Thread by @mattysino

0) Last week the Beijing municipal government released a 145 page document outlining its vision for utilizing blockchain to create a "programmable government". We read the doc so you don't have to. Here's what's important. THREAD

1) Background: In a speech at the 18th Collective Study of the CPC Central Committee Political Bureau, President Xi Jinping emphasized the use of blockchain as an important breakthrough for independent innovation of core technologies.

2) Since then Beijing municipal government has set up a special blockchain working group to comprehensively promote the development of blockchain in terms of innovation, technological breakthroughs, application demonstrations, industry cultivation and talent training.

3) The overarching goal is the creation of a “programmable society" (Blockchain 3.0). To this end, government affairs can be an application of blockchain in the form of “programmable government affairs”.

4) "Programmable government" provides new solutions that can help to truly eliminate "data silos" and "value silos" and promote cross-departmental and cross-regional utilization and maintenance of government data.

5) Blockchain application scenarios have been developed in conjunction with the Municipal Bureau of Commerce, Municipal Financial Supervision and Administration Bureau etc. for the four pilot districts of Haidian, Xicheng, Chaoyang, and Shunyi.

6) In February 2020 the Beijing Municipal Service Administration, Municipal Science and Technology Commission and the Municipal Economic and Information Bureau published the "Beijing Municipal Service Sector Blockchain Application Action Plan (2020)".

7) In March 2020, the Standing Committee of the Beijing Municipal People’s Congress deliberated and approved the "Regulations on Optimizing the Business Environment in Beijing".

7a) Article 2 of the General Provisions of the regulations clearly state the "building of a new generation of information technology based on blockchain and other data sharing and business coordination systems".

7b) Also put forth in Article 17 of the regulations is "to establish a blockchain-based enterprise electronic identity authentication information system” to reduce the materials that enterprises are required to provide.

7c) Art. 28 proposes "The gov and relevant departments should promote the application of the new-generation of information technologies including blockchain in the field of government services and provide market players with standardized, convenient and efficient gov services".

7d) Article 35 states that "electronic data generated in the application of blockchain technology can be used as the basis for handling government services and archive materials".

7e) Article 44 proposes "the use of blockchain technology to implement special electronic VAT invoices and other electronic bills".

8) Construction of programmable government affairs can be divided into three aspects:

8a) Construction of blockchain digital gov trusted infrastructure. This construction of blockchain and underlying shared blockchain platforms should be accelerated to avoid mutual isolation and dispersion between BC systems, and the formation of new "data" and "value" islands".

8b) Achieve trusted sharing + exchange of data. Clarify the resp. and rights of data sharing, build big data service network and value network. Ensure authenticity and credibility of data with traceable footprint. Promote joint maintenance and utilization across depts + regions.

8c) Deepen BC-based gov service business synergy, deepen pilot projects, implement specific business apps. in different fields. At same time, promote integration of industrial and government big data, and enhance connection between economic information and social information.

9) Why Beijing?

9a) Beijing is the country's political center, cultural center, international exchange center, and scientific and technological innovation center. It is also a leading city in the country's digital government and "Internet + government" program.

9b) Beijing has a large number of universities and technology leaders including as JD.com and Baidu. These companies have had many independent projects in blockchain innovation and applications.

10) General application plan

10a1) Digital identities based on BC will become an important and basic application direction in the future. Gov agencies will record relevant certs., materials, docs. and other public records on the BC to form a full range of individual digital archives each with a unique ID.

10a2) This application will greatly reduce the information that individuals need to submit for a government service, and at the same time reduce the verification work in the approval process of government departments. This will increase efficiency and reduce costs.

10b1) BC tech will be integrated into the continual development of a credit system, gradually building a trusted society. Relying on digital ID, comprehensive and multi-directional information collection, coupled with a scientific and reasonable credit evaluation model..

10b2) … smart contract technology can give individuals and enterprises a fair and objective credit score.

11) BC tech will reduce cost of gov data opening. Can protect sensitive data using crypto tech, and achieve horizontal data sharing and circulation. As such, more government information can be disclosed and used, with tracing of circulated information and tamper proof guarantee.

12) Open-source technology platform

12a) At present, Beijing is promoting construction of an underlying BC open-source technology platform to serve the applications of future government services. The platform will follow open source principles including continuous improvement and an open and inclusive attitude.

12b) It encourages enterprises in different technical fields and industries, universities and research institutes participate in the construction with reference to the formation and operation of existing global mature open source technology projects.

12c1) Beijing will encourage leading blockchain, technology and internet companies to actively promote the integration of blockchain technology and cloud computing technology as an open and easy-to-use blockchain infrastructure helps businesses and governments access and...

12c2) ...apply blockchain at low cost and realize “cross-chain” exchange of data.

13) Beijing will encourage leading BC, tech and internet companies to actively promote integration of BC tech and cloud computing, as an open and easy-to-use BC infrastructure helps businesses and govs access and apply BC at low cost and realize “cross-chain” exchange of data.

14) Supporting and protecting blockchain innovation and development

14a) The innovation and development of BC in the area of government services is inseparable from the overall development of the blockchain industry, so it is necessary to introduce into industrial ecology, capital guarantees, talent cultivation and favorable regulatory policies:

14b) Create a healthy public opinion environment thereby creating a favorable environment for innovation and development in the field of blockchain.

14c) Build industrial bases in Haidian District, Chaoyang District and Tongzhou District and introduce a number of outstanding enterprises to develop and improve the supporting service system.

14d) Set up a blockchain investment fund to support innovation projects at all stages.

14e) Establish a service mechanism for blockchain companies to connect with the capital market and accelerate listing and financing in the capital market.

14f) Promote the construction of the blockchain industry alliance.

14g) Foster talent, cultivating a group of leading figures and high-level innovation teams.

14h) Carry out professional and technical personnel training, incorporate blockchain training into the education and training of government officials, and support blockchain technology related seminars.

15) Successful Applications of Blockchain Technology in Beijing government affairs:

15a) The four pilot areas currently have 140 app. scenarios, with an average reduction of 40% in materials required for services. The number of in person visits required by applicants was reduced from five or six to one or less. (There are 12 chosen cases in report, here are 3):

15b1) Municipal Commerce Bureau Airport International Logistics Blockchain Platform

15b2) The traditional system of international airport logistics is extremely complex. There are many participants in the customs clearance process. Customs clearance data is a trade secret and with participants unwilling to share publicly, resulting in data barriers.

15b3) Tech solution:
- Multi-pronged privacy protection, cryptographic algorithms, and CA support
- Web management and control platform: supports operation and maintenance of underlying platform, and flexibly determines scale of blockchain deployment and node operating status.

15b4)
- Supports simple and easy-to-operate interfaces to realize storage certificates and smart contract execution.
- Application access is authorized using keys

15b5) From launch in March to the end of May, more than 3 million items of customs clearance logistics data have been added to the chain. 121 companies have used the system to query and verify various functions a total of 7,784 times.

16) Facilitation of Customs Clearance in the Beijing-Tianjin-Hebei (京津冀) Area

16a) Uses blockchain technology for sharing and exchange of maritime logistics data in the Beijing-Tianjin-Hebei area. Involves 5 main parties: The Municipal Bureau of Commerce, Beijing Customs, Tianjin Port Group, Tianjin Customs, State Administration of Taxation Beijing Bureau.

16b) To track BJ’s cross border trade, must assess Imp/Ex time and costs of BJ enterprises in TJ Port and seaports in HB. This involves obtaining logistics and clearance data. Problems include unfixed data collection channels, poor collection methods and incomplete data analysis.

16c) Tech solution:
B-T-H maritime logistics data sharing on BC including manifest information, terminal loading and unloading, pickup, entry and exit gate data, as well as the customs declaration status declared by Beijing Imp + Ex enterprises at Beijing Customs, TJ Customs etc.

16d) System has gathered 23,968 items of customs declarations data and 78,305 items of customs clearance data, 2,980 ship movements avoiding repeated generation of new information silos, 882,544 items of loading and unloading data.

15b4) correction:

attached wrong image, this is the correct flowchart for Municipal Commerce Bureau Airport International Logistics Blockchain Platform

17) Blockchain based enterprise electronic identity authentication system (eKYC) of the Municipal Financial Supervision Bureau

17a) Focuses on data sharing and exchange involving the Municipal Financial Supervision Bureau, the PBoC, Beijing Banking and Insurance Regulatory Bureau, National Internet Emergency Center, Beijing Financial Technology Research Institute and the various commercial banks.

17b) For enterprises seeking financial services such as opening accounts or applying for credit, banks currently require all kinds of supporting documents and information. Incorrect or missing materials can occur from time to time, often requiring multiple round trips.

17c) At the same time, in the process of information review, the bank has usually incomplete data due to scattered data acquisition channels. The time used for customer identity and information verification is too long, and the efficiency of customer due diligence is low.

17d) Tech solution:
BC tech can be used to establish trusted consortium chain integrating data support, business execution. Through aggregation of multi-party trusted data resources, system can realize automatic filling and multi-dimensional verification of enterprise app info.

17e) The first pilot case, Beijing Tianhao Environment Co., Ltd. opened an account at Zhongguancun Bank on day eKYC went live. The system integrated relevant data to help the bank streamline the entry of account opening data and realize automatic filling of corp. account info.

17f) Multi-dimensional info verification greatly shortens the time for customer identity and info verification. At present, the eKYC system has assisted Zhongguancun Bank, Baixin Bank, and Minsheng Bank to complete more than 50 trials of corporate data audit during the pandemic.

18) Beijing blueprint document (Mandarin) available at: beijing.gov.cn/fuwu/lqfw/ztzl…

Sino Global Capital @sinoglobalcap research by @dermotmcg and @Ian_88899