Foxconn released the blockchain supply chain control plan
One of the largest employers in the world technology industry is being carried out to block chain business.
The apple mobile phone manufacturers and well-known Foxconn last week shows a block chain prototype, and paid $6 million 500 thousand in loans through the prototype member to its vast supply chain. The company has since developed a global network plan, help non bank loans in the global supply chain of direct loans.
According to Foxconn finance subsidiary rich gold CEO JackLee said, the project called ChainedFinance, and will operate as a separate entity, spin off project aimed at non bank lenders and usually do not directly with financing transactions directly linked to the supplier.
In a conversation with CoinDesk, Lee further elaborated he believes could eventually brought out by commercial banks and other third party suppliers of funds deposit money.
He said that if the success of the project, the deposit of funds may flow down the entire block chain, thereby reducing due to lack of funds and had to shut down the project, and can even prevent the whole plant in the most extreme case closed.
“We believe that every link of the supply chain, the supply chain is not only financial, can be processed by block chain technology. This will make it easier to verify all business transactions, so as to improve the efficiency of the whole ecosystem.”
Make up delay
Although the ChainedFinance by Foxconn as its first “core suppliers”, and the melting point of the network as the first P2P lending institutions, but Lee hopes that the independent companies can face China domestic and worldwide customers.
He describes the early implementation plan released at the Lendit meeting of the ChainedFinance, and as a part of the educational process, designed to help small business suppliers understand the professor.
For example, in the traditional supply chain loan field, commonly called the “primary” suppliers to pay to two or three suppliers, such as the melting point of the network will need to contact the lender for a loan.
Because the supplier in some of the more advanced global supply chain in the depth of up to 13 layers, these funds may take several days or weeks to reach the hands of the money to the actual manufacturer.
At the same time, the stronghold of financial network co-founder Su Haide, waiting for the payee may not be able to pay the wages of the employees, was forced to put up the shutters.
To this end, Su Haide explained in a news Lendit said he believes that block chain solutions is not only a better deal with loans.
“Many people complained to me how they affected by this low efficiency and that every year there are some factories closed, they had to begin again. So we really want to do is not a loan, but the full cash flow solution.”
In the supply chain
Stepping back, Hon Hai Precision Industry Co Ltd (this company is located in Taiwan Foxconn trading company) is one of the world’s largest employer, has a staff of more than 1 million people, this is a very important point.
It is estimated that a total of 30000 suppliers for apple, Samsung and other products to provide spare parts. Early ChainedFinance loan to occupy a large part of its parent company income, there is a long way to go,.
Su Haide said that as part of the growth, the company is currently looking for similar to Foxconn’s “core” suppliers to join its block chain platform.
The core supplier is awarded to the platform of trusted access over the block chain node or before the data is transferred to the ChainedFinance, and then to attract its suppliers and other companies to join the platform.
ChainedFinance will visit the new fee system for P2P lending institutions, and not to join the system supplier in charge.
Su Haide added, “we are connected to the first supplier will have second, third, fourth,”
“We enable them to get more than the previous loan space in an addressable market.”
Build a platform
At the meeting, Lee and Su Haide said, the blockchain supply chain products will initially be oriented technology and automobile industry based on.
Su Haide then in the detailed statement added that the technology industry as the first priority for the industry, followed by the automotive industry, the apparel industry has also become the target platform provider.
Su Haide said that in common of the three industries is the supplier level is relatively small, he thinks it is very necessary to adapt to the early stage of development of block chain platform.
Su Haide acknowledged the limitations of the platform. He said, after the presentation, on behalf of the petroleum industry and was approached. But he believes that this industry supplier level at least 13 level.
He said, “this is very interesting, but I don’t think we have the ability to change the world. We want to be practical, only focus on the three industry.”
When it comes to the technical specifications of the test, the melting point of the network CEO Guo Yuhang explained that the number of nodes needed is very small, and fully managed by ChainedFinance.
In addition, although Su Haide did not specify the use of super books which open source code base, but he said the platform will support bitcoin Ethernet, workshops and super books. However, he said his company decided to join the Super League related books, supply chain financing products.
The first is China, then to the world
At present, the ChainedFinance team consists of 40 employees.
But with other companies, such as Denmark’s Maersk and Microsoft released its own supply chain solutions, the team is expected to end the year the team expanded to 200 people.
Su Haide said: “most of the staff is mainly responsible for the development of data to explain the necessity and value to attract more suppliers.”
With the growth of the business, will not expand the workforce.
In addition to the financial supply chain, Lee said he hopes to expand into the supply chain logistics and procurement, which will make the business more directly with the Maersk project competition.
At present, the development of extension work is slowly forward, Fuji Yasuko is testing various block chain and ChainedFinance interoperability platform capacity.
Lee said, but in only two years, the project will be expanded to India, then will soon be extended to africa.
When asked about the Bloomberg Foxconn may open a $7 billion plant in the United States, Lee did not respond, but he said he wanted to in a short period of five years for the suppliers to provide trade financing chain based on block.
He said that if we can achieve this goal, a considerable number of international lending activities will be transferred to the trusted chain block, and eventually may even increase between Bank of America and Chinese trust bank.
Lee believes that if Foxconn did in the United States opened the scale of the factory, it will strengthen the position of ChainedFinance.
“If Foxconn opened more factories in the United States… The same concept can still be applied, may even be more easily applied.”