Introduction
Blockchain technology is entering a transformative phase with significant developmental opportunities. During the 18th collective study session of the Political Bureau of the CPC Central Committee on October 24, President Xi Jinping emphasized the critical role of blockchain as a core technology for independent innovation. His address highlighted the need for accelerated development and widespread application of blockchain across various industries.
Driving Blockchain Industry Upgrades
Blockchain, a decentralized ledger technology, integrates distributed data storage, peer-to-peer transmission, consensus mechanisms, and cryptographic algorithms. According to He Ping, Director of Tsinghua University's China Financial Research Center and a distinguished expert at People's Daily Blockchain Research Institute, this technology facilitates peer-to-peer transactions across diverse sectors—promoting fair competition and enhancing business models.
President Xi noted that blockchain applications span:
- Digital finance
- IoT (Internet of Things)
- Smart manufacturing
- Supply chain management
- Digital asset trading
Liu Xiaolei, Director of Peking University's Blockchain Laboratory, added that blockchain adoption in supply chain finance can consolidate vertical industry data, improving operational efficiency and addressing financing challenges for small suppliers.
Advancing Core Blockchain Technologies
President Xi underscored the importance of:
- Breaking through technical bottlenecks to ensure secure, controllable blockchain applications.
- Standardizing blockchain research to strengthen China's global influence.
- Integrating blockchain with AI, big data, and IoT for synergistic innovation.
Liu Xiaolei pointed out that while blockchain enables immutable data storage and smart contracts, its underlying technologies—such as zero-knowledge proofs—require further refinement to resolve data ownership and sharing challenges.
Sustainable Business Models
Blockchain unlocks new economic paradigms by:
- Treating data as assets: Enabling small companies to integrate data for better risk management.
- Creating equitable value distribution: Allowing end-users to participate in profit-sharing models via tokenized incentives.
Chen Lei, CEO of Xunlei Group, highlighted blockchain's capacity to redefine traditional industries by:
- Enhancing trust through transparent value transmission.
- Reducing intermediation costs.
- Restructuring incentive systems to include consumer contributions.
Reshaping Industry Chains
President Xi advocated using blockchain to:
- Innovate digital economic models.
- Improve market efficiency and regulatory transparency.
- Support high-quality economic growth by bridging supply-demand gaps.
Li Ming, Director of the China Electronics Standardization Institute's Blockchain Research Office, proposed leveraging blockchain to build industry-sharing platforms that elevate service standards and economic returns.
Ensuring Secure Blockchain Development
To mitigate risks like ICO-related fraud, President Xi called for:
- Regulatory oversight and risk analysis.
- Self-governance among developers and platforms.
- Legal frameworks to ensure orderly growth.
Liu Xiaolei cautioned against fraudulent "blockchain" ventures, urging local governments to vet companies rigorously. He Ping added that separating chain-based applications from speculative coin projects is vital for sector stability.
FAQs
Q1: How does blockchain improve supply chain efficiency?
A1: By consolidating data across suppliers and enabling real-time tracking, blockchain reduces delays and financing barriers for small businesses.
Q2: What industries benefit most from blockchain?
A2: Finance, logistics, healthcare, and public administration gain transparency, security, and automation advantages.
Q3: Is blockchain environmentally sustainable?
A3: New consensus mechanisms (e.g., Proof-of-Stake) are reducing energy use versus traditional mining.
👉 Discover how blockchain is revolutionizing finance
Q4: How can governments regulate blockchain effectively?
A4: By fostering R&D in core tech while enforcing anti-fraud laws and promoting industry standards.
👉 Explore blockchain's future applications
Q5: What risks accompany blockchain adoption?
A5: Potential pitfalls include scalability issues, regulatory uncertainty, and integration costs with legacy systems.
Q6: Will blockchain replace traditional databases?
A6: Unlikely—hybrid models that combine blockchain's security with SQL's speed are emerging.
Conclusion
With state support and technological maturation, blockchain is poised to redefine industries, enhance economic equity, and strengthen China’s innovation leadership. Stakeholders must collaborate to harness its potential responsibly.