A new research center in Beijing, backed by the Chinese Ministry of Science and Technology, is set to collaborate with academic institutions, technology companies, and other research organizations to advance the nation's blockchain and Web3 sectors.
Focusing on Blockchain Beyond Digital Assets
Blockchain technology is often associated with digital assets, but China has implemented tight regulations on cryptocurrencies and banned crypto trading in 2021. The emphasis of this initiative is on promoting blockchain technology separate from its applications in the cryptocurrency sphere.
The South China Morning Post reports that, along with nurturing budding blockchain experts, the research center intends to create a nationwide blockchain network. This network will link existing Chinese blockchains, fostering cross-chain development.
ChainMaker, also known as the Chang'An Chain, serves as an example of a Chinese blockchain. Developed by the Beijing Academy of Blockchain and Edge Computing, this open-source platform is supported by a government-backed research institute that will play a key role in the new research facility.
Various organizations, including the State Grid, are exploring the potential of the Chang'An Chain, with plans to utilize it for recording carbon lifecycle data on-chain. Additionally, the Xiaotong Medical Chain, built using ChainMaker, aims to establish reliable data connections in the healthcare sector. The platform will enable medical institutions, government agencies, and insurance providers to exchange information through a secure, verifiable, and encrypted channel.
Chinese Digital Asset Companies Find Shelter in Hong Kong
While the Chinese government focuses on alternative blockchain applications, China's digital asset firms have sought ways to circumvent the country's prohibition on cryptocurrencies. Despite the challenges of enforcing a complete ban on crypto trading, demand among the Chinese population remains robust.
A successful approach for some businesses has been relocating their operations from mainland China to Hong Kong. Unlike Beijing's restrictive policies, Hong Kong has fostered a welcoming environment for cryptocurrency enterprises, attracting numerous major crypto firms to set up offices in the city.