CCID Research Institute: Interpretation of the Status Quo and Prospects of China's Blockchain Development in the First Half of 2019

In recent years, with the strong support of the state, ministries and regional governments, and with the participation of enterprises in the fields of IT, finance, manufacturing, etc., China's blockchain technology continues to be innovative and active, and industrial development is accelerating. A large number of new enterprises, new products, new models, new applications, the application of blockchain in the financial, government, judicial, network security and other industries gradually began to become an important force driving technological innovation and industrial transformation in various industries.

In order to fully grasp the overall situation of China's blockchain policy situation and industrial development, grasp the latest trends of China's blockchain development in 2019, accelerate the promotion of blockchain technology innovation and application, build a good industrial ecology, and promote the blockchain industry. Healthy development, CCID (Qingdao) Blockchain Research Institute compiled and formed the "China's blockchain development status and prospects in the first half of 2019" report. The report comprehensively sorted out China's blockchain policy environment, technological innovation, enterprise development, and industry application blockchain development as of June 2019, and conducted a detailed analysis of the main problems of China's blockchain industry, and for 2019 In the second half of the year, the development of China's blockchain was judged.

The "Report" shows that in the first half of 2019, China's blockchain industry policy drive continued to escalate, regulatory effectiveness gradually strengthened; industry growth slowed down, industry competition gradually escalated; core technology continued to break through, innovation strength gradually appeared; industry applications continued In-depth, typical cases are accelerating. A number of blockchain new enterprises, new products, new models, and new applications are gradually being applied in industries such as finance, government affairs, justice, and network security, providing an important force for accelerating the development of blockchain.

table of Contents

I. Current status of China's blockchain policy environment

Second, the development status of China's blockchain industry

Third, the status quo of China's blockchain technology innovation

Fourth, the application status of China's blockchain industry

V. Development status of China's blockchain enterprises

Sixth, the status quo of China's blockchain standardization construction

7. Problems in China's blockchain industry

Eight, the development trend of China's blockchain in the second half of the year

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The current situation of China's blockchain policy environment

The "Report" summarizes and analyzes the current situation of China's blockchain policy environment in 2019 from three aspects: policy quantity, supervision system and application promotion.

In terms of the number of policies: First, the number of national policies has increased rapidly. In the first half of 2019, the relevant blockchain policies issued by the state and various ministries and commissions reached 12, compared with 10, 9, 3, and 1 policies issued in the whole year of 2018, 2017, and 2016 and 2015 respectively. In the first half of 2019, the number of relevant blockchain policies issued by the state has exceeded the number of policies before 2018 and 2018. Second, the number of local policies has grown steadily. In the first half of 2019, the local government has issued a clear document that mentions 27 policies for the development of blockchain. At the same time, the first half of 2019 is the time for the two sessions in the country. According to statistics, the relevant “blockchains” were mentioned by local representatives. The number of proposals and opinions has reached 34. It is expected that the number of policies introduced in the second half of 2019 will be higher than that of the first half of the year, driven by the two sessions and the domestic and international environment.

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In terms of the regulatory system: First, the powers and responsibilities of the state's supervisory bodies are clear. On the basis of the supervision of the state in 2018, from the beginning of 2019, the state took the lead in issuing regulations on the management of blockchain information services, and then began to continue to exert supervision on related illegal fund-raising, financing and other activities, and clarified the legal boundaries. Second, local financial supervision has been followed up. Driven by the state and various ministries and commissions, some regional governments began to take relevant measures to launch supervision over the application of urban financial industry.

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Application promotion: Active deployment at the national level and accelerated implementation by local governments. In 2018, the policies issued by various regions involved mostly in the fields of finance, services, and supply chain. In 2019, various ministries and commissions and local governments further deepened the blockchain technology into other fields, such as water conservation, engineering construction, flood control, and wisdom correction, while promoting the transformation of existing fields, such as trading platforms and commercial systems. Financial supervision, etc.

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The development status of China's blockchain industry

The Report analyzes the development status of China's blockchain industry from four aspects: industry chain, capital injection, regional development and key factors.

First, the industrial chain has been continuously improved and the industrial scale has increased steadily. In the first half of 2018-2019, the blockchain industry developed rapidly and formed a blockchain industrial chain with certain influence, which is divided into upper, middle and lower reaches. In 2019, China's blockchain research institutions increased by 14. At present, China's blockchain industry chain is dominated by BaaS platforms, solutions and financial applications, followed by data services, supply chain applications, media communities, information security, smart contracts, and energy applications.

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Second, excellent companies are favored and capital injections continue to heat up. Comparing the investment and financing amount of China's blockchain enterprises in the first half of 2018 and 2019, the results show that the level of investment and financing of blockchain enterprises in China has increased; the top 10 enterprises in China's blockchain investment and financing show that China's investment and financing is a block The development of chain technology provides the impetus. Comparing the distribution of investment and financing rounds of China's blockchain enterprises in the first half of 2016 to 2019, the results show that the investment and financing rounds of China's blockchain enterprises have obviously shifted back. Statistics on the proportion of investment and financing industries in blockchain enterprises in the first half of 2019, compared with the previous expansion to new energy, advertising and other fields, the coverage of China's blockchain enterprises in the investment and financing industry has gradually expanded.

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Third, the regional advantages gradually appeared, and the effect of the action was obvious. As of the first half of 2019, the regional distribution of China's blockchain companies has formed a cluster of industrial zones in the four major blockchains of the Bohai Sea, the Yangtze River Delta, the Pearl River Delta and Hunan and Jiangxi. Judging from the proportion of enterprises and valuations in various clusters, the blockchain cluster industrial zone in the Bohai Rim region is dominated by Beijing and Qingdao, radiating from Tianjin, Hebei, Shandong and other regions; the Yangtze River Delta cluster is dominated by Shanghai and Hangzhou, Nanjing. Suzhou and surrounding cities; the Pearl River Delta is dominated by Shenzhen and Guangzhou, radiating cities such as Foshan and Hainan; and the Xiangyu area is dominated by Guiyang, Chongqing and Changsha, radiating the central and western regions.

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Fourth, the accumulation of elements has gradually accumulated, and the industrial park has continued to grow. As of the first half of 2019, the blockchain industrial parks that have been established or under construction in the country have covered Shanghai, Hangzhou, Ningbo, Guangzhou, Qingdao, Chongqing, Wuhan, Changsha, Nanchang, Haikou, Zhangzhou, Loudi, Liaoning, Nanning and Tangshan. In Xinjiang, China and other five major regions, the number of blockchain industrial parks has reached more than 20.

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Current Status of Blockchain Technology Innovation in China

The Report analyzes the status quo of China's blockchain technology innovation from four aspects: patent quantity, technology integration, underlying architecture and consensus plan. First, the number of patents in China's blockchain has soared, and the number of applications has plummeted. In the first half of 2019, China's open blockchain patents amounted to 3,547, far exceeding the total number of patents published in 2018 and before. In the first half of 2019, the number of patent applications for blockchains was 1,048, a significant drop. In the first half of 2019, the number of blockchains in Guangdong increased more than that of Beijing, becoming the province with the largest number of domestic patents. The patents mainly came from Shenzhen and Guangzhou. The number of patents in various provinces and cities is stepped, with Guangdong and Beijing leading the way, followed by Zhejiang, Shanghai, Jiangsu, Sichuan and other provinces.

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The second is the convergence of blockchain and cloud computing, big data, and Internet of Things technologies. The popularity of new technologies such as cloud computing, big data, Internet of Things, blockchain and artificial intelligence has enabled large Internet companies to achieve more efficient resource integration from the consumer level to the enterprise level, and directly promote the digital transformation process of enterprises. Major Internet companies have launched blockchain cloud platforms to integrate blockchain, big data and cloud computing to realize the innovative development of blockchain technology.

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Third, the performance of the blockchain underlying architecture is gradually optimized. Since the advent of Bitcoin in 2009, the underlying technology of the blockchain has continued to develop. China's alliance chain and public chain system have been continuously improved, and a series of core technologies have emerged. Last year, Chinese companies innovated in technologies such as cross-chain, side chain, multi-chain, segmentation technology, directed acyclic graph, and privacy protection. This year, with the increase of R&D investment and R&D work, the domestic research team has made innovations and breakthroughs in the underlying structure, chain structure and data structure of the platform, and further promoted the blockchain technology to gradually mature.

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Fourth, the consensus scheme at the bottom of the blockchain has gradually improved. With the continuous development of blockchain technology, various technical teams are constantly striving to improve the performance of consensus algorithms, ensuring that the network achieves multi-party consensus security and raises the threshold for attacks. Various consensus algorithms based on PoS or BFT have been proposed one after another. The performance, characteristics and advantages and disadvantages of different consensus algorithms are different for different application scenarios.

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Application Status of Blockchain Industry in China

The Report analyzes the application status of China's blockchain industry from the aspects of financial services, e-government, judicial governance, property rights protection solutions, food and drug traceability, charity and medical treatment.

First, the application of financial services has achieved remarkable results. The financial sector is the most frequently used blockchain technology and one of the most demanding. In the financial sector in the first half of 2019, supply chain financial applications continued to emerge, asset management developed steadily, cross-border payment applications came into effect, and cross-border trade continued to advance.

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Second, local pilots in the field of e-government have been rapidly promoted. In the first half of 2019, local governments were actively exploring the integration of blockchain and government services. Some blockchain government service platforms have been put into trial and put into daily use.

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The third is the comprehensive application of judicial governance. The advantages of blockchain technology can serve the judicial work, and it can be used for judicial criminal records and civil and commercial disputes. It helps to solve the problem of difficult electronic evidence and difficult to collect letters, and improve judicial efficiency. At present, the application of blockchain in the field of law governance in China is developing rapidly, and a number of successful application cases have emerged.

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The fourth is the key exploration of property rights protection solutions. The use of blockchain technology time stamps, non-tampering, etc. can establish a reliable digital proof, in the field of digital copyright, intellectual property, certificate can establish a new certification mechanism to improve the management level of public services. At present, major companies are exploring solutions in the field of property rights protection, laying a solid foundation for the development of the industry.

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Fifth, the traceability of food and drug applications has achieved initial results. Blockchain technology can be used for product anti-counterfeiting, combining data non-tamperability with transaction traceability. It can eradicate the problem of counterfeiting in the process of product circulation in the supply chain. In the first half of 2019, blockchain-based food and drug anti-counterfeiting traceability systems continued to emerge.

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Sixth, the charity field has developed steadily. Credibility is the lifeline of a charity, and its status is self-evident. Blockchain technology is expected to become an important magic weapon to solve the credibility of charities. At present, in the field of philanthropy, the development of blockchain basic products has made certain breakthroughs. The philanthropic platform based on blockchain of Internet companies has been launched, and the application of blockchain is gradually being carried out, and continuous progress has been made.

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Seventh, the application of the medical field has gradually landed. The current blockchain technology has broad application prospects in the medical field and has become an important focus of innovation and development in China's medical industry. Under the joint efforts of local governments and industry leaders, a number of blockchain application platforms for the medical industry have been launched one after another. There is a strong demand for blockchain technology in the medical field.

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Development Status of Blockchain Enterprises in China

The development status of China's blockchain enterprises mainly presents the following characteristics: First, the combination of government and enterprises accelerates the application of blockchain; Second, the state is sluggish, the growth rate of blockchain enterprises in the first half of the year is slightly poor; Third, the quality is not good, the district Blockchain start-ups lack evaluation; Fourth, uneven distribution, blockchain enterprises have obvious ladder characteristics; Fifth, accelerate expansion, enterprises extend to second- and third-tier cities; Sixth, application breakthroughs, blockchain enterprises explore the layout.

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The status quo of China's blockchain standard specification construction

At present, domestic and foreign standardization organizations, alliance associations, research institutions, etc. are actively studying the work related to the standardization of blockchains, organizing a series of work such as standard pre-research and standard setting, and have made certain progress, mainly showing the following characteristics.

First, the cryptographic algorithm and the electronic signature standard system are relatively complete. At present, China has established a relatively complete domestic cryptographic algorithm system. SM2 elliptic cryptography, SM3 hash cryptography, SM9 cryptographic algorithm and Zu Chong cryptographic algorithm can provide core support for blockchain technology. As of June 2019, there were about 19 industry standards for relevant national secret algorithms. Before 2018, there were about 20 digital signature standards promulgated and implemented in China. The State Administration of Markets and the National Standardization Administration Committee implemented a series of standards for new approvals issued in 2019, and the digital signature standards will be more perfect.

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Second, the development of the underlying framework technical standards was actively carried out. The standardization of the underlying framework technology of China's blockchain has been carried out in an orderly manner since 2016. Relevant scientific research institutions are actively participating in the formulation of the underlying framework standards of blockchain. This year's blockchain basic standards, data privacy protection and cross-chain technical standards Progress has been made in other areas.

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The third is the steady development of applied standards research. Blockchain application standards are mainly divided into two categories, one is to follow the interface standards and data specifications for blockchain application development. Such as password application service standards, underlying framework application programming interface standards, distributed database requirements, virtual machine and container requirements, smart contract security requirements, BaaS platform application service interface standards and specifications. The other category is the blockchain application standards or specifications for specific application scenarios. This type of standard specification has been continuously updated in recent years, and various research institutions are actively exploring blockchain application standards, and have made great progress and active. The development of corresponding industry-specific application standards is of great significance to promote the application of blockchain technology.

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The fourth is the initial results of the evaluation of certification standards. The evaluation certification standard can quantify the blockchain product quality and enterprise service capability, promote the improvement of enterprise product quality and service system, ensure the performance and security of the blockchain, and provide reference for users. At present, domestic enterprises and research institutions mainly have two major categories according to different evaluation objects. One is the evaluation standard for system cryptographic module security, and the other is the evaluation standard for the underlying platform of blockchain.

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China's blockchain industry has problems

The "Report" analyzes the current development of blockchains from the perspective of policies, standards, technologies, enterprises and applications.

First, the special policy support is less, and the content is still in the application exploration stage. In the first half of 2019, the overall trend of blockchain policies was good. However, in the 27 blockchain policies of statistics, only Fuzhou, Fujian Province issued the “Notice on Printing and Distributing the Three Measures to Accelerate the Development of the Blockchain Industry in Fuzhou”. The chain development special policy, while the development of the blockchain in the policy documents is still in the application exploration stage.

Second, technical standards need to be improved, and there is a lack of safety rating evaluation. In recent years, blockchain technology has been continuously developed and innovated. There is no general evaluation standard and system, and the technical performance and efficiency, scalability, and security of the blockchain can be detailed. Although the blockchain technology is developing rapidly, there are still some security holes in the technology.

Third, privacy protection performance is worrying, and smart contracts are stagnating. At present, the industry has not explicitly proposed an effective solution for privacy protection. Some privacy protection application scenarios are constantly trying new methods, but they are still in the pilot experimental stage. In addition, China's blockchain enterprises have been stagnating in the innovation and research of smart contracts. Most of the existing smart contract technologies are modeled on the foreign mainstream blockchain smart contract structure, which has expanded the language of smart contract writing. To improve the ease of use of smart contracts.

Fourth, the company's growth rate is weak and the service type is homogenized. The development of the current blockchain enterprises is still at a high-speed development stage, and entrepreneurs and capital are constantly pouring in, forming a large gathering area. Driven by the central cities, these clusters are growing, but blockchain enterprises with substantial output have slowed down and lacked success. At the same time, judging from the service types and development orientation of each enterprise, most enterprises mainly rely on the research of the underlying technology, the processing of information data, the provision of solutions, the public chain and the platform chain in the development of blockchain projects. The overall phenomenon reflects the homogenization of enterprise service types.

Fifth, the killer application has not yet appeared, and third-party evaluations are seriously missing. First of all, in recent years, the application of blockchain has continued to land, covering a wide range of industries, but there has not been a killer application that can affect the public life. At present, the popularity and promotion of blockchain among the citizens is far lower than other technologies such as big data, Internet of Things, and cloud computing. Secondly, as an emerging technology, blockchain has certain risks and security risks in the process of development and application. If there is no authoritative third-party evaluation agency to test these applications, there is no guarantee that the technology used will be in performance and Whether the function is in compliance with the standard, whether the privacy information and key data security protection that users are most concerned about are in place.

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The development trend of China's blockchain in the second half of the year

On the basis of analyzing and summarizing the development status of China's blockchain, the "Report" predicts the development trend of China's blockchain from five aspects: BaaS platform, technological innovation, standard setting, industry application and industrial scale.

First, the BaaS platform service has gradually spread, and the competition has intensified. The BaaS platform can effectively reduce the cost of deploying blockchain and reduce the initial threshold of entrepreneurship. China's Internet giants actively explore the combination of blockchain and cloud computing, and dozens of companies such as Ali, Tencent, Huawei, Baidu, and Jingdong launch the BaaS platform. It is applied in the fields of finance, logistics, and commodity anti-counterfeiting. I believe that more BaaS platforms will come out in the second half of the year and compete for market share.

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Second, the core technology innovation continues to improve, and will further improve performance and safety. In terms of performance, such as trusted computing, BUTXO model, spatio-temporal database, parallel public chain and other technologies, major attempts have been made to improve the performance of blockchain. A series of excellent cryptography-based methods have been innovatively integrated and put into practice; In terms of security, blockchain security mainly focuses on three parts: consensus mechanism, terminal application and smart contract. At present, technologies such as formal verification and code auditing are gradually being applied to the blockchain security field. It is predicted that China's technological innovation will be more active in the second half of the year, and more performance and security solutions will continue to flock.

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Third, the standard specifications will be accelerated and the regulatory system will be gradually improved. In the first half of 2019, five of the 12 policies issued by the state and various ministries and commissions involved supervision, providing an effective legal basis for the provision, use and management of blockchain information services. Among them, Guangdong Province took the lead in taking relevant measures for the urban financial industry. Blockchain applications initiate regulation. The development of China's blockchain related standards has been rapidly launched in 2018. At present, a number of group blockchain standards have been formed. The blockchain national standards are also being planned. A series of related standards will be accelerated to promote the blockchain industry market. Standardization and standardization development.

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Fourth, the coverage of industry applications has gradually expanded, and judicial deposits and government affairs are expected to break out. In 2018, the Supreme People's Court issued the "Regulations on Several Issues in Internet Courts", stating that blockchains can be used to solve the problem of depositing electronic evidence, to solve the pain points in the judicial industry, and to provide policies for the application of blockchain in the field of judicial deposits. Guarantee, and the three major Internet courts are also actively exploring; the blockchain + e-government application projects announced in 2019 are 13 items, exceeding the number of blockchain e-government applications in 2018; 20 levels of government actively introduce policies Encourage the development of blockchain, the number of policies in the first half of the year is the same as the number in 2018. It is predicted that in the second half of the year, China's blockchain judicial deposit and e-government will usher in a new round of outbreaks.

Preparatory Committee for the Status Quo and Prospects of China's Blockchain Development in the First Half of 2019

Consultant: Deng Di Liu Ningning Zhu Youping Ma Zhaofeng Chen Xiaohua

Director: Liu Quan

Deputy Director: Huang Zhongyi

Writer: (in no particular order)

Liu Zongyuan Sun Xiaoyue Wang Zengyong Gao Rui Li Nailong Qiu Pingwen Wang Wei Wei Ang Yuan Fang Zhao Tian

Guiding unit: (in no particular order)

Qingdao Laoshan District People's Government

China Electronic Information Industry Development Research Institute

Requester:

China Blockchain Ecology Alliance

Organizational Unit:

CCID Block Chain Research Institute

Joint release unit: (in no particular order)

Tsinghua University Internet Research Institute Blockchain Laboratory

Beijing University of Posts and Telecommunications Blockchain Laboratory

China Software Industry Association Blockchain Professional Committee

Beijing Electronic Certification Service Industry Alliance Chain Letter Professional Committee

Biaoxin Technology Judicial Identification Institute

Beijing TV station decoding blockchain column

CCID Block Chain Research Institute

Beijing Qihoo 360 Technology Co., Ltd.

Neusoft Group

Beijing Taiyi Cloud Technology Co., Ltd.

Wisdom Certification Consulting (Beijing) Co., Ltd.

Shanghai Fanwu Culture Communication Co., Ltd.

Cyberspace Security Magazine

Article transferred from the public number: CCID blockchain ecological alliance