China Determined to Dominate the Blockchain Industry


China intends to be the global leader in all things blockchain. Chen Lei, the CEO of Xunlei, believes that it would be against the country’s interest to be left behind in the emerging industry. Despite China’s crypto crackdown, experts want the country to invest heavily in the technology behind Bitcoin.

One Blockchain to Rule Them All

According to Lei, the industry will evolve to have one alpha blockchain dominating all others. Right now, many experimental projects are examining different use cases. At some point in the future, Lei expects a thinning of the herd with only the real value-creating blockchains left standing.

Speaking during a blockchain summit organized by China’s Ministry of Industry and Information, the Xunlei chief stated that it was imperative for the government to invest in blockchain technology. Lei also called for the creation of an enabling environment where blockchain innovation would flourish.

The Ministry of Industry and Information unveiled a whitepaper showing the prominent focus areas for the Chinese government in blockchain technology. The paper shows that China has filed the most blockchain patents in the world. According to the 157-page report, 2017 saw the creation of 178 new blockchain companies. Overall, the total number of such startups in the country is 456.

China leaning heavy into blockchain technology.

The country intends to develop decentralized solutions for finance, insurance, big data, energy management, payment processing, and settlement – so basically, everything. Already, OneThing Technologies, a subsidiary of Xunlei, recently launched ThunderChain, a high-speed blockchain platform. ThunderChain focus areas include food traceability and the entertainment industry.

Crypto Crackdown and the Future of Blockchain in China

China’s lofty blockchain ambitions will surely put the country in direct competition with the United States for blockchain domination. Even in Asia, countries like South Korea and Japan are making giant strides in the industry. Decentralized apps are reportedly a significant part of the mobile app market in South Korea.

South Korea is also heavily involved in blockchain innovation.

These countries haven’t taken the same drastic steps as China in banning ICOs and cryptocurrency trading. However, people like Zhang Lei of Yeecall believe ICOs are mere “fluff.” Instead, he expects more focus to be on value-creating blockchain projects.

The crypto ban aside, Chinese companies are investing in blockchain projects. Private investors aren’t the only ones in the party as the government is also getting in on the act. In April, the city of Hangzhou announced plans to host a $1.6 billion fund to assist the development of useful blockchain solutions. It is reportedly the largest blockchain investment fund in the world.

Do you think China can dominate the global blockchain industry? Will the country’s crypto crackdown affect the emergence of useful blockchain technology solutions in China? Let us know your thoughts in the comments below.

Images courtesy of Pixabay, Shutterstock, and Bitcoinst archives.

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Written by Osato Avan-Nomayo @ May 24, 2018 Osato Avan-Nomayo

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