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The future of blockchain in China

China has further strengthened supervision over virtual currency trading and mining. On the one hand, multiple departments prompt virtual currency trading, speculation risks, from the bank and the payment end of a heavy blow; On the other hand, many places have fully withdrawn mining enterprises and started “blocking” from the source of the bitcoin industrial chain. Under the global trend of “carbon neutrality”, it has been the consensus of the industry practitioners to completely eliminate high-energy-consuming mining. Under high pressure, virtual currency mining “fled” overseas, and in sharp contrast, industrial blockchain is mushrooming and booming.

Data shows that both short-term and long-term sentiment towards the cryptocurrency market is at its lowest point in recent times. In the view of the industry, on the one hand, the policy continues to increase the “pain” of the industry bubble squeeze, on the other hand, China’s domestic and foreign blockchain technology enterprises, in the full application of blockchain and enabling the acceleration of the road.

As bitcoin mining needs to consume a lot of computing power from the core of POW consensus mechanism, the trend of “carbon neutrality” may force blockchain to further iterate and upgrade on consensus mechanism, contributing to a new stage of development of blockchain technology.

However, despite the continuous introduction of strong regulatory policies for cryptocurrencies, it is worth noting that in recent years, China’s macro-policy guidance to the blockchain industry has gradually become more focused on the focus of enabling entities. As early as the rise of blockchain technology to the national strategy, blockchain technology has frequently appeared in China’s important macro planning, new infrastructure, the 14th Five-Year Plan, the macro documents of major ministries and commissions…… And so on.

In terms of technology essence, blockchain is an important part of a new generation of information technology and a new database software integrated with distributed network, encryption technology, smart contract and other technologies. At present, the application and industry of blockchain technology have a good foundation for development, and a number of representative blockchain applications have emerged in the fields of anti-counterfeiting traceability, supply chain management, judicial storage, government data sharing, public services and so on.

Different from the strict regulation of virtual currency, the top-level design of the development of blockchain industry was basically completed in June. Cultivating blockchain brands and enterprises is one of the important development directions of China in the next decade. At the same time, local governments are also actively supporting the development of blockchain technology and industry with funds to promote the application of blockchain enterprises as soon as possible.

Post time: Oct-25-2021