China's state-backed blockchain company is set for its major international debut, as the Beijing government makes the technology one of its priorities, reported first by CNBC on Sunday, May 22.
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BANGKOK, THAILAND - MAY 14: A poster with the Bitcoin logo is on display at the Thailand Crypto Expo on May 14, 2022 in Bangkok, Thailand.
The company is called the blockchain-based Service Network (BSN), which will serve as a "one-stop shop" to enable blockchain applications in the cloud, which is a process that could be costly and time-consuming, and BSN aims to make this easier.
With its international expansion, it is looking forward to linking various blockchains together to aid businesses in deploying the technology.
Red Date Technology, a Hong Kong based start-up, is one of the founding members of BSN. The company will soon launch a project called BSN Spartan Network in August, which will be available overseas, according to BSN's CEO Yifan He.
The cryptocurrency bitcoin has helped blockchain to reach its popularity, and over time it has expanded itself into a system of shared ledgers of activity that can be public and accessible for everyone, or it can be private, where specific members can only use and modify the bitcoin.
It is worth noting that bitcoin is a perfect example of a public blockchain.
But the catch is, BSN's blockchain networks are not working with any existing cryptocurrencies since China has cracked down on digital coins.
China's President Xi Jinping himself has endorsed the BSN technology, making it a top national priority. The BSN blockchain promises to decrease the cost and boost the speed of various business processes through their technology.
This international debut will be a huge bolster for BSN since the Spartan Network will eventually be composed of half a dozen public blockchains that are not working with cryptocurrencies. Among these is a non-crypto version of the Ethereum blockchain which will be available when the project is launched.
CEO He stated that the project's goal is to drop the cost of using public chains to a minimum so that traditional IT and business systems will have the chance to use public chains as part of their systems as well.
It is worth noting that blockchain transactions commonly cost money, however, He said that the fee for their project will be paid in U.S. dollars instead of Ethereum's cryptocurrency ether.
He also wants to convince major public chain protocols the mainstream of non-crypto public chains.
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Roadblock with China's Link
The Red Date Technology CEO acknowledged that not employing cryptocurrencies within the company's product is a challenge and said that it might be difficult to operate it within the first or second year, citing that "most people in the blockchain only understand crypto."
BSN is backed by the State Information Center (SIC), which is under China's National Development Reform Commission (NDRC). China Mobile, a state-owned telecommunications company, will also be taking part in the project.
The company could be subject to scrutiny abroad because of its links with the Chinese government.
He admitted that this will be BSN's biggest roadblock in expanding internationally. However, the CEO assured that the project's launch will be open source and will include various western companies to work with the blockchain.
"People will say BSN is from China, it is dangerous. Let me emphasize, BSN Spartan will be open source ... we will not access anything from our end, " He said in a statement with CNBC.
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Written by Joaquin Victor Tacla
