Blockchain Growth in China: A Stunning Surge
According to a major report released by China’s Ministry of Industry and Information Technology, 2017 was a blockbuster year for the domestic blockchain industry. With the birth of 178 new startups, the nation now boasts a vibrant roster of 456 blockchain businesses. In fact, 2017 saw a remarkable spike compared to 2016’s 136 new startups, which was already a massive leap from earlier years. It’s as if the blockchain gods smiled upon China and said, ‘Go forth and innovate!’
Investment Peaks and New Financing Initiatives
The report highlights that 2017 marked the highest investment in blockchain technology up until that time. Out of 249 equity financing initiatives, 100 landed on the blockchain territory. To put that into perspective, that’s more than all the combined efforts of 2014 through 2016! So it’s clear that blockchain was not just a buzzword; it was a gold rush for investors. With the early months of 2018 already reporting 68 more financing initiatives, the momentum shows no sign of stopping anytime soon.
Blockchains and National Strategy
In a display of governmental affection for blockchain, the report declared it a vital part of the national science and technology strategy. As the regulatory framework evolves from an awkward teen to a respected adult, traditional industries are benefiting significantly. By cutting costs and boosting efficiency, blockchain is proving to be the fairy godmother that many sectors didn’t know they desperately needed.
China: The Patent Powerhouse
When it comes to innovation, China isn’t just playing catch-up; it’s leading the pack. The paper asserts that China holds the most blockchain patents globally. However, just like that outdated wardrobe in your closet, the 2008 patent law is begging for a makeover to keep up with the innovations flowing from this booming sector.
The Double-Edged Sword: Risks Ahead
While butterflies and rainbows seem to accompany the blockchain buzz, the Ministry also waved a caution flag regarding certain risks. ICOs, pyramid schemes, and fraudulent behavior have earned their red flags in this space. Drawing a parallel to the early days of the internet, the report warned of excessive speculation and dodgy propaganda that could spoil the party.
They also highlighted technical risks, such as potential loopholes in cryptographic security, the ever-menacing 51% attacks, and the new unproven consensus mechanisms rising to replace Proof-of-Work. It’s a complex landscape, and as tempting as it may be, caution is key to avoid losing those coveted digital assets.
Government Initiatives: A Vision for the Future
The Chinese government isn’t sitting idly by either. Recently they teamed up with a local VC firm to launch the Blockchain Industrial Park in Hangzhou, pledging over $1.6 billion to blockchain projects, with local funds filling about 20% of that bill. Even the National Audit Office is looking into blockchain to streamline its data burdens. Meanwhile, whispers of creating an “International Blockchain Investment Development Center” and a patent filed by the state-run Bank of China are buzzing like bees around a blooming flower. The future of blockchain in China looks as bright as a freshly polished trophy!
+ There are no comments
Add yours