Wanxiang Blockchain to Empower Animal Husbandry Using Blockchain+IoT Platform
1000 cattle in Xinjiang Province, China, have acquired digital ID powered by blockchain, which helps to identify the ownership of the cattle and record key life data of the cattle, including location, weight, height, etc. in a trusted way.
Such an impressive change in beef rearing should be attributed to the Biological Asset Financial Service Platform developed by Wanxiang Blockchain, Sancai Digital Technology and Foidn Technology, the first platform of its kind in China to build a trusted database and business model for beef rearing with blockchain and IoT.
“Wanxiang Blockchain’s Biological Asset Financial Service Platform aims to digitalize and intelligentize animal husbandry with an ecosystem where stakeholders like government, regulators, financial institutions, farmers, etc. can efficiently work together at a low cost. This effort is in line with Wanxiang Blockchain’s vision to upgrade and transform the real economy and improve the governance efficiency of all industries with cutting-edge technologies. ” said Vincent Y. Wang, Executive President of Wanxiang Blockchain.
Only 70% of the beef demand can be met in China due to the rapid growth of beef consumption. Lack of large farms and the inefficiency in beef rearing can make the problem even worse. Statistics indicate that among the farms in China, only 4% have more than 1000 cattle and the majority are private-owned farms that have fewer than 100 cattle and contribute to 82% of the beef available in the market.
What stands in the way of the expansion of farms and the development of the beef rearing industry in China is that farms have limited access to the capital necessary to run their business.
Generally speaking, it takes 10 million RMB (about 1.5 million US dollar) to raise 500 beef cattle excluding the cost happens in the trading, which poses a great economic challenge to most of the farms. Besides, as biological assets like beef cattle are difficult to monitor, it is hardly possible for farms to get loans from financial institution by mortgaging the cattle.
Built upon BoAT+PlatONE IoT Data Service Platform developed by Wanxiang Blockchain and aitos，the Biological Asset Financial Service Platform collects key data of the whole process of beef rearing in real time, encrypts the data and records them on blockchain to make the data tamper-proof and traceable.
This platform is also supported by NB-IoT Connection and CTWing, an IoT platform of China Telecom in the intelligent management of IoT devices and data. Besides, thanks to the support from Changji Telecom, the telecommunication network that is indispensable for this platform was set up rapidly.
In this way, the platform builds a trusted database shared by all participants of the beef rearing process and innovates the business model by improving the efficiency of the cooperation among different participants.
The platform has reached cooperation agreements with Wanxiang Trust and XInfinancial and is ready to benefit financial institutions, insurance companies, government and farms in the following ways.
For Financial Institutions:
As data recorded on blockchain are tamper-proof and can be read by all nodes in the network, financial institutions will have a better understanding of the financial and operational conditions of the farms based on the trusted data so as to provide financial services at a lower risk.
For Insurance Companies:
The trusted database built on the platform will also help insurance companies to evaluate the value and risks of providing insurance services to the farms so as to run their business at a lower risk.
The platform will help government to monitor the operation of the farms by getting real-time data. Besides, government can use the traceable data on the platform to build beef tracing system in a way to improve food security.
Trusted data on the platform will help farms have easier access to financing services and build a warning system to prevent problems in beef rearing, which will improve the efficiency and lower the cost of their operation.