China is looking to overtake the United States in the blockchain market through the country has banned trading in cryptocurrencies. This was quite evident based on the number of blockchain patents that the country is getting. That would mean that the country is bent on positioning itself as a dominant player in the sector following the number one spot it got on the most number of patents in respect of blockchain. China is obviously attracted by the potentials that the technology possesses and the gains it could derive in the upcoming years.
Money Is Poured
Interestingly, 08Capital’s blockchain executive, David Marshall, told the media that this technology has every potential to impact greatly on whatever is being done currently. Therefore, he sees the technology to be threaded completely in the future. Given global adoption rate, the executive sees the new age technology as a simple, quiet and disruptive one that has big potentials. This is a bullish outlook provided by even the skeptics and bears of bitcoin as the country slapped a ban on cryptocurrency trading and ICO market.
Significantly, China is one of the countries that have already started pumping money into the segment. This was evident when a cloud computing subsidiary of Xunlei Technologies, OneThing Technologies, has introduced a high-speed blockchain platform. This was known as ThunderChain that has the potentials to perform millions of transactions within a second. The company has developed the solution for food supply-chain management and other sectors including entertainment, btcmanager reported. The encouragement to use the technology has already been there for quite some time.
ShineChain, a Chinese insurance firm, is using blockchain technology currently to sell its insurance products thus indicating its existence. That does not mean that the United States is sitting idle and watching the developments in the biggest Asian economy. The Americans too are spending billions of dollars to cash in on the popularity of the blockchain technology and its gains. For instance, the Rockefeller family disclosed its intention of investing in blockchain-related businesses recently. This would be done with its venture-capital unit, Venrock.
Another company, Ripple also announced $26 million investments in blockchain capital parallel IV, which is a fund devoted to investing in blockchain-associated ventures. Blockchain Capital managing partner and co-founder, Bart Stephens, said that there are complete verticals that gain from distributed ledger technology. This included identity management and healthcare.
Not an Easy Task
Experts believe that it will not be an easy task for China to overtake the Western countries in this blockchain technology race. US-China Business Council’s former communications director, Marc Ross, stated that China is a huge marketplace. The country has seen what will work for them and what has failed apart from defending its state enterprises from the best in the world.
He summed up saying, “But no other nation on the planet hosts the power, influence, innovation, entrepreneurial culture, and creativity of America’s tech companies. The ecosystem of universities, investors, and coders is a deep moat and can’t be built overnight or forced on a culture. So I don’t see China’s tech companies a threat in the next 20 to 30 years in any sub-sector.”