China Announces New Blockchain Lab Initiative
The official voice of the Chinese Communist Party, The People’s Daily, reported that on June 15th the Chinese Academy of Sciences (CAS) announced the creation of a new Blockchain Lab initiative. The announcement came during the award ceremony for the country’s International Blockchain Competition, and it signals a continued push by Chinese officials into the blockchain sector.
According to the report, the program focuses on the integration of big data, advanced mathematics, and blockchain technology. China has become more active in the creation of these mathematical formulas after realizing that they are a vital component in the blockchain space. China seeks to create more blockchains for government and commercial sector use.
During the award ceremony, the deputy director of mathematics for CAS discussed how mathematical methods are a core science behind the development of future blockchain technologies. He also spoke on the primary goals of the project, which aims to simultaneously provide support for private, public, and consortium blockchains. China acknowledges the importance of these networks and seeks to remain competitive within the space.
The blockchain lab is made possible through a joint venture with blockchain startup Tai Cloud Corp. Tai Cloud is a Beijing-based firm. Additionally, the Tai Cloud Corporation now represents one of China’s largest blockchain-based firms. The company currently holds over 150 blockchain-related patents, and they operate with the blessing of the Chinese government.
The Tai Superconducting Network (Super Frequency Transaction)
The Tai Superconducting Network is Tai Cloud Corp’s newly created blockchain network. The innovative company claims that this network can handle hundreds of thousands of transactions a second, while providing users more security than traditional banking systems. The firm seeks to create a national blockchain standard for future Chinese economic development in the blockchain space.
The Trusted Blockchain Lab
This latest announcement echoes a previous report made in September 2017 by the popular Chinese financial publication, Caixin. Caixin announced the creation of a research facility called the Trusted Blockchain Open Lab. While the projects share similar names, it is still too early to determine if they are to work directly, or in tandem, with each other. It does signal to the world that China is getting serious about blockchain development.
Xi Jinping Endorses Blockchain Lab Technology
Chinese President Xi Jinping publicly endorsed blockchain technology at the annual Academic Conference hosted by CAS on May 30th of this year. The Chinese president called blockchain a “breakthrough” technology. He also compared blockchain tech to some other developing tech sectors, such as Artificial Intelligence (AI) and the Internet of Things (IoT). All of these technologies shape the future development of the digital economy.
China Is Full Steam Ahead on Blockchain Lab
On May 24th, China’s State Council announced further blockchain integration into the county’s Guangdong Free Trade Zone. This zone is slated to become China’s crypto capitol in the coming years. Also, the State Council has included blockchain development as a core principle in the county’s five-year economic development strategy. This plan is the thirteenth such economic development plan introduced to date.
China Pushes Against Crypto But Is Pro Blockchain Lab
China continues to restrict the use of cryptocurrencies by its citizens, while continuously dumping funds into further blockchain research and development. Chinese officials banned ICOs and closed all of its local crypto exchanges last year amid concerns over the unregulated nature of the market. The nation has been vocal about its crypto concerns when dealing in the public sector.
Chinese officials have mulled over further restrictions including a possible BTC mining ban. In January of this year, the country’s internet watchdog, the Leading Group of Internet Financial Risks Remediation, sent requests to local government officials suggesting that they begin to restrict BTC mining. The petition demanded local officials to make an “orderly exit” from the mining sector.
At first, this maneuver came under the guise of protecting the electrical infrastructure of the country. BTC mining is extremely energy intensive, and China, as the world’s number one BTC miner, already consumes over four gigawatts of electricity due to mining activities. To put this energy use into perspective, it is equivalent to the output of three nuclear reactors. Later reports revealed that the request came directly from China’s Central Bank.
China’s Central Bank Is Anti-Crypto
It turns out the clampdown was primarily due to concerns surrounding the risks of cryptocurrency investing. Chinese government officials have repeatedly warned their citizens of the dangers of investing in this unregulated market. Despite the warnings, Chinese citizens continue to find ways to embrace cryptocurrencies such as Bitcoin.
Many people in the crypto space thought that these regulations signaled a shying away from blockchain tech by the economic powerhouse, but it now appears to be quite the opposite. There have been multiple blockchain-based projects announced, in addition to the Blockchain Lab, since the closing of the country’s exchanges. China is showing no signs of reversing its blockchain aspirations.
These maneuvers have led some in the crypto space to accuse China of being hypocritical in its crypto stance towards its citizens. Chinese citizens continue to see restrictions despite the government moving further into the blockchain sector. The Blockchain Lab initiative is a perfect example of this contradicting behavior.
The country is also home to the largest BTC mining facility, as well as, the world’s number one crypto mining rig manufacturer, Bitmain. Despite these facts, China continues to restrict their citizens from participating in the decentralized economy.
The Blockchain Future of China
It’s now safe to assume that China has recognized the advantages of blockchain technology. As you now know, the country is taking significant steps towards to integration of this technology within its local economic structure. Some analysts believe that China has no choice in the matter due to the substantial investments currently underway in competing countries such as the US and the EU.
You can expect to see further investment in the blockchain space as China aims to become a global leader in the blockchain development sector.
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ABOUT THE AUTHOR
ABOUT THE AUTHOR
David Hamilton aka DavidtheWriter has published thousands of cryptocurrency related articles. Currently, he resides in the epicenter of the cryptomarket – Puerto Rico. David is a strong advocate for blockchain technologies and financial sovereignty.