China Academy of Information and Communication Technology (CAICT) published the White Paper on Blockchain (2018) with the Trusted Blockchain Promotion Program (TBPP) On September 5.
CAICT is a scientific research institute directly under the Ministry of Industry and Information Technology (MIIT) of China. Following the first TBPP workgroup meeting in May, it is pushing forward with plans to integrate blockchain technology into the real economy with the White Paper.
The White Paper outlines in detail the significance of blockchain research and application, blockchain infrastructure, and key directions for development. Furthermore, thorough analyses on the latest development opportunities in terms of various policies, industries, technologies, and standards are provided as well. It also explores the challenges facing blockchain development and makes various corresponding policy recommendations.
For those unfamiliar with the technology, a blockchain is a digital ledger system using cryptography, meaning that the storage devices are not connected to a common processor. It maintains a growing list of ordered records called blocks. Each block has a timestamp and a link to a previous block.
Cryptography demands that users can only edit the parts of the blockchain that they “own” by possessing the private keys necessary to write to the file. It also ensures that everyone’s copy of the distributed blockchain is kept in sync.
Diving into the 21st Century, China is actively following up with new technologies to stay ahead in the race for technological dominance. In order to implement the 13th Five-Year Plan on National Informatization of the State Council and create a suitable platform for blockchain integration with the real economy, a proper standard and application of the technology has become a must.
Blockchain has been widely accepted by consumers, businesses and the government in China. E-commerce giants such as Alibaba and JD.com have invested large sums into the technology’s research and development, and President Xi Jinping called it a “breakthrough” technology.
About 41 percent of Chinese startups who received funding in the first quarter of 2017 were blockchain related. Municipalities across China, in cities and provinces such as Shanghai, Guangzhou, Shanxi, Henan, Guiyang and Hangzhou have implemented policies to encourage blockchain research and development, with Hangzhou pledging investments of 10 billion yuan ($1.5 billion) in the technology. It was one of the hottest topics at the World Economic Forum’s 2017 Davos, where it was estimated 10 percent of global GDP will be stored on blockchain by 2027.