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What is Alibaba’s strategy in Ant Financial blockchain?

By ESC Editorial Team, 11 months ago Business
What is Alibaba’s strategy in Ant Financial blockchain?

At the Computing Conference this year, Ant Financial CEO announced Ant Financial's blockchain partnership plan (Ant Financial is an affiliate of Alibaba and the most valued fintech company in the world). The Blockchain as a Service (BaaS) platform is being offered to enable small and medium-sized blockchain companies to directly develop and innovate various application scenarios on the underlying technology. 


The BaaS platform developed by Alibaba covers the areas of commodity traceability, supply chain finance, data asset transaction and data content copyright protection. In addition, partners are supported in a variety of ways, such as business cooperation, capacity training, market support and brand building, and jointly promote the innovation and development of blockchain technology and commercial application.


Chinese business giants BATJ (Baidu, Alibaba, Tencent, JD) have all laid out plans on blockchain. For example, Baidu's BaaS platform Trust focuses on finance and cloud computing. TBaaS, developed by Tencent, focuses on finance. JD's Zhizhen chain BaaS focuses on logistics and traceability.


Ant Financial's blockchain has been implemented in many scenarios, as shown in the figure below.


The application of Ant Financial Blockchain

How does the blockchain help?

Public Welfare traceability

Track where and how the donations are used

Commodity traceability

Grant every product a “unique identity” that enables customers to track the product sources

Cross-border transfer

Cross-border transfer with lower-cost and fast processing

City service

City service becomes more transparent and effective

Judicial

protection

Lower the cost for handling judicial affairs


In addition to announcing the ecological development plan for the mini program, Eric Jing (Ant Financial CEO) also introduced and elaborated on the "buzzwords" emerging in the Chinese science and technology market.


Warm Technology

[Ant Financial hopes the technology to be used by more and more people around the world.]


For the past 14 years, Ant Financial has been dedicated to solving real problems with technology. When Alipay was founded in 2004, Transaction Guarantee was created to increase trust between buyers and sellers and make online transactions safe and reliable. In 2010, Small and Micro Loans were launched to help merchants who had difficulty financing because they did not have mortgages on their assets. So, building a credit system with big data technology would help them to get financial support more easily. QR Code Payment connects every small offline business with the digital world. Even street vendors can conveniently receive payments through their own Alipay payment QR code. With Yu'E Bao, every user can manage money by investing small amounts of money in a low-risk, high-liquidity project for a decent and good return. Ant Financial has always insisted on using science and technology to create better benefits for consumers and small and micro businesses.


Mobile Payment


Nowadays, even small shopkeepers in the foothills of the Himalayas can use the same financial services with the help of QR codes as those in Beijing and Shanghai. Technological innovations have eliminated regional differences and unbalanced regional development.


Digital Public Services


In today's digital society, users can not only bind bank cards to their phones, but also transportation cards. When traveling by under-ground or bus, people can complete the payment by scanning the QR code with their mobile phones. Users can also use Alipay to schedule a hospital appointment without having to go to the hospital and queuing up. Using blockchain, medical records can be uploaded, recorded and stored on the platform. The medical records and bills are connected to insurance companies, which not only solves the problem of double reimbursement for medical bills, but is also convenient for consumers. 


Credit System


A good credit system allows easy financing for every consumer and small business. The Zhima credit score describes the possibility and compliance rate of each person's performance in the near future, which makes credit scenarios for people more convenient.  For example, users can buy products and services, or borrow money from the small loan services Ant Check Later and Jiebei, which provide the financing. People can use their credit score to take advantage of a variety of non-deposit services, such as sharing bikes and charging pads.


Blockchain Cross-border Transfer


Blockchain technology is definitely believed to be new, unlike digital currency or virtual currency. As a trust mechanism, blockchain will bring us great value. In our daily lives, blockchain is already being used to solve practical problems, such as electronic medical records and electronic diagnostic records in the medical field. We have begun to rely on distributed ledger technology and smart contract technology of blockchain to build and improve trust between consumers, social security agencies and hospitals.


In addition, Ant Financial is currently engaged in the cross-border transfer of blockchain. Cross-border credit transfers have in the past involved many intermediaries besides exporters and importers. Blockchain technology can guarantee the complete execution of the entire transaction in all steps through its smart contracts. The independent operations of each organisation are synchronised at the same time, which can improve the efficiency of the transaction. 


To further develop and implement its blockchain strategies, Alibaba, like almost all the Internet giants, has also been investing heavily on the recruitment of talents with credentials and technical knowledge of blockchain development. According to the report from MINTDICE, Blockchain Education at U.S. Universities, there is a high demand for blockchain software engineers and other network professionals, and they commend a high salary, which is even over $250,000. 


Risk Management Brain

[A risk management system developed by Ant Financial to control the risks of financial system]


There is no shortage of deception in the market under the guise of technology. Due to its long-standing technical accumulation, Ant Financial has developed an assistance system to the supervision technology that helps the regulator to identify the problems of a specific industry faster and earlier and effectively prevent financial risks. The system is already in use in many cities in China.


Ant Financial is committed to making people’s lives more convenient through mobile and digital technologies, and to create better connections and interactions between merchants and consumers, as well as various partners. 


The BASIC technology strategy, where each letter of the word stands for one aspect: blockchain, artificial intelligence, security technology, Internet of things and computing technology, is at the heart of Ant Financial's future-oriented technology. 


Based on these technologies, Ant Financial further developed three skills: credit, risk management and professional connectivity. Consumers, retailers and multipartners are joined together through Ant Financial’s professional services via technologies such as blockchain, Alipay, and mini programs to further enhance the value of financial technology and make financial life more transparent and convenient.


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