Blockchain technology is making its way into multiple aspects of our daily lives. China, of all countries, wants to use distributed ledgers for social security funds. This is quite a surprising turn of events, to say the least. Up until now, China has been very quiet on the blockchain front, despite a growing interest in Bitcoin trading.
Social security is one of the many financial industries in dire need of a revamp. The current technology being used is incredibly inefficient and outdated. The National Council for Social Security Fund in China wants to use this revolutionary blockchain technology to address these issues. Additionally, it will be a valuable tool for the investment and management part of the group.
Cutting out the middleman is one of the primary reasons for embracing blockchain technology. Although these middlemen each have their specialty, they will bog down the system. Creating a system with tamper-proof information sounds much more appealing. Additionally, it can be audited whenever needed, and there is no central database to be hacked.
To make all of this happen, several collaborative efforts have been put in motion. Implementing a distributed ledger into everyday lives is not a straightforward task. UBS, one of the largest financial institutions in the world, is one of the partners for this project. They are also working openly with other organizations around the world.
It is a great decision to see China openly support Bitcoin technology. Albeit it is doubtful they will use the Bitcoin blockchain; this is another validation of the concept as a whole. Although social security was not at the top of the priority list for blockchain startups, such a golden opportunity should not be ignored.
At the same time, there are a lot of skeptics. A transparent social security system may not be the end goal, although that is only normal. Using a private blockchain seems to be the most likely outcome, which may cause some concern. A permissioned blockchain is not the same as an open standard by any means.
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