It may sound counterintuitively but China is the ultimate leader in the blockchain race.
It may sound counterintuitively but China is the ultimate leader in the blockchain race. Yeah, we know its strange that the centralized country is digging distributed ledger technologies but it’s true.
By November 2018 China had over 260 active blockchain projects. This makes for 25% of the world’s blockchain projects that are currently operating. The data is delivered by the Beijing-based blockchain analyst firm Blockdata.
EO Intelligence, a think tank also located in Beijing, reports that the number of Chinese businesses dealing with blockchain technologies is well over 600. In addition, half of them work on services and platforms specifically designed for the financial sector. These numbers shouldn’t come as a surprise to anyone. After all, China is the country with the largest number of blockchain patents filed. Second, comes the USA with 28 patents less than China.
Even though China outright banned initial coin offerings on its territory, the country infamously kickstarted the trendy “blockchain, not crypto” argument, which gets more and more traction across the globe. The Chinese president Xi Jingping himself praised blockchain technology last year, thus hinting that businesses dealing exclusively with distributed ledgers are safe.
Indeed, the government supports such businesses in an effort to establish the country at the forefront of blockchain development. In 2017 alone, over 100 companies emerged, which makes us think China might be indeed a region of DLT prosperity.
So far, so good. While China might seem like a blockchain dream to some of you, it’s really not all milk and honey. The industry may see an exponential rise but it is by no means going wild. There are strict regulations as the government is not fooling around. Two months ago it deployed a new set of regulations, which require all blockchain businesses to register in the Cyberspace Administration of China (CAC).
Last week, the Chinese officials revealed the names of the first companies that have registered within CAC. Among them, we were able to distinguish the names of local behemoths Baidu, Tencent, and Alibaba. Per previous reports, China was expected to dominate the blockchain race by 2023. It turns out it has set new standards with today’s news.