Chinese Blockchain startup, logistics companies, and financial institutions have formed Blockchain Application Sub-Committee that was previously initiated by the China Federation of Logistics & Purchasing last week at the 2016 Fintech Global Summit.

The Sub-Committee aims to focus on the promotion of blockchain technology in logistics by introducing blockchain technology and business training, R&D standards of blockchain for logistics, blockchain-based company credit mechanism and finally the total upgrading and re-direction of the logistics supply-chain industry, the release stated.

Shenzhen Digital Singularity (BitKan) is the only blockchain firm participating in the Sub-Committee and will be working with traditional logistics and supply chain companies to develop comprehensive blockchain solutions. The company will also be responsible for setting standards and regulations for the field.

"The procedures of logistics are so long that problems occur constantly. Problems like losses and cargo shipping mistakes require powerful tracing ability. It is obvious the blockchain technology can perform well for logistics in that regard,” Liu Yang, CEO of Shenzhen Digital Singularity (BitKan) told Bitcoin Magazine. “The perfect combination of blockchain technology and logistics industry will tackle the financial hindrances in logistics, and significantly improve efficiency.”

The Sub-Committee is working on a blockchain-based company credit mechanism and would use blockchain to tag and anchor the credit rating of supply chain companies. The team is targeting on small and medium-sized firms that cannot rely on traditional lenders for loans, the Bitcoin Magazine reported.

Shenzhen Digital Singularity (BitKan) was founded in 2013 and was launched by former employees of China-based IT and internet giants, Huawei and Tencent. BitKan, a popular all-in-one app, is being operated by Shenzhen Digital Singularity.