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- 1 A new national blockchain research center has been opened in Beijing.
- 2 The center will act as a research hub for China’s blockchain industry and is looking to train 500,000 new professionals.
A new national blockchain research center opened in Beijing, China, amid a crypto ban. It will get support from the Chinese government, which previously put an outright ban on cryptocurrencies and any related activities.
Despite blocking crypto activities, the initiative will support blockchain, focusing on non-crypto use cases. The Chinese Ministry of Science and Technology will promote this newly opened research center. It will work in unity with tech companies, universities, and other research institutes. This will lead to the development of web3 and blockchain.
China’s Plan to Leverage Blockchain Amid Crypto Ban
Usually, the use cases of blockchain are associated with cryptocurrency. But, blockchain uses are vast. Besides cryptocurrency, the use cases involve healthcare, identity verification, supply chain, and also financial services.
Chinese government support for separating blockchain from digital assets shows the above use cases. Cryptocurrency is usually built on top of blockchains, given that it’s a digital, secure, and unaltered way to store data. Since both are separate entities, it is important to know that blockchain can be used without cryptocurrencies.
Why Does China Show Support for Blockchain?
Blockchain is a more secure way to store data than traditional database storage. Amid the crypto ban, the Chinese govt. Shows huge interest in other use cases of blockchain.
There is a huge challenge for businesses nationally and internationally due to different regulations. But through the use of blockchain, this can be solved. Now, the data is available 24/7, even if one point of communication fails.
Another way it is used in supply chains like Walmart is using it, which saves time. It is also linked with financial transactions. In 2021, J.P. Morgan announced the use of blockchain-based solutions. Through this, people have a chance to check the account holder and other information linked with it.
Here it is important to mention the use of ChainMaker, also called Chang’An chain. It is a Chinese blockchain. It is an open-source platform used to record carbon lifecycle data on chains. Xiaotong is another blockchain where Chinese medical care is collaborating. It is a trusted medical chain created for secure data storage.
Hence, even if blockchain is associated mainly with cryptocurrency, there are huge other usages. Due to , Cryptoban the Chinese digital asset firms have shifted their base to Hong Kong. One such example is Huboi which has relocated its operations from China to Hong Kong.
The outcome which is assumed is that the Chinese government is showing interest in blockchains because of its versatility. Also, it will give advancement in different fields, whether it is technology, medicine, or finance.
Inhancely, China is not suffocating the Chinese crypto market. Instead, it is leading the other way of progress amid the crypto ban to take advantage of the blockchain. This is the reason that overcomes why China is supporting blockchains.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
