China’s state-backed blockchain is launching its own NFT infrastructure
China’s state-owned Blockchain Service Network (BSN) has plans to establish infrastructure by the end of this month that will mint and create NFTs within a centralised system. This action reflects a major step to ensure the Chinese NFT industry stands alone from cryptocurrencies, of which China has negatively responded to previously.
Despite the current ban on cryptocurrencies across China, He Yifan, chief executive of Red Date Technology, which provides technical support to BSN, told the South China Morning Post that NFTs “have no legal issue in China” so long as they are far removed from cryptocurrencies like Bitcoin.
This project, titled the BSN-Distributed Digital Certificate (BSN-DDC), is set to operate as a networked interface for businesses and everyday users to build their own portals or apps to manage NFTs, which can only be purchased with Chinese Yuan.
“NFTs in China will see the annual output in the billions in the future,” said He to the South China Morning Post.
The original design of NFT trading was intended to take place on public blockchains – decentralised platforms that provide access to anyone from across the world. Public chains are illegal in China due to the nation state’s strict Internet laws that require user verification and regulatory intervention for what is believed as illegal activity.
To avoid China falling behind as the rest of the world progresses towards Web3, Red Date created a solution through this new infrastructure that integrates China’s views on public blockchains by devising an open permissioned chain – an adapted version that can be governed by a designated group.
The current NFT marketplace mainly caters towards trading digital art, however He said the biggest opportunity for this new space is in certificate management, such as car license plates and school diplomas.