China Authority’s Items of Blockchain Service Purchase
China’s authority has been rigorously stamping down on all things related to cryptocurrencies, while blockchain-related service is welcomed by Chinese government. We’d like to talk about blockchain-related service purchased by China’s authority and affiliated institutions from December 12, 2016 to September 24, 2019.
The blockchain-related service purchased by China’s authority and affiliated institutions covers seven major field, including education and scientific research, finance, customs & border protection, transportation, employment and entrepreneurship, service for agriculture, rural areas and farmers, Internet security, social security, health care.
Beijing, as the political center of China, makes up almost half of the purchase amount. The purchase amount of governments and affiliated institutions in China has reached a large scale. The average annual growth rates of the three indicators include budget, project transaction amount, transaction amount of blockchain are of 453%, 724% and 1188.5% respectively.
Chinese authority tends to rely on those well-known enterprises, for example, Ernst & Young and Huawei. Those famous enterprises provide blockchain-related service for Chinese authority with their expertise.
The earliest record of Chinese government affiliated institution to purchase blockchain-related service is for Tsinghua University( one of the best universities in China). The name of the procurement project is ” National Engineering Laboratory of E-commerce Transaction Technology Based on Blockchain Data Protection System”. At that time, the procurement budget was 900000 Chinese yuan. And this project is also the only blockchain-related project bought by government institution in 2016.
Chinese government has adopted blockchain technology in numerous scenarios. China Welfare Lottery even applied the smart contract technology to the electronic lottery system to solve the problems that the current electronic lottery system in the welfare lottery industry cannot be notarized and audited.
American government’s expense on blockchain-based analysis service increased three times, reaching 10 billion dollars over the past three years. Compared to America, about 200 million yuan is spent on blockchain purchase services by governments and affiliated institutions in China, which is far less than the American government.
The suppliers for blockchain service in China are relatively decentralized, as 57 kinds of service are provided by 46 suppliers. While Chainalysis accounts for 92.2% of the total amount of government orders in America.
Chinese government and the crypto world are inseparable. The authority not only grasps the trend of crypto world with their extremely fast learning abilit, but also issue relevant laws and policies to clarify the boundaries of the industry. At the same time, they directly purchase blockchain-related services and influence the industry by the hand of the market.