China embarks on to yet another crypto-milestone as a Tencent Holding Limited progeny titled, WeChat, a social media platform has incorporated in, the technology of blockchain to fit into the invoice system at the Shenzen Guomao Rotary Restaurant. The move has made China, a step closer to turning into a crypto nation as incumbent authorities would eventually ease up in accepting the cryptocurrencies as core part of the monetary system.
The process of issuing electronic invoices out of the restaurant’s premises was rather archaic as it got replaced by the newer technology, the key features of which were simplified verification, transaction and eventual reviewing. Prior to the introduction of the blockchain technology, the complexity of the system had the system to be payed immense heed. The entire system was in fact a result of a mutual partnership between Shenzhen Taxation Bureau and Kingdee Software that has yielded the fruit to pay and reimburse monetary assets via the blockchain technology.
Afore to the inclusion of the latest technology into the mix, the process demanded major resources to be put in, as per the the system had eventually, humans managing the entire process, namely the transparency and avoiding the third party risks involved. That’s where WeChat came in, aiding the restaurant to develop a system that can render the vintage system to require lesser resources besides being more productive. Tencent has been reported to be working over a blockchain platform of its own, TrustSQL which is likely the platform the invoicing system has been built over.
Tencent has its roots deep down as it dates back to be founded in 1999, emerging on the globe as a investment holding conglomerate encompassing the services relevant to the internet and web-based products.
Forbes has put Tencent as 53rd over the Growth Champions list with financial declared assets of about $493.1billion.
When we stroll through the system WeChat has developed for the restaurant, we come across a full-fledged method to run security checks with transactions made in their entirety without third party interference except from the taxing authorities who seek to collect their share of the remittance. The entire process has eventually landed us onto such a brink of things that a mere click can initiate the invoicing process which as described prior, bore quite a hefty pathway to completion. As the company proceeds with the payment, they can easily verify the payment. The invoice is automatically composed at the time of checking out, leaving the immense job of entering the details manually.
The taxing incumbent authorities can also come to the already safe play as they can evaluate the financial transactions cutting a fair share for them in the process also to mention, the tax returns are kept in the background to be delivered back to the particular person, the center piece in the entire scenario.
The developers of the entire system have the taxation bureau on board with the latest installment of the blockchain technology to issue invoices as we speak. The Shenzhen Municipal Office of the State Administration of Taxation has reportedly partnered with Tencent for this venture on May 2018 which is all set to operate and yield fruitful results. Li Wei, deputy director of the Shenzhen Municipal Bureau of State Taxation, has some decent words for the blockchain technology as he has the notion that the technology can nurture to maturity further but still possesses the power to function in the most efficient manner possible. He further mentions,
The digital invoice based on blockchain technology has features such as complete traceability of the whole process and non-disruptive information, which consistent with invoice logic, can effectively avoid false invoices, and improve the invoice supervision process.
The Shenzhen taxation authorities have approved that the blockchain technology is indeed one to cherish and can be used in combat with the scammers and the fraudulent agents. They have partnered with Tencent to initiate the “Intelligent Tax” as they seek to employ the blockchain technology to work in their favour picking out the tax avoiders and frauds who manipulate the archaic system.
Tencent has issued a white paper in Chinese discussing the constituents of their blockchain technology, TrustSQL. An excerpt out of the paper reads,
It is found that the meaning of the blockchain is that it can build a more reliable Internet system, fundamentally solve the value exchange and transfer in the existence of fraud and rent-seeking phenomenon. More and more people believe that with the popularity of blockchain technology, the digital economy will be more authentic and credible, and the economy and society will become more fair and transparent.
The paper further describes the inner structure of the system, explaining it to be consisting of three layers namely the core chain layer, a product service layer, and an application layer. Tencent has been known to show interest towards the blockchain technology before too as it became an active member of the Financial Blockchain Consortium (Shenzhen) in 2016.
Tencent has devised an efficient way that other similar companies can look forward to in order to terminate the adversities out of the system and accepting latest technology in, without any typical traditionally negative views and resorting to archaic methods. That is sure a picturesque version of what “either persist or perish” implies.