A few years ago, few pundits would have predicted that China would emerge as a major player in the blockchain market. The world’s largest country is defying expectations, as well as its own traditional outlook on blockchain. CoinDesk reported that China was on the verge of launching its own national blockchain platform last month.
A number of interesting blockchain developments have been reported in China over the last few months. Major financial institutions such as WeBank, the nation’s first digital bank, will likely begin to rely more heavily on new blockchain developments.
China’s Blockchain Initiatives Will Create New Opportunities
Despite being home to the coronavirus outbreak, China appears to have been successful in quelling and managing the spread of the disease. This has helped to precipitate a modest economic recovery in April, despite widespread uncertainty and the suggestion that nations such as the U.S. may seek financial sanctions following the global pandemic.
Interestingly, fixed-asset investment and industrial output rebounded considerably last month, while the level of decline in retail sales was also curbed following a catastrophic March.
The recent burst of growth has also encouraged an existing alliance of Chinese government groups, banks and tech companies to revisit their plans to launch the blockchain-based service network. But what exactly is this, and will it help to revolutionize the global economy through the widespread utilization of blockchain?
What is the BSN?
The development of the BSN underlines China’s influential role in the evolution of blockchain, which will be the first network of its type to be built and maintained by a central government.
In this respect, it will serve like a large-scale blockchain operating system, which is expected to incorporate existing programs while enabling users to build their own bespoke tools. The latter selling point is especially important, as it makes blockchain technology accessible on a huge scale without requiring individuals to design a framework from the ground up.
Ultimately, the BSN proponents claim that this network could actively reduce the cost of doing blockchain-based business by up to 80%, which is crucial when you consider the cost of this technology and how this currently provides a significant barrier to entry.
By the end of this year, the network hopes to have nodes in up to 200 Chinese cities, at which point the technology could well evolve to become an accepted global standard.
Changing the World Through Blockchain
This type of network would undoubtedly cement China’s reputation as a prominent leader in the development of blockchain technology, despite the concerted efforts of major entities and trading blocs such as the EU to claim this title.
One of the main reasons for this is the appetite with which China has invested in blockchain patents, despite the widespread ban on cryptocurrency products that exist within the region.
Of course, the mere notion of holding blockchain patents is controversial due to the supposedly decentralized and open source nature of this technology, but this has not stopped China from buying up huge swathes of intellectual property within this market.
Of course, this highlights the far-reaching and universal appeal of blockchain as a broad economic force, as while the technology is synonymous with cryptocurrency and revolutionizing the forex market, it offers far greater versatility that initially meets the eye.
In this respect, the BSN is creating a global infrastructure in which China will forge lucrative partnerships with banks and telecom giants to become the face of the future economy, while offering an enticing first-mover advantage to selected strategic partners.
Internal testing of the BSN seems to bear this out; with applications such as smart cities (in which sensors are used to collect data and glean insight for the management of public resources), improving efficiency and the safety of individuals in the process.
With this in mind, the formation of the BSN could finally help China to fulfill its true economic potential, after years of being restricted by a stringent and officious regulatory approach.
Chinese Blockchain Breakthroughs Bring New Changes to the Market
China has invested more resources in blockchain development in recent months. These new breakthroughs will create new economic opportunities for the nation in the foreseeable future.