- China’s launched its blockchain network, the BSN, to become a blockchain of blockchains
- The BSN has announced that its reach will be extended to the global space, welcoming developers not based in China
- The country would launch a central bank digital currency, and support those from other countries
China’s stance on cryptos has been largely hostile (banning the operation of crypto exchanges and ICOS). Regardless, it has largely embraced the underlying technology of the assets, blockchain.
The country has maintained this stance since September 2017. However, in October 2019, President Xi Jinping openly backed blockchain technology, stating the need for the advancement of the technology in China.
China’s Blockchain Network – BSN
In 2020, the People’s Republic of China announced the launch of a Blockchain-based Service Network (BSN). The BSN is a nationwide Blockchain network designed to integrate smaller blockchains into a much larger network controlled by the government. Think of it as a blockchain for blockchains.
China wants to become the leader of blockchain technology with the BSN. The BSN supports both permissionless (decentralized and transparent blockchains including Bitcoin and Ethereum) and permissioned or private and consortium blockchains.
The Focus of China’s BSN
The BSN, led by the State Information Center, UnionPay, and Red Date in its white paper stated that;
Just as with the internet, the BSN is also a cross-cloud, cross-portal, cross-framework global infrastructure network.
The BSN supports permissionless blockchains, and major developers like Ethereum, EOS, Tezos, and NEO have already built nodes on the network. Although the network supports decentralization, China has focused largely on building permissioned projects on the blockchain.
Early this week, the BSN announced the launch of a permissioned version of Cosmos. The original version is an interoperable, scalable blockchain network built for developers. It was launched in 2019 as the internet for blockchains.
On the Flipside
- EY has announced the extension of blockchain solution deployment in China on Ethereum and Financial Blockchain
- The firm intends to increase the availability of EY blockchain solutions by leveraging Financial Blockchain Shenzhen Consortium (FISCO) Blockchain Open Source (BCOS) platform
- Its availability in the region will now be subject to regulatory approval
Global Developer are Welcome to the BSN
Although the BSN focuses on launching permissioned blockchain projects, thanks to Cosmos, global developers can now enter the BSN. The permissioned chain of Cosmos permissioned – Wenchang Chain – makes it possible.
Wenchang Chains were designed to provide the public with a network for low-cost creation, deployment, operation, maintenance, and regulation of consortium blockchain applications. Also known as decentralized applications.
Wenchang Chain announced through the BSN that global developers can now deploy their dApps on the network. dApps launched on the Wenchang Chain will be concurrently compliant with the Chinese regulations.
The network according to its developers was created not only for enterprise services but also for business-to-consumer and consumer-to-consumer programs.
In addition to creating a central bank digital currency (CBDC), the BSN has also laid out a five-year plan to create a universal digital payment network (UDPN). The UDPN will act as a global payment network with support for the CBDC of different countries.