A blockchain-based company, Blockchain-based Service Network (BSN) is planning international expansion in the upcoming months, said its CEO. The company BSN is backed by the Chinese government.
BSN describes itself as a ‘one-stop shop’ to help businesses deploy blockchain applications in the cloud by linking different blockchains together.
Red Date Technology, a Hong Kong-based firm, is one of BSN’s founding members. BSN Spartan Network will be launched globally in August, according to its CEO Yifan He.
BSN’s blockchain networks will not operate using crypto due to the fact that cryptocurrencies are banned in China.
Instead the network will be made up of half a dozen public blockchains that do not operate with crypto. One of those will be similar to Ethereum, but will use the U.S. dollar for blockchain transactions.
Supporters of the blockchain technology have said that removing the element of cryptocurrencies could increase the speed and decrease the cost of this technology.
The technology has also been endorsed by Chinese President Xi Jinping and elevated it to the status of national priority.
Yifan said, “The purpose of this is to drop the cost to use public chains to very minimal so that more traditional IT systems and business systems can use public chains as part of their systems.”
Yigan admits that developing a blockchain product without offering cryptocurrencies was a challenge. He also recognizes that selling the product will be just as big a challenge.
He says the network will be “difficult to push in the first or second year because most people in the blockchain industry only understand crypto.”
BSN is likely to face scrutiny abroad due to its links to the Chinese government. State Information Center (SIC) which sits under China’s powerful National Development and Reform Commission (NDRC) backs the company.
Another state-owned telecommunications company, China Mobile also supports the project.
Yifan said, “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.”
“That is why when we launch in August we will open source immediately and we are working with a lot of western companies.”
To ensure that there is no backdoor access for the Chinese government, users will also be able to inspect the project code.
The Chinese government is also currently working on developing the Digital Yuan and has reached the trial stage. According to reports, China has extended the digital yuan trials to a few selected hospitals in cities like Tianjin, Hangzhou, Guangzhou among others.
