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While it is possible that China will ban crypto digital currency trading, there is no doubt that China is very interested in data blockchain. Image: Reuters/Dado Ruvic
Just as the Magna Carta provided the framework for a modern system of governance through the rule of law 800 years ago, the Bitcoin White Paper set the framework for digital governance through codified law nine years ago. With Bitcoin, the concept of data blockchain was born, and this technology will open up countless possibilities for the world, even challenging China’s current dominance of technology, namely fintech and big data.
China’s State Council wrote data blockchain into its 13th Five-Year Plan, while the total asset volume of the cryptocurrency market grew 30 times in 2017, suggesting that data blockchain and cryptocurrencies will become a hot topic for China’s Generation Y (a general term for youth groups), second only to “bachelor” in popularity ” (single young men who are forced to marry). Not only companies, but also the public is caught up in this tech storm, even though they may not be aware of the technology. As a result, Chinese policy leaders are eager to establish frameworks and standards that will allow industries to accelerate their adaptation to data blockchain technology, while protecting and educating investors in the cryptographic digital currency ecosystem, which is still in its infancy and less regulated, after all.
However, the observed results may now be somewhat puzzling. While Chinese officials were very supportive of the World Economic Forum’s Realizing the Potential of Blockchain white paper at the New Leaders annual conference in Dalian in June 2017, only three months later, the People’s Bank of China announced a ban on token offering financing and the shutdown of all domestic cryptocurrency trading, while The former is precisely what is necessary for the initial financing of crypto-digital currencies.
Meanwhile, Sun Guofeng, director of the People’s Bank of China’s Institute of Finance, said that the ban on token issuance and financing “does not prevent relevant fintech companies, industry bodies, and technology companies from continuing to research blockchain.” Two weeks later, China’s Ministry of Industry and Information Technology launched the Trusted Blockchain Open Lab, thus promoting the development of data blockchain technology without involving the issuance and trading of cryptographic digital currencies.
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China’s policy direction in favor of data blockchain and against cryptographic digital currencies is entirely correct, considering that the public does not understand the background of the technology involved. While these policies will limit small investors from investing in emerging companies in the short term, in the long term they lock in higher-capacity, more resourceful users to develop the true value of blockchain technology. One such company is Alibaba, which established its first blockchain industrial zone, called Blockchain Valley, at its headquarters in Hangzhou in April 2017. subsequently, several major tech companies have followed suit by establishing related blockchain R&D centers, with most of their partnerships originating from 150 Chinese companies with blockchain technology.
China is currently preparing for the fourth industrial revolution and is building application-driven blockchain platforms with an unstoppable attitude. At the same time, regulators are looking to set a series of guidelines to drive collaboration between data blockchain experts and established big data technology companies and gradually lead the integration of blockchain technology into key industries, thus laying the foundation for China’s industrial development plans.
blockchain allows people to make data permanently available for full transparency and permanent storage for the first time ever. The mega-trend of data blockchain can solve problems and improve efficiency, and the following three examples will detail how blockchain is making a positive impact on the world.
First, Walmart, after using data blockchain technology provided by IBM to track the origin of food, said that data blockchain plays an important role in improving food traceability. With data blockchain, the system for obtaining the origin of food is more efficient and allows the production and transportation process of food to be tracked and reviewed at a lower cost.
Alibaba’s Cainiao Logistics is the company that focuses on providing electronic passports for physical goods. By scanning QR codes, the company is able to send tracking data to a “code block” that identifies information, records logistics status, and captures the location and destination of shipments, while consumers can enter unique identifiers and access the “code block” information. This not only improves transparency in the supply chain, but also effectively prevents counterfeit goods from entering the market.
Now, all media outlets are aware of the importance of having the right material. Because the Internet allows everyone to send and receive information, there is a high risk that questionable information will be widely distributed. With blockchain technology, media outlets can ensure the reliability of their sources, while the “retraction” feature allows each user to re-edit articles containing false information and remove relevant citations and references, ensuring that false information is effectively controlled and the echo chamber effect is no longer enhanced.
Blockchain technology will also be involved in the next phase of the sharing economy, as seen in several aspects of smart cities. For example, while governments know that reducing on-street parking can alleviate traffic congestion, blockchain technology can record real-time information about parking spaces, allowing drivers to reserve parking spaces in advance and park on time.
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In Australia, energy trading platform Power Ledger is using blockchain technology to improve the efficiency of the energy market. Decentralization enables households and companies to directlyTrade excess solar energy and create an unprecedented peer-to-peer sharing economy.
While data blockchain technology can survive independently of the internet without regulation, it cannot become a mainstream platform without government support, public acceptance, and integration with leading technology companies. Government support is essential in creating an inclusive ecosystem, and in March 2017, Australia released its Blockchain Standards Roadmap, making it the country with the most advanced blockchain regulatory framework. Token issuance financing and exchange operations are fully legal in Australia.In June 2017, the CSIRO submitted two reports to the Department of Treasury detailing the potential risks and benefits of blockchain technology for Australian society and industry.
data Blockchain and crypto-digital currencies’ ability to gain widespread acceptance depends largely on policy implementation, which generally only happens if sufficient numbers of people are employed. Since governments do not typically sponsor events aimed at increasing public knowledge, companies often have to step up to the plate, such as Melbourne’s Blockchain Centre, which provides co-location space for emerging companies, thereby directly spreading knowledge to the public and driving acceptance of blockchain technology as quickly as possible.
However, data blockchain technology has begun to show some technical flaws. in late 2017, many companies turned to bitcoin cash due to slowing transactions and higher costs, leading to significant volatility in the price of bitcoin. Meanwhile, bitcoin miners and companies with blockchain technology have turned to searching for solutions in the face of threats such as quantum computing, which experts say, after all, is a generation of machines that will beat bitcoin by 2027. In response, Hcash has begun using ring-signature cryptography to counter the quantum crisis and protect bitcoin in the long run.
The Chinese government has shown a positive attitude towards digital blockchain technology. At the moment, this important and indispensable technology for the future is still in the early stages of development, and explorers of the industry will still find the road ahead confusing. However, I am very much looking forward to what blockchain technology can bring to humanity in the face of unknown destinations – it will surely be a world of infinite possibilities and imagination.
Acknowledgement: Adam Gong, Business Development Manager, Financial Services Department, Commercial Section, Australian Consulate General in Shanghai.