China is on the verge of establishing an NFT industry that will operate without any involvement with cryptocurrencies.
China is about to take a big leap forward with non-fungible tokens (NFTs) by drawing a clear line between them and cryptocurrencies. Already, the Chinese state-backed Blockchain Services Network (BSN) is working to deploy infrastructure to support the deployment of NFTs. According to a South China Morning Post report, the BSN will unveil the infrastructure by the end of the month to support businesses and individuals. Generally, the development will allow the Chinese people to create platforms and applications to manage NFTs.
China is on the verge of establishing an NFT industry that will operate without any involvement with cryptocurrencies. The general manager of Red Date Technology, which provides technical support to BSN, He Yifan, assured that NFTs “have no legal problems” in China. Yifan said that NFTs are free from legal issues as long as they have nothing to do with BTC or other crypto assets. The executive said the infrastructure would use an open and permissioned blockchain to enable an on-chain governing body.
China to create a state-backed NFT industry
According to the report, the project is officially the BSN Distributed Digital Certificate (BSN-DDC). And users can use Chinese Yuan to make payments.
Typically, publishing and trading of NFTs happens on public blockchains. These blockchains are decentralized, and they give access to people who want to write or read data. However, public blockchains, where NFTs are launched, are illegal in China. In the country, all Internet systems must verify the identity of users. The state also requires internet systems to provide access to the regulator to intervene in the event of “illegal activities”.
Yifan reiterated to Cointelegraph that state-owned channels cannot legally operate in China. Therefore, he expressed the desperate need for a credible and inexpensive infrastructure to host all NFTs in China. He added that the lack of dedicated national NFT infrastructure would only mean that NFTs will be launched on “unreliable” private blockchains in the country.
“We will provide services to NFT companies in Hong Kong, which means that if there is international activity involving the issuance of NFTs in China, they can certainly choose to use the BSN-DDC network through our Hong Kong gateway. .”
He added that the infrastructure would integrate 10 chains, including the adapted version of Ethereum and Corda. Apparently, BSN-DDC has the potential to disrupt the current NFT industry. Before its official launch, the infrastructure attracted more than 20 partners. Partners include video service provider Sumavision, blockchain network Cosmos and digital receipt system maker Baiwang.
Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. Besides writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos, where she resides.