China Eyes Blockchain Standards to Cement Industry Leadership
The director of the Blockchain Research Office of the China Electronics Standardization Institute has disclosed that China is working on its first national blockchain standards.
Li Ming says his institute is participating in the development of the blockchain standards which has reportedly reached the approval stage expected to be released by mid-2022.
The standards are to ensure there is a baseline and essential for the conducting of detailed research on the entire technology, application, and industry.
Since the somewhat endorsement of blockchain technology by the country’s premiere, Xi Jinping, China has been at the forefront of the industry in recent years particularly in terms of investment and application.
Afterwards, a report by global market intelligence firm, IDC, estimates that China’s spending on blockchain technology will reach over $2 bln in four years. According to Xinhua, China’s expenditures on blockchain technology will see a compound annual growth rate (CAGR) of 65.7% by 2023 spanning across the banking sector, manufacturing, retail, and professional services with doors opening to other sectors too.
The release of a set of guidelines at this time could put China in front of the emerging technology’s leadership especially now that the country has given up on its once-held position as the leader for Bitcoin hashrate share – there’s been a shift to the U.S. for bitcoin miners following China’s crypto mining ban in May.
The standards are to ensure there is a unified industry such that devices from different manufacturers could be able to connect to a network, Ming says.
It should be noted that China currently runs one of the largest frameworks being developed for blockchain developers. On its launch, China’s Blockchain-based Service Network (BSN) was seen as a framework that seeks to increase the blockchain adoption competition between countries. It was dubbed the largest attempt at blockchain adoption by the government of a powerful nation.
The launch of BSN is a big leap for the Chinese government to offer a positive environment for the development of an innovative solution. It was meant to make it easy for anyone to plug in to build through its multiple permissioned and open blockchain for as low as $300. However, despite the international competition for blockchain adoption, China’s leadership is still in question says Jason Wu, CEO of DeFiner.org.
“In China, Government related R&D, think tanks, and stated owned companies are leaders in the field of blockchain,” Wu said. “However, the general public or private sector is not as advanced as the U.S. The fundamental principle of blockchain is about decentralization to achieve standardization and to become a public commodity like oil or coal. This usually fails if the project is led by a big organization, as the fundamental consensus is different. BSN will be like a traditional IT platform — it can’t solve the trust issue as there is still a centralized organization to manage the network. For this reason, it is not a blockchain breakthrough nor will it bring fundamental change to society.”