Majority of Chinese Companies Don’t Plan to Cut Down on Blockchain Spending
Blockchain allows trustless and secure movement of data. That adds a new dimension to the current industrial situation where servers are often hosted by one entity, and a magnitude of trust by other players is required for the centralized player. For example, it can verify the authenticity of the procured goods or ensures the goods or the information did not tamper while transmitting. The transactions in the Blockchain are verified by multiple nodes, which ensure that bad-actors cannot alter information.
Because of the pandemic outbreak, many industries, especially those requiring mass physical gatherings, have witnessed low throughput like cinemas, travel, weddings, etc. Industrial and manufacturing throughput also went down in various countries because of the imposed lockdowns and stay-at-home orders.
However, the pandemic was not able to scratch the tech industry, which kept on growing even as countries across the world implemented lockdown and social-distancing. The primary reason for that is that most of the tech services and products can be delivered via the internet, and most of the employees’ work can be delivered and managed remotely. This operational leverage puts the tech industry far ahead of other industries and has emerged out as a winner industry in the pandemic times.
The pandemic has put an increased focus on the tech industry with the governments and law-makers trying to find more ways to leverage the industry. Blockchain can also find it’s potential applications in problems like contract-tracing, securely sharing and storing medical records of the individuals. The countries which have been able to leverage technology at mass-scale have been able to combat the virus easier than others.
In a survey of 350 companies done by the research institute of the Tsinghua University, it found that over 20% of the companies plan to increase their capital investments in their industrial blockchain plans. 70% of the surveyed companies have no plans to cut down on their blockchain spendings.
The report, which was jointly compiled by the China Federation of Logistics & Purchasing’s Blockchain unity and Internet Research Institute at Beijing’s Tsinghua University, comes after the large investment company Fidelity reported an increased activity by institutional investors in the crypto space.
With the growing emphasis on data security, many firms are now coming to terms with the benefits a decentralized, trustless ledger can offer.
The report also highlights that Blockchain will be one of the main beneficiaries of the 5G revolution, where fast internets with extremely low latencies will be rolled out throughout the world. In the inter-connected world, it would become essential to have complex data storage and distribution policies.
8BTC earlier reported that Blockchain has been included in China’s 50 Trillion “New Infrastructure Plan” with other emerging technologies like cloud computing, AI, and IoT.
The previous industrialization focussed on factories, railroads, fuels, and manufacturing. The new industrialization plan of China, which is worth nearly $7 Trillion, will focus on the modern age industrialization in which huge bets are placed on Blockchain.
With the growing institutional and industrial interest in Blockchain, the industry is set to grow faster than expected in the post-outbreak world.