China's government-supported blockchain startup is preparing its first significant overseas venture, according to the company's CEO, as Beijing continues to prioritize the technology.
Blockchain-based Service Network (BSN) positions itself as a "one-stop shop" for establishing blockchain applications on the cloud, a procedure that would otherwise be costly and complex. It attempts to connect various blockchains to assist businesses in adopting the technology.
The cryptocurrency bitcoin brought blockchain to popularity, but its definition has subsequently grown. It refers to a system of shared ledgers of activity, which may be public and accessible to all parties, or private, where only a limited number of people can access and alter it.
Red Date Technology, a Hong Kong-based startup, is one of the founding members of BSN. In August, the company's CEO Yifan He told CNBC that BSN plans to launch a project called BSN Spartan Network abroad.
As a result of China's crackdown on digital coins, BSN's blockchain networks do not support any cryptocurrencies.
According to proponents of blockchain technology, it can lower costs and boost the pace of some business processes. Personal endorsement by Chinese President Xi Jinping has elevated the technology to a national priority.
The Spartan Network will ultimately consist of six public blockchains that do not utilize cryptocurrency. In August, the project will debut a non-cryptographic version of the Ethereum blockchain.
Typically, blockchain transactions incur a fee. He stated, however, that the charge will be paid in U.S. dollars rather than ether, a cryptocurrency associated to Ethereum.
The CEO of Red Date Technology acknowledged that the lack of cryptocurrencies in the company's product lineup is a challenge.
The CEO of Red Date Technology acknowledged that the lack of cryptocurrencies in the company's product lineup is a challenge.
He said that BSN Spartan Network will be "tough to promote in the first or second year due to the fact that the vast majority of blockchain industry professionals only comprehend crypto."
BSN is likely to be scrutinized by governments outside of China because of its ties to the Chinese government's power structure. It is backed by China's powerful National Development and Reform Commission (NDRC), which is housed within the State Information Center (SIC) (NDRC).
The initiative is also supported by China Mobile, a state-owned telecommunications business.
According to He, BSN's Chinese heritage presents a "major difficulty" as the company expands globally.
