China's blockchain R&D and application status and development suggestions

China's blockchain R&D and application status and development suggestions

Blockchain is a new integrated application mode of computer technology such as distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithm. Broadly speaking, blockchain technology uses blockchain data structures to validate and store data, use distributed node consensus algorithms to generate and update data, and use cryptography to ensure data transmission and access security, using automated scripts. The code consists of a smart contract to program and manipulate data in a completely new distributed infrastructure and computing approach.

The blockchain contains four main characteristics: one is open and consensus; the other is to go to the center and increase integrity; the third is transparent transaction and the two sides are anonymous; the fourth is difficult to tamper and traceable. Therefore, the blockchain, with its unique advantages, will play an extremely important role in the application of innovative industries and the improvement of social governance.

Current Status of R&D and Application of Blockchain in China

(1) China's blockchain patent application ranked first in the world in 2017

According to information released by the World Intellectual Property Organization, the number of global blockchain patent applications in 2017 was 406, of which 225 were applied for in 2017, ranking first in the world; the second was 91 in the US; the third was Australia. , for 13 items. From a corporate perspective, in 2017, China's Alibaba Group ranked first in the world in the field of blockchain applications, and Bank of America ranked second.

(II) China's blockchain R&D and application has begun to take shape

Relevant research shows that as of the end of March 2018, the number of blockchain companies in China with blockchain business as the main business reached 456, and the industry has begun to take shape, covering upstream hardware manufacturing, platform services, and security services. Downstream industrial technology application services, and then to the industry to support the development of industry investment and financing, media and talent services and other chains.

From the perspective of the blockchain industry composition: (1) In the underlying technology and infrastructure layer, China has small ants, Ethereum, and the original chain that focus on the basic agreement; Zcash, Dash, Monero and other research and development companies that focus on anonymous technology. (2) At the intermediate technical service level, China has secret technology, LISK, Veritaseum, etc. to provide intelligent contract services; provide fast operations Lightning-etwork, TrueBit, raiden, etc.; provide data services for the public bits, public treasures, matrix elements Etc.; provide interesting chain technology, fast-shell, distributed technology, etc. for BaaS platform services; Starfish blockchain, Taiyiyun, Datong blockchain, etc. that provide blockchain solutions; Xinyifu, Vechain, etc. that provide anti-counterfeiting traceability R&D company. (3) At the application level of the industry, China has Cointiger, coinbase, etc. for digital asset transactions; ZAG, Pillar, Kcash for digital wallets; VEEM, RIPPLE, RADR, etc. for payment services; Sunshine Insurance, Zhongan, which focuses on insurance applications Technology, public support, etc.; focus on the six domain chain of Internet of Things applications, material chain, etc.; AKIRI, Ali Health, Gem focused on health applications; original blockchain, paper expensive technology and other research and development companies that focus on copyright protection.

(3) 52.4% of China's blockchain entrepreneurial projects are for financial applications

According to incomplete statistics, as of March 2018, there were 388 blockchain entrepreneurship projects in China, an increase of more than 300 from 2016. Among them, financial projects accounted for the most, accounting for 52.4%; general technology and technology development accounted for 21.8%, and the underlying technology and infrastructure accounted for 18.2%.

(4) "North to Shenzhen" accounts for more than 70% of China's blockchain research and development

The 388 blockchain entrepreneurship projects that have been counted are distributed in 23 provinces and regions in China. The top 5 companies are Guangdong, Zhejiang, Jiangsu, Sichuan and Shandong. There are 58 in Guangdong Province accounting for 14.95%, and 35 in Zhejiang accounting for 9.02%. Among the urban distribution (including Hong Kong, Macao and Taiwan), Beijing has 158 accounts for 40.72%, Shanghai with 65 and Shenzhen with 49.

(5) China's blockchain alliance has reached more than 30

The blockchain alliance has accelerated the development of China's blockchain. According to incomplete statistics, there have been more than 30 different types of blockchain alliances in China in the past two years, mainly in cities such as Beijing, Shanghai and Shenzhen. For example, the Golden Chain Alliance, which was established in May 2016, is a voluntary organization composed of financial institutions that actively promote the development of blockchain technology and enterprises that provide scientific and technological services to financial institutions.

Understanding of the development of blockchain

(1) Blockchain changes the way digital resources are stored and transmitted

The technical characteristics of the blockchain determine its ability to transcend the value transfer model dominated by traditional central institutions, helping people to exchange various values ​​in a new, fast and intermediary-free way, thus changing the way social values ​​are transferred and reshaping. Organizational form, promote the re-integration of resources, and change the operational logic of the industry.

In the financial sector, whether it is payment, lending, trading, crowdfunding or credit reporting, the blockchain can reduce the cost of various business in the financial industry with its decentralized and non-tamperable trust mechanism, and fundamentally improve efficiency; In the field of health care, the blockchain can provide high-intensity security for the sharing and storage of data in the healthcare industry, and ensure the transparency and reliability of data. In the field of logistics, the overall transportation process can be carried out through blockchain technology. Reduce, improve efficiency, the public can verify and monitor product and logistics processes, and so on.

(II) The development of blockchain is still in the early stage of research and exploration

Overall, the development of blockchain technology can be divided into four phases: the first phase, with digital currency as the starting point, research related applications and support software and hardware; the second phase, based on digital assets, research various assets in the district Secure digital registration on the blockchain; the third phase, the development and popularization of smart contracts, the evolution of ecosystems; and the fourth phase, the combination of digital assets and ecosystems to enable the application of blockchain mechanisms.

At present, most of the global blockchain technology development still stays in the first stage of digital currency as the main form, that is, at the level of concept development and architecture construction. The development direction of the underlying technology is still uncertain, the application scenarios still need to be implemented, and the industry standards are also very blurry. At the same time, blockchain technology still has many problems or defects in structured figures, consensus mechanisms, and supervision. According to Gartner analysis, the time required for the blockchain technology to reach maturity is about 5 to 10 years.

(3) Blockchain will likely lead to profound social management and integrity system reform

The wide application of blockchain technology will accelerate the arrival of “digital credit society” and lead to changes in government management and social credibility. The distributed ledger technology of the blockchain will help the government to levy taxes, issue benefits, issue passports, register land ownership, ensure the operation of the goods supply chain, and ensure the correctness of government records and services as a whole. Distributed ledgers also provide a new way to ensure ownership and origin of goods and intellectual property.

As a new type of underlying information technology, blockchain, with its open data transparency, high information security and strong traceability, may change the Internet governance model and promote the Internet as a new credit infrastructure to achieve effective value transfer. At the same time, blockchain technology may also improve existing business rules and build a new model of industrial collaboration.

(4) There are security risks in the blockchain

The security risks of the blockchain at the technical level are: trying to change the transaction information on a previous block; trying to control the generation of the new block. The key to solving these two problems lies in the enormous computing power represented by solving the math problems.

The security risk of blockchain is: all nodes synchronize data, and the efficiency is low; block generation requires a large amount of calculations of miners (people or organizations competing for billing rights in blockchain networks), which consumes energy; The transaction data is open and transparent, and there are privacy protection issues; the centering and autonomy features provide shelter for the black industry.

Suggestions on the development of China's blockchain

(1) Strengthening the security and supervision of blockchain at the level of security and governance

Self-controllable, safe and reliable is the most important issue that needs to be paid attention to in China's development blockchain. The currently immature blockchain technology is facing serious challenges such as platform security and application security. In June 2016, TheDao, the world's most popular project based on blockchain technology, was hacked, resulting in the hijacking of more than 3.6 million Ethereum worth $60 million. At the same time, a regulatory environment that promotes the application of blockchain technology should be established. If the traditional regulatory model is applied, it will be possible to curb the application innovation of the blockchain and make it unable to play its due role.

Therefore, we should strengthen the research on the security of blockchain in China, and improve the relevant laws and regulations from data security, technical security, and scene security according to the technical operation characteristics of the blockchain to prevent and reduce the potential risks of the blockchain. In addition, we must improve the means and methods of blockchain supervision, learn from foreign regulatory experience, and realize the safe application of blockchain in China.

(2) At the technical level, increase the research and development of the core technology of blockchain

China is still in the initial stage of blockchain R&D. It is necessary to strengthen the tracking research on the international development of blockchain, strengthen the research and development of key technologies in China's blockchain, increase R&D investment, and establish a public service platform for R&D of blockchain technology. . It is necessary to pay attention to the R&D and optimization of the bottom layer and basic technology of the blockchain, focus on creating the underlying platform of the independent and controllable blockchain, and strive to gain more discourse power in the global blockchain core technology R&D competition.

(3) At the application level, promote the pilot application of blockchain in public services and other fields.

Blockchain has broad application prospects in the fields of finance, public services, medical care, and logistics. Despite the current scalability, privacy and security of the blockchain, and the lack of mature open source projects, existing applications have fully demonstrated the value of blockchain. Therefore, it is recommended that China should promote the pilot application of the typical field of blockchain. For example, in the public service, finance and other industries, the appropriate departments will be the main nodes of the blockchain and participate in the operation of the blockchain network. Master and evaluate the impact of blockchain applications and possible risks to achieve effective regulation of blockchain security applications. (People's Venture Capital)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Banks Join Forces to Transform Cross-Border Transactions

Fashion-forward global banks, Deutsche Bank and Standard Chartered, are leading the way in a revolutionary solution t...


Get Ready for a Wild Ride as Binance Lists ORDI Ordinals with the Magic of Seed Tags

Binance's new listing of ORDI token includes a Seed Tag, indicating a higher level of risk and volatility compared to...


Lugano, the Crypto Wonderland of Switzerland: Embracing Polygon with Open Arms

Lugano Embraces Polygon Revolutionizing Crypto Evolution with Layer 2 Scaling Solution on Ethereum Ecosystem


Animoca Brands: When Education Meets NFTs

Season 2 of Animoca Brands' Publisher NFTs has exceeded expectations and completely sold out.


The Crypto Market Takes a Breather: Time to Seek New Opportunities

Is now the right moment to shift our focus to newcomer cryptocurrency Galaxy Fox, as previous highly successful optio...