Blockchain, China’s Story

Dissecting the budding ecosystem emerging from the state’s embrace of the new technology.

By Shuhong Chenli Mar 19, 2020 04:05 pm

EqualOcean presents -- 'Blockchain, China’s Story.' Image credit: Shutterstock

The result of several months of desk research, interviews with insiders and other forms of industry analysis, EqualOcean has completed its report on China’s emerging blockchain sector. This paper unveils the core technologies behind the concept, as well as the maturity of blockchain ecosystem development in the country. We dissect the leading players’ strategies and determine the most promising application scenarios that are likely to play out in the near future.

Comprising six sections, the report presents a comprehensive, in-depth overview of the industry.

Chapter 1, ‘Reshuffling the deck,’ explains how the Chinese blockchain business both died and was revived in 2019. Based on the case of the aelf blockchain’s (the firm is often dubbed the ‘Chinese EOS.IO’), we analyze the challenges standing in the way of the local public blockchain players.

► Over 70% of projects that died in 2019 did not survive their first year;

► Most of them were cryptocurrency scams or public blockchains that had insufficient business models;

► Permission blockchain providers were sitting relatively comfortably.

Chapter 2, ‘In a nutshell,’ provides a general introduction of blockchain technology and its development path.

► Immutability, decentralization and transparency achieved by encryption, consensus and distributed mechanisms are the key traits of blockchain.

Chapter 3, ‘More than feng shui,’ looks into several phases that China’s nascent blockchain ecosystem has gone through, including the regulators’ and the tech giants’ (such as Ant Financial, Baidu, JD.com, Tencent) movements. It also comprises an analysis of venture capital and private equity trends in the emerging domain, with a snapshot of the most important players across 12 verticals in China and abroad.

► It took China less than five years to reach the phase of relative maturity in blockchain;

► The country is using a ‘carrot and stick’ approach to develop blockchain capabilities.

Chapter 4, ‘Nails for the new hammer,’ dives into the three most feasible real-world scenarios with the highest scalability. It explains the conceptual novelties of the decentralized networks and provides real business application cases.

► National digital currency, logistics and e-government are the areas where blockchain has the most potential;

► Overall, blockchain is perceived more as an instrument to control costs and improve efficiency than a downright revolutionary concept.

Chapter 5, ‘Big tech in the big game,’ addresses the key actions of China’s tech juggernauts in developing their blockchain-based businesses. It provides an outlook of their product menus, market strategies and pilot projects.

► Alibaba, Tencent and JD.com are among the local blockchain pioneers;

► They are developing the core technology, seeking real applications and looking to increase the market’s recognition of blockchain and to facilitate the construction of a broad and inclusive ecosystem.

Chapter 6, ‘Rivers to cross,’ discusses barriers that, at present, restrain blockchain from the widespread application.

Download the sample or directly purchase the report by clicking the button above.

Should you have further inquiries, please contact us at contact@equalocean.com.

*Contributor: Ivan Platonov | Editor: Luke Sheehan