China plans to create its own NFT industry based on state-backed blockchain infrastructure

January 14, 2022

China’s state-backed Blockchain Services Network (BSN) is trending not just in China but across the globe. According to South China Morning Post, they plan to roll out infrastructure by the end of this month to support the deployment of NFTs.

Here’s everything you need to know:

The BSN-Distributed Digital Certificate (BSN-DDC) provides application programming interfaces for businesses and individuals that enable them to build user portal apps and manage NFTs. However, purchases and service fees can be processed only with the Chinese Yuan.

Red Date Technology is the firm behind the Blockchain Services Network. The chief executive, He Yifan, in conversation with South China Morning Post commented, “Non-fungible tokens have no legal issue in China as long as they have nothing to do with cryptocurrencies. NFTs in China will see the annual output in the billions in the future.”

Surprisingly, this is not the first time China has set foot into the NFT space.

NFTs are launched and traded on public blockchains. But public chains are “illegal in China”, said He Yifan, as the state requires all internet systems to verify user identities and permit the regulator to intervene in the event of “illegal activities”.

In October 2021, Red Date Technology released ‘Open Permissioned’ chains on BSN that can be governed by a designated group. Since its debut in 2018, BSN, backed by China Mobile, China UnionPay, and State Information Centre has already localized more than 20 public chains.

In another interview, He Yifan added, “NFTs in China will see the annual output in the billions in the future.” BSN-DDC is expected to integrate 10 chains, along with the adapted version of Ethereum and Corda, and Fisco Bcos.

 


About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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