JD: E-INVOICE WITH

BLOCKCHAIN
Case- Discussion
Synopsis
Learning Objectives
• This case outlines a strategic collaboration between a leading Chinese
e-commerce company and a major client to promote the use of
blockchain to produce electronic invoices (e-invoices)
• Explain the difference between business to consumer (B2C)
purchases and business to business (B2B) enterprise procurement.
• Identify the opportunities and challenges faced by Chinese e-
commerce companies who are experiencing the rapid development
of enterprise procurement
• Describe how to efficiently apply blockchain technology to resolve
issues of invoice management in enterprise procurement
Assignment Questions
Database
• A database is a collection of information that is stored electronically
on a computer system. Information, or data, in databases is typically
structured in table format to allow for easier searching and filtering
for specific information
• Spreadsheets are designed for one person, or a small group of people,
to store and access limited amounts of information. In contrast, a
database is designed to house significantly larger amounts
How Blockchain differs from Database
• One key difference between a typical database and a blockchain is the
way the data is structured
• A blockchain collects information together in groups, also known as
blocks, that hold sets of information
• Blocks have certain storage capacities and, when filled, are chained
onto the previously filled block, forming a chain of data known as the
“blockchain
• All new information that follows that freshly added block is compiled
into a newly formed block that will then also be added to the chain
once filled
Blockchain is database
• A database structures its data into tables whereas a blockchain, like
its name implies, structures its data into chunks (blocks) that are
chained together. This makes it so that all blockchains are databases
but not all databases are blockchains
Blockchain
• In its most abstract sense, Blockchain is a new platform technology
enabling an improved ability to verify and record the exchange of
value among an interconnected set of users
• It is a secure and transparent way to track the ownership of assets
before, during, and after any transaction
• Each transaction between parties in the network is a “block,” and the
cumulative set of transactions across the entire network is the
“chain:”
• Blockchain technology enables any network of users to track and
trade virtually anything of value
Types of Blockchain
• There are currently two types of blockchains: public and private. The
bitcoin blockchain is an example of a public—or “permission-less”—
blockchain. These networks—these blockchains—are open to
anyone, and each use their own digital, native currencies for example,
bitcoin and Ethereum
• On public blockchains, native currencies are needed
• Private—or “enterprise” or “permissioned”—blockchain also records
the exchange of value between parties in a network, but access to the
network is permissioned because not everyone can join it
What Blockchain can do
• In practice today, it appears that most current blockchain products
and applications fall into three buckets
• The clearing, payments, and settlement functions in financial services
companies (e.g., Banks, asset managers),
• Creation and use of a digital identity within an enterprise, and
• Smart contracts
Supply Chain- Application
• Industries that feature complicated global supply chains, have high
degrees of intermediated global payments, require high levels of data
security, and whose transactions face strong degrees of regulatory
scrutiny may be motivated to adopt and deploy blockchain within
individual enterprises.
Smart Contracts
• Smart contracts are a type of blockchain transaction that can be
thought of as event-triggered automated pieces of computer code
• They can be as simple as “ship the product when we receive the
payment” or “distribute dividends to shareholders upon their
declaration
Smart Vs. Traditional Contract