Making virtual currency of Supply Chain Finance

1.

The digital currency of the central bank is DCEP

the name of the digital currency developed by the central bank is DCEP (digital currency electronic payment). DC is digital currency. EP is electronic payment. Payment transmits digital things through a certain way, not paper currency. Therefore, electronic payment itself has the attribute of digital currency

The characteristics of digital currency are: low transaction cost; Fast trading speed; Highly anonymous

extended data

Application of digital currency

I. fast, economic and safe payment and settlement

cross border payment helps RMB internationalization. In 2015, the settlement volume of cross-border payment involving current account is about 8 trillion yuan. To accelerate the internationalization of RMB, cross-border payment and settlement procts and solutions with low cost, high efficiency and low risk are needed

At present, there are still a lot of repetitive human work in the bank's electronic loan process and processing process, and as the basic support of loan issuance, many of the collateral has the situation of false pricing or multiple or even no collateral. We can consider using digital currency to price and track bank collateral:

3. Bill finance and supply chain finance

in recent years, various bill market businesses based on commercial bills have grown rapidly, and bill financing procts have become a hot area of Internet financing. However, about 70% of the current bill businesses in China are still paper transactions, Supply chain finance is also highly dependent on labor costs

reference materials

network digital currency

2.

Background: the financial application of blockchain technology brings high investment value

2018 China international big data instry Expo opened in Guiyang City, Guizhou Province on the 26th. At the meeting, it was pointed out that China will vigorously develop the digital economy in the future, deeply implement the action plan for the development of big data and cloud computing, and deeply study blockchain technology and application. Especially in the field of finance, the landing application has become the focus of the scientific and financial circles

1. The value source of blockchain is that it can perfectly solve the pain points of the current financial instry:

in today's asset securitization, insurance, supply chain finance, commodity trading, asset custody and other financial scenarios, e to many participants, high cost of credit evaluation, low settlement efficiency of intermediary institutions and other reasons, Traditional financial service methods are difficult to effectively solve the long-standing core pain points in the instry, such as information asymmetry, complex and rendant processes, and high information verification cost

2. Why can blockchain solve the above pain points:

blockchain technology integrates many basic technologies, such as distributed accounting, tamper proof, built-in contract, etc., and constructs a trust building mechanism with lower cost. The financial application based on blockchain technology can realize the ability of all market participants to obtain all transaction information and asset ownership records in the market without discrimination, and effectively solve the problem of information asymmetry; Smart contract embedding reces the error rate of payment and settlement, simplifies the process and improves efficiency; At the same time, based on transparent information and brand-new trust mechanism, there is no need to spend manpower, material resources and financial resources to confirm information among participants, which will greatly rece the trust cost between institutions, and then rece the price of financial services and transaction costs

3. The application of blockchain technology in the financial field mainly includes the following aspects:

① digital currency

among which bitcoin is the most famous. On the basis of bitcoin, a large number of other types of decentralized digital currencies have been derived. Such as: the heyday of bits

Compared with the traditional payment system, blockchain payment can directly carry out end-to-end payment for both parties without the help of the banking system, which can greatly improve the speed and rece the cost

③ digital bills

④ bank credit management: the advantage of blockchain is that it can rely on program algorithm to automatically record credit related information and store it on every computer in the blockchain network, with transparent information, tamper proof and low cost

The major financial institutions and exchanges in Europe and the United States have explored the application research of building the next generation of financial asset trading platform based on blockchain technology

4. The development prospect of blockchain. The future development of blockchain technology will have the most vitality with alliance chain as the entry point, and will have a significant effect and far-reaching impact on the transformation of traditional financial instry pain points

in response to the good investment prospects of blockchain, domestic enterprises such as Alibaba, Jingdong and Netcom have entered the market. The application of financial scenarios based on blockchain technology not only brings us security and convenience, but also provides us with broader investment space. The rise and price surge of digital currency represented by bitcoin (bitcoin was about RMB 20 cents when it was first listed in 2009, and its current price is about US $7300!) It's the best proof that people with a keen sense of smell have made a lot of money from it

Abstract: This is an encrypted digital currency based on the bitcoin developed by Nakamoto Tsung, which improves and adds many new functions, such as the double-layer reward system network, also known as the main node network. It also includes anonymous payment to improve the interchangeability (bitage) and real-time payment function docking to realize real-time transaction confirmation without relying on the authority of the center (P2P mall)

In 2009, Nakamoto put forward the concept of bitcoin. Since then, bitcoin has spread rapidly in mainstream applications and commercial uses, becoming the first digital currency to attract a large number of users, which is a milestone in the history of digital currency. However, from the perspective of completing the transaction, we can find an important problem, that is, it takes too long for bitcoin block to confirm the transaction. Traditional payment companies have found a solution to enable the buyer and the seller to realize zero confirmation of bitcoin transaction, but this solution usually requires a trusted third party to complete the transaction outside the agreement

bitcoin provides pseudonym transaction, realizes the one-to-one transaction relationship between sender and receiver, and can always record the transactions occurred in the whole network. Bitcoin only provides low-level privacy protection, which is well known in academia. Despite this deficiency, many people still believe in the transfer history recorded by blockchain

based on Nakamoto's achievements, bitshengshi is an encrypted digital currency with the purpose of protecting privacy. We have made a series of improvements on the basis of the concept of bitcoin, resulting in a decentralized cryptocurrency with good anonymity. It supports tamper proof real-time transactions, and has a point-to-point sub network that can provide service reward system for bitsheng network

2. Master node network

the whole node is the server running on the P2P network, so that small nodes can use them to accept the dynamic changes from the whole network. These all nodes need significant traffic and other resources that consume a lot of cost. Therefore, it will be observed that the number of these nodes on the bitcoin network presents a steady downward trend over a period of time, so that the block broadcast time needs an additional 40 seconds. In order to solve this problem, many solutions have been put forward, such as the introction of Microsoft Research's new incentive plan and bitnodes incentive plan

Figure 6: mining reward model

3.

Blockchain is divided into coin circle and chain circle. Coin circle is based on investment, mainly issuing and trading virtual currency, while chain circle focuses on technology development, focusing on Application in enterprise units

the vast majority of people rush to speculate in currency. The golden age of speculation in currency starts from 11 years to 18 years. At present, the price of valuable currency is too high, and the risk of speculation is greater than the income, but even if the risk is very high, it is within the acceptable range

perhaps in the near future, through blockchain technology, there will be a globally recognized digital currency in the global market, which can be used for global circulation transactions. Therefore, in order to analyze and predict the future of blockchain technology, we need to understand the categories of technology and services from various aspects

4. Since its establishment, Beijing Digital Capital Technology Co., Ltd. has been committed to studying how to effectively solve the instry pain point of "traditional instry + blockchain". Various projects emerge in endlessly in the blockchain instry, and the technology has been innovated repeatedly. At present, the hottest topic is "stable currency". Beijing digital technology has also been supporting the stable currency system, bringing new development opportunities for the blockchain instry
what is stable currency
stable currency, as its name suggests, is a cryptocurrency with stable value, and its exchange ratio with legal currency remains relatively stable. Because the exchange ratio between legal currency and goods and services is relatively stable, the ultimate anchor of stable currency is goods and services, that is, the actual purchasing power
stable currency originated from usdt (benchmarked US dollar) issued by 2014 bitfinex established tether limited. The opportunity for the birth of cryptocurrency is that the mainstream currency accounts for the vast majority of the market value, but the price fluctuates violently, which makes the liquidity of cryptocurrency market decline. In this case, in order to protect their assets, investors need to find a better way to store value, so the stable currency market arises at the historic moment
the essence of stable currency is a kind of accounting voucher
modern banking system is based on the central bank at the bottom, commercial banks at the top and financial technology companies at the top. Their basic prototype mainly comes from the double entry bookkeeping which was born 500 years ago. Even after so many years, the banking system is constantly developing and changing, but its core is the centralized account system, which depends on the central bank. When we transfer money from one account to another, we are actually making account changes through the bank. When using stable currency for transfer and remittance, it completely transfers from its own account book to another account book. The essence of stable currency is a kind of bookkeeping voucher
some people would say, isn't Alipay also using block chaining technology? On this basis, Alipay upgraded and upgraded the account book, which is two different schemes based on the stable currency issued by block chain technology. You see that money is transferred from a Alipay account to another Alipay account, but it is still operated in the central bank's account system.
why is stable currency the future of blockchain
at present, stable currency is mainly used to provide channels for legal currency to enter the cryptocurrency world, help currency people avoid risks in transactions, and provide payment services for blockchain application projects. Although the current digital currency market is not too optimistic, but the cryptocurrency project is in constant development. The number of stable currencies on the market has already exceeded 50, and is still on the rise. 2019 is bound to be the year of stable currency outbreak. How did stable currency break through in the wave of digital currency? Why is stable currency the future of blockchain? This involves how stable currency affects the blockchain instry
tickets for users to enter the market
after "94" in 2017, China banned the market circulation of cryptocurrency, restricted banks and other financial institutions as payment platforms or channels, and many countries also restricted the circulation of cryptocurrency. But there are still a lot of users who want to enter the market, they will choose over-the-counter trading and trade through the community. But because of the uncertainty, opacity, small scale and other problems, OTC has some trading risks. Usdt, a stable currency anchored to the US dollar at a ratio of 1:1, has become a supplementary scheme for some new funds
the insurance medium of user assets
in the weak market, the price of token fluctuates greatly, and traders do not want to take risks or leave the market. In the case that the trading platform does not support legal currency trading pairs, it is almost the only choice to use "stable currency trading pairs" to exchange for stable currency
the emergence of stable currency is the proct of a special historical stage e to the contradiction between the rapidly developing demand for token investment and the restriction of legal currency admission by regulation. The more serious the price fluctuation of mainstream currency is, the more valuable the existence of stable currency is
"trade as settlement" is an efficient payment and settlement tool
blockchain technology has great value in the field of payment and settlement. With the emergence of JPMorgan JMP, many banks around the world have begun to explore how to use blockchain technology to issue stable currency. The "stable currency" issued by these banking giants is essentially using a convenient and efficient settlement network based on blockchain technology. The more financial institutions and customer groups join the network, the greater the value of the settlement network
as JPMorgan Chase, IBM and Facebook have revealed that they want to issue currency, stable currency has once again set off an upsurge. After the strong fluctuation of usdt in the second half of 2018, it was derided as "unstable stable currency" by many people, so Pax, tusd, GUSD, etc. followed closely. Seizing the market quota of stable currency is very fierce for a time, but the fierce market competition means that there is not much space left in the market, and no matter how much stable currency there is, it seems meaningless. Then the major exchanges began to launch their own platform currency. JPMorgan Chase, IBM and Facebook also entered the market. The situation of stable currency also changed greatly. Facebook and JPMorgan have both broad user base and far-reaching economic impact, and issuing currency will certainly have inherent advantages. Beijing Digital capital technology, which is deeply engaged in the study of the significance of stable currency, has made practical application of stable currency in postal, supply chain finance, lottery and other fields. It is understood that the world's first African blockchain lottery will also be released in the near future. In this way, we can certainly expect to stabilize the currency market.

5. Regular blockchain enterprises are not money, and blockchain traces the source to crack down on fake and inferior information
in the past two years, the word blockchain is very popular, and blockchain e-commerce will undoubtedly be the biggest wind outlet in the next decade. However, the instry is in chaos. Many people think that blockchain is money and have many misunderstandings about blockchain. So before we talk about blockchain, we should first talk about the idea of blockchain
blockchain is now understood by most people as "currency". There are too many coin cards in the coin circle, bitcoin and bitcoin. In fact, blockchain has nothing to do with currency. It is a technology, a business ecology and an idea. It is mainly applied in every field. It is extremely similar to the Internet. Talking about blockchain now is like the Internet 20 years ago. What did we talk about the Internet 20 years ago? When talking about its technical architecture, operating system, language, server and so on, it was said at that time that Internet e-commerce was deceptive, because many people had not been exposed to this aspect. In fact, many people have misunderstood blockchain, especially after being confused by the currency circle
When did jiuzero blockchain start? Jiuling started to investigate and prepare from 2016, and has about half a year to investigate all aspects of the blockchain. In 2017, it began to enter the field of blockchain. By 2020, it will be the fifth year. It has gained a lot of experience and achieved a lot in application. We've never played with coins, never engaged in ICO. In the first few years, we didn't make a lot of noise, that is, we should do a good job in technology, platform and browser, and apply them in traceability. We have done a good job in the application of traceability since 2017, and many procts have been launched; In 2018, more than 10000 procts will be applied in traceability. In 2019, it will be further promoted. This year, it will be further developed, and all procts will be opened up in the whole process of visualization. So at the beginning, we used it in the field of traceability. Since 2018, we have used it in the whole blockchain ecology, including blockchain traceability, blockchain invoice, sharing economy, supply chain finance, general points and other applications, as well as the platform technology services we built. We have entered this field in an all-round way, And relatively speaking, it is relatively mature and completely implemented
What's more, why is blockchain on fire now? Why does the development of blockchain reach the height of "thinking"? This is in line with the trend of the times
let's review the history of China's economic development in recent decades. The wealth of Chiang Kai Shek's time was concentrated on the local tyrants, evil gentry and warlords. Mao Zedong liberated most of the common people as peasants, and United most of them was more suitable for the situation of China at that time. Therefore, he defeated Chiang Kai Shek, overthrew the bureaucracy of the local tyrants, evil gentry and warlords, redistributed their wealth, developed the proctive forces again, and completely redistributed their revolution and distribution, Mao Zedong really realized serving the people and let the people live a good life. In the era of large collectives, people go to work in the countryside to earn points. According to the points you earn, how much food can you get. In Deng Xiaoping's time, I felt that this was not right. It might be that the efficiency was not high, and I ate a big pot of rice. Later, I started the reform and opening up. After the reform and opening up, the fields were divided into households according to the number of people. After that, the output increased a lot, which stimulated everyone's enthusiasm, increased the output and improved the efficiency. After the reform and opening up, commercial instrial enterprises began to develop
we can see that economic development is based on the needs of the times. China's reform and opening up has gone for decades, from the traditional economic era to the E-commerce Internet economy, and now the blockchain has come out, also because of the new problems of wealth distribution in the Internet era
in the Internet era, social wealth is highly concentrated on several platforms, such as Alibaba, Tencent, Internet, Jingdong, etc. the Internet e-commerce leaders have too strong a say in finance, resources, procts and other aspects. Social development has completely lost its balance. The uneven distribution of wealth has made the rich richer and the poor poorer. The instrial enterprises without money, including the whole of China, are now difficult to survive except for the monopolized central enterprises. At this time, there needs to be another revolution in business. The proctive forces must be redistributed and readjusted. It happens that blockchain is born to meet the needs of the era of transportation
the rules and mechanisms of blockchain are completely open and fair, can not be tampered with, and can not be decentralized. The oligarchs of institutions are removed to form a sharing economy for common development. Why does the government support blockchain so much? Because the government can fully enter the field of blockchain for supervision, and the privacy of citizens can be protected. Personal information in the Internet is not protected, and personal information in the blockchain is in their own hands. In the era of Internet e-commerce, oligarchs monopolize information resources. There are too many fake and shoddy procts and too many false information, so we have no way to distinguish them
at this time, the rule mechanism of decentralized supervision of blockchain emerges as the times require. Blockchain is not only a technology (it has made some improvement and promotion in the original Internet technology), but more importantly, it can solve the problems that cannot be solved by the Internet, traditional e-commerce and traditional ecology, such as traceability. Traceability in the Internet age can be falsified. A traceability source can be pasted anywhere, but the traceability of blockchain is different. The technology of blockchain is real. Everyone can participate together. Through distributed storage, everyone can get the data, and then all things can be traced, including procts and invoices, Including a person to send a message can be traced, stored, fidelity
the traceability of blockchain starts with raw materials, then proction and processing, then warehousing, sales, etc. every link should be visualized, with pictures, videos and words, which will leave traces of every link. Only in this way can we make everyone trust completely and be fair, open and transparent when there are too many fake and shoddy procts and lack of trust. In short, blockchain is to solve the problem that the Internet can not solve
when it comes to blockchain, bitcoin is the first thing that many people think of. In fact, bitcoin's contribution to the world is to put forward a rule and mechanism. Bitcoin itself has no value. It has no proct and no support. But its technology and concept are very good, because this technology can't be fake. The source code of this technology is open source and can be shared. Its technology uses the idea of blockchain
as soon as the rules and mechanisms of blockchain come out, they are sought after by everyone. However, in recent years, they have been confused by money. That kind of money is deceptive and runs counter to blockchain. On the contrary, it makes people distrust blockchain because they don't know enough about blockchain and think blockchain is money. Because if you want to understand a field, just like jiuzero blockchain has entered its fifth year, you are engaged in blockchain ecology, blockchain traceability, blockchain digital integration, blockchain technology development, blockchain browser development and so on every day. In this field, you are still learning constantly, because it is not easy to learn a field thoroughly. The reason why we have been very motivated in the past few years is because we know that it is a big trend and coming. Just like the Internet 20 years ago, many people don't believe, understand and turn a deaf ear to it. But ten years ago, Tencent, Alibaba, Huawei and other big enterprises got up. At the same time, now this opportunity is in front of us. Can we seize it? This is a question worth thinking about
finally, let's make it clear that blockchain has nothing to do with currency
for regular blockchain enterprises, the government has requirements and certification standards
standards: three basic requirements (patent, soft work, registered company in national blockchain Park, paid in registered capital, dedicated blockchain R & D funds), four landing application standards (blockchain browser, website, blockchain application scenarios, blockchain procts), five kinds of blockchain professionals (blockchain finance professionals, Blockchain digital professionals, blockchain credit management professionals, blockchain software development professionals, blockchain encryption technology professionals, and employees with bachelor degree or above who have been employed for more than one year) can get six basic subsidies
in the blockchain instry, there are at least tens of thousands of companies doing money and ICU. They all say that they are regular, but can they take out these certificates. The document points out that as long as the company has digital currency or ICO, it is not a blockchain company
under the background of this era, the ideas, rules and mechanisms, decentralized supervision and privacy distribution of blockchain can protect everyone's interests, redistribute proctivity assets, prevent the interests from being too concentrated on certain oligarchs and institutions, let everyone participate together, and let everyone exert their energy together to fight against counterfeiting, tax evasion, tax evasion, tax evasion, etc The real purpose of blockchain is to crack down on false transactions and create a conscientious ecosystem that can protect the interests of the people and provide hematopoietic function.

6. Blockchain is a revolutionary underlying technology. Its original function is bookkeeping. As a distributed general ledger, it can solve the credit problem, notarization problem, audit problem, right confirmation problem, etc. of the ledger, as well as the digital demand of physical assets. Blockchain application scenarios are characterized by "new database, multi business entities and mutual distrust". The financial instry has the characteristics of low trust among participants and high requirements for transaction record security and completeness, which is very consistent with the application characteristics of blockchain technology. Therefore, the financial services instry is one of the instries with the most blockchain technology landing projects and the most abundant scenarios, such as supply chain finance, asset securitization, credit reference and risk control. In the financial field, blockchain technology can not only reform the financial infrastructure, but also play a synergistic role in the scenes of supervision, transaction, credit reference, virtual currency and so on. For example, in the traditional financial environment, supervision is managed by reporting data from various business organizations, which will cause many disadvantages, such as "black box" operation, decision-making delay and so on. However, under blockchain finance, with the advantages of information transparency and penetration and regional centralization, the regulatory authorities can grasp all business information at the first time. At present, Internet financial companies such as fox financial services are vigorously developing blockchain technology. Through the characteristics of decentralized blockchain technology and distributed storage, they can enhance user information management and enhance regulatory efficiency.

7. In fact, it's very simple to let you have a taste for a few days. In fact, it costs dozens of yuan to hang up for one day. When the number of people recharged reaches a certain number, the website will be closed. To put it bluntly, it's a liar

8. Because this technology is crucial, the state should re promote the blockchain technology

9. Internet finance has the following risks:
1. It is the risk of credit default, that is, whether Internet financial procts can achieve their promised return on investment
for example, the current yield of Alibaba's yu'ebao is less than 5%, and the nature of yu'ebao is money market fund. But the expected rate of return of Baifa is as high as 8%, which makes us want to ask, what is the basic asset of Baifa's final investment? Under the background of sluggish global economic growth, declining potential growth rate of China's economy, widespread overcapacity in domestic manufacturing instry, insufficient opening up of domestic service instry, and graally emerging risks of shadow banking system, how to achieve 8% high yield is not only to provide bridge loans to enterprises, but also to provide financing for real estate developers and local financing platforms, What are the high yield investment channels
2. Term mismatch risk, that is, the term of Internet financial procts investment assets is long, while the term of liabilities is very short. Once the liabilities can not roll on time, liquidity risk may occur. Of course, one of the major functions of financial institutions is to convert short-term funds into long-term funds, so financial institutions will face varying degrees of maturity mismatch, and the key is the degree of mismatch. Lenovo has made a promise to allow investors to redeem at any time, which undoubtedly exacerbates the liquidity risk to the greatest extent. We should not only allow redemption at any time, but also give an expected yield of 8%, which certainly makes inexperienced investors happy, but also makes experienced investors full of doubts
3. Lender of last resort risk
as mentioned above, although commercial banks also face the risk of maturity mismatch, and financial procts issued by commercial banks also face the risk of credit default and maturity mismatch, an important difference compared with Internet finance is that commercial banks can finally obtain the support of the last lender provided by the central bank. Of course, this support comes at a great cost. For example, commercial banks must pay 20% of the statutory deposit reserve, their own capital adequacy ratio must be higher than 8%, and they must meet the requirements of regulators on the risk provision and liquidity ratio. In contrast, Internet finance is currently facing the situation of lack of supervision, so the operating cost is low. But if there is no protection of lender of last resort, who will pay for the default of Internet financial procts? Do Internet financial enterprises have the ability to build a strong independent risk defense system
in addition to the above traditional risks, China's Internet financial procts also face a series of unique risks. The author will sort out these risks from high to low in order of importance:
4. Legal risks
at present, the Internet finance instry is still in the state of "no threshold, no standard, no regulation". As a result, some internet financial procts (especially wealth management procts) wander in the gray area between legal and illegal, and may touch the high-voltage line of "illegal absorption of public deposits" or "illegal fund-raising" if they are not careful< Dragons and fishes jumbled together in China's Internet finance field e to lack of barriers and standards. BR and the Internet have become more and more vulnerable. Once the Internet bubble is formed and a bigger default occurs, China's government will tighten its grip on Internet finance too early, thus restraining the sustainable development of the instry. China's Internet finance instry should avoid repeating the chaos in the early development of trust instry and securities instry
5. It makes it more difficult for the central bank to regulate money and credit
on the one hand, Internet financial innovation makes the central bank's traditional intermediate target of monetary policy face a series of challenges. For example, should virtual currency (such as Q currency) be included in M1? Another example is that Internet financial enterprises are not subject to the legal deposit reserve system, which actually leads to the amplification of the monetary multiplier. Another example is how to look at the interaction and transformation between traditional currency and virtual currency; On the other hand, the development of Internet finance also weakens the effect of the central government's credit policy. For example, if the traditional financing channels of real estate developers are tightened, it is likely to consider financing through Internet finance. In fact, the macro background of the great development of China's Internet financial procts in the past year is related to the tightening of the supervision of the shadow banking system by the Chinese government, which leads to the local financing platform, real estate developers and other market entities have to find new financing sources
6. The risk of personal credit information being abused. First of all, Internet financial enterprises obtain personal and corporate credit information through data mining and data analysis, and use it as the main basis for credit rating, whether this is reasonable and legal; Secondly, whether the information obtained through the above channels can truly comprehensively and accurately measure the credit risk of the subject being rated, and whether there are selective errors and systematic deviations in it< 7. Information asymmetry and information transparency. As mentioned earlier, the Internet finance instry is in a state of lack of supervision. So, who will verify the authenticity of the information provided by the ultimate borrower, whether there is an independent third party that can carry out risk control on it, and how to prevent the Internet financial enterprises from self-monitoring and theft? After all, the relevant investigation shows that there is a professional risk control team in the Internet P2P companies to recommend small money fans
8. Technical risk
unlike traditional commercial banks, which have highly independent communication networks, Internet financial enterprises are in an open network communication system. The security of TCP / IP protocol is facing great criticism, and the current key management and encryption technology is not perfect, which makes Internet financial system vulnerable to computer viruses and network hackers. At present, considering the high risk of Internet financial account theft, many people are hindered from participating in Internet finance, which is by no means without professional financial or IT personnel. Therefore, Internet companies must continuously invest in their own trading systems and data systems to ensure their security, which will undoubtedly increase the operating costs of Internet financial companies and weaken their cost advantages over traditional financial instries.

10. Supply chain finance can make the core enterprise upstream and downstream small and medium-sized enterprises which can't borrow money from the bank quickly obtain funds. When the small and medium-sized enterprises quickly obtain funds, the proctivity will be improved, which improves the proction efficiency of the whole supply chain and naturally improves the utilization efficiency of funds. There is another mode, such as the domestic cloud image credit reporting, which is to provide big data risk control system for banks and core enterprises. After data risk control, it will give a credit line to direct small enterprises, and help small and medium-sized enterprises directly connect with the capital end according to the credit results, avoiding the traditional idle link of funds in the hands of core enterprises, so as to improve the capital turnover efficiency. Finally, the supply chain financial loans are generally non mortgage credit loans, so small and medium-sized enterprises can use the existing assets to mortgage, can obtain more funds, which also improves the speed of capital flow.