After warnings of hype bubbles, China is building its own NFT industry
Cryptocurrency’s biggest enemy, China, is preparing to deploy state-backed blockchain infrastructure to launch NFT-like collections, South China Morning Post Messages.
The infrastructure, called Digital Certificates Distributed on the Blockchain Service Network (BSN-DDC), is not compatible with external NFTs, nor does it support cryptocurrency payments.
Create your own NFT industry
China is taking steps to create and develop its own NFT industry unrelated to the crypto space.
BSN-DDC will allow companies and individuals to create apps and portals to manage encrypted collections. However, it will not support NFTs traded in crypto, and only RMB, China’s national currency, will be allowed to buy goods and pay service fees.
Scheduled for launch later this month, it has already attracted more than 20 partners, including Blockchain Cosmos, digital receipt system maker Baiwang, and video technology service provider Sumavision.
He Yifan, chief executive officer of Red Date Technology, which provides BSN technical support, said that NFT has “no legal problems in China” as long as it stays away from cryptocurrencies.
While not illegal, some big tech companies have chosen to call their NFT projects “digital collections” for compliance reasons.
Ant Group, a subsidiary of Alibaba Group Holding and Tencent Holdings, was one of the country’s first tech giants to enter NFT Group, while JD.com and Baidu followed with their own digital collections.
Finally, state media company Xinhua joined the NFT game and gave away more than 100,000 digital collectibles over the holiday season.
“The annual production of NFT in China will reach billions of dollars in the future. Public chains are illegal in China because the state requires all internet systems to verify users’ identities and allow regulators to intervene in cases of illegal activity, Yifan said.
With this in mind, Red Date has developed an open chain of rights that leverages an adaptive solution that can be managed by a specific team.
BSN-DDC, founded by Red Date along with China Mobile, the state-owned China Union Pay and the State Information Center, has “localized” more than 20 public chains since its launch in 2018.
According to Yifan, BSN-DDC will integrate 10 chains including adaptive versions of Ethereum and Corda, alongside domestic chains like Fisco Bcos initiated by Tencent-backed fintech WeBank.
Compared with other single enterprise platforms, BSN-DDC is cross-chain compatible and cheaper, Yifan explained. Accordingly, NFT can only cost 0.05 yuan ($0.7) to issue.
“The project will be profitable this year if it can help generate 10 million NFTs and actual performance will exceed that number as per our prediction.”
Yifan forecasts the largest market in the field of certificate management, such as license plates and school diplomas.
“With NFT-based license plate management, car owners, governments and insurers all have access to data such as mileage, engine number and repair history.”
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