Posted 2 years ago | by Ben Armstrong
Alibaba Ties Up With China’s Biggest Port Operator in Blockchain Deal
China Merchant Port, the largest port operator in China, has agreed to build a strategic partnership with the world’s leading e-commerce company, Alibaba Group, and its affiliate, Ant Financial. This was announced recently and may create a new force in the world of global logistics.
This agreement centers upon facilitating the creation of a new blockchain-based platform, which will reach a huge number of users. Blockchain has been tapped for many areas, and logistics is a perfect fit for the technology.
This platform will empower buyers, retailers, logistics firms, banks, customs, and tax officials to execute digital export and import transactions through a contactless method.
The objective of this partnership is to stimulate the comprehensive incorporation of blockchain technology in port operations. The duo is also working to hold an advantage in the race the be the first blockchain digital port in history.
Blockchain Technology Within the Port Industry
According to the report, all parties highlighted the urgent need for a blockchain-based technology to enforce the data-sharing system while the port acts as a central node integrating the international commercial trading and logistics supply chain.
By forming this agreement, all sides are heading to an efficient growth and innovation of the port business model. It may also act as a model for other ports, which are still using antiquated data management systems.
Jian Xiandong, chairman of the Ant Financial Group, expressed his confidence in the announcement:
“Blockchain will be the key infrastructure to reshape international trade and logistics. (…) As the engine for multi-party restructuring collaboration, Ant Blockchain technology will be the best solution.”
The Next Big Thing
China Merchant Port is the giant in the port industry with 50 ports in 26 countries and regions across the world. According to Lieyunwang, each port plays a significant role in promoting international trade.
May 9 marked by the participation of a Chinese province in the blockchain ecosystem with the launch of a cross-border network for financial services.
On April 27, various government officials in China revealed the Blockchain-based Service Network for China. It is now open to global business and is intended to help blockchain projects in building and operating modern, lower-cost blockchain applications.
One of the next steps may be to add digital currency to the platforms so that transactions can be made in real-time, and perhaps using smart contracts. While this is a great innovation, there is a lot more that can be done with blockchain and decentralized currency.