The Chinese government is working on speeding up its application of blockchain technology for several applications. Earlier today, the country’s Ministry of Industry and Information Technology published a document where it called for responses to a draft bill that will standardize the application of the technology, and others, for data security.
A Major Blockchain Application Moving Forward
As the document explained, the Chinese state has now seen data as a vital national resource and an essential tool for both social and economic production. However, while just about every aspect of the nation is enjoying the potential of data to transform their lives, it is also crucial for everyone to remain alert to the inherent security risks and challenges to the application of big data.
Thus, the ministry recommends the creation of a standard data security infrastructure. With this, it believes that it will be able to secure a rational and orderly flow of network data, especially in the digital economy. The document also puts a premium on ensuring that these security standards are based on the application of next-generation technologies, including blockchain, 5G connectivity, cloud computing, and artificial intelligence.
As for blockchain, the government identifies three critical areas of security development; basic concepts (including the application of cryptography and network communication), system design (consensus algorithms, smart contracts, etc.), and application services. The security standardization will also focus on digital asset storage, data privacy, and network interaction protection.
To wit, the ministry will be focusing on the following: research on blockchain and smart contracts for financial transactions, security in blockchain-based Internet of Things (IoT) data communication, and the analysis of blockchain-based data exchange technology for IoT.
China’s Blockchain Bet
China’s reliance on blockchain technology has been slightly noticeable over the past few months. It’s no secret that the country is looking to build on its blockchain dominance to develop a central bank digital currency. Apart from that, however, there have been serious advancements to position blockchain as a leader in several industries in the country.
Even the country’s coronavirus response has mainly been contingent on a blockchain application. Early last month, the South China Morning Post (SCMP) reported that Xiang Hu Bao, a blockchain-based insurance claim platform, had added coronavirus to the list of ailments that it covered as part of its payouts.
In addition to Xiang Hu Bao, SF Express, the second-largest courier services provider in the country, also announced that it would be exploring the use of blockchain in transporting critical supplies during the period.
As the People’s Daily Group reported at the time, the Shenzhen-based firm has found success in using the technology to help track the provenance and quality of medical goods. While the extent of the company’s blockchain implementation hasn’t been detailed, it has reportedly started using blockchain, specifically in transporting foods and medicines across the country.
With China so keen to usher in the new age of tech-driven societies, however, the country’s CBDC seems to be more required than ever. On that front, the government has shown a desire to take things slow and get things right.