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China’s Leading Bank CICC Research: Hyperledger pushes blockchain implementation in finance and other fields

TBelow is a piece published by the Tech Equity Research team at CICC , the leading investment bank in China, on their takeaways from a recent Hyperledger conference in Hong Kong.


The Takeaway

We participated in the first global Hyperledger bootcamp hosted by the Linux Foundation in Hong Kong on the 7th and 8th March. Through discussions with managers and contributors of the Hyperledger project, we have learned that Hyperledger became the world’s first platform to open sources distributed ledger for enterprise-level application scenarios. With its pluggability, high level of security, interoperability and other advantages, it has gradually been implemented in the fields of financial services, logistics, medical care, etc. At the same time, with the growth of the number of alliance enterprises, we expect it to carry out specific applications in cross-border transactions, identity authentication, real estate transactions, copyright protection and other fields in the future.

Details

Chinese enterprises have become the most active group in the Hyperledger community. Hyperledger is a coalition blockchain project initiated by IBM. It was handed over to the Linux Foundation at the end of 2015 and became an open source project. There are now 12 subprojects (including six framework projects and six development tools), of which the subproject “Hyperledger Fabric” is an application with the most extensive development.

At present, Hyperledger has more than 260 members worldwide, including more than 50 Chinese companies, accounting for more than 20% of all its members. They include Alibaba Cloud (cloud computing), Tencent (cloud computing), JD.com (logistics), Beijing Genomics Institute (medical health), and China Minsheng Banking Corp., Ltd. (finance), legalXchain (judicial) and other leading companies in many other fields, contributing more than 10% of the code content. For more information about the layout and progress of Chinese enterprises in the blockchain field, please see our previous post “CICC Blockchain Research #5: How China’s financial and IT companies maps out blockchains”. 

Hyperledger has empowered domestic companies to achieve security and efficiency upgrades. China Minsheng Banking Corp., Ltd. and CITIC Bank developed the first blockchain-based letter of credit information transmission system in China by using Hyperledger Fabric.

By integrating all aspects of the letter of credit, it has significantly shortened the delivery time, improved system efficiency and security. Based on the Hyperledger framework, Easy Visible Supply Chain Management Co., Ltd. has proposed a complete supply chain financial system solution, which has realized the visualization and controllability of funds and information throughout the transaction. In addition, based on the development framework of Hyperledger, legalXchain has established an alliance of judicial entities, which has reached as many as eight authoritative judicial nodes, covering IP360, notary offices, judicial appraisal institutions, courts, etc. The development of Chain Nova proposed Fintech financial solutions (for debt financing), supply chain tracking and traceability solutions (shipping and logistics), notarization of IP information, transactions of intellectual property and other solutions.

We believe that Hyperledger, as the leader currently amongst global enterprise-level alliance chains, will continue to provide software and architectural support for many more enterprises and industries. At the same time, with Hyperledger as a microcosm of blockchain application, domestic enterprises will become more active. In the future, we expect to see more attempts and applications in cross-border finance, cloud computing, supply chain, copyright/property protection, and identity authentication.

Picture 1: Hyperledger Training Camp Event in Hong Kong

Source: Research department of CICC

Picture 2: Application development process based on Hyperledger Fabric (in Chinese)

Source: Hyperledger

Picture 3: The 12 sub-projects developed by Hyperledger 

Source: Hyperledger, Research Department of CICC

Picture 4: Comparison of Bitcoin, Ethereum, Hyperledger Fabric, R3 Corda, Ping An FiMAX, Ant Financial Block Chain(In Chinese)

Source: Hyperledger, R3, Ant Financial, Ping An, Research Department of CICC

Picture 5: Example of a transaction process based on the Hyperledger framework(In Chinese)

Source: Hyperledger, Research Department of CICC

Picture 6: Example of legalXchain ‘s IP360 product solution based on Hyperledger Fabric(In Chinese)

Source: legalXchain, Research Department of CICC 

Picture 7: Example of Minsheng Banking’s Letter of Credit Information Transmission System Based on Hyperledger Fabric (In Chinese)

Source: Research Department of CICC 


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