Chinese authorities are preparing to adopt a set of standards for the development and implementation of blockchain. Government organizations believe it will advance the development of the industry. After their official approval, the Chinese blockchain standards may become global.
China is accelerating the technological application and industrial development of blockchain.
Its current five-year development plan sets goals for the advancement of blockchain, along with AI, big data, and cloud technologies.
The next step in the development of distributed ledger technology in China is standardization, which will make it possible to quickly implement new blockchain projects and establish connections between existing ones.
On October 27, the Fifth Western Regional Blockchain Development Competition took place in Chengdu, China. The annual competition has been held since 2017 and identifies the best scenarios for using blockchain. The theme of this year's competition centered on combining innovation and standards. Speaking at the event, Li Ming, director of the Blockchain Research Department of the China Electronic Standardization Institute, said that Chinese authorities are already considering a national blockchain standard.
Blockchain in China is already a mature technology, ready to be applied in different industries. However, companies must use standardized and secure applications for effective partnerships and data exchange. The industrial launch of projects based on DLT requires new legal regulations, and the emergence of standards will combine legislative compliance with technological reality.
The State Institute for Standardization of Electronic Products of China is responsible for the development of the country’s blockchain standards. Li Ming believes that having a national blockchain standard is fundamental to the industry. As is the case with Wi-Fi and Bluetooth, blockchains must meet a set of requirements before they can connect to the network.
The standard contains a single system of concepts and a list of related parties and functional components of the system in the blockchain and their roles and responsibilities. The standards also provide descriptions of typical architectures, smart contract templates, and data security requirements.
China's first national blockchain standard is pre-approved and will be accepted in the middle of next year. After this, the Standardization Institute will develop evaluation criteria to build a secure and reliable digital ecosystem.
In recent years, blockchain in China has changed its format. Large platforms and applications are replacing local specialized networks. According to Chinese experts, a consolidated and reliable infrastructure will solve the problem of trust.
The national Blockchain Service Network was founded in 2019 by the State Information Center of the People's Republic of China (SIC) and launched in the spring of 2020. BSN is the basis for creating blockchain-driven smart city projects for Chinese companies and citizens.
The BSN is controlled centrally but retains some of the benefits of decentralization.
China has other national infrastructure platforms, such as Spark Chain, led by the Ministry of Industry and Information Technology, and regional platforms like Shuxin Chain in Sichuan and Chang'an Chain in Beijing. Those blockchains contain the architecture for applications for a range of industries including public affairs, finance, private distribution, medicine, etc.
In October 2019, Chinese President Xi Jinping called on officials to ensure China's leadership in blockchain technologies. After that, the authorities accelerated the issue of a national
digital currency and initiated the regulation of blockchain developments.
At the end of May 2020, the National Blockchain Development Fund was established to coordinate the work on
blockchain implementation, meet the needs of small and medium-scaled businesses, boost industrial development, and create a "smart government.”
This year, to support the introduction of the digital yuan, Chinese authorities have declared the use of cryptocurrencies illegal. China seeks to make the yuan the world's reserve currency through new technology and is eliminating all obstacles in the way of this goal.
China intends to export both the developments in the field of blockchain and its standards. The International Telecommunications Union
has already approved several blockchain standards for financial institutions provided by Chinese organizations. The new standard has every chance of becoming global.
