In Brief:
- China plans on developing the Chinese NFT industry that is not linked with cryptocurrencies.
- BSN will roll out infrastructure for the deployment of the NFTs at the end of this month.
China’s state-backed Blockchain Services Network (BSN) took a major step to develop a Chinese NFT industry that is not linked to cryptocurrencies. China plans to roll out infrastructure to facilitate the deployment of the NFTs at the end of this month.
The country is adopting the same strategy that it had applied to its digital currency efforts. BSN intends to separate cryptocurrencies and NFTs in an effort to protect the local NFT industry from the negative impacts of the crypto crackdown.
The chief executive of Red Date Technology, which assists BSN in its technical support, said “have no legal issue in China” as long as they distance themselves from cryptocurrencies like bitcoin.
The new infrastructure will differentiate crypto-transacted NFTs to offer application programming interfaces for individuals and businesses so they can build their own apps and portals. This way, users can manage NFTs, while the purchases and service fees will be allowed only in the Chinese Yuan.
NFTs are minted and traded on public blockchains on decentralized platforms on which anyone can read and write data. Whereas, public chains are illegal in China as the country believes in stringent speculation over user identities. As a solution to this, an open permissioned chain will be adapted that can be governed by a designated group. Further, this will also permit the regulator to intervene in the event of illegal activities.
BSN has already “localised” more than 20 public chains since its 2018 debut. It will integrate 10 more chains, including the adapted version of Ethereum and Corda, plus domestic ones like Fisco Bcos, initiated by Tencent-backed fintech firm WeBank.
The BSN-DDC infrastructure has the ability to move the industry forward. It has already attracted more than 20 partners, including digital receipt system maker Baiwang, Cosmos blockchain network, and video technology services provider Sumavision.
