After hype bubble warnings, China is building its own NFT industry

Cryptocurrency’s number one enemy, China, is preparing to deploy state-backed blockchain infrastructure to launch NFT-like collections, South China Morning Post news.

The infrastructure, called Digital Certificates Distributed on the blockchain service network (BSN-DDC) will not be compatible with external NFTs, nor will it support cryptocurrency payments.

Create your own NFT industry

China is making moves to launch and develop its own NFT industry that has nothing to do with the crypto space.

BSN-DDC will enable businesses and individuals to build 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 purchase goods and pay service fees.

The rollout is scheduled for later this month and 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 technical support to BSN, 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 decided to call their NFT projects “digital collections” for compliance reasons.

Ant Group, an affiliate of Alibaba Group Holding and Tencent Holdings, was one of the first tech giants in the country to jump into the NFT group, while JD.com and Baidu followed with their digital collections. their own.

Finally, state media outlet Xinhua got involved in the NFT game, giving away more than 100,000 digital collectibles over the Christmas season.

Practicality

“NFT’s annual output in China will reach billions of dollars in the future. Public chains are illegal in China, as the state requires all Internet systems to verify users’ identities and allow regulatory authorities to intervene in the event of illegal activities. Yifan said.

With this in mind, Red Date has developed an open permissioned chain – leveraging an adaptive solution that can be managed by a designated 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, such as Fisco Bcos, initiated by Tencent-backed fintech company WeBank.

Compared to other single-company platforms, BSN-DDC is cross-chain compatible and cheaper, Yifan explained. Accordingly, the issuance of NFT can cost as little as 0.05 yuan ($0.7).

“The project will be profitable this year if it can help generate 10 million NFTs and the actual output will surpass that number according to our prediction.”

Yifan predicts the largest market in the field of certificate management, such as license plates and school degrees.

“In 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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