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China’s Blockchain System in Shanghai

China’s Blockchain System in Shanghai

Blockchain technology is one of the most promising and disruptive innovations in the digital era. It has the potential to transform various industries and sectors, such as finance, trade, logistics, healthcare, and governance. Blockchain technology enables secure, transparent, and decentralized transactions and data sharing among multiple parties, without the need for intermediaries or central authorities.

China is one of the global leaders in blockchain development and adoption. According to a report by PwC, China ranked second in the world in terms of blockchain projects, patents, and investments in 2020. China has also launched its national blockchain service network (BSN), which aims to provide a unified and low-cost platform for blockchain applications across different sectors and regions.

To address these challenges and promote the development and adoption of blockchain technology in China, the Shanghai Municipal Government has launched a blockchain infrastructure system that aims to provide a unified platform for blockchain applications and services. The system, which is called the Shanghai Blockchain Engineering Technology Research Center (SBERC), was officially inaugurated on August 18, 2023.

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The SBERC is a joint initiative of the Shanghai Municipal Government, the Shanghai Jiao Tong University, the Shanghai Academy of Social Sciences and several leading enterprises in the blockchain industry. The SBERC will serve as a hub for blockchain research, innovation, education and collaboration. It will also provide technical support, policy guidance and standardization for blockchain projects in Shanghai and beyond.

The SBERC will focus on four major areas:

Blockchain infrastructure: The SBERC will build a high-performance, low-cost and secure blockchain infrastructure system that can support various types of blockchain applications and services. The system will consist of a public chain, a consortium chain and a private chain, as well as a cross-chain communication protocol and a smart contract engine. The system will also integrate with existing information systems and platforms, such as cloud computing, big data and artificial intelligence.

Blockchain applications: The SBERC will develop and promote blockchain applications in various domains, such as finance, logistics, healthcare, education, government affairs and social welfare. The SBERC will also facilitate the integration of blockchain technology with other emerging technologies, such as 5G, IoT and biometrics.

Blockchain standards: The SBERC will establish and implement blockchain standards and norms that are compatible with international standards and regulations. The SBERC will also participate in the formulation and revision of national and regional blockchain policies and laws.

Blockchain talent: The SBERC will cultivate and attract blockchain talent through education, training and exchange programs. The SBERC will also establish a blockchain innovation incubator that will provide mentoring, funding and resources for blockchain startups and entrepreneurs.

The SBERC is expected to play a key role in advancing the development and adoption of blockchain technology in China and beyond. It will also contribute to the construction of the Shanghai International Financial Center, the Shanghai Science and Technology Innovation Center and the Shanghai Free Trade Zone. The SBERC is a milestone in the history of blockchain technology in China and a testament to the vision and leadership of the Shanghai Municipal Government.

One of the key areas where China is focusing its blockchain efforts is Shanghai, the country’s financial and commercial hub. Shanghai has been designated as a pilot zone for blockchain innovation and application by the central government. The city has launched several initiatives and policies to support blockchain development, such as establishing a blockchain industry alliance, setting up a blockchain innovation center, and issuing blockchain-related standards and regulations.

Shanghai’s ambition is to build a world-class blockchain infrastructure system by 2025, according to a recent plan released by the Shanghai Municipal Commission of Economy and Informatization. The plan outlines the vision, goals, and strategies for developing Shanghai’s blockchain ecosystem in the next five years.

The plan envisions that by 2025, Shanghai will have:

A comprehensive and high-quality blockchain infrastructure system that covers the whole city and connects with the national BSN and other major blockchain platforms.

A mature and vibrant blockchain industry that nurtures leading enterprises, attracts global talent, and fosters innovation and collaboration.

A rich and diverse blockchain application scenario that covers various fields, such as finance, trade, logistics, healthcare, government affairs, social governance, culture, and education.

A sound and effective blockchain governance mechanism that ensures the security, legality, and compliance of blockchain activities.

To achieve these goals, the plan proposes several strategies and measures, such as:

Strengthening the construction and integration of blockchain infrastructure, such as cloud computing, big data, artificial intelligence, internet of things, 5G, etc.

Promoting the research and development of core blockchain technologies, such as consensus mechanisms, encryption algorithms, smart contracts, cross-chain interoperability, etc.

Supporting the cultivation and growth of blockchain enterprises, especially small and medium-sized ones, by providing financial incentives, tax benefits, subsidies, etc.

Encouraging the exploration and innovation of blockchain applications in various sectors and scenarios, such as digital currency, supply chain finance, digital identity, traceability certification, etc.

Enhancing the regulation and supervision of blockchain activities, such as establishing a blockchain registration system, setting up a blockchain security monitoring center, issuing blockchain-related laws and standards, etc.

Improving the education and training of blockchain professionals and talents, such as launching blockchain courses in universities and vocational schools, organizing blockchain competitions and hackathons, etc.

Building a favorable environment for blockchain development, such as strengthening international cooperation and exchange on blockchain issues, creating a positive public opinion atmosphere for blockchain awareness and acceptance. Shanghai’s plan to develop a blockchain infrastructure system by 2025 reflects its determination and confidence to seize the opportunities and challenges brought by blockchain technology by leveraging its advantages in finance.

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