China Launches National Blockchain Business Platform

In April 2020, China will launch the Blockchain-based Service Network (BSN). This is a national project of colossal scale, which from the start will be deployed in 100 cities, and by the end of this year will cover 200 major business centers of the country. The system will be closed to foreigners, participation in it will require registration, and the Chinese regulator will be able to track all transactions occurring in it.

In a simplified form, BSN can be thought of as an operating platform with basic capacities, in order to participate in which customers need to buy or develop simple software tools themselves. All computing power and administration tasks are undertaken by the state, which will reduce the cost of using blockchain technologies for Chinese companies by 80% or more. The following numbers are given: the development of its own small blockchain system from scratch will cost the company $ 14, 000 and six months of work, and joining BSN - $ 300 and a few minutes to register.

The very fact that a business is ready to create blockchain systems on its own indicates the need for such a project. For example, the largest online store provides customers with a service to check whether the branded product sold through it is a fake. And for this, it monitors the entire chain of goods movement, for which it recently launched its own open-source blockchain platform. The Chinese authorities offer businesses to save money and at the same time share information - so that transactions within the country become transparent, "in the interests of all participants."

Financial transactions remain in question. On the one hand, cryptocurrencies in China are de facto banned, on the other hand, digital payments are in high demand. It is possible that a certain mechanism of financial settlements will be created on the basis of BSN, with full state control of all transactions. Also, BSN should not compete with existing government tools and services.