China’s decision to restrict cryptocurrency trading doesn’t mean the country has abandoned its blockchain ambitions. The government is continuing to prioritize blockchain technology, even though it may have banned cryptocurrencies on its territory.
Earlier, China began working on a new blockchain initiative. The project, tagged Blockchain Service Network (BSN), is geared towards integrating international Central Bank digital currencies (CBDC). According to a recent report, BSN looks to launch the BSN Spartan Network, which is designed to be open-source and free of Chinese government surveillance. China’s state-backed blockchain firm is preparing for its first major international expansion, according to CNBC, as Beijing continues to prioritize the technology.
The BSN’s Spartan Network
The Blockchain-based Service Network (BSN), a Chinese government-backed initiative, is preparing to launch its first major foreign service, the Spartan Network, in August 2022, according to BSN CEO Yifan He.
The Spartan Network is an international product that will initially include six public blockchains, all of which utilize different consensus mechanisms and do not have digital currency support. The Spartan Network will feature an Ethereum-like blockchain infrastructure for the creation and deployment of DApps, which is a major component. BSN, unlike other blockchains, will not work through a cryptocurrency; instead, it will use the US dollar.
Yifan He added that they are not against public chains but they are not in favor of chains that have native digital currencies. He is also the CEO of Red Date Technology, one of BSN’s four original members. Red Date Technology is located in Hong Kong and is responsible for BSN’s day-to-day operations, R&D, and maintenance.
He said that the BSN is developing the Spartan Network so that it can be used by anyone, regardless of whether they are in China or not. The network will eventually be open-source and free of Chinese government surveillance.
The Spartan Network claims to provide a one-stop shop for cloud-based blockchain application deployment, allowing businesses to take advantage of time and cost savings. It will include a variety of public blockchains with non-crypto currency services as He explained.
According to He, USDC will be accepted for gas fees (transaction costs) on the Spartan network, which is designed for fiat transactions. The BSN CEO acknowledged that not having cryptocurrencies in the BSN ecosystem is a major issue in the blockchain industry, especially during the early phases. Furthermore, he added that It’s going to be tough for BSN Spartan Network to break through in the first or second year since most people in the blockchain industry are only familiar with crypto.
Blockchain, the technology that underpins cryptocurrencies like bitcoin, has a lot of buzzes right now. However, the term’s significance has changed dramatically since its invention. It refers to a system of shared ledgers used for tracking activity, which may be public or private, with access granted to all or specified persons only. A public blockchain, such as bitcoin, is an example of a distributed ledger technology. Earlier last year January the BSN announced the creation of a Universal digital payment network (UDPN) to standardize digital currency transfer practices and processes.
The Chinese government, BSNL may face criticism abroad because of its connections to the BSN as it tries to expand to international markets. The State Information Center (SIC) is the foundation for this firm, which operates under China’s powerful National Development and Reform Commission (NDRC). He added that BSN’s Chinese background is a “significant obstacle” as the firm expands internationally.
The project is being backed up by a government-owned telecommunications firm, China Mobile. Spartan Network will be open source after August 2022, according to Blockchain, and BSN is currently working with many Western companies. Users can double-check that the Chinese government hasn’t gained access to the BSN or Spartan Network by inspecting and verifying the codes.