Blockchain + Supply Chain: Building a unified national market

Blockchain + Supply Chain: Building a unified national market

Consumers use Jingdong Zhizhen Chain anti-counterfeiting traceability platform to trace imported apples

Recently, the epidemic has spread in many parts of the country, and the importance of logistics dredging and the stability of industrial and supply chains has become prominent. The “Opinions of the Central Committee of the Communist Party of China and the State Council on Accelerating the Construction of a Large National Market” issued on April 10 proposed that based on domestic demand, smooth circulation is the primary task, and it is required to create and lead demand with high-quality supply, so that production, distribution, circulation and consumption can be achieved. All links are more smooth and the market operation efficiency is improved.

A stable and smooth supply chain is the vitality of the national unified market. In an interview with China Electronics News, a number of industry experts pointed out that information technologies such as blockchain will play a greater role in the standards and constraints of the bottom-level operation of the unified large market across the country. From product traceability, supply chain management to data sharing, blockchain will significantly enhance the precision and agility of supply chain collaborative operation, and is expected to accelerate the digitization and modernization of my country’s supply chain.

Realize the traceability and visualization of commodity flow chain

Under the epidemic, the frequent occurrence of “positive samples” of imported cold chain commodities has triggered a crisis of confidence in food safety. Raw material procurement, warehousing and transportation, order processing, wholesale operations, and terminal retailing, any “stuck” link affects food circulation and the safety of the “table”.

Product traceability is an end-to-end system. Take the food traceability system as an example, in which data is provided by different participating nodes such as buyers, logistics providers, and sellers. They all belong to the same organization, and there is “distrust” between them. The use of blockchain technology to realize the traceability and visualization of the commodity flow chain ensures that the whole process status information of each participating node is true and traceable, and multiple entities such as regulators, buyers, and upstream and downstream enterprises in the industry chain can track products.

Food traceability is one of the most mature cases in product traceability. Enterprises in vertical industries have achieved remarkable results in supply chain traceability such as medicine and key components by using blockchain.

Gannan navel oranges, Xinjiang jujubes, Wuchang rice, Qinghai wild black wolfberry, Anhua dark tea… These familiar local specialties have entered the Chinese food chain platform created by Beijing Taiyiyun Technology Co., Ltd. The platform takes food safety traceability as the starting point, and gathers origin producers, processors, logistics providers, e-commerce and sellers, and end consumers in the Chinese food chain ecosystem, and establishes a Chinese food that is governed by on-chain and off-chain co-governance. The credit system of the industry, and the traceable food production and distribution system.

Relying on JD Cloud’s technology base and “industrial genes”, JD Zhizhen Chain’s anti-counterfeiting traceability platform has provided dozens of online and offline retail scenarios for fresh food, maternal and child, beauty, luxury goods, cross-border commodities, medicine, etc., and more than 1,500 stores Enterprises provide “end-to-end” traceability services, covering 400,000 kinds of commodities from more than 1,900 brands, and the chain data reaches 1 billion.

JD.com’s Zhizhen Chain anti-counterfeiting and traceability platform has provided “end-to-end” services for dozens of online and offline retail scenarios, such as fresh food, maternal and child, beauty, luxury goods, cross-border commodities, and medicine, and more than 1,500 enterprises. The traceability system covers 400,000 kinds of commodities from more than 1,900 brands, and the chain data reaches 1 billion.

For another example, in the anti-counterfeiting traceability of key industrial components, Sany Group used white coated paper to carry material labels as product identification. Due to the large variety, large quantity and wide range of product accessories, the sales of accessories often encountered the impact of counterfeit goods. In addition, the circulation process of accessories is not visible, and the data is difficult to trace. After Sany Group and Shugen Gezhi Technology (Hunan) Co., Ltd. jointly built the “Anti-counterfeiting and Traceability System for Industrial Parts”, the distribution data of parts can be uploaded in real time, and the whole chain of the “factory-customer” distribution process of parts can be seen 100%. The rate of counterfeit and shoddy parts by customers has dropped to less than 1%, and the sales of parts has increased by 5%, realizing the true sense of anti-counterfeiting of parts.

Blockchain + Supply Chain: Building a unified national market

Liu Lichao, director of blockchain products at Unicom Digital, told the China Electronics News that at present, the product traceability systems built by different industries using blockchain are mainly for high-value and high-harm product categories. The essence of the digital traceability of the whole process is to enable commodities to burst out with more vitality and value potential, and to bring differentiated value-added to the business.

After several years of exploration, the construction of my country’s traceability system has long been not limited to the construction of a single enterprise, but only uses and smoothes the “internal circulation” system. Liu Quan, president of CCID Blockchain Research Institute, said in an interview with a reporter from China Electronics News that at present, different industries have achieved results in realizing the traceability and controllability of the whole life cycle of commodities, and the construction of the traceability system is moving towards a Development of a nationwide industry traceability system.

“In the development trend of a unified national market, the supply chains of various industries are complex and changeable. To fully cover the life cycle, we must rely on a nationwide traceability system to ensure that the information of the entire supply chain can be stored and communicated in a complete manner. Interconnection and supervision.” Yang Dong, Dean of the Interdisciplinary Research Institute of Renmin University of China and Executive Dean of the Blockchain Research Institute, said in an interview with a reporter from China Electronics News. In his view, the blockchain ecosystem infrastructures such as Spark Chain, Changan Chain and BSN (Blockchain Service Network Development Alliance) are actively building a nationwide blockchain service ecological network towards this vision, providing cross-border services. Common use across enterprises and across industries.

Enhance the precision and agility of supply chain collaboration

The standards and constraints of the underlying operation of the national unified market are essentially a set of consensus mechanisms in blockchain supply chain management. Experts believe that the geographical location of the main body of the supply chain is scattered and the management system is difficult to interact, which can easily lead to the disconnection in the process of supply chain coordination. As a distributed accounting technology, blockchain naturally fits the dispersed and complex characteristics of supply chain collaboration entities. It can connect supply chain entities together and provide an efficient basic platform or tool for collaboration.

In June last year, the “Guiding Opinions on Accelerating the Promotion of Blockchain Technology Application and Industrial Development” jointly issued by the Ministry of Industry and Information Technology and the Central Network Information Office clarified the transformation path of blockchain for supply chain management, that is, to promote the construction of enterprises based on districts. The blockchain-based supply chain management platform integrates logistics, information flow, and capital flow to improve supply chain efficiency and reduce business risks and costs.

Compared with the shaping of the value of the commodity itself by the traceability system, the essence of the blockchain’s supply chain collaboration is to enhance the precision and agility of the collaborative operation of the industrial chain and supply chain. After the two ministries and commissions issued the document, various enterprises responded positively, and a number of enterprises have taken the lead in exploring and building a ubiquitous supply chain collaboration platform based on blockchain.

Based on the “5G Network Co-construction and Sharing Cooperation Agreement” signed by the two parties, China Unicom and China Telecom have built a set of blockchain scheduling platforms. In co-construction and sharing, how can the two parties jointly undertake construction, operation and maintenance according to the agreed division of labor and cooperation, so as to prevent the phenomenon of “wrangling” in the joint construction?

Liu Lichao told reporters that the blockchain scheduling platform follows the collaborative networking architecture of “one physical network, two logical networks, and multiple customized private networks”. During the construction process of 5G network planning, construction, and operation and maintenance, all key shared parameters are uploaded to the chain for verification, the management consensus principle is written into the smart contract, and the bilateral data information of the work order is confirmed, which effectively supports the Process collaboration under the co-construction and sharing model comprehensively improves the ability and efficiency of network co-construction, co-maintenance, and co-management.

Focusing on their vertical industries, many leading enterprises have abandoned the traditional large and comprehensive vertical supply chain management method, and turned to a professional and collaborative horizontal resource allocation method, forming a strategy of “combining strong and complementary advantages”. The alliance effectively integrates logistics, information flow and capital flow, improves the efficiency of the supply chain, forms a complete value chain to participate in market competition, and realizes the complementation and integration of advantageous resources. For example, Ansteel Group’s intelligent supply chain comprehensive service ecological platform with the iron and steel industry as the core, State Grid Qinghai Electric Power Company’s blockchain-based shared energy storage business research, China CRRC’s blockchain-based supply chain data collaboration throughout the process Management platform, China Shipbuilding Industry Corporation’s ship supply chain management and collaborative design and manufacturing platform based on blockchain technology, etc.

“Using blockchain technology to realize real-time sharing of supply chain processes can help companies grasp the supply and demand information of other participants in the supply chain, adjust production, procurement and inventory management and decision-making in a timely manner, optimize supply chain management, and reduce costs.” Yang Dong said .

A relevant person in charge of Lenovo Group told the “China Electronics News” reporter that from a physical point of view, the real business network based on the supply chain and the blockchain network can be completely overlapped; and from the perspective of value transfer, the smart contracts of blockchain nodes It can also realize the whole process transfer of supply chain value.

“In specific practice, we are still in the process of building from a single enterprise to building an alliance, and there is still a certain distance from the establishment of a national industry supply chain collaboration platform. The interrelated technologies and progress between enterprises are still in the In the early days, it was difficult to achieve free connectivity.” Jiang Zhaosheng, a senior researcher at the Ouke Cloud Chain Research Institute, pointed out in an interview with a reporter from China Electronics News.

Experts believe that my country does not yet have the conditions to build a national cross-industry new supply chain coordination system. While requiring a lot of human, material and financial investment, it also needs a blockchain infrastructure with excellent performance and many users. It takes a long time to explore, research and build.

“Blockchain + Privacy Computing” to ensure data security

The foundation of forming a unified national market is to make the goods flow smoothly and make the best use of them. To promote the smooth flow of commodity element resources on a larger scale, open data sharing is the premise. The state proposes to use data as an important factor of production, alongside land, labor, capital, and technology, and to participate in distribution based on contributions. However, in the process of implementation, it faced the pain point of “unable to share, unwilling to share, and afraid to share” data.

Liu Quan told reporters that, from the current point of view, on the one hand, data resource standards are not unified and cannot be shared. The data resource standards in the information system established by various departments are not uniform, and it is very difficult to integrate information resources and carry out data sharing work. On the other hand, the concept of data sharing in my country has not yet been formed, resulting in reluctance to share. Information systems at different levels, regions, and functional departments are established through a series of processes such as research, adjustment, and design. They have the characteristics of “uniqueness and privacy”, and are generally not easily shared. In addition, issues such as privacy protection, authorized access, and difficulty in identifying responsibilities make it difficult to share. The extent, scope and objects of data sharing need to be further demonstrated, and sharing authorization needs to be strengthened both in technology and management.

For the data sharing open system, embedding the blockchain in it will build a scalable system, which is expected to solve the dilemma of insufficient data sharing incentives faced by today’s centralized database construction.

The “directory blockchain” system created by Beijing has become a model for data sharing in the industry, allowing data sharing to have incentives and standards to follow. It is understood that Beijing uses blockchain to efficiently and synergize the responsibilities, catalogues and data of 53 departments in the city, establishes unified standards and new rules for intergovernmental data, and solves the problem of missing and offside data. At the same time, relying on the “directory blockchain”, the sharing relationship and process between departments are locked on the chain, which solves the problems of random data flow and disordered business collaboration. In addition, a data sharing incentive mechanism has been established. Departments that do not provide data will have their responsibilities adjusted, and systems that are not on the chain will be shut down, establishing a new “closed loop” of departmental business, data, and performance of duties.

In the final analysis, not daring to share is to worry about data privacy leakage, which is also the most difficult and critical part of open sharing. Liu Lichao said: “Blockchain combines privacy computing, which can provide protection for data sources to a large extent. In the process of data circulation, development and use, privacy computing helps to hide plaintext, helps data use in compliance, and facilitates multi-party data collaboration. bring security.”

At present, many companies started with blockchain have built distributed digital asset trading platforms with blockchain + privacy computing as the core.

Hangzhou Qulian Technology Co., Ltd. regards “privacy computing + blockchain” as a new generation of data circulation methods, and introduces privacy computing into blockchain application scenarios such as joint marketing, anti-fraud, corporate credit reporting, and new drug research and development. “One is indispensable” – blockchain guarantees the precise right confirmation and value distribution of digital assets in multilateral cooperation, and privacy computing is data technology to ensure the security and compliance of digital asset transactions.

On the other hand, Ant Group cooperates with medical insurance, hospitals, health care, and pharmaceutical equipment manufacturers to build a joint model based on data from multiple hospitals to solve the problem of insufficient data volume and data richness in a single tertiary hospital, and the workload of medical insurance feedback analysis is significant. reduce. Led by the health and construction department, Ant Group deploys private computing nodes in each hospital to ensure that a large amount of medical record data from the relevant departments of the tertiary hospitals is not out of the original data, and the accuracy of the decision-making system can be effectively improved through data training.

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