Chinese State Administration of Science, Technology and Industry for National Defence has published an article, describing how the blockchain technology can be utilized to supervise tax invoices nationwide. Last year’s statistics show that 1,31 billion of invoices were in circulation while it is predicted that the number will grow up to 54 billion in just 4 years time.
The current system issued 2,5 billion electronic invoices covering circulation, distribution, documenting, inquiry and payment for citizens and government. The system also regularly faces problems of incorrect reporting or even loss of data. To be able to solve this problem China Aerospace came up with a blockchain based platform which produces correct invoices, tamper-proof reporting and the possibility of tracking. The platform will reduce costs and raise the credibility of invoice circulation regardless of the gigantic volume of documents processed. The company believes that the platform will deal with the industry’s biggest weaknesses, as well as improve its safety and efficiency.
WHY IS IT IMPORTANT?
- The existing system faces intractable hurdles, including over-reporting, false-reporting, and traceability issues in the process of invoice circulation in such cases the only solution to solve these problems and to make the system more efficient for China’s Aerospace is to transfer all the work to the blockchain
- According to a recently unveiled report by Accenture, at least 86% of Aerospace and Defence companies will implement blockchain into their systems by 2021