Back in 2019, President Xi Jinping made comments during a speech to the effect that China needed to seize the massive opportunities blockchain technology presented. From that time, the country regarded blockchain tech as a priority alongside other technologies such as semiconductors. Since that speech by the Chinese president, the country embarked on a quiet task of building a platform that would make it easy for companies to deploy blockchain technology in their operations. That platform is called Blockchain-based Services Network (“BSN”).
It should be remembered that the Chinese government more or less banned cryptocurrencies and other related activities. Why then is it creating a blockchain platform? The answer is simple: the country is creating a blockchain platform for use in other applications other than for cryptocurrencies.
The reason for this is that BSN doesn’t want the large companies it hopes will use its platform to feel uneasy about being exposed to the immense volatility surrounding cryptos at the moment. The functions BSN foresees include facilitating the use of blockchain by banks and other such large organizations.
There are two key advantages of this blockchain platform that immediately come to mind. First, once the platform becomes ready for use, organizations will not have to deploy massive resources, including money and highly skilled personnel, to create a platform on which to host their blockchain-based applications. Instead, they will use the BSN platform to create their own customized applications at fraction of what they would have needed to spend.
Secondly, BSN could make it possible for interoperability between different entities using different blockchain applications to communicate with each other. For example, without the BSN platform, it would be hard for two different banks to make money transfers if each of them is using its own blockchain application. However, interoperability is enabled once both banks build their applications on the BSN platform.
On paper, the potential use cases for this blockchain platform are immense, but some significant challenges will need to be overcome. The key challenge may be trust issues given that the BSN platform is linked to the government in China. In addition to trust issues, the main funders of the project include the State Information Center and China Mobile, a telco owned by the Chinese government.
It would be hard for the world to accept this platform with close links to the Beijing government, especially in light of the accusations of spying and other data-security issues levied against Chinese tech companies. It remains to be seen, however, how the people behind BSN will address the challenges it faces in going global so that blockchain technology can start showing how immensely valuable it can be outside of its use in creating cryptocurrencies.
Ironically, if China’s BSN succeeds in taking blockchain to the mainstream, it could provide an indirect boost to the widespread interest in the activities of firms like BlockQuarry Corp. (OTC: BLQC) which specialize in blockchain and crypto mining.
NOTE TO INVESTORS: The latest news and updates relating to BlockQuarry Corp. (OTC: BLQC) are available in the company’s newsroom at http://ibn.fm/BLQC
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