Chinese city turns to blockchain for worker payments
Chengdu city in China has launched a dedicated mobile app backed by blockchain to ensure secure and transparent payments for its migrant workers, who are typically victims of salary disputes.
The app, called An Xin Zhu, records and encrypts data like work attendances based on facial recognition, work contracts, shifts, orders, and reviews and feedback from recruiters, according to Ledger Insights.
Blockchain is a digital ledger of transactions that are held in real-time across a distributed network of computers. Records, once logged, are irreversible as any change will first have to be verified across the network.
This means that companies can record and verify transactions to ensure each payment is issued accurately. It also prevents workers and employers from tampering with the data once it is logged.
An Xin Zhu has been trialled at 70 places across China, with some 25,000 migrant workers registered and over 20 million yuan (US$3.1 million) transferred on the app.
Last year, Beijing’s local government built a blockchain platform issuing some 40 types of e-certifications, ranging from IDs, to marriage certificates and business licenses.