According to recent reports by the Financial Times, China has the highest number of blockchain technology patents. This is just one of the latest developments in the blockchain tech space. Besides, it shows that the race to grab the title of the newest technology is on and the giants are already chasing the top slots.
Reasons for Embracing Blockchain
Not long ago, China’s government auditor declared that blockchain has the potential to “open up a window” for a more organized data storage. According to information published on the government website, PRC’s National Audit Office discussed the adoption of blockchain technology to lighten the blockage caused by its current data storage system. Currently, the office caters for a huge amount of information, which it believes can be stored better on a decentralized ledger.
The National Audit office is part of the 29 cabinet-level units in China’s State Council, which scrutinizes all state-related financial transactions. It examines a wide range of transactions including administrative expenses and single public programs. Besides, it oversees both provincial and municipal auditing agencies with designated commissioners.
China believes that visualizing a decentralized system would make each local office and certified auditor function as an individual node. Besides, the blockchain technology will reduce the workload on the central government while implementing a traceable ledger that records each transaction at all points.
Still In Theory
While it’s not implemented yet, the paper provides an opening into the judgment of a state agency in China with regard to blockchain technology. The missing part is the implementation of the article, which is already in theory.
The article explains that the need for decentralization arises from the accessible operational model, which the central office adopted. Currently, every piece of data from the central office is available at the provincial and municipal levels.
“Since bureaus at these levels do not keep the data, the National Audit Office runs into the situation where we have to expand our software and hardware capacity indefinitely—which is a vicious circle…the concept of blockchain and technology will offer us a window into solving the basket of problems mentioned above,” confirmed the Office.
The Race for Blockchain Technology
To begin with, various reasons exist as to why many tech giants are frantically exploring the blockchain technology. According to David Marshall, Founding Partner of 08Capital, “I think this particular space has something way more powerful behind it than just the technology or innovation…It literally has a real, live energetic movement of human emotion. This technology has potential to have a great impact on everything we do and will definitely be threaded through all technology in the future. The blockchain is quite simply, disruptive tech with massive potential given global adoption.”
Interestingly, blockchain stakeholders in China are arranging themselves to grab the leading spots on a global scale.
A good example is Onething Technologies, a cloud-computing extension of Xunlei Limited, which recently launched ThunderChain, a high-performance blockchain platform that can simultaneously handle millions of transactions per second. Xunlei Limited is a high-profile cloud-based acceleration company in China. ThunderChain seeks to facilitate multiple transactions multiple parallel chains.
In addition to supporting multiple transactions, ThunderChain embraces smart contracts written in solidity language. The platform also works well with Ethereum Virtual Machine (EVM), which makes it easy to transfer applications from other blockchain avenues.
ThunderChain holds a unique approach to the succession of blockchain technology and believes that Bitcoin’s popularity, mostly based on its investment value, can be classified as Blockchain 1.0. Similarly, the adoption of Ethereum as a decentralized platform for a given set of applications can qualify as Blockchain 2.0 according to Xunlei.
Xunlei considers such applications as ThunderChain to qualify for Blockchain 3.0 because it creates distributed applications that empower corporations and end-users across various sectors. In addition, ThunderChain is specially designed to deal with entertainment, copyrights, and food safety-related applications, where it seeks to improve traceability and transparency.
OneThing focuses deeply on the development and inclusion of blockchain technology, armed with the fact that the leading previous Internet companies in the ‘90s originated from the U.S.
A recent tweet on the company explains:
“The company believes that blockchain innovation changes the social structure and now presents an opportunity for China to surpass the Western countries with big blockchain companies developed in China.”
Is it simple to overtake the US?
According to Marc Ross, founder of Caracal Global, “China has a massive domestic marketplace, has seen what works and what has failed, and a willingness to protect state industrial champions to make sure they have the chance to succeed against the best of the world.” Caracal Global specializes in global business communications. Ross is also an adjunct professor at George Washington University and a former director of communications for the U.S-China Business Council.
“But no other nation on the planet hosts the power, influence, innovation, entrepreneurial culture, and creativity of America’s tech companies. The ecosystem of universities, investors, and coders is a deep moat and can’t be built overnight or forced on a culture. So I don’t see China’s tech companies a threat in the next 20-30 years in any sub-sector,” confides Ross.
OneThing is positioning itself as a leader in the blockchain circles by engaging the best minds in the blockchain sector. During the ThunderChain declaration, the company also announced its intended partnership with InfoQ, a world-leading community for tech developers. InfoQ will be responsible for hosting Blockchain Applications Global Challenge.
The main objective here is to generate blockchain applications and to develop the cream of world computing talent. In the end, this will help conquer the challenges present in the targeted industries including healthcare, logistics, public sector, and education.
Reward for the winning team
In addition to cash prizes, winning teams will have various opportunities such as receiving angel investments and learning from global blockchain professionals. This is a step forward for China regarding its initiative to implement blockchain technology.
It also comes as the latest activity from a company with more than $100 million in crowd-sourced computing and blockchain investments. What’s more, Xunlei has more than 400 million users and another five million that subscribe to its download business. Therefore, it can access a lot of end-user data, leading to holistic interactions.
Besides, China is already in partnership with territories that the U.S. has not tapped. For instance, ShineChain is one company that currently applies blockchain technology to find solutions problems in the insurance sector. The company recently launched a Mutual Assurance App and since then, nearly ten thousand people have used the app to purchase insurance products.
ShineChain is committed to alleviating the problems associated with centralized commercial insurance such as fraud, inflation, high cost, lack of trust, and privacy disclosure. ShineChain seeks to store data on blockchain with improved transparency. In addition, ShineChain provides a smart contract that users can utilize to connect.
How it works
On ShineChain platform, operations are automatic and strictly adhere to the flow specified in the original smart contract. In the process, even ShineChain team cannot interfere with the data or siphon off any community asset.
ShineChain accepts a digital token SHE, as the medium of transaction on the platform. The token is ideal for any trading behavior and value transfer on the platform as well as for disseminating information across the platform, controlled by smart contract.
Blockchain and insurance
ShineChain believes that Blockchain has unique qualities that can help avert the issues in the insurance sector. Characteristics such as decentralization, transparency, traceability, and tamper-resistance can work well in the insurance industry. A combination of blockchain technology and tokens can effectively alleviate the issues of traditional, centralized insurance providers.
All the same, ShineChain cites a major challenge, which is to make the product visible for adoption. The company is set to test the online version of its ChainCode and token in the second quarter of 2019. The process, however, will entail a comprehensive support and communication from U.S. partners. It will also integrate the views of users worldwide.
It is clear that there will be hurdles in implementing the blockchain technology, regardless of the country of residence. However, judging by the ongoing developments, many eyes are focusing on China as the chase continues.
Do you think China will overtake the U.S. in the implementation of blockchain technology? Join the conversation over at Telegram (https://t.me/coinstaker)
Tony is a writer for the crypto space. He presents cryptocurrency and blockchain topics to the public in a way that he only can. While carefully researched, this article should not be taken as an express investment guide. Do your own research and consult a financial advisor before you invest in cryptocurrency.
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