In an impressive sign of determination through which China manifests that it is deeply committed to be engaged with blockchain technology, the Shanghai Tree-Graph Blockchain Research Institute, in collaboration with the central government, has unveiled a trailblazing partnership with a target to design an “Ultra-Large-Scale Blockchain Infrastructure Platform” for Belt and Road Initiative (BRI). Through this effort that Conflux Network spearheads, China seeks to make trade across borders easier, especially among African, Asian, and European states.
Driving cross-border cooperation
The next generation Multi-Scale Blockchain Network (Ultra-Large Scale “UMS”) aims to develop a stable and widespread public space where global blockchain may be cooperatively operated on such a scale for the first time. Through the centralized leash on blockchain technology, the initiative intends to improve the efficiency of trade processes, ensure transparency, and diminish the likelihood of fraudulent cross-border transactions. This infrastructure will provide a basis for undertaking a wide variety of joint projects among countries/countries that are members of the BRI.
China’s intentions of streamlining the Belt and Road Initiative (BRI) with blockchain technology are on display through its objectives of blockchain application. This strategic scheme, comparable to the old Silk Road, focuses on constructing broad networks through trade routes, infrastructure programs, and economic beltways from Asia, Africa, and Europe to build interconnections among countries. The blockchain technology that China is activating at the center of this complex mission is revealing the country as a global leader in technological advancement and trade digitization.
Revolutionizing supply chain management
One of the pivotal advantages of blockchain technology is that it may be used as a primary tool to change supply chain management methodology. By allowing traceable and unchangeable evidence among supply chain members, such as the product’s origins, manufacturing dates, and shipping routes, blockchain improves transparency in trade and consequently imparts trust among partners. Openness in supply chains makes illicit conduct nearly impossible and supports adherence to international trade rules. As a result, supply chain operations are more efficient and safe.
Blockchain technology also shows promising opportunities in facilitating and safekeeping financial transactions across national borders. By minimizing reliance on middle parties and reducing transaction costs while accelerating settlement time, blockchain can help reduce current obstacles to global trade. Smart agreements (smart contracts) take care of contractual fulfillment payment and eliminate the complexity of cross-border transactions, improving efficiency.
Facilitating secure document sharing
In cross-border trade, centralized administration of customs documents, bills of lading, and certificates of origin commonly delays information exchange, making it prone to fraud. Because blockchain enables the immediate, transparent, and secure sharing of electronic documents that all participants can certify and corroborate, the problem is solved. This consequence quickens cargo movement across borders and strengthens the peace and integrity of documentation for trade.
During the press conference, the issuance of the document entitled “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative” signifies a breakthrough moment for China and its implementation of blockchain technology. To effectively take benefit of this technology to improve cross-border collaboration, simplify trade procedures, and promote transparency in world trade, China is placing itself as the leader at the forefront of technological innovations in global trade.
Following the initiative, the cooperation in trade and infrastructure may grow even further, smoothing out a combined international market and bringing it to an entirely new level.
