Blockchain Applications Essay Guide.pdf - Since the...

This preview shows page 1 - 3 out of 18 pages.

Since the introduction of the first distributed blockchain concept in 2008, this technology had been applied to create various applications from cryptocurrency to peer-to-peer network. Main benefits provided to both the public and private sectors include enhanced auditability and transparency while maintaining high levels of security. GOVT APPLICATION (MAS) 1) Creation of a national collateral registry to support SME growth and development. Globally, SME face a $2 trillion credit gap due to lack of financing from financial institutions. The main factor is the lack of fixed assets as collaterals which is required for application of loans. Without a trusted and central collateral registry, movable assets such as inventory and receivables which made up the bulk of SMEs value are not accepted. The creation also requires heavy government support and funding. Locally, SME employ two-third of our workforce and account for half of Singapore GDP. Essential for them to remain profitable and sustainable. A national collateral registry can lower the cost of obtaining credit through lower interest rates, higher level of credit and longer repayment period. As lenders can accurately and securely check inventory levels in real time, movable assets are accepted as collateral and SMEs can gain required funds to expand and grow. Financial institutions also gain from diversification of assets with the inclusion of short term liquid assets while increasing their market share. 2) Prevention of tax evasion by applying blockchain technology to tax collection and electronic invoices With distributed ledgers, slow reporting time and insufficient coordination between the traders and tax authorities will be eliminated. Tax evasion is reduced as it is harder to fake invoices and underreport transactions value. This is beneficial for collection of value-added taxes such as Goods and Services Tax (GST). In the manufacturing sector, every step of the supply chain is taxed whenever value is added. This require accounting at of expenses of every leg of the chain which is time-consuming and messy. Blockchain can automate by issuing e-invoices reducing the manual processing associated and increase efficiency for both the government and businesses. Singapore authorities currently face many difficulties in trying to incorporate e-commerce into the taxation regime as there are many intermediaries such as mobile marketplaces and mail forwarding services. Blockchain allows the efficient and accurate tracking of transactions as transactions between various parties are made to a shared ledger for easy monitoring. 3) Blockchain to store public archives and information Singapore government can create a distributed ledger using blockchain technology to store contracts and other corporate data, companies and agencies can store documents in more than one location to enhance security and allow automated access by constituents,
shareholders and employees. Documents are replicated in multiple locations, providing

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture