The Chinese government on Monday issued guidelines for national data infrastructure development as part of an effort to improve its data exchange and manage networks. A document released by the National Development and Reform Commission and two other authorities pointed out that China must explore blockchain technology to make its data exchange and management ecosystem safer through smart contracts. Blockchain, also known as distributed ledger technology (DLT), is the underlying technology used by cryptocurrencies, NFTS, and Metaverse.
Blockchain-based implementation protects stored data from tampering, according to the document titled “National Data Infrastructure Construction Guidelines.” The authorities behind the project believe that the national data infrastructure must remain up to date to support the issuance and storage of important information about national security.
In recent years, blockchain networks have become a potential alternative to traditional Web2 servers. Unlike traditional servers, blockchain does not concentrate a large amount of data. Instead, the information stored on the blockchain network is isolated into a number of smaller data units and the information is distributed throughout the network. This protects data from leaks and destruction. In addition, blockchain networks permanently record data in an unchangeable format, which brings a layer of trust and transparency to data storage.
China’s blockchain plan
China said in its guide that it plans to support new database solutions on the blockchain network. The updated data management solution that Asian countries bet on will integrate hardware, software and model algorithms for governments, industries and businesses to operate there.
The guide states: “(These) features are primarily used to address trust and security issues during data loops.”
Creating trusted data circulation systems, data delivery systems and data application systems for the industry is part of the government’s plan.
The country aims to deploy the main structure of the blockchain-enabled data infrastructure by 2029 – it will complete the highest design of the system by 2026 and integrate data networks and computing power facilities in 2028.
The History of China and Blockchain
Although China imposed a blanket ban on all crypto-related activities in 2021, it continues to show a tendency to try blockchain technology. The country is also working with its own central bank digital currency (CBDC).
In 2022, the China Cyberspace Administration (CAC) launched a national program focusing on research and development related to blockchain. CAC is China’s central Internet regulatory agency.
In April last year, China launched the “Super Large-scale Blockchain Infrastructure Platform for Belts and Roads Projects.” The purpose of the program is to develop a global infrastructure through which China aims to connect the continents across the sea.
The country also formed a standard setting agency composed of Huawei and Tencent to define rules for overseeing expansion of meta-related developments.
