China has started supporting blockchain technology and has extended its use to many different fields. Ranging from pharmacies to tax systems, blockchain technology has been adopted by many Chinese companies. Recently, Chinese Bank, Bank of Communications ( BoCom ), and Chinese search giant, Baidu, disclosed their plans for deploying the blockchain technology. Ken Dong, the founder of IyueDan, asian freelancing marketplace, and chief adviser of YouDeal, a blockchain enabled marketplace for sharing economy, suggested a blockchain model suitable for countries. The model, suggested by him, requires countries to work with existing industries and regulators to maintain standard.
Upon asking about countries who have been approaching blockchain and adopting the model that he suggested, Ken told BlockPublisher:
They’ve been used in China to prevent academic and tax fraud, with cooperation with private companies.
Recently, China’s well renowned multinational technology company and search engine, Baidu started developing XuperChain network, a blockchain-based network capable of undergoing 10,000 transactions per second. Baidu revealed that the upcoming software would be open-source. Baidu released a whitepaper through its blockchain labs to explain that with the nodes of XuperChain, efficiency of their ‘Super Chain Network System’ was more than the traditional blockchains.
XuperChain’s node performs parallel calculations so that the efficiency of processors and speed of the network is maximized substantially. Till now, Baidu has launched six applications on its blockchain by combining its super chain technology with big data and AI, thus, ensuring application developers a great platform. The six applications include Totem, Degree Universe, Baidu Association, Treasure Chest, Encyclopedia Online, and Hubert.
Besides Chinese search engine, Chinese bank has also introduced efficiency in its workflow with the help of blockchain technology. BoCom has issued about $1.3 billion worth of residential mortgage-backed securities ( RMBS ) using a blockchain network. Previously, BoCom was using its propriety blockchain network, Jucai Chain, for enhancing the issuance process of asset-backed securities.
The bank extended its use in RMBS so that by moving data of mortgages on its blockchain network, investors are updated constantly with latest information in order to track assets and manage cash flow. The prospect has provided authenticity and reduced risks that were previously associated with RMBS.
China has shown no reluctance while adopting blockchain technology for various purposes. It has been approaching blockchain technology in order make its systems more efficient as suggested by Ken Dong.