The booming development of the "blockchain + supply chain finance" model has become a sweet spot in the eyes of some banks, giants and entrepreneurs. However, these "blockchain + supply chain finance" models only take advantage of the technical advantages of the blockchain and ignore the application of the organizational advantages of the blockchain in supply chain finance.
This article will introduce a new model of "blockchain + supply chain finance"-the new model of "DAO + supply chain finance" explored by the popular project MOS. This model not only exerts the application of blockchain technology in supply chain finance, but also explores the application of DAO in supply chain finance.
What is supply chain finance?
What is supply chain finance? Its definition is summarized as the "M + 1 + N" model, that is, around the core company "1" in the supply chain, based on the transaction process, it is provided to the core company's upstream supplier "M" and downstream distributors or customers "N" Comprehensive financial services.
The above concept may be somewhat abstract. Can also be understood from another angle. For example, from the perspective of capital supply, supply chain finance refers to banks that link core enterprises with upstream and downstream enterprises, provide a flexible use of financial products and services, and use funds as a solvent in the supply chain.
For example, enterprise A produces clothing. After receiving an order from enterprise B, it finds that there is insufficient funds to purchase raw materials, so it takes the contract and order voucher to borrow from bank C, and bank C makes a loan based on the authenticity of the order and the company's credit situation After Company A receives the balance of Company B, it will return the principal and interest to Bank C.
Trillion blue ocean
According to the "Forecast and Investment Strategic Planning Analysis Report on China's Supply Chain Financial Market" released by the Foresight Industry Research Institute, the scale of China's supply chain financial market reached 14.42 trillion yuan in 2017. From C-side finance to B-side layout, the development of supply chain finance has ushered in an explosive period. It is estimated that by 2020, the scale of China's supply chain financial market may reach 27 trillion.
Blockchain, as the hottest air outlet at present, has penetrated into the business scenarios of various industries. For example, trillion-level supply chain finance, distrust between participating entities, and the difficulty of circulation of commercial and silver tickets have become the Achilles heel of restricting the development of supply chain finance. Therefore, this gave birth to the "blockchain + supply chain finance" model.
Blockchain empowers supply chain finance
The "White Paper on Blockchain and Supply Chain Finance" prepared by the China Academy of Information and Communications Technology, Tencent Financial Technology, and Shenzhen Qianhai Lianyirong Financial Services Co., Ltd. also pointed out that supply chain financial solutions based on blockchain technology It can ensure data credibility, mutual recognition and circulation, privacy protection, solve the problem of information islands in the supply chain, release core corporate credit to the multi-level supplier of the entire supply chain, improve the financing efficiency of the entire chain, reduce business costs, and enrich Business scenarios of financial institutions, thereby improving the efficiency of capital operation throughout the supply chain.
According to iResearch, by 2023, blockchain can bring about 3.6 trillion increments to the supply chain financial market, mainly from the accounts receivable side. By 2023, the blockchain can reduce the overall operating cost of the supply chain financial market by 0.48%; under the circumstances of cost reduction, the corresponding increase in profit scale of about 29.7 billion yuan.
Ignore the organizational role of DAO
At present, there are three main factions of "blockchain + supply chain finance": the first is the banking department, which is a platform developed and used by banks, such as the "One Enterprise Chain" smart supply chain issued by Ping An Group's financial one account Financial platform, CITIC Bank's "Chain e-Chain-Cope with Circulation and Accommodation", etc. The second type, the giant system, mainly includes the Ant Blockchain of Ant Financial, Du Xiaoman Finance, Tencent Blockchain, TCL, Foxconn, etc. The third type is startup companies, such as Yinuo Finance, Win-win Chain, Fun Chain, and 33 Complex Beauty.
However, their current focus on using blockchain to empower supply chain finance is mainly reflected in blockchain technology, while ignoring the advantages of blockchain organization, and failing to play the role of transparent governance and efficient organization of DAO. Recently, there is a relatively hot project MOS, which focuses on the use of blockchain to organize revolutionary ideas to solve supply chain financial problems. The specific idea is not only to play the role of blockchain technology in supply chain finance, but also to use DAO in supply. Organizational and management advantages in chain finance.
"DAO + Supply Chain Finance" New Model
It is understood that MOS will be based on the blockchain underlying platform with independent intellectual property rights, preparing to develop a MOS supply chain financial service platform. Based on the real trade background and core corporate credit, the platform provides participants with real-name authentication, asset management, online financing, and fund management functions, making full use of the technical advantages of blockchain and the advantages of decentralization and transparency of DAO.
Three important characteristics of DAO: (1) DAO membership is open and is not limited to only specific groups / individuals can join; (2) DAO members / investors can propose decisions / vote decisions, and any Decisions cannot be prevented or modified by a central authority; (3) DAO members obtain economic incentives directly or indirectly through participation, thereby ensuring the consistency of the incentive mechanism. Based on the above characteristics of DAO, MOS uses DAO to run and manage this blockchain supply chain financial platform, uses DAO to vote to determine the use of funds, important matters, such as the use of assets in the DAO management platform, and the approval of online financing with DAO voting, etc. .
This new model will solve the pain points of traditional supply chain financial industry core enterprises, such as the inability to transfer credit, the unavailability of full-chain business information, cumbersome settlement and settlement, and corruption and cheating. In the economic environment, the efficiency of asset capital circulation in the supply chain financial industry.
The exploration of the blockchain + supply chain financial model should not only focus on the technical level of the blockchain, but ignore the organizational role of the blockchain. It should be a combination of technology and organizational role. In order to explore the blockchain + supply chain financial model to give full play to the organizational role of the blockchain, we should explore the role of DAO in the supply chain financial model like MOS.