You might have heard of Blockchain. We are talking about data (the block) stored in public databases (the chain) in a secured way. Cybercrime is everywhere and out of control. Everyone worldwide is looking for hacker-proof digital technology to protect data, now more than ever post Covid-19. No wonder Blockchain in China is here to stay! Let’s look at some developments.
Blockchain in China?
Blockchain currencies, and blockchain technology in general, have had some ups and downs recently. Despite this, China has been working on implementing blockchain in various areas for the past several years and is looking to get even more established in that space very soon. China’s work on ‘internet courts,’ supply chain verification, and its push towards a ‘digital currency electronic payment’ (DCEP) concept embody that ambition.
Chinese Digital Courts platforms run through blockchain technology
Back in 2017, China established its first internet court in Hangzhou. Two more followed in 2018, one in Beijing and one in Guangzhou. These courts, also called Online, or Digital Courts, are powered by AI judges and are based on evidence-collecting platforms run through blockchain technology. They process cases wholly online and cover online-related disputes in areas listed in relevant laws. These courts’ blockchain-powered databases use that technology to offer a secure method of uploading relevant evidentiary materials, which is authenticated and linked to the dispute at hand through an automatically generated electronic ID tied to the content. This is a significant step towards modernizing and streamlining dispute resolution and offers a neutral layer of verification to the process.
Blockchain: Successful integration into major online shopping platform
We can see another example of blockchain’s potential in China through its successful integration into major online shopping platforms. China’s largest online stores have started using blockchain platforms to trace the origins of products, as well as virtually real-time monitoring of supply channels. This can be used to verify the authenticity of products (which has sometimes been problematic) and ensure further transparency in the supply chain. All of this lends itself to offering customers security in the legitimacy of ordered products.
Digital Currency Electronic Payment (DCEP) will be the first credibly backed digital currency
One of the more significant developments in China related to blockchain is the DCEP. It is well known that most people in China use their smartphones, and one or two of a handful of applications to accomplish almost every consequential daily purchase. The DCEP is a further jump towards a cashless, mostly paperless economy, which will affect many endeavors in China.
While some people may see this as an ‘old-fashioned’ blockchain implementation, that misses point. DCEP disrupts the blockchain currency idea in the sense that it will be tied to a central bank (the People’s Bank of China) and will be the first credibly backed digital currency. This model increases the blockchain’s efficacy and opens doors to many more business opportunities. Because it will be more than just a nebulous financial tool, it will be more and more commonly used (at least in China) where secure, trustworthy transactions are required.
This is just a broad overview of a few of blockchain’s applications in China. If you are interested in examining how to implement your blockchain-related ideas, please do not hesitate to contact us. DaWo has a dedicated team of tech-savvy lawyers ready to help.