Chinese government, which is one of the top countries to have strict opposition to cryptocurrencies and ICO’s, is now gearing up for a blockchain revolution in the country.
A whitepaper published by China’s Ministry of Industry and Information Technology shows that about 40 percent of all Chinese blockchain startups were developed in 2017. The whitepaper was released on 20th May and notes that there were 456 companies in China by the end of March 2018.
The report also reiterates reports that China has filed the most blockchain patents of any country in the world to date, while noting that the country’s outdated 2008 patent law may need to be revised to keep up with innovation in the sector.
Also Read: China is Working On Establishing National Blockchain Standards by 2019
According to the whitepaper, these companies cover all the key segments of both upstream and downstream legs of the industry, from hardware manufacturing, platform services and security services to industrial technical application services, finance, media and human resources.
The whitepaper read,
“Our blockchain industry is currently at a high-speed development phase – entrepreneurs and capital are pouring in, and the number of enterprises is rapidly increasing”
Most of these Chinese companies (295 companies) focus on blockchain applications, followed by applications in the real economy sectors (109 companies), and finally financial services (86 companies). 80% of Chinese blockchain companies are based in Beijing, Shanghai, Guangdong and Zhejiang.
The paper also isolates technical risks, such as “loopholes” in cryptographic security, the potential for 51% attacks, and the new “unproven” consensus mechanisms that have been proposed to replace Proof-of-Work – emphasizing that these all need to be carefully considered in order to prevent the collective loss of digital assets.
The white paper pointed out that the industry is still in a nascent stage. More projects are under way as rapid industrial expansion continues, said Yu Jianing, an author of the white paper.
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