Tue, Aug 18, 2020 8:50 PM

Massive Implementation Of Blockchain Technology In China In 2020

CJ stand in front of Chinese

The Chinese government is extremely interested in blockchain thanks to the support of Chinese President Xi Jinping. In October 2019, he called for the development of blockchain technology and transferring the country into a leader in this area. Soon after that, Chinese search engines and messengers began to search for the “blockchain” term hundreds of times more often.

In October 2019, Chinese President Xi Jinping announced the need for China to become a leader in blockchain technology. The key “milestone" on the way to this goal appears to be the Blockchain-based Service Network (BSN).

The main goal of BSN is to become the "Internet of blockchains,” according to the white paper of the project. BSN is a large-scale infrastructure, the critical task of which is to reduce costs and simplify the launch of blockchain applications. As the authors of the white paper calculated, on average, the cost of developing and further maintaining blockchain platforms and applications is about 100 thousand yuan (more than $14 thousand) per year. Similar services based on BSN will cost $300-$400 per year for the developers.

This is expected to accelerate the adoption of decentralized technologies, as well as stimulate the development of smart cities and the digital economy.

At the first BSN conference, seven primary characteristics of the new infrastructure were announced:

  • Openness;
  • Usefulness;
  • Scalability;
  • Open source;
  • Multi-portal;
  • Low cost;
  • Autonomy.

If all the declared goals are achieved, and many major industry players join BSN, this will have a significant impact on the spread of blockchain around the world.

Columnist David Peng noted that the BSN launch could be part of China's plan to "become the sole infrastructure provider for blockchain companies around the world.” This will undoubtedly strengthen the influence of the PRC and consolidate its position in the world arena.

The Chinese government has included in the official register the third batch of blockchain companies that are allowed to operate in China. The new pool includes 224 companies.

140 government services have already implemented blockchain. The use of distributed ledger technology has helped to reduce costs by 40% and has become a breakthrough that could not be achieved with traditional systems.

The government noted that services using blockchain are divided into three categories. This is the exchange and transmission of data, their joint processing, and the storage of electronic licenses and certificates like a system for registering real estate. There are 11 public sectors, including the Municipal Planning Commission, the Housing and Urban-Rural Development Commission, the Tax Bureau, the Public Security Bureau, and others.

Wine blockchain

Chinese tech giant Tencent has announced plans to develop a blockchain-based platform for Changyu, the country's oldest and largest wine producer.

Thanks to the blockchain, Changyu will track every stage of wine production and sale, including the planting of vines, growing grapes, winemaking, and distribution of finished products. Each bottle of wine will receive a unique certificate that can be used to track all the details of production. This will be the first project of this level in China.

Buyers will be able to get complete information about the wine, including grape varieties and dates of the grape harvest, where it was grown, as well as rainfall levels and temperature in the area. Also, thanks to the new system, distributors and retail outlets will be able to more easily identify counterfeit products, as well as batches that have not passed quality control.

Residents of Shenzhen pay for transport via a blockchain application

The Internal Revenue Service of the Chinese city of Shenzhen has allowed residents to pay for rail, public transit, and taxi fares through a blockchain app. 

Internet conglomerate Tencent, Shenzhen Metro Group, MTR Shenzhen Group, Gaoguang Technology, and Guangdian Express joined the initiative of the department. The new blockchain platform is available at Futian Metro Station. It allows passengers to pay for their digital tickets at the end of each trip via the WeChat messenger app. All payments will be recorded on the blockchain.

Shenzhen is China's leading technology center. About 20 million people live there. It is expected that the blockchain ticketing system will be able to serve up to 170,000 passengers per day.

Given all the progress in this area, BSN may become the reason for technological evolution.