Blockchain Adoption Crucial to Chinese Enterprises
Strategic investments in digital transformation by the government, enterprises, and vendors have propelled China’s blockchain adoption ahead of other regions, a Forrester analyst has said in a new research.
Charlie Dai notes in its six months study on blockchain adoption in China that the country’s blockchain market has undergone two periods of development in the past decade – from blockchain 1.0 in which pioneering firms largely focused on digital currency applications to blockchain 2.0 when visionary enterprises and vendors began to gain business value by piloting blockchain technologies.
“Since the second half of 2019, the prioritization of enterprise customers, the technology progress made by tech leaders, and the pragmatic measures taken by the government have been driving the Chinese market into the age of blockchain 3.0 — when blockchain adoption gains momentum in all major verticals,” he writes about his finding.
Dai also notes that the enterprise blockchain platform (EBP) market in China – covering three categories: software vendors, cloud service providers, and consulting service providers – is gaining momentum with vendors who play key roles in driving business application and technology advancement.
These roles include the software vendors providing on-premises software to power blockchain initiatives; cloud service providers offering blockchain as a service to jump-start innovation; while consulting service providers tailor blockchain solutions to customer needs.
The short analysis comes as the enterprise blockchain software firm R3 announces it is partnering with China’s Blockchain-based Service Network (BSN) to license its Corda Enterprise to develop a permissioned blockchain network in China and a free Corda-based Open Permissioned Chain on BSN.
The move, which is the first time BSN has acquired rights from an overseas blockchain provider to resell its enterprise blockchain platform in China, will enable local Chinese firms to benefit from Corda’s strength in the areas of privacy and security.
With the partnership @R3, China Corda Network will be available on BSN in about four months to provide reliable blockchain solutions to Chinese banks. The notary nodes of corda enterprise and free version of nodes will be hosted on China UnionPay's Cloud. https://t.co/MQ3T5rYpCI
— BSN (@bsnbase) March 30, 2021
Known to act as an operating system for blockchain programmes so developers won’t have to design a framework from the ground up, the BSN structure seeks to support the blockchain revolution as a service through compressing cost and by increasing interoperability between public and private networks. Its partnership with R3 will see Corda Enterprise be available to Chinese firms through the BSN public city nodes by H2 2021.
BSn’s Yifan He notes in a statement that aside from giving Chinese developers low-cost access to Corda technology, the partnership will “also facilitate the adoption of Corda and CorDapps in all Chinese banks, enabling Chinese financial companies to streamline their business processes and enjoy the significant benefits of enterprise blockchain.”
According to the EY Global Blockchain Leader, Paul Brody, blockchain may not operate efficiently at scale until it can be integrated into companies’ enterprise resource planning (ERP) systems to create fast, reliable and repeatable processes. ERP systems enable a shared understanding of business operations and common processes for the single enterprise. Brody writes in his article:
“With deep integration into their enterprise ERP systems, and the redefinition of processes across boundaries, companies can take full advantage of blockchain platforms and achieve the full benefits of having one set of facts and shared processes across historically limited enterprise boundaries.”