Follow South China Morning Post, China’s state-backed Blockchain Services Network (BSN) blockchain services network plans to implement the infrastructure later this month for the implementation of a non-fungible token (NFT), the crucial step in making China’s NFT industry unrelated to crypto.
Although Beijing authorities have banned cryptocurrencies, He Yifan, CEO of Red Date Technology, which provides technical support to BSN, said that NFT “has no legal problems in China.” as long as stay away from cryptocurrencies like Bitcoin.
|Only Chinese Yuan is allowed to transact and charge NFT service fees|
The new infrastructure is named the BSN-Distributed Digital Certificate (BSN-DDC), to distinguish it from crypto-traded NFTs. It will provide an application programming interface for businesses or individuals to build their own user portal or application for NFT management. Only Chinese yuan is allowed to transact and charge service fees. “NFTs in China will number in the billions per year in the future,” said He.
NFTs are launched and traded on public blockchains, which are decentralized platforms that provide access to anyone who wants to write and read data. However, public chains “are illegal in China” because the state requires all internet systems to verify users’ identities, and allows the regulator to intervene in the event of “illegal activity.” legal”. So BSN, the underlying foundation of the NFT project supported by China Mobile, China UnionPay and the state-owned State Information Center, has “localized” more than 20 public chains since its first Released in 2018.
While NFT is not illegal in the mainland, some Big Tech have chosen to call their NFT projects “digital collections” for regulatory compliance reasons. Ant Group, the financial technology (fintech) arm of Alibaba Group Holding, and Tencent Holdings are the first Chinese tech giants to embrace NFT, launching dozens of products since last summer. JD.com and Baidu followed with their own digital collections. Even state-run media Xinhua has stepped in, giving away more than 100,000 digital collections on Christmas Eve 2021.
The BSN-DDC infrastructure has the potential to disrupt the current NFT industry. It has attracted more than 20 partners, including blockchain network Cosmos, digital receipt system maker Baiwang, and video technology service provider Sumavision. According to He, compared to other single company platforms, BSN-DDC is cross-chain compatible and cheaper, NFT issuance can be as cheap as just 0.05 yuan. The project will be profitable this year if it helps generate 10 million NFTs, “and the actual output will surpass that based on our predictions.”
NFT is mainly used for digital artworks, but Mr. He said the biggest market is managing certificates, such as license plates and school diplomas. In NFT-based license plate management, each vehicle owner, government and insurance company has access to data such as mileage, engine number and repair history. Everyone is aware of the access rights of others.