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A state-backed Chinese blockchain firm is embarking on a major foreign project

China’s blockchain-based service network (BSN) is planning a major international expansion project in August.

Yuitira China | Moment | Getty Images

The state-backed Chinese blockchain company is planning its first major international expansion, its CEO told CNBC as Beijing continues to make technology a key priority.

A blockchain-based service network (BSN) calls itself a “one-stop shop” for deploying blockchain applications in the cloud, a process that could otherwise be expensive and time consuming. It aims to connect different blockchains together to help businesses deploy technology.

The Hong Kong-based startup Red Date Technology is a founding member of BSN. CEO Yifan He told CNBC that BSN plans to launch a project called BSN Spartan Network Overseas in August.

Blockchain became known from the cryptocurrency bitcoin, but since then its definition has expanded. This refers to a system of shared activity registrations that can be public and accessible to all, or private, where only certain participants can use and modify them. Bitcoin is an example of a public blockchain.

BSN blockchain networks, however, do not work with any cryptocurrencies because China has cracked down on digital coins.

Proponents of blockchain technology argue that it reduces costs and increases the speed of some business processes. Chinese President Xi Jinping has personally endorsed the technology, making it a national priority.

The international plan will be the main impetus for BSN.

The Spartan Network will eventually consist of half a dozen public blockchains that do not work with cryptocurrencies. One will be the non-crypto version of the Ethereum blockchain when the project launches in August.

Blockchain transactions usually cost money. But he said the fee will be paid in US dollars and not in a Ethereum-related cryptocurrency called ether.

“The goal of this is to reduce the cost of using public networks to very minimal to make more traditional IT [information technology] systems and business systems can use public chains as part of their systems, ”he said.

People will say that BSN is from China, it is dangerous. Let me emphasize, BSN Spartan will be open source … we will not get access to anything from us.

Yifan He

CEO, blockchain-based service network

“That’s why we’re working with other major public chain protocols to convince them that the mainstream is public networks without a crypto.”

The CEO of Red Date Technology acknowledged that the lack of cryptocurrency in the company’s products is a problem. He said the BSN Spartan Network would be “difficult to promote in the first or second year because most people in the blockchain industry only understand crypto.”

“A huge problem” because of the connection with China

BSN is likely to face close attention overseas because of ties to the Chinese government. The company is supported by the State Information Center (SIC), which is run by the powerful National Development and Reform Commission of China (NDRC). The project is also backed by state-owned telecommunications company China Mobile.

He said BSN’s Chinese descent is a “big problem” as it expands internationally.

“So when we launch in August, we’ll immediately open up the source code, and we’re working with a lot of Western companies,” he said.

“People will say that BSN is from China, it’s dangerous. I emphasize, BSN Spartan will be open source … we will not be able to access anything from us.”

He also said users will be able to check the code behind the project to make sure there is no backdoor for the Chinese government.

A state-backed Chinese blockchain firm is embarking on a major foreign project

Source link A state-backed Chinese blockchain firm is embarking on a major foreign project

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