The National Audit Office of the People's Republic of China is considering a Blockchain solution to address the problem of what it describes as the "endless storage and data management cycle" for its current infrastructure, according to an announcement posted on its website April 24
The National Audit Office is tasked with auditing all financial transactions related to the government and administers a centralized data center that stores the relevant data for each subordinate audit office in the country, at the provincial and municipal levels.
The situation he faces is, therefore, an "infinite expansion of the data center hardware and software requirements" to manage a colossal amount of centralized data, as well as a complex and starving personnel system.
Consensus Algorithms as Blockchain Solution
The article proposes that a Blockchain solution, which uses "distributed node consensus algorithms to generate and update data, and encryption and decryption algorithms to ensure transmission and access to data," would significantly reduce the central government's workload.
Each subordinate audit office would be accredited as an individual node with the task of "equal rights and obligations" to collect, maintain and manage the data. The central data center will keep only the timestamps and will supervise the confidentiality and legality of the data operations of the subordinate auditors.
The article also highlights the potential to use smart contracts to automate data management processes. Although the Chinese government's policy is notoriously difficult in the cryptocurrency trade, the country seems more receptive to Blockchain technology. In March, a government memo was leaked detailing plans to create an "International Blockchain Investment Development Center" and in February a patent filed by the Bank of China for a scale solution of Blockchain technology systems was published.
On April 22, a $ 79 million Blockchain venture capital fund was announced to support Blockchain's local startups at the Blockchain Expo in Shenzhen City.