financial industry are paying more attention to the changes and impacts that blockchain may bring. For example, the People's Bank of China established a digital currency technology team as early as 2014 to study its impact on the financial system and regulatory response. In general, China is currently in the stage of research and application prospects for blockchain.

Mr. Fu Yumin, East China Managing Partner of PwC China Risk and Assurance Services, said:

“When researching and implementing blockchain applications, enterprises also need to pay attention to the new risks that new technologies bring to the enterprise, including external and internal risks. Through comprehensive risk assessment, appropriate response and monitoring measures can be established, and the current risk and control system can be updated to provide strong guarantees for enterprises to maximize their value.”

BitSE co-founder and CEO Mr. Qian Dejun said:

“The good application of blockchain can also help solve social problems. For example, recent vaccine and food safety incidents have highlighted the trust crisis. Blockchain technology can help improve the transparency and traceability of supply chain information, help identify counterfeit and shoddy products, strengthen accountability mechanisms, and rebuild social credibility.”

The successful application of blockchain, a new technology, is inseparable from the in-depth understanding and insight into the industry, transactions and risks, as well as strong technical support. During the meeting, both parties expressed their willingness to work together for the implementation and development of blockchain in China, and to contribute their strengths and work together. The two parties also discussed in depth the vision of cooperation and future strategic directions, such as applying blockchain technology to improve regulatory effectiveness and transaction efficiency, assisting enterprises in coping with new technologies and developing new businesses, solving social problems and promoting social integrity, and jointly creating forward-looking one-stop innovative solutions and technical support for customers, accelerating the application and implementation of blockchain, and helping blockchain in China.

Source: http://dwz.cn/31tGtb