Chinese blockchain network reportedly being built, aims to go global

Chinese blockchain network

The Chinese blockchain network is reportedly being built, according to CNBC. China has been silently developing this framework to make blockchain technology more easily deployable for businesses and enterprises, naming it Blockchain-based Service Network (BSN).

President Xi Jinping of China has emphasized that his country must take advantage of the prospects presented by blockchain technology.

In a speech in 2019, Chinese President Xi Jinping described blockchain as an “important breakthrough in independent innovation of core technologies.” And has therefore elevated blockchain technology as a national priority to be tackled, among other technologies.

BSN’s solution specifically targets businesses that run cloud computing infrastructure, presenting itself as an all-inclusive platform for deploying blockchain applications on the cloud.

BSN is reportedly attempting to tackle challenges in the industry such as blockchain interoperability or the ability of multiple blockchains to communicate with one another. Cross-chain compatibility is an essential aspect of blockchain technology adoption that would make all the difference in its usefulness and scalability.

What is the use of building a Decentralized Application (DAO) on a certain blockchain if only those on that blockchain can use it? BSN aims to facilitate this interoperability between multiple companies’ applications.

One of the founding companies behind BSN is the start-up Red Date Technology, which is based in Hong Kong. However, the project is also backed by entities with Chinese government links, such as the State Information Center (SIC) and the state-owned telecommunications company China Mobile.

This is a major factor in the platform’s ambitions to go global, as many are wary of using services that link to a centralized governmental body.

Nevertheless, Red Date CEO is optimistic about the future success of the product, despite its currently low demand.

BSN does not, however, construct its own blockchain, with no cryptocurrency on the BSN platform. This is due to China’s effective prohibition of cryptocurrency-related activities.

According to Jehan Chu, managing partner of Hong Kong-based Kenetic, a venture capital firm and investor in Red Date Technology, governments and large-scale corporations do not want or need cryptocurrency-related to their infrastructure.

“This is where non-crypto use cases come into play, and BSN provides a compelling foundation,” Chu stated.

Non-crypto blockchains may appeal to large organizations that do not want to be exposed to the risky and unpredictable nature of digital money.

While the centralized nature of the BSN platform presents a fundamental challenge for the largescale adoption of the platform, He claims that the international version of the platform will be open source.

The CEO of Red Date acknowledges the challenges presented before the platforming and the hurdles they have to overcome in going global.