Chinas BSN to Localize 24 Public Blockchains by Making Them Permissioned

Thursday 17 September 2020, 12:17 PM AEST - 4 days ago


Chinas state-sanctioned blockchain infrastructure project is finally bringing public chains to its Chinese users – but with a significant twist.

The Blockchain-Based Service Network (BSN), a standardized internet services provider for developers, plans to make 24 public chains available in its network for Chinese users starting from the second half of November, according to an internal memo obtained by CoinDesk.

Developers can use the technical frameworks behind these public chains to build and run decentralized applications (dapps) that serve a range of purposes such as financing platforms for small and medium enterprises, source tracking for food companies and record-keeping for banks, law firms or government agencies.

These public chains will look quite different after being localized for the Chinese market, however. The network will make the decentralized public chains permissioned and will replace their tokens with direct payment by the Chinese currency renminbi to cover transaction fees on these chains.

This is part of a much larger story. The Chinese government is an active supporter of blockchain technology – but only on its own terms. Authorities would like to reap the benefits of blockchain techs traceability and efficiency, but without the decentralization embraced by public chains like Bitcoin and Ethereum.

BSNs latest move came one month after the network integrated six major public chains into the global version of its network. This was so that developers outside China could use a standardized development environment to build and run decentralized applications on these public chains. Unlike in the localized version, public decentralized chains are allowed in the global version of BSN.

There have been few effective ways for public chains to enter the Chinese market and scale up due to legal and regulatory requirements and how these projects position themselves, the memo, translated by Coindesk from the original Chinese, said of this latest development.

The public decentralized chains will become public permissioned consortium chains, which can be supervised by regulators, and that is currently the most direct and effective way for th ...

Read full story on CoinDesk