Shanghai Electric Group's Patent Application: A Blockchain and Homomorphic Encryption-Based Data Sharing Method for Supply Chain Finance

Shanghai Electric Group's Patent Application: A Blockchain and Homomorphic Encryption-Based Data Sharing Method for Supply Chain FinanceOn December 18, 2024, the State Intellectual Property Office of China revealed that Shanghai Electric Group Digital Technology Co., Ltd

Shanghai Electric Group's Patent Application: A Blockchain and Homomorphic Encryption-Based Data Sharing Method for Supply Chain Finance

On December 18, 2024, the State Intellectual Property Office of China revealed that Shanghai Electric Group Digital Technology Co., Ltd. filed a patent application (publication number CN119130628A, application date August 2024) for a "Method for Data Sharing in Supply Chain Finance Based on Blockchain and Homomorphic Encryption." This application aims to address the challenges of data security and efficiency in supply chain finance by combining blockchain and homomorphic encryption technologies to provide a secure and reliable data sharing platform for supply chain finance participants.

The patent abstract details four key steps of the method:

First, the buyer's core enterprise's access control process ensures the authenticity and reliability of participating parties' identities. This step is crucial for the security of the entire supply chain finance system, as only rigorously vetted enterprises can access the system and participate in data sharing and transactions. This effectively reduces the risk of malicious attacks or manipulation.

Second, supplier order bidding and financing credit approval. The system assesses suppliers for financing credit based on their qualifications, credit rating, and order information. This process can be automated, improving efficiency and reducing delays and errors caused by manual intervention. Blockchain technology ensures transparency and immutability in the credit approval process, preventing manipulation.

Third, supplier contract signing and loan disbursement. Once financing credit is approved, the supplier can sign a contract with the buyer's core enterprise and receive the corresponding loan. This step is also automated using smart contracts, enabling automatic contract generation, signing, and execution, reducing manual intervention costs and risks, and ensuring contract legality and validity.

Fourth, repayment by the buyer's core enterprise. Within the contractually agreed period, the buyer's core enterprise must repay the loan to the supplier. The entire repayment process is managed by smart contracts, ensuring timely fund arrival and transaction transparency.

The core of the patent application lies in its ingenious combination of blockchain and homomorphic encryption technologies. Blockchain technology ensures the immutability, non-repudiation, transparency, and traceability of data sharing and transactions. Through smart contracts, decentralized identity (DID) services, and smart contract scheduling robots, the method achieves automation and secure monitoring of the entire supplier financing cycle.

Specifically, blockchain technology plays the following roles in this patent: first, it provides a secure and reliable data storage and transmission mechanism, ensuring data integrity and consistency; second, the application of smart contracts automates various aspects of supply chain finance, reducing manual intervention and errors, and improving efficiency; third, distributed identity (DID) services enhance participant authentication and management, improving security; and finally, smart contract scheduling robots achieve automated scheduling and monitoring of the entire process.

Homomorphic encryption further enhances data sharing security. It allows computations on encrypted data without decryption. This means core enterprises and suppliers can share encrypted operational data for analysis and computation without exposing the original data. This achieves the goal of "data availability without visibility," protecting business secrets and sensitive information. Homomorphic encryption protects data privacy while ensuring data availability, which is crucial for supply chain finance, which requires extensive data sharing.

The significance of this patent application lies in its provision of a novel solution to the security and efficiency challenges of data sharing in supply chain finance. By combining blockchain and homomorphic encryption, the method effectively reduces financial risks, enhances monitoring of the financing process, improves data sharing security, and ultimately promotes the healthy development of supply chain finance. Its application can improve the efficiency and security of supply chain finance, reduce transaction costs, promote the development of SMEs, and contribute to building a more secure and transparent supply chain finance ecosystem. Its successful implementation is expected to drive the digital transformation and innovation of the supply chain finance sector, enhancing the competitiveness of the entire industry. This is of significant importance not only to Shanghai Electric Group but also to the entire supply chain finance industry. The innovation lies in its clever combination of two advanced technologies and their application to a specific supply chain finance scenario, resulting in a significant improvement in data sharing security and efficiency. In the future, as this technology continues to be refined and promoted, it will bring convenience to more enterprises and drive the continued development of supply chain finance. This patented technology, while addressing data security and efficiency issues, also provides a guarantee for the compliance of supply chain finance, further promoting the standardized development of the industry.