As an integral part of the global economy, China has been one of the indivisible parts of global blockchain market, which has increased from $100 million in 2016 to $1.2 billion in 2019, with the number of companies providing related services reaching 1,006. As the industry matures in size, China’s blockchain business opportunities are also taking shape.
According to the definition in the “Blockchain White Paper (2019)” of the China Academy of Information and Communication Technology: Blockchain is a bookkeeping technology jointly maintained by multiple parties, using cryptography to ensure transmission and access security, and capable of achieving consistent data storage, difficult to tamper with and preventing repudiation; as defined in the “Financial Distributed Ledger Technology Security Specification” of the People’s Bank of China: Distributed ledger technology is a distributed infrastructure and computing paradigm formed by a high degree of integration of various core technology systems such as cryptography, consensus mechanisms, peer-to-peer communication protocols and distributed storage. A distributed infrastructure and computing paradigm formed by a high degree of integration of various core technology systems such as algorithms, consensus mechanisms, peer-to-peer communication protocols and distributed storage. Blockchain technology is a decentralized way to collectively maintain a trusted database technology, which is decentralized, tamper-proof and highly scalable. It is being rapidly integrated with a new generation of information technology such as big data, cloud computing, artificial intelligence and 5G, and applied to various important fields such as government, healthcare, public welfare and charity, judicial governance, etc. It is expected to promote humanity to step from the era of information Internet into the era of value Internet.
Over the past decade, blockchain technology has been continuously upgraded and the industry has divided its evolutionary development history into three stages, which are not achieved sequentially, but are a process of joint development and mutual promotion. There are three different application models of blockchain, with different advantages, which can be used for different scenarios. Among them, the public chain is a blockchain where anyone can participate in the system at any time to read data and initiate transactions, typically representing the application of Bitcoin; the alliance chain is a blockchain where several organisations participate in the management; and the private chain is a blockchain where all participating nodes are strictly controlled by a specific organisation. At present, the alliance chain model is the main direction of application in the financial sector. For business scenarios where the cost of intermediary is too high, the operation is inefficient or there is no intermediary to provide services, the use of blockchain technology can be considered to provide solutions.
Since the “13th Five-Year” Plan, many policies have been introduced at the national level and in various provinces and municipalities to promote the development of blockchain industry, and the policy plans to promote the development of blockchain industry will also guide the continuous progress of blockchain technology. Most of the policies supported by the central ministries and commissions are aimed at promoting the research and application of blockchain technology in the fields of trial execution, rural Internet finance, rights protection and traceability, security protection, digital identity, network speed reduction and capacity expansion and upgrade, food safety supervision, military industry and so on. More than 30 provinces and municipalities nationwide have issued policy guidance documents to carry out the layout of blockchain industry. 106 blockchain-related policies have been issued by provinces and municipalities by the end of 2019, and from the perspective of regional distribution, Zhejiang Province has issued the most policies with 11, while Beijing and Guangdong both ranked second with 8. At present, most policies are still issued by coastal and first-tier regions, but it also reflects the trend that inland provinces and cities wish to seize the development opportunities of blockchain.
The Blockchain Market in China
Since 2016, large IT Internet enterprises have laid out blockchain, startups have entered a blowout mode, the frequency and amount of investment and financing have increased dramatically, and the scale of the industry has been expanding. As of December 2019, there were a total of 1,006 blockchain enterprises in China that provided professional technical support, products and solutions for blockchain and had inputs or outputs. Meanwhile, the market size of China’s blockchain industry was around 100 million yuan in 2016, growing to 1 billion yuan in 2018, and the scale of China’s blockchain industry grew steadily in 2019, with an industry size of about 1.2 billion yuan. With the attention and importance of governments around the world, it is expected that by 2022, the market size of China’s blockchain core products and solutions and related derivative strict industries will reach 10 billion yuan.
In terms of composition structure, the blockchain market structure consists of public chain, alliance chain and private chain. in 2018, the public chain accounted for the major share of the global blockchain market structure, with the scale reaching $6.89 billion, accounting for 56.2%; the scale of private chain reached $3.10 billion, accounting for 25.3%; and the scale of alliance chain reached $2.27 billion, accounting for 18.5%.
In the future, China’s blockchain market will maintain stable and long-term growth, bringing more underlying technological innovation and market resources to the blockchain industry while safeguarding industry regulations.
Original Article: 2020年中国区块链行业市场现状及发展前景分析 重点领域应用示范效应加速显现, 前瞻产业研究院.
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