China Boosts Decentralized App Development And NFTs, Despite Crypto Trading Ban
18 January 2024
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China's industrial ministry has announced plans to formulate strategies to boost non-fungible token (NFT) and decentralized app (dApp) development.
This move aligns with China's growing interest in ledger technology such as blockchain, even as it maintains a ban on cryptocurrency trading.
The Ministry of Industry and Information Technology released a document highlighting its intent to pave the way for Web 3.0 innovations.
This strategy focuses on governance and industry, promoting new business models like NFTs and decentralized applications.
The ministry's announcement addresses queries from Johnny Ng, a member of China's top political advisory body.
It underlines the nation's commitment to exploring innovative applications and building a digital ecosystem for Web3.
The document reveals plans to initiate pilots related to distributed digital identity.
These pilots aim to delve into digital identity authentication and management within the Web3 framework.
China's central government's encouragement towards Web3 comes on the heels of several local governments' commitments to developing the metaverse industry.
Notably, Sichuan, once a major hub for crypto mining, aims to expand its metaverse industry to a market size of 250 billion yuan ($35.1 billion) by 2025.
Despite China's ban on mainland crypto trading since September 2021, NFT trading continues, albeit in a regulatory gray area.
The state's stance on blockchain reflects its willingness to separate crypto trading from other blockchain applications.
Recently, the Blockchain-based Service Network China, supported by the Ministry of Public Security research institute, launched a national-level real-name decentralized identifier system, China RealDID.
This system marks a significant step in personal data protection.
It allows users to register or log in to commercial websites using decentralized identifier addresses and private keys.
China's advancement in blockchain, especially with the introduction of the Real-Name Decentralized Identifier, is significant.
This progress occurs even as the country maintains its stance against cryptocurrencies, demonstrating a selective yet strategic approach to blockchain technology. Read more here.
How Can Decentralized Apps Built On Splitchain Help Give Control Back To Users?
As China unveils its strategy to develop non-fungible tokens (NFTs) and decentralized applications (dApps), there could be a window of opportunity for emerging or next-generation crypto technologies like Zucoins and its Splitchain network.
Splitchain is a departure from traditional blockchain approaches, focusing on enhancing scalability and efficiency—critical aspects for the requirements of mass-scale NFT and dApp sectors that nations like China are eager to develop.
With its unique framework, Splitchain could serve as an ideal platform for the new business models and digital ecosystems that China and other prominent nations envisage for Web3, the next evolution of the web.
Having moved away from the block-centric approach of traditional blockchains, Splitchain ensures that each transaction is kept in a fragmented structure for higher, parallel network throughput.
Splitchain also utilizes two-factor transactions (2FA), reducing spam by ensuring both the sender and the receiver are both expecting the transaction.
This system architecture design is highly relevant to plans for Web3 digital identity authentication and management.
Specifically with Splitchain, it would allow individuals to manage their own identities, providing access to details as they choose to do so, per vendor.
It's opt-in, instead of opt-out, which is better for privacy.
As Splitchain moves towards open-source, any nation would be able to easily use the fundamentals of the system for all kinds of transaction-based proofs.
It's the nature of open protocols.
While there are growing concerns with invasive technology systems giving governments around the world excessive centralized control and access to private data, the solution being developed by Zucoin helps each person to self-manage their personal data.
Almost all of the data in the Zucoin wallet app is stored locally on your device.
The Zucoin wallet app doesn't sync all of your wallet data back to a central server.
The Splitchain network itself typically only caches the last two transactions you've done.
We say typically, because if there was an attempt to re-use prior coin tokens, for example, the caching network will keep extra copies of this data, hence the term "cache", and pass it onto other peers so they can review, verify and check the data themselves.
This is done to help other users whom you've recently transacted with to verify whether what you've sent or received, is still accurate at a later time.
The idea of integrating Zucoin's Splitchain into the fast-emerging international demand for next-generation ledger technologies could mark a new chapter in digital transactions, data portability and identity management, demonstrating the far-reaching potential of these next-generation technologies.
Making Zucoin not only convenient and capable, but easy to self-manage, keeps the mission of decentralization true.
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All the best,
—Rob
MyZucoins
Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.