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Saturday, December 28, 2019

China Blockchain Dominance

Previously noted.  What are the consequences?  Fewer intermediaries for sharing key data sources and analyses.

China’s Blockchain Dominance: Can the U.S. Catch Up?

By all counts, China is leading the world in the use and development of blockchain technology. It has far and away filed the most patents related to blockchain in the world and some of the biggest names in the blockchain and cryptocurrency community are Chinese firms. What’s more, blockchain is also a national priority: The Chinese State Council included its development in the nation’s 13th Five-Year Plan. And last year, President Xi Jinping said China seeks to lead in innovation worldwide, citing blockchain, AI, the Internet of Things and other technologies as the driving forces.

This national focus was confirmed by Chinese executives and entrepreneurs involved in blockchain endeavors at the recently held invitation-only roundtable discussion on blockchain hosted by the Penn Wharton China Center. Two-thirds of blockchain-related patents come from Chinese firms or entities, one participant said, adding that China also holds 72% of the mining power for bitcoin. “China is very pro-blockchain technology and the government has positioned itself to dominate the blockchain space in the world.”

For the West, however, there is a bit of a conundrum about this focus. Blockchain, the underlying ledger technology of the bitcoin cryptocurrency, was created in 2009 by a mysterious entity called Satoshi Nakamoto to be a decentralized system. That means there is no central authority in control, which flies in the face of the current political system in China. But comments on China Central Television by Chinese official Xu Hao clarify the party’s stance: Blockchain in China is not about decentralization but “de-intermediarization. There is no way to get rid of the center.”   ... "

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