The blockchain market has seen exponential growth since late 2021, according to a report published by the South China Morning Post.
The news agency based in the Hong Kong administrative region has revealed that, to date, There are a total of 1.821 blockchain service companies and projects registered with the Cyberspace Administration of China (CAC), the Internet operator in the country.
These blockchain companies and projects are mostly related to the provision of legal, financial, agricultural and intellectual property protection services based on the blockchain, the media reported.
The number of certified blockchain projects in China is growing
Since late 2021, despite the Chinese government's severe ban on Bitcoin and other cryptocurrencies trading and mining in the country, blockchain-based projects, platforms and applications have multiplied rapidly.
SCMP notes that the cyberspace management agency has been certifying new blockchain services more rapidly since late 2021 and this year. The CAC has had to increase the number of published lists of new certified blockchain-related companies and projects, as well as the frequency of publication of such lists.
Between 2019 and mid-2021, the CAC published its lists of new companies and projects every 6 to 8 months. However, the rise of blockchain technology in the country has accelerated this frequency, leading the agency to have to publish its new lists of companies and projects every 2 to 4 months.
Thanks to the rise of blockchain, the Cyberspace Administration of China has published 3 lists of projects related to this technology in the last three years, the agency said.
Exploring use cases for blockchain technology
More Chinese companies are turning to blockchain technology to develop new strategies and products, simplify processes, ensure customer trust, and even boost their growth and expansion. Also, Domestic banks have been exploring various financial use cases of blockchain, except for cryptocurrencies.
According to SCMP, China's Zheshang Bank is using blockchain to offer accounts receivable and personal transactions systems.
Even a company called Blockchain Technology Shenzhen Research Institute is using the blockchain to register your clients' family tree upon request.
In 2020, PwC noted that the blockchain technology market could grow significantly in the coming year, considering that a large portion of companies and financial institutions globally are adopting blockchain for various purposes; from reducing costs, improving payment and verification systems, creating digital identity systems, managing supply chains, and much more.
China develops its own Blockchain services network
Despite banning cryptocurrencies, China has been quite supportive of the innovation that blockchain technology represents.
In fact, in recent years, the country has been building its own blockchain, called Blockchain Services Network (BSN)Using this network, also known as the “Internet of Blockchains,” the Chinese government is working on a series of technological applications and products that will help drive the country’s digital transformation without affecting its economic and technological goals.
Therefore, although China is favorable to blockchain technology innovation, the government has also maintained strict control over the use of public and decentralized blockchains.
As with cryptocurrencies, China alleges that some of the decentralized applications running within these networks, such as non-fungible or NFT tokens, can undermine the stability and security of the nation. Thus, in order to make use of networks such as Ethereum, EOS, Tezos, Nexos, Cosmos and others in China, the Asian power has created implementations of these public blockchains on its private BSN network.
In this way, it allows developers, companies, banks and enthusiasts in the country to develop applications and experiment with the potential of these blockchains within a regulated environment.
Regarding NFTs, China has not decreed any specific ban on this type of tokens. However, their trading and negotiation on public blockchains such as Ethereum is not permitted. The country's regulators remain cautious regarding these digital assets, pointing out that they can become allies of criminals to carry out illicit activities such as money laundering, due to their speculative and high-value market.
Continue reading: NFT platforms are growing in China despite government opposition
