China is at the forefront of the global blockchain revolution

Strong government support for technology and industrial innovation brings wealth and talents into the sector.

China is optimistic about the young blockchain industry, which it sees as the next step toward national competitiveness and a digital future.

China is stepping up attempts to gain worldwide domination over blockchain, the underlying technology that supports digital currencies like bitcoin and a range of other uses, as one of the first big countries to see the promise of the technology.

President Xi Jinping stressed the importance of blockchain technology in the current round of technological innovation and industrial transformation in October, urging for greater efforts to promote blockchain technology development and industrial innovation.

Thanks to Xi’s statements, which sparked a surge of activity, the country is now experiencing a blockchain boom.
Experts and entrepreneurs believe that the government’s strong backing for blockchain technology will help the industry grow in the future, but they caution that the concept should not be overdone.
Blockchain establishes an open and decentralized record of all transactions involving money, products, and property, among other things, by combining distributed data storage, encryption techniques, and other modern technologies. It creates a record whose validity can be validated by everyone in the community, assuring high security.

Wei Kai, deputy head of the China Academy of Information and Communication Technology’s Cloud Computing and Big Data Research Institute, believes that as money and talent stream into the blockchain industry, the technology will be used to a wide range of real-world scenarios.

“China’s strong backing for blockchain technology will aid in its standardization and development.” “Blockchain development will help the financial industry and the real economy since it will help enhance efficiency, lower operational costs, and construct a more efficient credit system,” Wei stated at the Trusted Blockchain Summit 2019 in Beijing, which just ended.

Blockchain technology, according to Wei, will usher in a new era of innovation across a variety of industries, including cross-border payments, global trade, logistics, supply chain, banking, government affairs, intellectual property protection, food traceability, and invoicing.

According to a recent report issued by the China Academy of Information and Communication Technology, China is at the vanguard of global blockchain development, with the country racing ahead in terms of blockchain patent filings.

There were over 18,000 blockchain patent applications filed worldwide as of July 25, 2019, with China accounting for more than half of them. Alibaba and China Unicom were placed first and fifth, respectively, among the top 20 global corporate applications.

As of August 2019, 2,450 blockchain businesses have been established worldwide, largely in the fields of cryptocurrencies and blockchain technology research and development, according to the report. In terms of the number of blockchain companies, the United States leads all other countries, followed by China and the United Kingdom.

The blockchain revolution is spreading across America. According to the report, more than 30 provinces, municipalities, and autonomous regions, including Beijing and Shanghai, as well as Guangdong, Jiangsu, and Guizhou provinces, had issued instructions to promote blockchain technology as of May 2019.

“The key motives for developing this new technology were to address the problem of trust between various agents, minimize communication costs, and increase collaboration efficiency,” said Wei of the CAICT.

Wei, on the other hand, believes that blockchain technology is still in its infancy.

Wei stated, “We still have worries about a lack of regulation, immature technologies, and a demand for blockchain capabilities that outnumbers supply.” “As we advance toward a blockchain future, we must remain rational and avoid overhyping the blockchain notion.” “We must identify the best course of action because not every case requires the use of blockchain.”

According to a recent estimate by global research firm IDC, China’s blockchain spending is expected to expand rapidly in the next years.

According to the survey, China will account for approximately 68 percent of all blockchain spending in Asia-Pacific between 2018 and 2023. During that time, the country will grow at a compound annual rate of 65.7 percent, while the Asia-Pacific area would grow at a rate of 50.3%.

The adoption rate of blockchain technology has been gradually increasing, according to Jeff Xie, senior industry researcher at IDC Asia-Pacific.

At a recent exhibition in Fuzhou, Fujian province, employees of a water service provider utilized a blockchain management system to assess the quality of drinking water. [Photo/Xinhua]

“Blockchain use cases are maturing as well,” according to Xie in the research, “filtering out the overhyped or overselling the technology from implementations where blockchain adds value to ecosystems.”

“Because blockchain is here to stay, businesses must evaluate the technology’s merits, just as they do with other emerging technologies, and find potential areas of application where the technology could save money and enhance efficiency.” “Blockchain deployment can help firms improve their digital transformation route with adequate analysis,” Xie concluded.

According to a recent estimate by global research firm IDC, China’s blockchain spending is expected to expand rapidly in the next years.

According to the survey, between 2018 and 2023, China will account for almost 68 percent of all blockchain spending in Asia-Pacific. During that time, the country will grow at a compound annual rate of 65.7 percent, compared to 50.3 percent for the Asia-Pacific area.

The adoption rate of blockchain technology has been steadily increasing, according to Jeff Xie, senior industry researcher at IDC Asia-Pacific.

At a recent exhibition in Fuzhou, Fujian province, employees of a water service provider utilized a blockchain management system to assess the quality of drinking water. [Photo/Xinhua]

“Blockchain use cases are maturing as well,” according to Xie in the research, “filtering out the overhyped or overselling the technology from implementations where blockchain adds value to ecosystems.”

“Because blockchain is here to stay, businesses must evaluate the technology’s merits, just as they do with other emerging technologies, and find potential areas of application where the technology could save money and enhance efficiency.” “Blockchain deployment can help firms improve their digital transformation route with adequate analysis,” Xie concluded.

Many tech firms are planning to create blockchain-related businesses, and many have already made significant progress, realizing the blockchain industry’s huge potential.

Tencent, the Chinese internet behemoth, collaborated with Shenzhen’s tax department to provide the city with blockchain-based invoicing. A small diner in Shenzhen received the first blockchain-based invoice in August 2018.

Shenzhen’s blockchain-based invoice system has helped financial insurance, wholesale, retail, hotels, catering, property management, parking, transit, and internet services.

Shenzhen had issued approximately 14.2 million blockchain-based invoices worth a total of 9 billion yuan ($1.3 billion) as of December 24, 2019.

According to Tencent’s general manager of blockchain technology, Li Maocai, Xi’s statements underscored the critical importance of blockchain technologies in future development.

Li explained, “Cryptocurrency is simply one of many blockchain uses.” “With the government’s strong support, blockchain firms, experts, and institutes will work even harder to achieve breakthroughs in the underlying technologies and the removal of present technological restrictions, boosting the entire industry.”

Tencent will continue to investigate blockchain gaming, supply chain finance, and blockchain-based invoicing, among other areas, because he believes that more work is needed to connect blockchain with cloud computing, big data, the internet of things, and other new technologies to solve real-world problems.

Xunlei, a Chinese blockchain behemoth, is likewise attempting to make a name for itself in the fast growing blockchain industry.

Xunlei has filed over 100 blockchain patent applications thus far, the most of which are connected to the underlying technology.

Environmental protection, telecommunications, traceability, biotechnology, live services, digital media, information services, advertising, public welfare, catering, insurance, and copyright were among the industries covered by the firm as of October 2019.

Digital marketing service provider Hylink and Thailand’s Naresuan University Hospital were among the company’s collaborators, according to Xunlei, the Copyright Protection Center of China.

According to Lai Xin, chief engineer of Xunlei’s ThuderChain blockchain platform, a wide range of blockchain initiatives will emerge in 2020 as a result of the government’s strong commitment to blockchain.

According to Lai, the long-term goal is to focus on blockchain technology applications. “Right now, the difficulty is a lack of willingness on the part of some companies and organizations to implement blockchain, as well as a talent scarcity.” To generate big-picture thinkers and cryptography experts, further work is needed.”

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