In China, digital receipts were issued as block chains. Guomao Rotary Restaurant, the first in China to use block-chain digital receipts for the first time in China, is the first time in China to be recorded as a block-chain digital receipt city. It is the first attempt in China.
The digital receipt issued by Tencent, a chat app with over 1 billion users, is based on a block chain system for invoices developed by the Shenzhen Tax Administration. It is the pilot business approved by the government tax authority for the first time.
In order to do this, the Shenzhen Taxation Authority signed an agreement with Tencent to establish tax reform modernization and tax evasion measures using the block chain technology on May 25 and announced the establishment of an innovation research institute. He said he will use cloud computing, artificial intelligence, block chains, and big data to improve tax management and find technical solutions to malicious receipts.
In China, receipts (receipts issued by invoices, invoices, and shops to customers) help the government track taxes on official invoices issued by the Chinese tax authorities on purchased goods or services. But the problem is that there is a huge black market that is huge in China for replicas and forged receipts. Using a counterfeit receipt, you can get tax evasion or fake money and get a refund. Such counterfeit receipts are said to be found in many urban areas, such as subway exits and open-air markets.
Tencent said it would issue a digital receipt based on a block chain to solve this problem. The tax authorities are also expecting that such digital bills based on block-chain technology can track all processes and that information is non-destructive, and that effective administrative improvements are possible.
Since 2015, Tencent has been using its technology to support the Chinese local tax authorities. In Shenzhen City, we can use taxi to report tax, pay and receive receipt.
Digital receipts using block chains are designed with the assumption that consumers, business operators, and tax authorities use them. The digital receipt was issued in the Shenzhen canteen for 10 days, and many operators such as parking lot, car repair and cafe allowed the system to be used.
What you can expect from this system is that it allows you to connect without any friction between consumers and tax services. In the existing procedure, the consumer had to wait for the process of submitting and processing the receipt to the issuer. However, with block chain-based digital receipts, this process can be completed with a single click from the client. You can check the status in real time. Of course, paperless intelligent tax management and control are possible.
By using a block chain, a storage system that solves the problem of modulation or transparency can be expected and the receipt can be managed consistently. It is possible to avoid mistakes by tracking the original and accounting.
According to a white paper on block-chain industry published by the Ministry of Industry and Information Technology of China in May, the blockbusting industry in China showed an exponential growth in 2017.
According to the white paper, the number of block chain start-ups that occurred in China last year was 178, exceeding 136 in 2016, and 456 companies involved in the block chain. Investment in the block chain technology also peaked last year. Until last year, the number of block chain related investments was 249, but only about 100 cases were recorded during the capital raising process. Is more than the sum of the total number of capital procurement reported between 2014 and 2016. In addition, there are 68 new funding plans announced in the first quarter of this year.
The White Paper explains that policy and regulations on block chains in China are gradually improving, and that the block chain technology has grown to the level of national science and technology strategy. And the block chain says that it is bringing forward the development of traditional industry with the advantage of cost reduction and efficiency. At this stage, China is the world ‘s largest patent applicant, emphasizing the need to revise the patent law to accelerate the flow of innovation in this field.
Of course, I have not forgotten that despite these advantages, there are risks that can not be ignored, such as ICOs or cheating. In this regard, White Paper recommends the need to be alert to excessive expectations and false information. It also requires careful consideration to prevent massive loss of digital assets due to technical risks, such as 51% attacks, loopholes in cryptographic security, and unverified consensus mechanisms.
In April, the Chinese government injected $ 1.6 billion into the blockchain project and began working with Venture Capital to build a Hangzhou block chain industrial complex. More than 20% of the $ 1.6 billion will be financed by local governments. In March, the company announced plans for an international block-chain investment development center. In February, the company is taking steps to introduce block-chain technology, such as applying for a patent covering solutions for expanding a block-chain technology platform through a state-run bank.