China’s 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 decentralized applications (dapp) 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 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 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 tech’s traceability and efficiency, but without the decentralization embraced by public chains like Bitcoin and Ethereum.
BSN’s 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…