China Crypto Roundup (Aug 10- Aug 17): Bitcoin Mining Legalization Foreseeable, China’s National Blockchain Network Launched New Global Portal, China to Pilot Digital Yuan in More Cities
The top stories from the Chinese cryptocurrency sphere this past week includes: China’s digital yuan will be piloted in more cities across the country; China’s Sichuan province revealed the second batch of demonstration enterprises for hydropower consumption covering a batch of blockchain companies; ETH transaction fees are skyrocketing with the price of moving tokens around on the Ethereum blockchain continuing to balloon.
China is expanding digital yuan pilot to more cities
The move, announced by the Ministry of Commerce, expands the coverage area for testing the cyber currency to a potential user base of around 400 million, or 29% of the country’s population.
The official statement shows these cities include those in the northern Chinese region of Beijing-Tianjin-Hebei, eastern region of Yangtze River Delta, “Greater Bay Area” around the Pearl River Delta, and some cities in Midwestern China where conditions are met.
Cities like Shenzhen, Chengdu, Suzhou, Xiong’an New Area and future winter Olympic scenarios will assist in the pilot project, and then it will expand to other regions as the case may be. The digital currency trials are part of a broader package of initiatives Beijing rolled out on Friday to stimulate innovation and encourage further opening of its service sector.
Ebang plans to launch crypto exchange in Singapore
Nasdaq-listed bitcoin mining machine maker Ebang (EBON) has announced it established a wholly-owned subsidiary in Singapore, in preparation for establishing a cryptocurrency exchange there.
The China-based company has set up a subsidiary in Singapore, it and would seek relevant approval and license to expand its business, according to an announcement on Friday.
However, currently the Chinese mining manufacturer is seeking the relevant governmental approval and license to operate the cryptocurrency exchange and related business. There is no guarantee that Ebang will receive such approval and license on commercially reasonable terms, “or at all,” said Dong Hu, Ebang CEO and Chairman.
Alibaba’s subsidiary AntChain formulated new cross-chain standard
Ant Group, a subsidiary of China’s Internet giant Alibaba launched an international cross-chain standard for blockchain technology.
The Standard for Blockchain Interoperability Data Authentication and Communication Protocol, known by its code P3205, is a data authentication and communication protocol that will be applied to isomorphic and heterogenous cross-chains.
The P3205 standard is a significant step in establishing a more robust foundation for blockchain development in China. Currently, each blockchain project utilizes different data structures. Blockchain projects are also based on different proof methods, which results in a very complex verification process and inconsistent roots of trust across various networks.
ETH transaction fees skyrocketing amid DeFi frenzy
ETH transaction fees are skyrocketing with the price of moving tokens around on the Ethereum blockchain continuing to balloon as DeFi sector is booming at a startling rate. Data shows that the transaction fees have recently accounted for over half of the block reward.
While ETH network miners have been happier of late, raking in almost 5 folds the fees collected by their BTC rivals.
China’s national blockchain network launched new global portal
China’s blockchain-based Service Network (BSN) has officially launched a new global website on August 10, developers from six blockchain platforms, covering Ethereum, EOS, Nervos, Tezos, NEO and IRISnet now are able to build Dapps and run nodes through the data storage and bandwidth of BSN overseas data center.
The new website allows developers to use BSN services and public chain services via the portal. The likely implications for developers from the six blockchains who will have to build Dapps and run nodes using data storage and bandwidth from BSN’s overseas data centers have to be identified. Its likely impact on the overall blockchain space should also be envisaged.
Bitcoin Mining Legalization Foreseeable in China’s Sichuan province
China’s Sichuan province, known as the world’s bitcoin mining capital has recently revealed the second batch of demonstration enterprises for hydropower consumption, in which several “big data” companies are usually the cover of blockchain companies, or more bluntly bitcoin mining operations are listed.
Local government of Sichuan province’s intention of constructing the hydropower consumption demonstration zone is mainly to promote local economic development via the compliant use of hydropower. The local government’s support of compliant bitcoin mining operations will be an attraction for bitcoin miners.