5 Ways China Is Using Blockchain Technology
Blockchain is the technology that underpins Bitcoin, but it has many other uses, too. There are already more than 100 blockchain-based currencies in existence, and the list is overgrowing as financial services companies realize their potential to transform how money moves worldwide. But banks won’t be the only ones taking advantage of this new technology – we expect China’s giant tech platforms will also use it to deliver better services to millions of users.
We are in the middle of a digital revolution, and blockchain technology is one of the most important drivers of change. It has already had a significant impact on China’s technology landscape and is set to play an even more critical role in the years to come. So, how does blockchain technology shape China internet? And is your business ready for it? Check out this article for insights and how China is using it these days.
What Is Blockchain Technology?
Blockchain technology is a distributed ledger that records transactions in real-time. You may use it to create permanent, public “ledgers” of transactions, such as property sales or loan agreements. A blockchain is a decentralized database that maintains its information continuously reconciled.
The blockchain database isn’t saved in a single location, so it’s immune to hacking. Thousands of computers are hosting the data, so anyone with access to the internet can access it. There is also no single point of failure, meaning if something goes wrong with one copy of the blockchain, thousands of others can verify the data and pick up the slack immediately.
#1 China to Use e-CNY CBDC In 2022 Winter Olympics
The Beijing Academy of Blockchain and Edge Computing (BABEC) and the People’s Bank of China Digital Currency Research Institute have cooperated to use blockchain technology with the digital yuan in the 2022 Winter Olympics.
The digital RMB might be the first central bank-backed electronic currency created by a major economy. Since April last year, trials have started, but they have been limited to small transactions. The initiative and its connection to the digital RMB demonstrate that China’s government increasingly regards blockchain as a critical technology and is prepared to invest in it.
#2 JD Launches Its Own NFT Platform
JD launched an NFT platform called Lingxi, and the program is available through a small app on one of the company’s platforms. NFTs are digital assets created by assigning special rights to each owner’s part of the asset, making them one-of-a-kind digital assets with shared ownership. This implies they aren’t comparable, which opens up a slew of potential applications for blockchain technology, especially in the gaming and community-building areas.
JD’s NFT is a digital painting of Joy, the company’s mascot depicted as a white cartoon dog, and NFT collectors can buy one for RMB 9.9 ($1.55 each). The JD Digits Blockchain is the program’s underlying blockchain, also sponsored by JD Digits Blockchain.
#3 JD.com Accepts e-CNY as Payment During the 11.11 Festival
JD.com is the first eCommerce platform that accepted China’s digital yuan during the 11.11 shopping event last November. The acceptance of Central Bank Digital Currency (CBDC) is part of trial through its partnership with China Construction Bank.
There were 100,000 customers who use the e-CNY to pay for goods using the JD app. This trial is a way for the Chinese government to check how the national digital yuan will work on a larger scale in the future.
#4 Data Sharing and Blockchain in Shanghai City
Shanghai City released a regional set of rules that focuses on data that will take effect this year. The regulations protect personal data and promote free and orderly data exchanges. Moreover, the rules will also help develop big data analytics, blockchain, artificial intelligence, and more.
This is not the first time the city has used blockchain. In 2020, the city high courts started to record hearings using the technology as part of its court reform record. Text records, including audio and video recording capabilities, were also enabled through blockchain technology, including voice recognition.
#5 Tencent Launched NFTs and NFT Trading Platform Huanhe
Tencent Music released its digital collections on its QQ Music music streaming service powered by NFT technology. Videos, audio, digital vinyl, and celebrity goods are all expected in these new collections. Prior to this launch, Tencent announced its new NFT trading platform called Huanhe. This is the platform where users can trade NFTs.
Non-fungible tokens are different than other types of money. They are made to be used on the Ethereum platform and they can’t be exchanged for anything else. Digital tokens, like those that artworks might have, can give people ownership certificates for virtual or real assets.
How Can Businesses Adapt to Blockchain Technology?
The Chinese are interested in Blockchain for a variety of reasons because it can be applied to a wide range of applications, making it flexible when it comes to addressing a wide range of issues. Businesses in China are increasingly adopting Blockchain technology because it protects users’ data and guarantees truth and transparency throughout the transaction process.
Blockchain technology can be used in almost every industry including retail, finance, healthcare, insurance, and more. It means that businesses will need to adapt or be left behind. There are four key strategies that companies should consider adopting if they want to remain competitive:
- Implementing blockchain technology into existing products and services – you can come up with unique solutions that give them a distinct advantage over their competitors. You can hire a programmer who is knowledgeable in this technology and find out how you can use it in your business in the future such as in Metaverse.
- Make the most of customer behavior patterns and provide transparency – due to the increased regulations, Blockchain technology enables businesses to provide more accurate information related to their products and services by giving people access to a digital ledger that shows all of a company’s transactions in real-time through an open-source platform.
- Explore NFTs in the art and photography sectors – you can explore NFT trading platforms by Tencent such as Huanhe to know more about minting artwork for digital collectibles.
China Blockchain Technology: Final Thoughts
Blockchain is a game-changer for the digital economy. Organizations are finding new ways to use it in their own industries, and there’s no telling how far blockchain will go. If you’re looking for an expert team that can help with your next strategy or brainstorming session, LIMPID Marketing is available 24/7 to provide solutions tailored specifically to your needs.
We have extensive experience developing successful marketing campaigns and business strategies to ensure you are always ready for the next digital revolution – so give us a call today!