Flow chart of blockchain for inventory management

1.

first, define the

blockchain as an open network ledger. It originated from bitcoin and is the underlying technology of bitcoin. In bitcoin transactions, all the information of transaction records will be packaged into a "block" for storage. With the expansion of information exchange, one block links with another, forming a blockchain

Second, the digital currency represented by bitcoin is a point-to-point e-cash system. Among them, every transaction will broadcast to all participants in the network, and it will be recorded in the account book after repeated confirmation, which is called "blockchain". Each participant will have his own account book. In this way, when false information occurs, it can be broken through mutual verification, so as to ensure network security

in the blockchain, every node is equal, and there is no centralized management organization. This "decentralized" feature makes the blockchain do not need to rely on a third party, its operation does not need any human intervention, and it can independently conct self verification. In addition, the network of blockchain is open to the world, and anyone can query data through the public port, so the whole system is highly transparent

In a word, blockchain is a reliable database and a reliable "account book". In the future, it will be applied in cross-border payment, securities, loans, voting, etc. For example, in cross-border payment, with the security of blockchain, you can remit money to the world anytime and anywhere, which saves a lot of intermediate links and high fees

2.

The most significant applications are

1. Think about using blockchain in enterprise applications to provide more flexible, safe and efficient business processes and distributed, independent markets. Blockchain allows asset owners to track and trade valuable things, such as outstanding invoices, on a transaction "chain" that is more secure, transparent, private and self-coordinating. This capability improves the speed and flexibility of cash and asset management. For example, you are afraid to buy fake things, because a manufacturer transfers proction to several middlemen, and then you buy through middlemen, not manufacturers. If all the data is distributed, point-to-point and transparent, you can buy and pay directly from the manufacturer

The automation market of other assets will be diversified. In essence, because the software itself is controlled and open architecture, and visible to all transaction participants, the transaction based on blockchain can rece the demand for third-party supervision. If the enterprise can publish the value information to multiple potential buyers, and for all buyers, the content can be trusted and visible, and the seller can't sell again, then an open and transparent competitive environment will be formed when purchasing, and the seller can get better prices

3. Rece business transaction friction. Managing spending is a challenge for most organizations. However, blockchain enables enterprises to create self-management networks for suppliers and partners, realize contract automation, real-time payment, tracking of goods transportation, and visibility of the whole supply chain. For example, if a company uses refrigerated containers to transport perishable goods, when the container temperature exceeds a certain threshold, the IOT sensor on the truck may call the smart contract on the blockchain. This will cause the corresponding order to be cancelled, and it will also be able to automatically create a new order, so that a second batch of goods can be sent immediately. Trucks with faulty refrigeration equipment can also go to the repair Office for repair

This kind of network can rece transaction errors and information omission by recing or eliminating human-computer interaction. Moreover, by connecting buyers and sellers directly, transactions can become faster. Manage and secure decentralized private records. Its traditional instry practice is to rely on a third party, using firewalls and restricted access to protect their shared information database. And frequent data leakage events show that this approach is not very ideal. A fundamental advantage of blockchain is that each indivial data record or element is encrypted by the key of a blockchain member. Cybercrime may need to obtain each key of each member in order to access all the blockchain data. This is not to say that blockchain can guarantee 100% security of all data, which helps to rece the possibility of exposure of a large number of private records

5. A reasonable application is the record of employees or students. Employers, ecational institutions and even instry certification bodies can add new qualifications, grades or work places when necessary. Imagine giving employees a key to access all their employee records as part of a secure blockchain containing human resources. Indivials can safely share their university transcripts or employment history with other companies or ecational institutions without relying on unreliable and easily falsified faxes. Trace the origin of procts and raw materials. Blockchain can help ensure proct quality and safety by simplifying the tracking and positioning of procts and raw materials in use. For example, if an automobile manufacturer forms a quality centered blockchain including parts suppliers, parts assemblers, quality control suppliers and public management organizations (such as the National Highway Traffic Safety Administration). Then the recall process of defective parts will be faster. It makes sense to think that thousands of people die every year because of defective car parts

6. Verify identity, verify published information and data. Create a better user control mechanism. Nowadays, user information is easy to be manipulated, distributed to third parties, or even sold, so as to create revenue streams for owners of social media platforms, which will never be shared with users of information. Blockchain can disrupt all of these activities. It allows users to control their own information and its exact location. No platform can be accessed without permission. Users can decide who can access their information. They can deal directly with advertisers and third parties according to their choice, rather than like others. Moreover, users can choose to share their information with advertisers on any platform for a fee

to sum up, blockchain is a kind of chained data structure that combines data blocks in chronological order in a sequential way, and it can not be tampered with and forged by cryptography. In a broad sense, blockchain technology uses blockchain data structure to verify and store data, uses distributed node consensus algorithm to generate and update data, and uses cryptography to ensure the security of data transmission and access A new distributed infrastructure and computing method (reference network) for programming and operating data by using intelligent contract composed of automated script code

Application in finance

three major applications of blockchain technology

1. Application of blockchain technology in asset securitization field

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in recent years, The domestic asset securitization (ABS) instry is developing rapidly. At the same time, the problems of asset cash flow management need to be improved, the transparency and efficiency of underlying asset supervision need to be improved, the efficiency of asset transaction settlement is low, and the cost of credit enhancement is high are graally exposed. In order to apply blockchain technology in ABS field, participants need to build ABS blockchain alliance, which is composed of asset side, pre ABS investor, SPV (trust), escrow bank, manager, intermediary, ABS investor and exchange. Its core business includes fund transaction reconciliation, transaction file management, data interaction interface, information release and sharing, underlying asset management, intelligent ABS workflow and so on. Blockchain application can at least empower ABS instry in the following five aspects

To improve the cash flow management of ABS< Second, it is concive to penetrating supervision
thirdly, it can improve the settlement efficiency of financial assets< (4) the efficiency and transparency of securities trading will be greatly enhanced
fifthly, it can rece the transfer cost of credit enhancement

2. Application of blockchain technology in insurance instry. However, with the tightening of regulatory policies on medium and short-term survival procts, the business scale of universal insurance has declined significantly. In the aspect of insurance proct design, blockchain is concive to promoting the breakthrough and rapid development of customized insurance categories, such as agricultural insurance and proct quality insurance

quality insurance can endorse the reputation of enterprises and protect the rights and interests of consumers. However, insurance companies need to make a comprehensive evaluation of enterprises and procts to underwrite quality insurance, but these data are often difficult to collect truly and effectively, which restricts the development of quality insurance. The establishment of proct traceability and anti-counterfeiting application platform based on the underlying technology of blockchain can help insurance companies easily trace the information of proct proction, processing, sales, purchase, complaints and other links through the platform, so as to effectively judge the incidence of quality defects of related procts, formulate insurance procts, and promote consumption upgrading and instrial upgrading


in insurance sales, the application of blockchain technology can simplify the sales process, save the sales cost and realize the traceability of insurance sales. From the perspective of insurance companies, when willing policyholders purchase insurance policies through channels, channel providers uniformly send policyholders' information to the blockchain platform. The platform judges whether willing policyholders are in the white list according to the distributed storage information. If they meet the standards, they will accept the purchase request, which saves the tedious process of manual transmission, acceptance, review and feedback. From the perspective of consumers, blockchain technology can realize the traceability of insurance sales behavior and safeguard the legitimate rights and interests of consumers. The insurance sales market has been in chaos, and the phenomenon of false publicity of insurance procts through deception, concealment or incement has been repeatedly prohibited. Blockchain technology can link the key actions of each link of insurance sales, and realize the traceability of the whole process of sales actions, so as to standardize the insurance sales behavior and promote the sustained, healthy and stable development of the instry

in the insurance claim process, the application of blockchain technology can improve the claim efficiency and customer experience. Claim and loss handling process is an important process in insurance market. The complex claim process increases the cost, reces the claim efficiency and affects the customer experience. Smart contract technology can simplify the claim submission process, rece the need for manual review and shorten the processing cycle. At the same time, it is easier to identify suspicious behaviors through the historical claims and asset source records in the distributed ledger
in the field of insurance anti fraud, the application of blockchain technology can effectively prevent the occurrence of insurance fraud. Insurance fraud not only erodes the profits of insurance companies, but also damages the legitimate rights and interests of other insurance consumers. Although every insurance company has made a lot of efforts in anti fraud, the reality is still grim. Blockchain technology can at least help the insurance instry alleviate or even resolve this stubborn disease in the following two aspects. First, establish anti fraud sharing platform to rece fraud and strengthen evaluation through historical claim information; The second is to establish "unique and identifiable identity information" by using reliable data sources and coded business rules, so as to prevent false use of identity

3. The application of blockchain technology in the field of asset custody
in recent years, the global asset custody instry has entered the fast lane of rapid development, and the scale of Custody Assets and main custody procts have maintained rapid growth., However, there is still a certain gap between this scale and the international advanced peers, and there is still a large space for the development of China's asset custody instry

the application of intelligent contract technology in blockchain can effectively solve the operational risk in asset custody business. We can optimize the business process of asset custody from the following aspects: first, we realize the automation of the whole process, encapsulate the business instruction judgment and execution rules into the smart contract, use the smart contract execution and provide risk tips; The second is to improve the process efficiency, the real-time sharing of asset change, transaction details and other information among the asset consignor, manager, trustee and agent, eliminating the process of repeated verification and right confirmation; The third is to ensure the security of the performance and the authenticity of the transaction. By setting the key, the formal information of the participants, the limited visibility of the account information and the verifiability of the transaction are guaranteed; The fourth is to ensure that the information can not be tampered with, and put the compliance verification requirements of the investment plan on the blockchain to ensure that each transaction is completed on the basis of consensus


at present, bitcoin is the most closely related to blockchain. If you want to learn more about bitcoin blockchain, you can follow some new media. For example, Sohu, Baijia, mustard circle and so on. Foreign websites, such as CCN, coindesk, etc., all have huge applications

3. 1. Blockchain in the field of payment: the cost of reconciliation, clearing and settlement between financial institutions, especially cross-border financial institutions, is high, and many manual processes are involved; The application of blockchain technology can rece the cost of reconciliation and dispute resolution between financial institutions, significantly improve the efficiency of the payment field, and make it easier for financial institutions to handle small cross-border payment business, which is concive to the realization of inclusive financial business. 2. In the field of clearing and settlement: different financial institutions have different infrastructure structures and business processes, involving many manual processes, which greatly increases business costs and is prone to errors. The application of blockchain technology, combined with the assets on the chain mentioned in the second point, can complete the point-to-point real-time clearing and settlement, so as to rece the cost of value transfer, shorten the time, improve efficiency, and both sides of the transaction can obtain good privacy protection. 3. Asset management: equity, bonds, bills and other assets are entrusted by different intermediaries, which increases the transaction cost of assets and brings the problem of forged vouchers. With the application of blockchain technology, this kind of assets can be digitized into digital assets on the chain. With the characteristics of irreversibility, non tampering and openness of blockchain, the efficiency of asset transaction can be improved and the cost of asset management can be reced. Because the characteristics of blockchain are irreversible and tamperable, the information is confidential and secure, the point-to-point transaction transmission is decentralized, and the information can be traced reliably; In order to rece intermediate costs and improve efficiency, it is not only used in accounting and auditing, but also can be applied to all walks of life. Now we can see the mode of blockchain cooperation operation from behind the operation of all walks of life. Therefore, blockchain will widely and profoundly change the way of human life, so the whole life service will enter the era of blockchain. In the process of Internet development, blockchain + physical instry, blockchain e-commerce and blockchain community operation can be applied to blockchain technology.

4.

In the traditional supply chain finance, financing difficulty, high financing cost and cumbersome financing process have always been one of the bottlenecks restricting small and medium-sized enterprises to become bigger and stronger. Banks rely on the ability of core enterprises to control goods and regulate sales. For the sake of risk control, banks are only willing to provide factoring services to upstream suppliers (limited to first tier suppliers) with direct accounts payable obligations of core enterprises, or provide prepayment or inventory financing to their downstream distributors (first tier suppliers). As a result, the demand of secondary and tertiary suppliers / distributors with huge financing demand can not be met, the business volume of supply chain finance is limited, and the small and medium-sized enterprises can not get timely financing, which will easily lead to proct quality problems and damage the whole supply chain system

to solve these problems, we can make use of the characteristics of decentralized, tamper proof and distributed ledger of blockchain technology to build a blockchain supply chain financial platform

The core enterprise issues a / R certificate to the distributor. After the distributor signs the receipt, it indicates that it has signed the purchase and sales contract and the core enterprise delivers the goods

Because of the shortage of funds, distributors need to borrow money from finance

3. After the financial institutions have approved, the amount of loans will be sent to the core enterprises

The distributor will repay the loan and interest after selling the goods

5. The time span is large, and it is estimated that 2019 will not be possible. Moreover, the real estate market is a regular smash, and I don't know when it will break out, so the overall bull market is unlikely

6. The application and promotion of blockchain plays a supporting and promoting role for the national entity instry. Blockchain is widely used in medical, retail and other service instries. From then on, the files of customers do not need to be transmitted and archived repeatedly, which provides a lot of convenience for the real instry.