Greater than 35,000 blockchain firms are working in mainland China — however it’s believed that lots of them don't even use blockchain know-how.W
Greater than 35,000 blockchain firms are working in mainland China — however it’s believed that lots of them don’t even use blockchain know-how.
Within the first quarter of 2020, as COVID-19 shut down factories, places of work and cities throughout the world, 2,383 brand-new “blockchain” firms sprung up in China.
This brings the full to 35,010 firms as of April 1 — over 20,000 in Guangdong province alone — based on Tianyancha, a enterprise information firm.
However in mid-February information agency LongHash estimated that roughly 70% of the full variety of blockchain corporations registered within the Asian nation at the moment had misplaced their authorized standing or had their licenses revoked.
‘Blockchain’ firms in title solely
Blockchain is sizzling property in China, particularly after President Xi Jinping introduced in October final yr the nation will turn out to be a worldwide blockchain energy chief. This may occasionally assist clarify why bigger companies label themselves as “blockchain” firms when in truth they’ve little if something to do with the core know-how.
This push, mixed with how difficult it’s to carry a respectable blockchain firm as much as authorities requirements, may go an extended technique to explaining the phenomenon.
Many smaller Chinese language “blockchain” firms and startups have been discovered to be shell firms. A advertising tactic in and of itself, these “blockchain” firms can then be bought or absorbed by a bigger, maybe extra respectable corporations.
At a December 2019 Annual Assembly on Blockchain and Digital Belongings in Beijing, Bai Liang, Vice Director of Chinese language Institute of Digital Asset, admitted the variety of these firms was astonishingly excessive:
“The truth is that… 96% of the greater than 30,000 blockchain firms in China are usually not really working [using blockchain as their core technology].”
China’s Workplace of Central Our on-line world Affairs Fee (CAC) has reported solely 506 firms out of the 35,000+ also have a blockchain service submitting quantity.