After a Crackdown on Cryptocurrency China Shows Interest in Blockchain Technology

After a Crackdown on Cryptocurrency China Shows Interest in Blockchain Technology
Image Source: getty Images
Read News

Read News For Me

Despite taking a strong stance against cryptocurrency last year, China has recently shown interest in NFTs as China intends to work towards the development of real-world use cases of blockchain technology. The central control agency of China, and the regulator of the country's internet, the Cyberspace Administration of China (CAC), has decided to take steps forward towards accelerating blockchain innovation and adoption in over 15 regions and 164 organizations like universities, local governments, hospitals, banks and power firms. 

Last year in September 2021, China imposed a ban on cryptocurrency trading and mining operations. Despite the ban, the recent attempt by China intends to integrate blockchain technology nationwide in various Chinese enterprises and government entities. The initiative will kick start with trials in cities like Beijing, Guiyang, Shanghai and Guangzhou. China has designated some cities like Beijing and Shanghai for further trials. 

The CAC has issued orders to government organizations and other regulatory authorities to "promote balanced and intensive layout of blockchain technology infrastructure in their region, forming large scale cross-chain data exchange support capability and a multi-party collaborative ecosystem for blockchain technology". Major listed cities and organizations will be actively involved in blockchain experiments based on departmental and regional suggestions. 

The main implementations of blockchain technology will include regulation of law, government data sharing and services, investigation, criminal trials, taxation, education, civil affairs, healthcare, risk control management, finance and cross-border funding. 

Blockchain Technology

A blockchain is a distributed and decentralized set of information shared between the nodes of a computer. Blockchain stores information in digital format, which collects data in the form of blocks. These blocks have specific storage capacities; when filled, they are closed and linked with the previous block, creating a chain of information known as the blockchain. Through blockchain, digital information can be recorded and distributed, but it cannot be changed or edited. Therefore blockchains are also known as distributed ledger technology(DLT).