Authorities in the Chinese city of Guangzhou have issued the first business license using the blockchain technology. The move marks a key milestone in using blockchain for business efficiency.
Governments in several countries, states, and cities all over the world are trying to make themselves more competitive in order to attract investment. They are using a slew of technology solutions for this, and blockchain is emerging as one of them.
Making it easy to do business is now a key task of governments at various levels, be it national, provincial, or cities. In fact, “Ease of doing business” (EoDB) is emerging as a key metrics to track competitiveness of governments in this regard.
Experts use a variety of parameters to measure ease of doing business, and World Bank ranks countries based on these metrics. The latest such ranking puts New Zealand, Singapore, Denmark, Hong Kong, and South Korea at top five. US has the 8th rank, whereas the UK is ranked at 9th.
Ease of starting a business is right at the top of the metrics used for this analysis. Other key metrics are the ease of dealing with construction permits, how easily businesses can get electricity, ease of property registration, etc.
There are a number of processes involved in starting a business, and the licensing process can take time. Submission of various forms, getting multiple clearances can often be time-consuming processes.
This is one of the areas where governments are exploring blockchain for business efficiency.
Issuing business license using blockchain
Administrative authorities in the Chinese city of Guangzhou has developed a blockchain-powered commercial services platform. The platform is expected to streamline and simplify several processes, and the city government has recently piloted it.
Reducing the time it takes to submit a bid, avoiding repeated submissions, making it easy to form companies are just some of the improvements this blockchain-powered platform promises. The system also integrates with WeChat and allows entrepreneurs to quickly start their companies.
Entrepreneurs can scan a code, which takes them through easy steps for filing applications. They can open bank accounts, and submit a tax invoice applications too, using this system.
The first such business license was issued in April, and the administrative authority of the Huangpu district was the issuing authority. The platform uses “Artificial Intelligence” (AI) too, along with blockchain.
While China restricts cryptocurrencies, governments are businesses are using blockchain to a great extent. For e.g., Chinese business giants are investing in research on blockchain, and the technology is finding use in preventing food scandals.
Blockchain to push ease of doing business?
At a time when nations and provinces/cities with nations are competing with each other to attract investments, a robust technology solution to push ease of doing business is key. Blockchain for business efficiency is increasingly emerging an important use case.
