The National Audit Office of the People’s Republic of China is considering a Blockchain solution to address the problem of what it describes as the “endless cycle of data storage and management” for its current infrastructure, according to an announcement published on its website Apr 24.
The National Audit Office is tasked with auditing all government-related financial transactions, and manages a centralized data center which stores the relevant data for every subordinate auditing bureau in the country, at provincial and municipal levels.
The predicament it faces is therefore an “infinite expansion of data center hardware and software equipment requirements” to administer a colossal amount of centralized data, as well as a complex and staff-hungry system.
The article proposes that a Blockchain solution, which uses “distributed node consensus algorithms to generate and update data, and encryption and decryption algorithms to secure data transmission and access,” would significantly reduce the central government’s workload.
Each subordinate auditing bureau would be accredited as an individual node tasked with “equal rights and obligations” to collect, maintain and manage data. The central data center would save only the timestamps and supervise the confidentiality and legality of subordinate auditors’ data operations.
The article also highlights the potential for using smart contracts to automate data management processes. Although the Chinese government policy is notoriously tough on cryptocurrency trading, the country appears more receptive to Blockchain technology.
In March, a government memorandum was leaked detailing plans to create an “International Blockchain Investment Development Center,” and in February, news was released of a patent filed by the state-run Bank of China for a solution to scale Blockchain technology systems.
On April 22, a $79 mln Blockchain venture capital fund to support local Blockchain startups was announced at Shenzhen city’s Blockchain Expo.