China has assigned some cities and entities for trial blockchain applications, highlighting Beijing’s importance to this technology.
China has named the areas where it will carry out its first government-backed blockchain trials. The move follows a government crackdown on cryptocurrency, banned in the country. Moreover, the trials are part of a wider initiative to boost the country’s technology sector and help it compete with the U.S. and other nations in the race for blockchain supremacy.
In 2019, President Xi Jinping called on China to take blockchain’s opportunities, backing the technology.
Overview of the Blockchain trial zones
In the south, Beijing, Shanghai, and Guangzhou are all part of the pilot projects. China chose local government departments, banks, universities, hospitals, power, and car companies to be among the 165 entities to carry out trial blockchain applications.
Blockchain originally is the technology that makes cryptocurrencies like Bitcoin possible. So essentially it is an open, distributed ledger that can record transactions between two parties. In fact, Blockchain has the potential to improve the way we do business reduce friction.
It is a decentralized system, meaning that it is not run by or controlled by any single person or entity. A network of computers worldwide maintains and updates the ledger to reflect the current state of the network. Additionally, the blockchain exists in a series of shared data sets, copies of the blockchain on the people’s computers in the network.
After some time, the definition of blockchain widened. In fact, this happened as many industries look to use the technology for various applications.
On Sunday, China’s cyberspace regulator issued a notice. It called on provincial-level regulators to allow blockchain to share data, optimize business processes, and lower operating costs. The notice said that the pilot units should prioritize adopting blockchain software and hardware technologies. China’s blockchain push came after it renewed a crackdown on crypto trading and mining in 2021.
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