Ant Financial, one of the biggest tech firms in China, recently announced that it would launch an enterprise blockchain. Many experts believe that the company could play a big role in blockchain adoption within China. The company, which is an affiliate of Alibaba, is behind Alipay, which is used by over 500 million people in China. To put things into perspective, the entire population of the US is around 327 million people.
Ant Financial’s Blockchain Project
According to a recent local media report, Ant Financial, which is the most valuable Fintech in the world, released the beta version of the platform in November 2019. The company’s VP, Guofei Jang, made this revelation. This platform, according to the VP, is going to help small and medium-sized enterprises and developers enter the blockchain ecosystem and come up with blockchain-based apps at a lower cost. According to Jang, the platform will have a capacity of 1 billion transactions per day and have the ability to process 100,000 cross-chain processing capabilities per second.
Stress Test
The Ant Blockchain Open Alliance underwent its largest stress test during China’s Singles Day in 2019. The event is similar to Black Friday in the USA. During the event, Ant Financial processed about $30 billion worth of sales using the blockchain platform. The company used the blockchain for various purposes such as identifying and eliminating counterfeits, tracking goods along the supply chain, and ID verification. It is probably the single biggest use case of blockchain technology outside of crypto to date.
The company’s VP revealed that it had thus far utilized 1005 patents for the platform. He added that the platform has demonstrated the ability to deal with trust issues in over 40 unique scenarios including cross-border remittances, paying utility bills, and supply chain management.
The VP believes that as the global digital economy develops, collaborations between industries will continue to become more complex, which will provide a great opportunity for the blockchain to deal with trust issues. One financial expert recently tweeted that mass adoption of the blockchain would happen soon and it would begin in China. He is the CEO of Sino Global Capital, based in Beijing, and he has a very clear understanding of the developments happening in China’s fintech sector.
The Coming Blockchain Future
Until the end of last year, blockchain technology was a fringe technology, which was mainly associated with cryptocurrencies. As a result, most public officials in China had very little interest in the technology. However, that all changed after the nation’s President endorsed the technology. Since then, various public and private corporations have been working hard to launch blockchain projects. There has been a lot of capital flowing into the blockchain sector just a few weeks after the announcement by President Xi.
This announcement by Ant Financial also lays the ground for a major blockchain battle in China. Recently, Baidu, another tech giant in China, announced the launch of a blockchain platform dubbed the Xuperchain.
Image Source: Youtube Video Snapshot / Alipay
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