China Embraces Blockchain for Ambitious National Data Infrastructure Project

China is embarking on a major initiative to build a comprehensive national data infrastructure, and at its heart lies blockchain technology. A recently released policy document outlines the country's ambitious plan to complete this infrastructure by 2029, leveraging blockchain to enhance data security, traceability, and trustworthiness.

The guidance, issued jointly by the National Development and Reform Commission (China's top economic planner) and two other authorities, highlights the early stages of China's data infrastructure development. This project is a crucial part of a broader strategy to establish a unified national data market, signaling a significant commitment to integrating blockchain into the nation's digital framework.

While China has banned cryptocurrency trading and mining, it has long been a proponent of permissioned blockchain systems - those that operate without relying on cryptocurrencies. This project doubles down on that approach. The plan envisions a standardized structure for managing data assets and recording transactions, utilizing blockchain alongside encryption technologies and smart contracts.

"Industries and local governments are encouraged to actively experiment with building new technological infrastructures, such as blockchain networks and privacy-protecting computing platforms," the document states, highlighting the decentralized and collaborative nature of the initiative.

The scale of this project is substantial. Zhulin Shen, deputy director of the National Data Administration, indicated in a recent press briefing that the development of this data infrastructure is expected to attract approximately 400 billion yuan ($54.5 billion) in direct investment each year. This translates to a staggering 2 trillion yuan (around $272.7 billion) in total investment over the next five years.

China's commitment to a blockchain-powered national data infrastructure represents a major development in the global technology landscape. While the project is still in its early stages, the sheer scale of investment and the government's clear commitment signal a future where blockchain plays a central role in managing and securing China's vast data resources. The implications of this initiative, both domestically and internationally, will be closely watched in the years to come.