The Chinese Government Approves NFTs on One Condition
The government of China has provided clarity over its regulatory allowances concerning the trading of NFTs. In what is perceived as conditional approval, China will permit only NFTs that run on the BSN Open Permissioned Blockchain (OPB).
There will be a total of ten permissioned blockchains on the BSN OPB upon which approved NFTs will run. One of the blockchains is named the Jiuquan chain. Jiuquan does not have a native token, therefore it fits the conditions of the setup, which required the use of the Chinese Yuan as the medium of transaction for all protocols on the BSN mainnet in the country.
Although the technology behind this approved system is consistent with NFT development around the world, China’s system is differentiated even down to the nomenclature. The NFTs that will be traded on the BSN OPB has been renamed Decentralized Digital Certificates (DDC). Rebranding this way goes beyond just differentiating China’s NFTs from the rest of the world. There are other intrinsic benefits to presenting the digital assets as DDCs.
According to Yifan He, CEO of Red Date Technology and the Executive Director of BSN Development Association, this model will expose the digital assets to more value. He noted that the biggest market for DDCs lies in certificate account management of all types. Yifan also noted that in terms of ownership, DDCs offered better proof, ahead of any other form of digital certification. He also believes that this model of implementation will attract a huge market that would lead to billions of DDCs issued every year in China, in the future.
China’s desire to maintain proper oversight on the digital assets industry is a well-documented phenomenon. The ban on cryptocurrency activities explains how far the country will go to restrict technologies over which it cannot exert proper regulation. This is the main idea behind the creation of the Blokchcian-based Service Network (BSN). It is the country’s way of providing a regulated but diversified platform for different kinds of blockchain protocols.
The BSN’s diversity cuts across different areas. At the same time, it provides a cheaper and regulated cross-portal, cross-protocol, cross-cloud, and cross-framework public infrastructure. Various kinds of blockchain functionalities can be deployed on the BSN, including dApps and smart contracts. This makes it suitable for the use-cases for which it is being deployed by the government.
The DDC model of NFTs approved by China will be powered by the community-centric decentralized blockchain platform, Neo. It is an open-source platform equipped with versatile features that enable dApps development and the management of digital assets. The platform is expected to function as the bridge between the rest of the world and the Chinese digital market.
The Jiuquan chain project is primarily aimed at expanding NFTs adoption in China. According to reports, Neo also plans to integrate its domain name service as part of the Jiuquan chain. This development is also expected to be of immense benefit to Neo, whose native token jumped by 11% within 24 hours of this information going public.
Full details of the BSN DDC project are expected to be released in March 2022, after an official launch in Nanjing.