Quietly, Beijing has been working for some years on a platform it must facilitate the distribution of the blockchain within the country. According to information from CNBChowever, this platform has global ambitions.
A blockchain platform common to all Chinese companies?
It is called the Blockchain-based Service Network (BSN). Advocates of the technology say it can help bring transparency and speed to typically slow and expensive processes, such as cross-border money transfers. Blockchain can also allow execution of tasks in a very fast and automated way, if certain conditions are met. In particular, Beijing sees this technology as essential in sectors such as finance, banking and global trade. Specifically, the BSN platform is aimed at companies that manage a cloud computing infrastructure.
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It can be a large cloud player (like Amazon or Microsoft) or a company that manages its own private cloud or intranet. This was underlined by Yifan He, CEO of Red Date Technology, a company that contributed to the development of BSN “We are convinced that blockchain technology is so powerful that it will change the entire Internet and almost the entire architecture of information systems”. This is explained by Paul Triolo, head of technology at the Albright Stonebridge consulting firm “The blockchain is very important for China. Government officials want Chinese companies to use it to solve real-world problems “.
One stop shop for cloud application delivery
Finally, this blockchain platform looks like a “single window” to deploy applications in the cloud, a process that, without such technology, could be costly and time-consuming. Beijing also wants to solve a big problem, that of interoperability (or make several blockchains work together). For example, if two banks have applications based on different technologies, they may not be able to collaborate with each other.
The BSN infrastructure allows you to establish a bridge between the different blockchains. While blockchains in the cryptocurrency world are mostly decentralized, those of BSN will probably be fully centralized, in order to maintain the support of the Chinese authorities. Beijing intends to maintain absolute power on this platform, which will certainly have a very important role to play in the years to come, for the Chinese economy.
However, researcher and blockchain specialist Garrick Hilleman says there is a “fundamental incompatibility between China’s ambition to support a national blockchain development ecosystem and the decentralized nature of blockchain technology”. He believes that if China is to become a world leader in blockchain technology, it will have to learn to live with the “Disruptive power and decentralization of control” which are intrinsic to the blockchain.