{"id":211743,"date":"2022-01-14T22:00:14","date_gmt":"2022-01-14T22:00:14","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=211743"},"modified":"2022-01-14T17:25:57","modified_gmt":"2022-01-14T17:25:57","slug":"china-preps-infrastructure-for-state-backed-nfts","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/china-preps-infrastructure-for-state-backed-nfts\/","title":{"rendered":"China preps infrastructure for state-backed NFTs"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Crypto\u2019s enemy number one, China, is preparing to roll out its own state-backed blockchain infrastructure to support the deployment of NFT-like collectibles, <\/span><i><span style=\"font-weight: 400;\">South China Morning Post<\/span><\/i><span style=\"font-weight: 400;\"> <a href=\"https:\/\/www.scmp.com\/tech\/policy\/article\/3163094\/china-create-own-nft-industry-based-state-backed-blockchain\">reported<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The infrastructure, dubbed Blockchain Services Network-Distributed Digital Certificate (BSN-DDC) won\u2019t be compatible with external NFTs, nor will it support cryptocurrency payments.<\/span><\/p>\n<h2><strong>Creating its own NFT industry<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">China is making moves to launch and develop its own NFT industry that is not linked to the crypto space.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BSN-DDC will enable businesses and individuals to build apps and portals to manage tokenized collectibles. It won\u2019t, however, support crypto-transacted NFTs, and only Chinese yuan will be allowed for purchases and service fees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The rollout is planned for the end of this month and has already attracted more than 20 partners, including Cosmos blockchain, digital receipt system maker Baiwang, and video technology service provider Sumavision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">NFTs \u201chave no legal issue in China\u201d as long as they distance themselves from cryptocurrencies, said He Yifan, chief executive of Red Date Technology, which provides technical support to BSN.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite not being illegal, several Big Tech companies decided to call their NFT projects \u201cdigital collectibles\u201d for compliance reasons.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ant Group, an affiliate of Post owner Alibaba Group Holding, and Tencent Holdings, were among the first tech giants in the country that hopped on the NFT bandwagon, while JD.com and Baidu followed with their own digital collectibles.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, state-run media Xinhua News Agency stepped in the NFT game, giving away more than 100.000 digital collectibles for Christmas.<\/span><\/p>\n<h2><strong>Utility<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cNFTs in China will see the annual output in billions in the future,\u201d according to Yifan, who explained that \u201cpublic chains are illegal in China, as the state requires all internet systems to verify user identities and permit the regulator to intervene in the event of illegal activities.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With this in mind, Red Date developed the open permissioned chain\u2013leveraging an adapted solution that can be governed by a designated group.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BSN, which was founded by Red Date along with state-owned China Mobile, China Union Pay, and the State Information Centre, has already \u201clocalized\u201d more than 20 public chains since its launch in 2018.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Yifan, BSN-DDC will integrate 10 chains, including the adapted version of Ethereum and Corda, in addition to domestic ones, such as Fisco Bcos, initiated by Tencent-backed fintech firm WeBank.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Compared to other single-company platforms, BSN-DDC is compatible across chains and is cheaper, explained Yifan, according to whom, issuing an NFT can be as cheap as 0.05 yuan ($0.7).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He said that \u201cthe project would turn a profit this year if it can help generate 10 million NFTs, and the actual output will surpass that based on our predictions.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yifan predicts the biggest market in certificate management, such as car license plates and school degrees.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cIn NFT-based vehicle plate management, the car owner, government and insurer each have access to data such as mileage, engine number and repair history, and each is aware of the other's rights,\u201d he explained.<\/span><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Crypto\u2019s enemy number one, China, is preparing to roll out its own state-backed blockchain infrastructure to support the deployment of NFT-like collectibles, South China Morning Post reported. The infrastructure, dubbed Blockchain Services Network-Distributed Digital Certificate (BSN-DDC) won\u2019t be compatible with external NFTs, nor will it support cryptocurrency payments. Creating its own NFT industry China is [&hellip;]<\/p>\n","protected":false},"author":699,"featured_media":211765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76232,37],"tags":[76674],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China preps infrastructure for state-backed NFTs<\/title>\n<meta name=\"description\" content=\"China is preparing to roll out its own state-backed blockchain infrastructure to support the deployment of NFT-like collectibles.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/china-preps-infrastructure-for-state-backed-nfts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China preps infrastructure for state-backed NFTs\" \/>\n<meta property=\"og:description\" content=\"China is preparing to roll out its own state-backed blockchain infrastructure to support the deployment of NFT-like collectibles.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/china-preps-infrastructure-for-state-backed-nfts\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-14T22:00:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-14T17:25:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/01\/china-nft.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ana Grabundzija\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ana Grabundzija\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/china-preps-infrastructure-for-state-backed-nfts\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/china-preps-infrastructure-for-state-backed-nfts\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#person\",\"name\":\"Ana Grabundzija\",\"url\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"caption\":\"Ana Grabundzija\"},\"jobTitle\":\"Journalist\",\"description\":\"Dr. Ana Grabundzija is a Zagreb-bred writer with an academic background in anthropology. 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