China to Promote Native NFT Sector Using Blockchain Services Network (BSN)
China’s government aided Blockchain Services Network (BSN) aims to install the necessary framework to allow the release of non-fungible tokens (NFTs) by the end of January, a key step toward developing a Chinese NFT economy unrelated to cryptos.
Despite Beijing’s prohibition of digital currencies, He Yifan, CEO of Red Date Technology, which offers technical advice to BSN, informed the South China Morning Post that NFTs “have no regulatory difficulty in China” if they are not associated with cryptocurrencies such as bitcoin.
To distinguish it from crypto-transacted NFTs, the infrastructure, dubbed the BSN-Distributed Digital Certificate (BSN-DDC), would provide application programming interfaces for enterprises or individuals to construct their own user portals or applications to administer NFTs. Purchases and service fees may only be made in Chinese yuan.
“In an interview, he opined that “in the months ahead, NFTs in China will record yearly throughput in the billions.”
NFTs are created and exchanged on public blockchains, which are decentralized systems that let anybody write and comprehend data. Nevertheless, public chains are “technically illegal,” he claimed, since the government mandates all internet platforms to authenticate user identities and allows the watchdog to interfere in the case of “illegal actions.”
As a result, Red Date moved to a solution known as the “open permissioned chain,” a modified version that may be managed by a certain group. Since its launch in 2018, BSN, the NFT project’s underlying platform supported by government-aided China Mobile, China UnionPay, and the State Information Centre, has “localized” over 20 public chains.
He stated that BSN-DDC would incorporate ten chains, such as a customized variant of Ethereum and Corda, as well as local ones such as Fisco Bcos, which was launched by Tencent-backed fintech business WeBank. Despite the fact that NFTs are not prohibited in China, numerous big tech firms have opted to term their NFT ventures “digital collectibles” for compliance concerns.
Ant Group, Post owner Alibaba Group Holding’s financial subsidiary, and Tencent Holdings were the foremost Chinese internet behemoths to adopt NFTs, introducing hundreds of goods since summer 2021. JD.com and Baidu joined the bandwagon with their own versions of digital treasures. Even the government-owned Xinhua News Agency got on board, giving out over 100,000 digital artifacts on Christmas Eve.
The BSN-DDC infrastructure has the ability to upend the existing industry. It has already attracted more than 20 partners, including the Cosmos blockchain network, Baiwang, a manufacturer of digital receipt systems, and Sumavision, a supplier of video technology services.
He claims that, as compared to other single-company platforms, BSN-DDC is more cross-chain interoperable and less expensive: issuing an NFT may cost as little as 0.05 yuan (0.7 US cents). He predicted that if the initiative helped create 10 million NFTs this year, it would make a profit, and that “the real production will exceed that based on our forecasts.”
NFT is mostly utilized for digital creative works, but he claims that the largest market is credential administration, such as automobile license plates and school degrees, since it is a “revolutionary database system” that can separate various parties’ access to information. He said that with NFT-based number plate administration, the automobile owner, government, and insurance all have permission to access information including mileage, engine number, and maintenance records, and they are all cognizant of each other’s privileges.