THEKEY, a historical breakthrough by being the first ever to use the blockchain technology to improve the lives of magnitudes of populations in social insurance
Dear Community Members:
On the 20th of June 2018 — two weeks ago, THEKEY, the Ministry of Human Resources and Social Security (MHRSS) of the People’s Republic of China, and the China Social Insurance Association (CSIA) entered into a Cooperative Agreement on Research into Blockchain Applications for Chinese Social Insurance Scheme, which establishes a new National Laboratory dedicated to exploring Blockchain Technology applied to Social Insurance. This is the official launch of THEKEY’s application of blockchain technology in service to the world’s largest insurance entity.
Against this background, and in support of the above Laboratory, this same day I also announced the launch of a Scientific and Research Fund through which, over the next five years, we will channel a total of 20 million USD to both Chinese and global research institutes for the purpose of comprehensively addressing all of the challenging technical, management and regulatory issues that lay ahead for us.
With blockchain technology, and our proprietary BDMI (Blockchain based Dynamic and Multi-dimension Identification) platform as a competitive advantage, we at THEKEY are dedicated to fundamentally improving the management of China’s social insurance services and, consequently, the efficiency, resilience and health of its funds. We are working to do so from the following six perspectives:
1. Blockchain technology can systematically reduce the risk of distrust between the different institutions across the Chinese social insurance ecology. By nature, being “undeniable and unalterable”, blockchain technology is able to address the trust issues through betterment and improvement of integrity, reliability and accuracy of the insurance data, including profile and transaction records of insured.
2. The use of smart contract technology to automatically settle claims increases the efficiency of relevant transactions.
3. Records transacted on the blockchain are traceable, undeniable and unalterable, and thus are optimal for meeting the requirements of social insurance audits — further reducing fraud, abuse and waste of social insurance funds.
4. The use of Blockchain can and will greatly improve the efficiency of social insurance payments, transactions, clearance and settlement by enabling simultaneous clearance, settlement and data audits. Transactions that have historically taken days will now take minutes.
5. Blockchain will significantly reduce operational costs for the social insurance agencies. Currently, cross-institution and cross-department transactions plus associated internal audit procedures are extremely tedious, time-consuming and expensive. By simplifying social insurance procedures and reducing the foreground and background interaction through blockchain, the social insurance agencies will increasingly be able to deliver far better service to consumers at far lower cost.
6. Finally, the deployment of blockchain will also facilitate the increased commercialization, application and general value of social insurance data by ensuring not only more secure data transmission and transactions across various stakeholder institutions.
We are greatly honored to have this unique opportunity to serve the Chinese social insurance. What is most exciting about this activity is that it is not only a breakthrough for THEKEY and its partners in China, but also a ground-breaking event for the global blockchain industry, which are now provided with an unparalleled real-world application scenario by the Chinese social insurance.
1. Chinese social insurance scheme currently covers nearly 1.4 billion people. It has collected invaluable real-name social insurance data across China’s entire population. Providing optimal protection and use of these data across the different vested interest entities through blockchain technology can realize value via these data, which represents a very clear and lucrative business model for THEKEY.
2. The existing Management Information System of the Chinese social insurance can be used by THEKEY, with slight modification, for the application and promotion of blockchain technology nationwide, which will greatly reduce our investment in the corresponding infrastructure.
3. As the largest payer in country, the Chinese social insurance has very strong power to lead the society to reach a positive and healthy consensus, from which THEKEY will be greatly benefited.
4. China’s social insurance system delivers universal coverage to all of its citizens. More significantly, it is an indispensable and frequently used component of the lives of all of our nearly 1.4 billion citizens. Therefore, the related blockchain products can be promoted quickly and widely to form an extremely large user base of THEKEY at very low cost.
To date most blockchain applications have mainly focused on the issuance and transactions related to cryptocurrency and profit generation from speculation related to token price fluctuation. As such the application of blockchain cannot be considered a significant social revolution.
But to the extent that the unique and evolutionary advantages of blockchain technology can and will increasingly be used to address fundamental social issues related to people’s livelihood, quality of life and national economy, the evolution of blockchain will realize ever greater magnitudes of social, economic and commercial value and recognition.
I strongly believe that the THEKEY is in the process of delivering a historical breakthrough by being the first ever to use the blockchain technology to improve the lives of magnitudes of populations never before realized with this technology. Indeed we are confident that we are going to quickly emerge as the world’s largest social impact blockchain project covering the world’s largest population — and delivering the greatest measurable social and commercial value.
I am quite confident THEKEY is now on the right track, and that we are already beginning to enjoy a better tomorrow from a true value perspective!
Catherine Li
Chairwoman and CEO of THEKEY
About THEKEY
THEKEY is a decentralized ecosystem of Identity Verification (IDV) tools integrating national big-data and the blockchain. THEKEY’s project team is now developing its identification verification (IDV) tool with blockchain using its proprietary Dynamic Multi-dimension Identification (BDMI) platform, uniquely using Personally Identifiable Information (PII) that has been exclusively authorized by the Chinese Government. THEKEY token (TKY) is the only method by which to settle smart contracts signed between all participants across THEKEY Ecosystem. THEKEY testnet was launched in May 2018, and its mainnet is scheduled to be released at the end of this year. TKY is currently tradable across a number of exchange platforms such as HitBTC, Bit-Z, KuCoin, Lbank, Coinrail and LATOKEN.
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