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China Pushes for Blockchain Dominance But Will the World Trust It?

John Xie

   Despite Washington's pushback against China's ambition to lead the
   world in building emerging technologies such as 5G, Beijing next month
   will launch a global effort in developing blockchain, a distributed
   database that experts say could reshape businesses around the world.

   Starting August 10, China will roll out the international version of
   its blockchain infrastructure, the Blockchain Service Network, or BSN.
   The network gives developers tools and access to blockchain technology
   through BSN's overseas data centers so that they can build applications
   for businesses and smart cities.

   "As the BSN takes hold in worldwide countries, it will become the only
   global infrastructure network that is innovated by China, whose gateway
   access is controlled by China," the BSN Alliance declared in a white
   paper last year.

   Blockchain is a kind of distributed database with trustworthy
   record-keeping that makes possible cryptocurrencies like bitcoin as
   well as new types of products like digital identification. The
   technology has the potential to create decentralized, more transparent
   digital networks.

   U.S. Representative Bill Foster, a congressman who holds a doctorate in
   physics and is a leader of a group of American lawmakers studying the
   technology, has called it "a disruptive technology that will change the
   way we do business in almost every sector."

   Blockchain technology can create more transparent record-keeping with
   open-source code to create trustworthy databases. But China's system is
   a more centralized alternative overseen by the BSN Alliance, a group of
   state-owned companies that designs its digital architecture and
   maintains control over the databases.

   China hopes that this managed network, which it says offers cheaper
   costs and better interoperability over other competitors, will become
   the preferred option for businesses and governments trying to use the
   technology.

   Backed by the Chinese government, BSN already is the world's largest
   blockchain ecosystem that is expected to serve as the backbone for
   massive interconnectivity both in China and around the world. It
   already has more than 100 city-nodes, or physical devices running on
   the network, stationed on six continents. The network hopes to deploy
   up to 200 more by the end of this year.

   A Chinese national priority

   Just as the country's aggressive international expansion in other major
   emerging technologies such as 5G and artificial intelligence, China
   declared blockchain a national technology priority in 2016. It was
   mentioned twice in the Chinese State Council's 13th five-year economic
   plan that was released that year.

   Chinese President Xi Jinping emphasized blockchain as "an important
   breakthrough," and promised that China would "seize the opportunity"
   during his speech in October at a so-called "collective study" session
   held by the Political Bureau of the Communist Party of China (CPC)
   Central Committee.

   In Xi's words, China will "take the leading position ... occupy the
   commanding heights of innovation, and gain new industrial advantages."
   The meeting had only one agenda on the table: the current status and
   trends of blockchain technology.

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