JD.com, ITG Build Blockchain Solution for Paper Contract Signing Problems
To address the various problems encountered in the process of signing a paper contract, JD Digits and ITG (International Trade Group) Holding have announced they will be partnering to jointly build a new digital signing model based on JD’s electronic cloud contract platform.
From easy forgery of signatures or seals to the necessity and inconvenience of either in-person signing or contract delivery and the difficulty of tracing the source of disputes, the signing of a binding physical contract between two parties has been an age-long everyday practice that’s continued today though fraught with its inadequacies. The traditional paper contract signing also goes through tedious processes.
ITG Holding is a state-owned Fortune Global 500 company. It will look to reduce cost and time expenditures by 80% and decrease contract costs by 60% to improve the efficiency of trade cooperation through the new model, JD E-sign, for its supply chain management, real estate operations and financial services business.
JD E-sign will rely heavily on blockchain technology developed by JD Digits to enable digital signing for a variety of contract categories, including sales, transportation, warehousing, port operations, guarantee letters, mortgage letters, receipts etc., as well as encrypt and store all information to prevent data leakage.
The Chinese retail giant says blockchain’s use is to ensure that the signing process is tamper-proof and fully traceable, featuring real-name authentication, electronic signature, a verified time-stamp and more—all in compliance with China’s “Electronic Signature Law”, which provides legal grounds to determine the validity of electronic legal documents. It will also ensure that the signed contract on the blockchain is digitally-filed with copies of the contract stored simultaneously with various judicial and notary institutions including the Beijing Internet Court, the Guangzhou Internet Court, and the Beijing Notary Office to register the legality of the document and make it be readily available for search and viewing by relevant parties either online or via a WeChat miniprogram.
JD.com, Inc – alongside Huawei Technologies Co. Ltd and Baidu, Inc – is one of the Chinese companies monitored by Fortune Business Insights in a new study on the blockchain market size, share and the likely impact of COVID-19 on the industry as a platform/solution and Blockchain-as-a-Service (BaaS) component.
The e-commerce company launched its cloud-based BaaS in May to reduce the barrier to entry for small and medium enterprises and other companies with the need of informatization, and provide more agile access for them to make use of JD’s blockchain technologies quickly – having initially introduced blockchain to track and trace the source and supply chain of products on its platform in 2017.