Blockchain technology enables coal trade

From July 23 to 24, the 2019 Summer National Coal Fair was held. The reporter found in the booth outside the venue, no matter the traditional large state-owned enterprises, or the new coal trading institutions, their online trading platform  is recommended as business. It reflects that electronic coal trade has become a recognized development direction in the industry. In the coal Trading Market and blockchain Development Forum held at the same time, China coal trade blockchain standard working group has been founded.  Feng Yu, vice chairman of the China Coal Transportation and Marketing Association, said, "The combination of industry and finance is the direction of the coal industry's future development, and blockchain technology can inject new vitality into coal trade. "The establishment of the GB team will help improve industry standards and promote the application of blockchain technology in coal trade."

It can reduce financing costs

 The so-called blockchain is a database jointly maintained by the participants through encryption. Blockchain technology can promote the evolution of the business logic of supply chain finance from "point" to "chain", and then to "network" structure, forming effective data precipitation of industries and enterprises, and completing the construction of credit system.

Banks and insurance institutions are encouraged to embed new technologies such as the Internet of Things and blockchain into transactions to improve intelligent risk control, according to the Guidelines of the General Office of the CBRC on Promoting Supply Chain Finance to Serve the real economy released by the CBRC on July 9.

So why does coal trade need blockchain technology?

 "Coal supply chain structure is complex, non-standard degree is high, intermediate links and transport units are complex, the traditional offline paper document information transfer method trust cost is high.Zhou Xinsheng, executive vice president of Shanghai Coal Exchange, told reporters that the use of blockchain as a means of information transmission, its immutable distributed accounting method, can make information transmission more trust advantage.