China's Blockchain Network Opens to Global Developers

China's Approach to Blockchain Technology

Despite prohibiting cryptocurrency exchanges and initial coin offerings within its borders, the Chinese government is actively pursuing the utilization of blockchain technology. This adoption, however, frequently occurs without embracing the decentralized aspects typically associated with cryptocurrencies.

Applications of blockchain are being explored to enhance processes such as tracking the movement of high-value goods and verifying the authenticity of legal evidence.

The Blockchain-based Service Network (BSN)

China aims to establish itself as a global leader in this emerging technology while simultaneously adapting blockchain applications to serve its own national interests.

Last year saw the launch of a significant, government-supported blockchain infrastructure network known as the Blockchain-based Service Network, or BSN.

The BSN functions as a foundational operating system for blockchain programs, alleviating developers from the need to construct a framework from scratch.

Crucially, this initiative is integral to China’s broader objective of establishing industry standards and developing the essential infrastructure for blockchain applications on a worldwide scale.

Key Players Behind the BSN

The development of the BSN is spearheaded by the State Information Center, an organization affiliated with China’s leading economic planning and reform body.

Additional key partners include UnionPay, China’s dominant credit card processor, the telecommunications giant China Mobile, and Red Date, a relatively unknown Beijing-based startup specializing in smart city technologies.

Understanding Blockchain Types

Blockchains are broadly categorized into two main types: permissionless and permissioned.

Permissionless blockchains are public, decentralized, and transparent in nature.

Permissioned blockchains, conversely, are managed by one or more stakeholders within a specific industry, and are referred to as either private or consortium blockchains.

BSN's Global Infrastructure Design

According to its white paper released last March, the BSN is engineered as a global infrastructure capable of supporting both consortium and public blockchains.

It is designed to mirror the functionality of the internet, functioning as a “cross-cloud, cross-portal, cross-framework global infrastructure network.”

An English-language version of the BSN website is available to facilitate access for dApp developers.

Several prominent public chains, including Ethereum, EOS, Tezos, and NEO, already maintain nodes on the network.

Expanding into Permissioned Blockchains: Wenchang Chain

BSN is now focusing on the development of its permissioned infrastructure.

This week, the organization announced plans to introduce a permissioned version of Cosmos, a network introduced in 2019 that comprises numerous independent blockchains and identifies itself as the “internet of blockchains.”

The development of the Cosmos-based chain is being undertaken by Bianjie, a Chinese blockchain startup.

The permissioned chain has been named after Wenchang, a city located in Hainan Province, China’s southernmost region, which serves as China’s inaugural blockchain pilot zone.

The Purpose of the Wenchang Chain

Bianjie stated that the Wenchang Chain aims to provide a “public infrastructure network that enables the low-cost development, deployment, operation, maintenance, and regulation of consortium blockchain applications.”

A Bianjie spokesperson clarified via email that global developers can now deploy their dApps on the Wenchang Chain through the BSN.

This allows their dApps to simultaneously comply with Chinese regulations, potentially granting access to a substantial Chinese user base and entry into the Chinese market.

Applications Beyond Enterprise

The Wenchang Chain is intended for a wide range of applications, extending beyond enterprise services to encompass both business-to-consumer and consumer-to-consumer programs.

Uptick, a consumer-facing e-ticketing dApp, is slated to be the first dApp launched on the permissioned chain, according to Bianjie.