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China Launches National Business Block Platform

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



In a simplified form, BSN can be presented as an operating platform with basic capacity, for participation in which customers need to buy or develop simple software tools. All computing capacity and administration tasks are assumed by the government, which will reduce the cost of blockage technology for Chinese companies by 80% or more. Such numbers are given: development of own small block-chain system from scratch will cost the company $14000 and six months of work, and joining BSN - $300 and a few minutes for registration.

Already the fact that the business is ready to create block-systems itself indicates the need for such a project. For example, the largest online store JD.com provides customers with the service of checking whether the branded goods sold through it is not a fake. And for this purpose, it monitors the entire chain of goods movement, for which it recently launched its own open source block-platform. The Chinese authorities are offering businesses to save money and share information at the same time - so that domestic transactions become transparent.

Financial transactions remain in question. On the one hand, cryptov currencies are prohibited in China, and on the other hand, digital payments are in great demand. It is possible that a certain financial settlement mechanism will be created on the basis of the BSN, with full state control over all transactions. Also, BSN should not compete with existing state instruments and services.

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