How the Chinese government is trying to re -create the NFT market without Cryptocurrency — and government control

The legal technology and technology called the Great Firewall for many years has regulated all aspects of computer life in China. While its usual job is to keep the internet at home, the Chinese state is taking more steps to prevent the influence of global blockchains and crypto, which have had a major impact on cryptocurrencies. NFT market with plans to expand east.

With traditional cryptocurrencies and NFTs backed by tokens like Ethereum banned in China, the country is offering some services, while they could lead to more censorship and regulation. access can be granted for those who wish to implement the current implementation and corrections, paving the way. for creative artists to find new and better ways for artists and designers.

China’s Blockchain-based Service Network (BSN), a state-sponsored blockchain network, has now become a major tool for users looking for digital services that comply with legal regulations. BSN was started by the State Information Center with major state support companies such as Red Date (a Chinese fintech company founded in 2014, based in Hong Kong), China Mobile (the largest mobile phone service provider. of the country), and China UnionPay (one of the country’s largest financial providers). Its goal is to help spread blockchain technologies to non-crypto businesses and build a global system for that purpose.

Nearly, China is moving to the digital yuan, January 2022, which is used by one in five Chinese citizens, according to the People’s Bank of China.

This new ecosystem opens the way for what is called BSN-Distributed Digital Certificates (BSN-DDC)-“that is, China’s dominance of NFTs,” according to Jehan Chua former Sotheby’s owner who owns the blockchain, VC Kenetic, introduced Red Date.

“While most decentralized companies in China are limited, DDCs are like a multi-chain environment, fully enforcing Chinese law,” Chu said.

Since its inception on January 24, 2022, the BSN-DDC system has integrated a number of approved blockchains, ‘forked’ (the process of moving from popular public chains) to the DDC system. . These include Ethereum, Cosmos and EOS. These controls of blockchains place limits on who can access the technology, allowing them to see all entrants in accordance with Chinese law.

The BSN-DDC design allows to display not only digital images, but also for other applications. Outside of China, NFTs have previously been used by organizations such as the Breitling watchdog, who stamps them as property passports confirming authenticity.

It also includes many of China’s high -tech ecosystems. Companies such as Alibaba, Tencent, and JD have built their own platforms separately from the BSN-DDC platform, but similar in nature to providing NFTs and digital assets to the Chinese market. according to Chinese law. Some of these users are prohibited from diverting and reselling their purchases in the secondary market, reducing the interest held at many NFT sites in the West.

One of the main players in this game is Ant Group’s JingTan (Topnod), a platform that prevents users from repurchasing digital collections, which allows users to gift them. after detaining them for more than 180 days.

Topnod works with government museums in China to create digital twins of history, while working with artists, painters, and other artists in the cultural industry. . They teamed up with the Shanghai Symphony Orchestra on a digital recording of 10,000 sound pieces collected from the first phonographic symphony recorded in China, priced at RMB 19.9 (about $ 3.15).

Huanhe is Tencent’s digital platform that is making waves around the country, which is seen as a diverse selection of platforms. It’s also made with cultural buildings, but also artists, carts, consumer products, and charity organizations.

For example, earlier this year, Huanhe donated digital twins of Dunhuang Grottoes at RMB 118 each ($ 18). All of Huanhe’s purchased and non -acquired digital works can be displayed on a 3D photo, but Huanhe also protects the secondary market. (Earlier this year, Huanhe became embroiled in a copying controversy following the release of digital drawings of the artwork of Xu Beihong, a well -known Chinese artist.)

NFTCN is another market that is gaining traction in China. Close to OpenSea, NFTCN is open to independent artists who want to buy and collect NFTs. It has a gallery built to allow users to showcase their collection supported by an Ethereum page chain, and is one of the few sites in China to allow secondary market trading.

All in all, Chu said the impact of BSN-DDCs is for the film market in China, but beware of foreign companies entering the market to be wary of China’s most notorious censorship laws.

“The timeline for BSN-DDCs in China cannot be increased,” he said. “It’s not a single chain, but a large chain with a very powerful system of interoperable applications, admittedly. This is a very controversial issue for the global crypto community, as it is about censorship. But that’s the reality of the process when it comes to working in China.

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