20 July 2018

THEKEY Project Will Use Blockchain & Big Data To Help Chinese Social Security Save Billions!

THEKEY today released the ‘big news’ it was hinting at over the last couple of days. Together with the China Association of Social Security (CAOSS) and the Social Medical Insurance Bureau of Heilongjiang Province, they have established a GPO or Group Purchasing Organization. The newly founded  ‘Laboratory of the National Group Purchasing Organization of Healthcare Resources’ or NPC is aimed at lowering the cost of healthcare products and services for the Chinese social security system. THEKEY has been appointed as the exclusive technical service provider for the NPC.

THEKEY continues to weave itself into the fabric of the Chinese Social Security system

THEKEY is an Identity Verification provider which has been developing its proprietary BDMI technology. BDMI stands for Blockchain-based,  Dynamic, Multi-dimension, Identity verification and has the promise to provide undeniable and unalterable identification of people. THEKEY’s ambition is to roll out its BDMI services across China

The project was already lauded for its progress in achieving real-world implementation of its technology in cooperation with the Chinese government. THEKEY has exclusive access to government PII data, which allows the IDV provider to facilitate identity verification for the Chinese Social Security, resulting in the faster resolve of insurance claim verification. For the average Chinese citizen, this translates into less paper bureaucracy and faster payments.

THEKEY project’s first-generation IDV technology is already being rolled out across a number of cities in China and recently THEKEY also started to test its MVP blockchain based BDMI technology in real situations and was successful at it.

Real world implementation of ‘Blockchain Technology’

The announcement today that it will become the exclusive technology service provider for such a strategically important part of the future supply chain of the Chinese Social Security is another significant vote of confidence for THEKEY Project, and its ability to execute in the sector of blockchain and big data.

The current ‘privacy’ problem

The problem today is that while China has a massive unified social security system and collects vast amounts of data, it does not share those health records within their healthcare system due to privacy concerns.

The solution provided by leveraging the ‘Blockchain’

THEKEY’s proven expertise in handling and utilizing government data securely now frees the path for the Chinese government to selectively, allow for these healthcare records to be shared with different agencies in their medical insurance system. By combining blockchain and big data, China’s massive social security system, which spends around $220 billion USD per year, will be able to start rationalizing its procurement channels, potentially saving billions of dollars.

The GPO will directly serve the ‘State Healthcare Security Bureau of China’ (SHSB).  A pilot program will be launched in the Heilongjiang Province covering a population of 38 million Chinese citizens.

Another clue that elevates ‘identity’ as a key selling point

While on the surface of it, this agreement has nothing to do with the BDMI technology itself, as THEKEY will be aiding in the creation of a ‘Blockchain & Big data’ based platform to allows for efficiencies in the procurement of healthcare supplies and services.

However, nothing could be further from the truth. It actually also demonstrates how THEKEY will be able to leverage its ‘Identity Verification platform’ and access to Chinese Government owned PII data across a multitude of applications, as THEKEY’s identity services actually are critical for this application too.

Not only does this add another real-world implementation of blockchain technology for THEKEY. It actually solidifies its leading position as the unofficial custodian of ‘governmental PII’ data, which it is allowed to commercialize.

While this new blockchain based supply chain system still has to be built and we’ll have to wait for confirmation on some of its details. One could be under the impression that the consultation of healthcare records will have to be settled in TKY.

In closing

Whatever the case may be, it is clear that by strengthening government ties, THEKEY project is setting itself up for continuous support within the different layers of Chinese bureaucracy. The road ahead is still long for THEKEY as we are still not in the phase of mass adoption, however, the project is most definitely moving the needle in the right direction!

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