China’s social security system will be adopting the blockchain for fund management, ChinaDaily writes. While countries around the world are in disagreement regarding digital currency and the blockchain, China takes a different approach. Some countries are recognizing Bitcoin as valid currency. Some are not. Meanwhile, China is embracing the blockchain head on.
According to Wang Zhongmin, vice-chairman of the National Council for Social Security Fund, the blockchain is revolutionary. “There’s no doubt that blockchain technology will be used in the social security system because of its valuable applications in the investment and management of social security funds,” he said.
The blockchain is likely best known in association with Bitcoin. At the very essence, the blockchain is a tamper-proof ledger for digital transactions. Every “block” has a timestamp and a link to a previous block, creating the “chain.” Every transaction recorded within a block can be verified against previous blocks in the blockchain. When a new transaction takes place, the entire blockchain is authenticated by the network. The transaction is then added to a block and ‘becomes’ part of the blockchain.
Wang Zhongmin explains that China’s adoption of the blockchain is to ‘cut out middle men.’ The blockchain is decentralized