- China has launched its national blockchain platform on April 25, 2020.
- The platform is called the Blockchain Service Network (BSN).
- The launch of the BSN is expected to speed up the development of China’s state-owned cryptocurrency.
April 25, 2020 is the date that could be the beginning of a new era in the world of blockchain. It makes the birth of China’s national blockchain platform called the Blockchain Service Network (BSN).
The platform comes as a result of the efforts of China’s state agency called the State Information Center, which worked on this project for several years.
The platform is supposed to create a sort of revolution in the blockchain universe by enabling developers to build applications “as easily as making Lego houses.”
BSN Is Meant to Revolutionize the Blockchain Technology
By scaling down the costs and requirements for developing blockchain-based applications, the platform is expected to enable creative minds to bring their ideas to life.
In turn, the number of blockchain innovations is expected to go up exponentially in the near future. Speaking of which, China is already at the very top of the list when the number of blockchain patents is concerned, followed by the United States, South Korea, Australia, and Canada.
This fact might come surprising to some, especially knowing about this country’s stance on cryptocurrencies. At the moment of writing, China has a nation-wide ban on the use of digital currencies, with the rule being “blockchain yes, cryptocurrencies no.”
Still, that might change in the foreseeable future.
What the Future Holds?
In 2020, China is the world’s second economy, trailing behind the United States. US dollar reigns supreme, but China’s currency has a chance to compete with it on the international scale. However, to get to that level, yuan needs to undergo some changes.
Some experts think that its chance lies in embracing the blockchain technology. The digital yuan looks like China’s ace up the sleeve in the global economic race.
The world’s most populous country has been working on the development of its own state-controlled cryptocurrency since at least 2014. There are many signs that the completion is near, including the news about the launch of the BSN.
The Birth of Digital Yuan
In October last year, Chinese President Xi Jinping confirmed that the blockchain technology is planned to be one of the pillars of this country’s economy in the 2020s. One of the most key implementations of the technology is going to be the Digital Currency/Electronic Payments project (DC/EP).
The DC/EP a.k.a. digital yuan is going to be China’s cryptographic currency, which, unlike other cryptocurrencies, is going to be controlled by the state.
That’s not the only difference between the digital yuan and other blockchain-based cryptocurrencies. This crypto is meant to be focused on mobile devices. One of its main functions is going to be the “touch and touch” system, which should enable people to make money transfers simply by touching their smartphones.
The system is expected to have the power to process as much as 300,000 transactions every second, utilizing several other technologies aside from the internet. For instance, devices with Bluetooth or NCF will be able to participate in digital yuan transactions.
The Central Bank of China is yet to confirm the release date of this cryptocurrency, although there are many signs it could happen within the next couple of years. The launch of the BSN will certainly put wind in the sails of its development, so we might see the launch of digital yuan as early as 2021.