Aug. 13 (NBD) -- China's first blockchain-based electronic invoice was issued to a local restaurant in Shenzhen last Friday.

According to the tax bureau in Shenzhen, companies can submit applications for invoices and declare tax on the blockchain platform supported by Tencent, which will automatically generate invoices after transactions are completed.

Blockchain is a distributed peer-to-peer network without any central control points. It uses distributed unified operation to achieve a set of tamper-resistant and trusted database technical solutions.

The issuance of the first blockchain-based invoice sparked heated discussions. Cai Yige, manager of Tencent's blockchain business, said that with the traceable invoicing process and unmodifiable transaction records, blockchain-based invoices make it impossible to fabricate false invoice information.

Photo/Shetuwang

Unlike the traditional physical invoices which needs cumbersome and complicated verification procedures, the blockchain-based e-invoice updates the information synchronously to companies and tax bureaus, and users can check the information in real time. Moreover, companies using e-invoices can cut cost in invoicing, improve payment efficiency as well as better consumer experience.

For Tencent which provides technological support for the e-invoice, this is an opportunity to broaden the usage scenario for its Wechat Pay. Besides, by connecting to the blockchain interface of the tax bureaus, manufacturers of accounting software can realize paperless financial and tax management, providing higher added value for their clients.

However, the blockchain technology is still at its budding stage and hasn't developed a clear profit model.

Cai pointed out that the principal contradiction in the blockchain industry lies in the huge gap between perfect expectation and cruel reality. The application of blockchain should target specific scenario to tackle specific industry pain points, with the aim to promote technology upgrading, Cai noted.

Valuing the long-term influence of new technologies, tech giants like Baidu, Alibaba and Tencent have been making arrangement in the blockchain sector.

In January this year, Baidu deployed a Blockchain as-a-Service (BaaS) platform called Baidu Trust, and Alibaba Cloud launched BaaS to provide blockchain solutions for enterprises in August 2018. Tencent is now testing its BaaS platform publicly and e-invoice is one of application scenarios of blockchain technology.

Xiao Lei, analyst of digital currency, told NBD that profitability hasn't been found when blockchain technology is weighed alone, but if the technology is applied in a company's businesses, the company may have the chance to enhance its operation efficiency, upgrade business model, break barriers to competition as well as change customers' perception of the company.

Despite the unknown prospects about blockchain, enterprises are competing for a head-start position in the sector, Xiao added.

Email: gaohan@nbd.com.cn