In a speech in 2019, the leader of China said that blockchain was a “huge step in the self-invention of important technology.” When Wang gave his speech, he talked about how vital blockchain is and compared it to technology China is trying to improve, like transistors. Since then, China has been working in the background on a platform that will make blockchain technology more accessible for businesses to use. The Blockchain-based Service Network is what people call it (BSN).n So far, here’s what we know.
First Of All, What Is This “Blockchain” Thing?
Blockchain, the technology behind bitcoin, became more well-known because of bitcoin. The blockchain is a shared database that keeps track of every transaction on the bitcoin network. It is not owned or run by just one business. On the other hand, network members need their computers to keep the network running well. Over the years, there have been many attempts to explain blockchain. Businesses and governments sometimes use the term “distributed ledger technology.” All of this works depends significantly on whether the blockchain is open to the public.
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Anyone can join the blockchain, and if they use the right software or hardware, they might even be able to change it. People sometimes call permissionless blockchains public blockchains or trustless blockchains. Permissioned blockchains, on the other hand, are usually private and can only be used by a small group of people.
What’s The Point Of Using A Blockchain?
People who like the technology think it could speed up and lower the cost of cross-border money transfers, which are currently slow and expensive. Along with smart contracts, distributed ledgers are important in blockchain technology. These contracts are written in code, so they will be carried out automatically if certain conditions are met. People who support them say that they are essential for things like trade finance.
CEO of Red Date Technology, Yifan, told CNBC that they think blockchain technology is so powerful that it will change the whole internet and IT system architecture. Red Date Technology was one of the first companies to join China’s Blockchain-based Service Network. Paul Triolo, in charge of technology policy at the consulting firm Albright Stonebridge, says that China’s government sees blockchain technology as a low-barrier-to-entry technology sector and encourages Chinese entrepreneurs to use blockchain applications to solve problems in the real world.
What Does China’s BSN Do For People?
Businesses that run cloud computing infrastructure are the ones who are most likely to be interested in what BSN has to offer. A prominent public cloud provider like Amazon or Microsoft, or a company, can host its private cloud or intranet. BSN says it is a “one-stop-shop” to put these blockchain programmes on the cloud, which can be expensive and time-consuming.
The Chinese startup’s primary goal is to make blockchains work together. It is also trying to solve a problem that affects the whole industry, which is a big plus. For instance, if two banks run their apps on different blockchain platforms, they might not be able to talk to each other. But because BSN connects many blockchains, any programme built on it will work with all of them.
This plan would be perfect for businesses that want to use many blockchain apps but don’t have the money or time to set up a lot of new servers. Businesses and governments can use BSN’s platform to make blockchain applications quickly and cheaply.
Red Date says that there isn’t much interest in the product right now, but he is optimistic about its potential in the long run. The CEO said, “I think that in 10 years, all clouds will have a standard Blockchain environment where all blockchain-related apps can run.”
But It’s Important To Remember That BSN Doesn’t Make Its Blockchain.
On the BSN platform, there is no cryptocurrency. China has made it almost hard to do things related to cryptocurrencies. “Governments and big companies don’t want or need a cryptocurrency tied to their infrastructure,” said Jehan Chu, managing partner at Kinetic’s Hong Kong-based startup capital firm. Chu said that BSN has a “compelling infrastructure” for applications that don’t use cryptography. Large companies may choose blockchains that don’t use cryptocurrency because they don’t want to be affected by how volatile and risky digital money is.
What Brought About BSN?
New Hong Kong-based company Red Date Technology was one of the first to join BSN. Because of this, groups that work with the Chinese government support the initiative. This includes China’s robust State Information Center (SIC), part of the National Development and Reform Commission (NDRC). China Mobile, which the government runs, is also behind it.
It Is Hard To Go Everywhere In The World.
BSN wants to grow by entering new markets. But because it is connected to the Chinese government, this could be a problem. “BSN has caught the attention of many people because it is brave.” “This ambition also means that it is under scrutiny because of its ties to the Chinese government,” Triolo of Albright Stonebridge says.
He also said that BSN wants to “disassociate itself from Chinese government funding” by “separating the BSN International part of domestic operations from local efforts.” He is the CEO of Red Date Technology, and the task doesn’t scare him. When asked about going global and working with the Chinese government, he said, “It’s a big deal.” Anyone can look at the foreign version of the platform’s open-source code to see if there are any backdoors.
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