Survey of blockchain application of electronic invoices (on)

Original: SNC Analysis Department

Source: Standard Consensus

Editor's note: This article has been deleted without changing the original intention of the author.

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Overview

This article will start from the electronic invoice industry and analyze the electronic invoice and blockchain electronic invoice industry as a whole in order to improve the industry map.

Report

Chapter I Overview of Electronic Invoice Industry

Definition of electronic invoice

Electronic invoices refer to receipts and payment vouchers that are electronically stored and issued when purchasing or selling goods, providing or receiving services, and engaging in other business activities. Like ordinary invoices, it is issued to the merchants in a unified manner issued by the Inland Revenue Department. The invoice number is uniformly coded nationally, and unified anti-counterfeiting technology is used to allocate to the merchants. The electronic invoice is accompanied by the signature mechanism of the electronic tax bureau. Electronic invoices include debit notes, purchase orders, credit notes, money orders, and payment terms and instructions.

In a broader legal sense, the additional number of invoices and invoice-like documents can be huge and can be 5 to 15 times the number of invoices. Invoices are different from receipts (payrolls, tickets). Invoices and receipts are a way to track the purchase of goods and services. In general, the content of an invoice can be similar to that of a receipt, including tracking sales amounts, calculating sales tax owed, and calculating any discounts that apply to purchases. For example:

• Electronic reports, VAT statements for verification or auditing purposes only.
• Digital version of payment receipt-electronic (payment) receipt generated at a branch of a point of sale (POS, store, restaurant, ticket counter), sent to tax authorities only for verification or review purposes (eg in Taiwan and some Latin American Americas).

Invoice classification

Source: Standard Consensus

Electronic invoice

Source: Internet public information

The characteristics and value of electronic invoices

In the digital economy, the availability of Internet technologies, cost pressures, and the desire for new sources of value have all become the driving forces behind the adoption of electronic invoices.

Electronic invoices commonly use cloud-based services. This is also the main factor driving the growth of the global electronic invoice market. Cloud computing plays an important role in solving inefficiencies in the organization and promoting sustainable business growth. In addition, by using cloud computing, organizations' redundant procedures, management, software, and hardware costs can be avoided. By generating web forms and web invoices on the Internet, electronic invoice data can be entered online, increasing processing speed.

The shift from traditional paper invoices to electronic invoices heralds the public and private sector's desire for technological innovation. In fact, in Europe alone, electronic invoices are expected to generate hundreds of billions of euros in revenue annually for society.

For ordinary consumers, electronic invoices have the following three advantages:

Keep safe

The electronic invoice can be stored in the electronic invoice library for a long time and safely, and the query and download can be provided at any time, and the user does not need to worry about the loss or damage of the invoice.

Rights protection

In the event of disputes over online transactions by users, technology and electronic invoice vouchers serve as an effective means of transaction evidence collection.

Anti-counterfeiting function

The electronic invoice anti-counterfeiting mode is electronic, so there is no need to worry about receiving fake invoices.

Difference from paper invoices

The traditional invoicing process has always been part of the broader business process, including placing and accepting orders, completing, delivering, and paying. From the buyer's perspective, this process is from purchase to payment, and from the seller's perspective, this process is from order to cash. Therefore, from a business process perspective, invoices are by no means an isolated work process, but always the result of other processes.

Invoices are traditionally commercial documents used by buyers and sellers of goods and services. It was developed through customs and conventions, but usually imposed some legal requirements on it. The most important of these are tax requirements, especially those related to VAT.

There are differences between paper invoices and electronic invoices in invoice media, application, issuance, old inspection, archiving, anti-counterfeiting, etc., which also results in different costs for their use. Compared with paper invoices, electronic invoices can reduce the cost of invoices for the issuer, save time and cost for the recipient of the invoice, and effectively improve the user experience of both parties.

The difference between paper invoices and electronic invoices

Source: Internet public information

The implementation of the electronic value-added tax invoice system is conducive to promoting social progress, saving social resources, and creating a healthy and fair tax environment for taxpayers. It is an important measure for tax authorities to promote the modernization of taxation and realize "Internet + taxation". Compared with traditional paper invoices, invoices are issued faster and more easily.

Paper publishing reimbursement process

Source: Standard Consensus

Electronic invoice reimbursement process

Source: Standard Consensus

Types of electronic invoices

Source: Standard Consensus

Chapter II Analysis of the Development of Electronic Invoice Industry

Analysis of the Development Status of Foreign Electronic Invoice Industry

Globally, electronic invoices have received the attention of only a few countries. In electronic invoices, about half of current bills and invoices are service invoices, and the other half are tangible goods invoices. Invoices are usually issued between business-to-business (B2B) or business-to-individual (B2C). At present, there is a strong sense of invoicing for inter-company transactions (B2B). One of the reasons for this is that the amount of transactions between companies (B2B) is large and the terms are complex. Contracts and invoices are required to leave traces of transactions, which can provide future disputes This is confirmed; the second is that the value-added tax invoice can be included in the purchaser's cost and is tax deductible for the purchaser. Therefore, as the business reform increases, the proportion of invoicing for inter-company transactions will continue to increase. In contrast, business-to-individual (B2C) billing rates are lower.

The adoption of electronic invoices in countries around the world

Source: EY, Standard Consensus

 

Electronic Invoice Scale in 2019

Source: Billentis

Analysis of the development status of China's electronic invoice industry

Overview of the development of China's electronic invoice industry

Based on information analysis by the National Bureau of Statistics, various government ministries, and the National Economic Information Center, the annual invoice size of the Chinese market exceeds 200 billion. In recent years, the electronic invoice industry has gradually expanded from e-commerce and telecommunications to insurance, retail, catering, transportation, utilities and other industries. Geographically, it has also expanded from a single pilot area to an entire country. In 2017, China issued 1.31 billion e-invoices, and its service market revenue was approximately 248 million yuan. The number of electronic invoices issued in 2018 was 3.27 billion, an increase of 257.1% over 2017. It is estimated that by 2022, the electronic invoice market will reach 54.55 billion.

Source: Zhiyan Consulting

At present, there is no uniform pricing for electronic invoices in the country, but it is clear that the space at the base level is derived from the difference between the cost of electronic invoices and paper invoices issued by enterprises. 60 million yuan. At present, China issues approximately 200 billion paper invoices every year. Based on the savings of 60 million for every 200 million invoices, 200 billion will save 60 billion. From the analysis of the savings shared by enterprises and electronic invoice service providers, it is estimated that the market space of the basic layer is 30-40 billion yuan.

Development history of China's electronic invoice industry

Since the implementation of the tax reform in 1994, taxes have grown rapidly each year.

According to the data from the Ministry of Finance, from January to November 2019, the national general public budget revenue was 17.967 trillion yuan, a year-on-year increase of 3.8%. The tax revenue of the general public budgetary revenue of the country was 14,996.9 billion yuan, an increase of 0.5% year-on-year, accounting for 83.64% of the total revenue; non-tax income was 2,926.8 billion yuan, an increase of 25.4% year-on-year. Among them, the domestic value-added tax is 5,794.8 billion yuan, the domestic consumption tax is 1,239.4 billion yuan, the corporate income tax is 3.688 trillion yuan, the personal income tax is 950.2 billion yuan, and the value-added tax and consumption tax of imported goods are 1,468.6 billion yuan.

Starting from the "tax-sharing reform" initiated by the State Administration of Taxation in 1994, over the years, China has invested a lot of energy in the application of information technology to tax control. The purpose of the tax-sharing reform is to strengthen tax control through the use of information systems, especially the process of tax collection and management of VAT.

In the first stage of the tax-sharing reform, the State Administration of Taxation developed a VAT anti-counterfeiting tax control system to shift the VAT taxation process from manual to a digital information management system. Until the end of the second phase of the tax-sharing reform in 2007, the coverage of all general taxpayers in China and the cancellation of all manually edited special VAT invoices were all completed.

Online invoices were part of the third phase of the tax-sharing reform and were introduced in 2009. It's still a paper invoice, but it's issued online instead of manually.

The publication of the "Blue Book of Chinese Electronic Invoices" in June 2011 marked the beginning of the promotion of electronic invoices. Subsequently, the country began to introduce a number of policies each year to help electronic invoices from multiple dimensions: cut in from the e-commerce industry in 2012 and established a network in 2013. Invoice management measures. Soon, the pilot cities have rapidly increased from the initial 8 to almost all major cities in China, and in 2015 the scope has expanded to more industries. Each pilot city has an electronic invoice service platform, which is managed by local tax authorities and connected to customer applications from different pilot companies. According to the description of the classic evolution model adopted by electronic invoices, China is clearly in the B2C network stage and is about to enter the next stage-the application of B2B electronic invoices.

In June 2014, Jingdong Mall issued the first B2B electronic invoice in China to PICC Insurance Company as a trial. In 2014, more cities, such as Shanghai and Guangzhou, developed plans for B2B adoption and are still ongoing.

At present, the tax-sharing reform is in the third stage, and its main goal is to establish a national tax service platform. In 2015, the electronic invoice issuance industry expanded to large retail, telecommunications, and financial and insurance industries. The second half of 2015 was the time for the incorporation of supporting policies: standardized network architecture, electronic file storage, and electronic invoice reimbursement and other related items were implemented one by one.

The addition of “implementing electronic invoices” to the draft of the 2016 13th Five-Year Plan highlights the importance of electronic invoices in the future development of the country, which is in line with the long-term tone of the “Internet + Taxation” Action Plan for 2015-2020.

China's electronic invoice industry operating model

From upstream to downstream, the industry is a tax control equipment provider, an ERP system provider, a payment giant, and an independent third-party service platform.

The profit model of the third-party electronic invoice platform is mainly based on "charging an annual service fee". According to the description of the package price of the electronic invoice product package in the Ali service market, the aerospace information and Baiwang electronic invoice platform service providers have adopted the form of "basic package + package package" to charge the issuer. The input of the electronic invoice service platform is mainly composed of two parts, one is the hardware input (including the construction of the computer room and the server purchase), and the other is the system upgrade.

Source: Ai Media Consulting

From the perspective of industry competition, tax control equipment providers have been fixed and exist as the "infrastructure" of the industry. For UFIDA and Kingdee, the main business is enterprise ERP software development and system transformation. What they earn is system development and transformation revenue. There is no core monopoly. The electronic platform they provide must eventually be connected with the aerospace information and Baiwang electronic platform. ERP and payment giants are basically unable to become potential entrants, and independent third-party service platforms have become the blue ocean.

 

Development characteristics of China's electronic invoice industry

Geographically diverges from first- and second-tier cities

At present, the issuance of electronic invoices is a model of integration of tax control disks and third-party service platforms. In theory, there is a platform for domestic third-party electronic service platforms to meet, but this does not comply with China's current tax management system. The platform may be constructed at the provincial level to implement services such as the issuance and inspection of electronic invoices. The implementation of electronic invoices requires basic servers, supporting technical interfaces and personnel. These basic elements can be met first in first- and second-tier cities.

Provinces and municipalities that have launched electronic invoice industry trials

Source: GF Securities Development Research Center

Industry expansion from online to offline industries

At present, electronic invoices are mainly used in e-commerce, insurance, telecommunications and other high-electronic industries, while large retail industries that are to be developed in the proposal of domestic trade circulation are thunderstorms, and important breakthroughs in the future are also going offline Industries, especially high-frequency trading industries such as retail, on the one hand, electronic invoices have a higher cost-cutting effect on these high-frequency trading industries, and the value of data stocks in offline industries is very useful. After the amount of industry penetration has accumulated to a certain extent The emergence of derivative industries such as bank-tax cooperation auxiliary credit reporting business and enterprise-level services has gradually begun to develop, so that the space of the electronic invoice industry can be completely opened.

Taxpayers from ordinary taxpayers to small-scale taxpayers

Judging from the current pilot results, the companies that issue electronic invoices are mainly general taxpayers, mainly large and medium-sized enterprises such as e-commerce and telecommunications companies. In the future, with the gradual improvement of charging policies, incentive details, and corporate services, regional electronic invoice platforms The scale advantage will be used to attract small-scale taxpayers to settle in, and a gradient charging policy will be implemented for different customers' billing volume and bargaining power to further increase market penetration.

Analysis of influencing factors for the development of China's electronic invoice industry

At present, the pressure faced by the electronic invoice industry is partner pressure, competition pressure, government pressure and regulatory attention.

Partner pressure

Trading partners are an important factor because the value of electronic invoices can only be maximized when many trading partners use electronic invoices. As more and more companies rely on their trading partners economically, the pressure of trading partners makes them more likely to adopt electronic invoices. Network effect theory believes that as the number of participants increases, the value of each participant participating in the network also increases. Multiple empirical studies have shown that trading partners are the decisive factors for the adoption and use of EDI systems, e-procurement, and e-commerce. Because electronic invoices are closely related to these innovations, it is expected that the pressure of trading partners will greatly affect the way companies adopt electronic invoices.

Competitive pressure

Competitive pressure refers to the degree of pressure a company feels from competitors in the industry. Economists assume that the spread of innovation will increase or decrease with increasing competition. Some empirical studies have shown that competitive pressure is a powerful driver of IT adoption and dissemination. As market competition intensifies, companies may feel the need to adopt electronic invoices. Therefore, it can be assumed that competitive pressure will have a significant impact on the adoption of a company's electronic invoices.

Government pressure

Government pressure or promotion will play an important role in the adoption of electronic invoices. The private sector in a country can be motivated to adopt electronic invoicing, which provides supporting infrastructure, legal and regulatory frameworks, and instructions for using electronic invoicing. Governments may also set requirements for companies doing business with the government. Empirical research on the significant progress made by Japan, South Korea, Singapore, and other Pacific Rim countries suggests that government is a major factor in its success. With the Chinese government's clear commitment to the development of electronic invoices, companies will see more potential and therefore more likely to adopt it. Current facts have shown that government support and pressure have greatly affected the way companies use electronic invoices in China.

Regulatory concerns

Studies have shown that regulation may hinder the use of innovation, and in the past technological revolution, regulation has often lagged behind technological and organizational changes. As the development of electronic invoices is still in the experimental stage in China, relevant regulations have not been adjusted to fully protect the legality of electronic invoices in all business areas. Although electronic forms of invoices are currently available and effective in B2C, in the B2B market involving more businesses, the only acceptable form of invoice is still paper. In addition, legislation on e-taxes is in the making and has not yet been completed. Companies have high hopes for the process.

Chapter III Analysis of the Development of Blockchain Electronic Invoices

Analysis on the Development Characteristics of China's Blockchain Electronic Invoice Market

Blockchain electronic invoice history

On August 10, 2018, the Shenzhen International Trade Revolving Restaurant in Shenzhen issued the nation's first ordinary electronic blockchain electronic invoice, declaring that Shenzhen has become the country's first pilot electronic blockchain electronic invoice city. The blockchain electronic invoice is an important landing product of the Shenzhen Taxation Bureau and Tencent's "Smart Tax" Innovation Lab. The blockchain electronic invoice is one of the key projects of the "Smart Tax" Innovation Lab.

On March 18, 2019, the nation's first rail transit blockchain electronic invoice was issued at Shenzhen Futian Station, announcing the promotion of Shenzhen blockchain electronic invoice to the transportation industry. On May 30 of the same year, the “Taxi Assistant” applet jointly created by the Shenzhen Taxation Bureau, the Municipal Transportation Bureau and Tencent was officially launched. This is the nation's first electronic invoice application platform for the taxi industry, covering more than 2 in the city. Tens of thousands of taxis provide passengers with a new ticketing experience of issuing blockchain electronic invoices anytime, anywhere, saving 59 taxi companies in the city to save about 10 million yuan in printed paper invoices each year. Over the past few months, the taxi industry has issued a total of 300,000 tickets.

With blockchain electronic invoices, operators can apply for invoices, issue, check, and enter accounts on the blockchain; consumers can implement on-chain storage, circulation, and reimbursement; and for tax regulators and administrators' tax bureaus, In other words, it can achieve scientific and technological innovation of the whole process supervision and realize paperless intelligent tax management.

The blockchain electronic invoice has the characteristics of complete traceability of the entire process, and information cannot be tampered with. It is in line with the invoice logic, which can effectively avoid fake invoices and improve the invoice supervision process. The blockchain electronic invoice will connect to each invoice stakeholder, and can trace the origin, authenticity, and accounting information of the invoice, and solve the problems of overreporting, false reporting, and difficult to check. In addition, it has the advantages of reducing costs, simplifying processes, and ensuring data security and privacy.

Blockchain electronic invoice characteristics

Blockchain electronic invoices are where these two revolutionary technologies work together. One of the benefits of using the blockchain in the payment process is that invoices can be placed in a decentralized blockchain network and can be accessed by multiple users at the same time. Any changes made to the invoice or related information will be permanently recorded, indicating who changed the content and time.

This secure and convenient way of access, coupled with the transparency of changes and the immutability of records, eliminates the need for intermediaries to verify and change. The result is that electronic invoices can be shared via the blockchain, and payment status can be simply recorded against them. This eliminates the need to process and transfer invoices by connecting to the system layer or the authenticator.

The blockchain electronic invoice changes the dynamics of the entire invoice process. On decentralized blockchains, invoices remain static, and various systems access and modify this to indicate payment status. The tamper-resistant and verifiable nature of transaction records on the blockchain has brought unprecedented trust to the payment process. In return, this provides the confidence to process payments faster, while improving the flow rate efficiency of cash flows, such as dynamic discounting to speed up payments.

The characteristics and value of electronic invoices

Remove Bill Transfer Agent

Tickets are valuable documents and always require a hidden "third party" role to ensure the safety of both parties during the delivery process. For example, in electronic bill transactions, both parties to the transaction actually passed the information exchange and authentication of the People's Bank of China's electronic commercial money order system; in paper bill transactions, the third party that both parties trusted was the authenticity of the bill. However, with the help of the blockchain, a third party does not need to monitor and verify the information transmitted by the two parties, nor does it need a specific physical object to prove the trust between the two parties, and realize the "invisible" value transfer between peers.

Improve operational efficiency

Because the blockchain does not require a central server, the existing system development model is greatly optimized. Once system optimization or changes are needed, there is no need to go through multiple linked time spans, such as requirements code test production verification, which is a major advantage for billing systems that now rely on the system to handle billing systems.

Changes to the structure of the existing electronic commercial money order system

The existing electronic money order system is a typical centralized model. The People's Bank of China has taken the lead in developing a centralized registration and data exchange system. Other banks or businesses are accessed through direct connections or online banking agents. This makes all the receipt, transaction, payment and other aspects of the bill need to pass through the data channel of the ECDS system, which is not only a centralized data storage platform, but also a third-party authentication and resource interaction platform.

After adopting a distributed structure decentralized by the blockchain, the existing system storage and transmission structure has changed, and a more secure "multi-center" model has been established. It can also fully reflect the process from the generation to the extinction of the bill through the time stamp, which has traceable historical characteristics. The model has a new continuous "endorsement" mechanism that truly reflects the transfer of bill rights.

Analysis of Blockchain Electronic Invoice Structure

Blockchain electronic invoice platform design principles

The core of the electronic invoice blockchain is to establish alliances between the State Administration of Taxation, electronic invoice operators, invoice companies, corporate users, individual users and other related parties. Through the blockchain technology development platform to achieve the full life cycle management of electronic invoice assets, through smart contracts to achieve business operations within the alliance, consensus decision-making, management operations, performance of rights and obligations. Finally, the value of electronic invoices is transferred for mediation, reducing the risk of electronic invoice circulation, and improving operational efficiency to create business value.

First, the architecture and implementation of the electronic invoice blockchain is geared towards specific services. From the typical use cases of enterprise applications, we should design the electronic invoice blockchain protocol and system features to ensure that the system can finally meet the needs of many enterprises.

The second is standardization. Because the blockchain application scenario is a multi-party participation and collaboration scenario, the electronic invoice blockchain needs to design standardized protocols and data structures from the top to solve the problem of data interaction between enterprises and avoid coexistence of multiple chains. The formation of data islands during the development of blockchain technology has made blockchain truly a basic protocol for standardized Internet value exchange and trust transfer.

The third is loose coupling and modularity. The electronic invoice blockchain adopts a modular design, and the loose expansion of the module is achieved by defining a clear interface between the modules, thereby achieving a good scalability of the entire system. The system can use different pluggable module components according to the needs of different users and scenarios.

In the end, simple and efficient system design principles must be followed, and a more concise system concept model must be defined as much as possible to reduce the user's learning costs and reduce the risk of coding defects in the implementation of complex distributed systems.

Technical Analysis of Blockchain Electronic Invoice

The overall structure of the electronic invoice blockchain is divided into three levels: the core layer, the service layer, and the application layer. Adopting a bottom-up design approach, first focusing on the design of the core bottom layer of the blockchain to solve the problems of data standardization and multi-chain interoperability in enterprise-level applications; the second is to define a universal blockchain system service layer, Achieve loosely coupled, pluggable specific functional components, and address enterprise-level application requirements. They can be customized according to specific circumstances. Finally, based on the core and service layers, specific blockchain implementation platforms and related tools and development kits are provided to quickly Implement enterprise-level blockchain applications.

Electronic invoice alliance chain network architecture

Source: MATEC Web of Conferences

Combined with blockchain technology, we can build an electronic invoice alliance chain based on the Internet-based alliance chain model. In this blockchain, the tax authorities are introduced to implement the supervision mechanism on the blockchain system. The tax authorities have uniformly formulated the operating standards and contract conditions of the blockchain. Each node and participant in the blockchain must comply with Act on established trading rules.

In the constructed electronic invoice alliance chain, the third-party service platform has a tax digital certificate issued by the tax authority. As the producer of the blockchain invoice, it is responsible for the authenticity and validity of the invoice data; each node on the blockchain is It runs independently according to the public algorithm of the related invoice business developed in advance, maintains the normal operation of the blockchain, and is responsible for recording distributed invoice books. In this way, a non-tamperable, undeniable, traceable and accessible distributed invoice management system can be formed in the blockchain.

The electronic invoice alliance chain uses an optimized BFT consensus protocol and P2P communication to support multi-chain parallel consensus. The improved BFT algorithm is used to dynamically adjust the network topology to achieve dynamic join and active exit. At the same time, users can choose non-Byzantine consensus protocols (such as Raft) with better performance according to their needs to improve the efficiency of the entire blockchain. In order to cope with various business scenarios, meet information security requirements and improve business throughput, the blockchain supports a multi-chain architecture. Irrelevant business runs on multiple parallel blockchains, providing linear scalability for the business. For the interoperability between multiple chains, the relay chain mode is adopted, and relay chain nodes in all directions submit proposals, and the results are determined after consensus.

Competition Analysis of Electronic Invoice Market

Tencent blockchain electronic invoice platform

There are many startups or companies that use blockchain to pilot electronic invoice systems. By far the most successful is China-based Tencent. It launched the electronic invoice blockchain platform in 2017. China Merchants Bank (CMB) is one of the organizations participating in the pilot project of Shenzhen Taxation Bureau of the blockchain, and released the first blockchain electronic invoice in November. In terms of assets, China Merchants Bank is the eighth largest bank in China, ranking 31st in the world. This also means that the blockchain electronic invoice system has officially received the approval of mainstream companies.

On August 10, 2018, the State Administration of Taxation, Shenzhen Taxation Bureau and Tencent jointly issued the nation's first blockchain electronic invoice.

In November, the Shenzhen Blockchain electronic invoice officially landed at global retail company Wal-Mart.

In December, the WeChat payment merchant platform officially launched the blockchain electronic invoice function.

On March 18, 2019, it was also a product of Tencent. Tencent Ride Code Shenzhen launched the blockchain electronic invoice function, which is a combination of "payment + travel + blockchain".

On May 30, Shenzhen taxi officially connected to the blockchain electronic invoice function.

In August, Tencent launched the "Invoice Folder" application, which implements electronic and mobile reimbursement of electronic invoices based on the corporate WeChat platform.

One year later, blockchain electronic invoices have covered more than 100 industries, with more than 5,300 connected enterprises, and a total of more than 6 million blockchain electronic invoices have been issued, with a total billing amount of 4 billion yuan.

Schematic diagram of Tencent blockchain electronic invoice business process

Source: Tencent Blockchain White Paper

As shown in the figure above, according to the blockchain white paper released by Tencent in 2019, the Tencent blockchain electronic invoice business process includes ticket collection, invoicing, circulation, acceptance, and accounting, which are divided into four steps.

1. The tax authority writes invoicing rules on the tax chain, puts invoicing restrictions on the chain, implements approval, and controls invoicing.
2. The invoicing company applies for an invoice on the chain, and writes the transaction order information and on-chain identity.
3. The taxpayer claims the invoice on the chain and updates the taxpayer identity on the chain.
4. The receiving company checks the invoice, locks the status of the invoice on the chain, audits the account, updates the status of the invoice on the chain, audits the account, updates the status of the invoice on the chain, and finally pays the reimbursement.

Through the use of blockchain electronic invoices, Tencent successfully solved the problem of information islands, realized the status of invoices can be traced and traced; realized paperless reimbursement, solved the problem of paper document costs; solved one overreporting, falsely reporting Problems, and helped the government to increase supervision.

As for the problem of low TPS in general blockchains, the single-chain performance of Tencent's blockchain exceeds 50,000 TPS. In 2018, in the first batch of trusted blockchain standard evaluation results of the Ministry of Industry and Information Technology of the Ministry of Information Technology and Communications, Tencent blockchain won the first place.

Companies using blockchain in this regard include Request Networks, TallyStick and sand Applied Blockchain. With Request Network, any person or company can request payment from another party or company, suitable for a variety of application scenarios, including online payment, invoicing, auditing and accounting, the Internet of Things or transparency. Companies or individuals can create and share invoices; handle advanced payment terms such as late fees, prepayments and taxes; and avoid paying 1.5% to 6% commissions to third parties.

With Tallysticks, companies can keep all their transaction information (such as purchase orders and pro forma invoices) in one place on the blockchain, preventing call delays and unforeseen costs and information differences.

There are many other projects that use blockchain for electronic invoicing, these projects mainly involve supply chain business, trade finance, international trade, etc. Other projects use licensed blockchains operated by IBM and other entities.

Conclusion

This article mainly introduces the industry map of electronic invoice industry and blockchain electronic invoice through three chapters. In the second half of the report, we will outline the environment, development prospects and trend analysis of the blockchain electronic invoice industry.

Disclaimer:

• Beware of illegal financial activities under the banner of blockchain and new technologies. The standard consensus resolutely resists illegal activities such as illegal fundraising, online pyramid schemes, ICOs, various variants, and dissemination of bad information.

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