Wealth, talent pour in as strong government support for technology, industrial innovation accelerates development of sector
China is bullish on the blossoming blockchain sector, seeing it as the next frontier for national competitive advantages as well as a digital future.
As one of the first major countries to acknowledge the potential of the blockchain technology, China is ramping up efforts to push toward global dominance over blockchain, the underlying technology behind digital currencies like bitcoin and a wide range of applications.
The country is moving rapidly ahead in constructing a robust blockchain network, as President Xi Jinping highlighted the key role of blockchain technology in the new round of technological innovation and industrial transformation last October, urging more efforts to accelerate the development of blockchain technology and industrial innovation.
Xi’s speech unleashed a wave of activity and now the country is in the midst of a blockchain boom.
Experts and entrepreneurs believe the government’s strong support for blockchain technology will boost the future development of the sector, but cautioned that it is necessary to be rational and not hype the concept.
Combining the application of distributed data storage, encryption algorithms and other advanced technologies, blockchain offers an open and decentralized database of any transaction involving money, goods and property among others. It provides a high level of security by creating a record whose authenticity can be verified by the whole community.
Wei Kai, deputy director of the Cloud Computing and Big Data Research Institute of the China Academy of Information and Communication Technology, said as wealth and talent pour into the blockchain sector, the technology will be applied to a wide range of real-world scenarios.
“The government’s strong support will further standardize and develop blockchain in China. The development of blockchain will also empower the financial sector and the real economy, as it will help improve efficiency, reduce operating costs and build a more efficient credit system,” Wei said at the recent Trusted Blockchain Summit 2019 in Beijing.
Wei noted that blockchain technology will be a new frontier of innovation in various fields, including cross-border payments, global trade, logistics, supply chain, finance, government affairs, intellectual property protection, food traceability and invoicing.
In fact, China is at the forefront globally in terms of blockchain development, as the country is leaping ahead in terms of blockchain patent filings, said a recent report released by the China Academy of Information and Communication Technology.
As of July 25, 2019, there were more than 18,000 blockchain patent applications globally, of which China accounted for more than a half of the total. Among the top 20 global corporate applicants, Alibaba and China Unicom have gained the top spot and fifth place respectively.