China’s state-backed BSN plans to roll out ‘Chinese NFT industry’

China’s state-backed BSN plans to roll out ‘Chinese NFT industry’

China's state backed Blockchain Services Network (BSN), has reportedly announced plans to launch a new infrastructure by the end of January to facilitate the rollout of non-fungible tokens (NFTs), taking a major step toward establishing a Chinese NFT market that is not connected to cryptocurrencies.

Despite Beijing's restriction on cryptocurrencies, He Yifan, CEO, Red Date Technology, a firm that provides technical support to BSN, stated that NFTs have no legal problem in China if they distance themselves from bitcoin and other cryptocurrencies.

To set it apart from crypto-transacted NFTs, the BSN-Distributed Digital Certificate (BSN-DDC) network will offer application programming interfaces for individuals or businesses to create their own personal user portals or apps to help manage NFTs. The infrastructure would only allow the Chinese yuan for purchases as well as service fees.

Yifan further added that in the future, China's yearly output of NFTs will be in the billions.

NFTs are curated and sold on public blockchains, which are decentralized systems that allow anyone with a computer to read and write data to provide access. 

According to He, however, public chains are illegal in China, because the government requires all internet-based systems to authorize user identities and allow the regulator to interfere if illegal acts occur.

Consequently, Red Date resorted to an open permissioned chain solution, which is an updated version that may be regulated by a specified group. Since its inception in 2018, more than 20 public chains have already been localized by BSN, the NFT project's platform, which is backed by state-owned State Information Centre, China Mobile, and the China UnionPay.

According to He, BSN-DDC will connect ten chains, which includes an improved version of Ethereum and Corda, in addition to domestic chains such as Fisco Bcos, which was started by WeBank, the Tencent-backed fintech business.

While NFTs are not banned in China, numerous Big Tech businesses have used the term ‘digital collectibles’ to describe their NFT ventures for compliance-related reasons.

The BSN-DDC architecture is capable of causing significant disruption in the current sector. It has already brought in over 20 partners, including Baiwang, a digital receipt system maker, Cosmos, a blockchain network, as well as Sumavision, a provider of video technology services.

Source credit: https://www.scmp.com/tech/policy/article/3163094/china-create-own-nft-industry-based-state-backed-blockchain