Blockchain Service Network (BSN): China Sets A Precedent and The World Prepares to Follow Suit

It is no news that China’s economic and infrastructural expansion over the world has been gaining momentum for several years now. In the wake of the recent pandemic, with global sentiment growing against China, one would expect the largest economy in the world to experience a setback. 

Turns out, China had been well equipped with strong, revolutionary technological measures to reduce hurdles like the economic war with the US to mere speed breakers. A good demonstration of the United States’ unsuccessful attempts to barricade China from leaving lasting traces in its markets is the declared ban on TikTok and the talks of acquisition by Microsoft or Walmart announced soon after.  

Blockchain Service Network, although an infrastructure centered on national development, is another such ingenious strategy by China that has the potential lure in American enterprises and suppress resistance for further collaborations. This interoperability network is a breakthrough in terms of the applications of blockchain technology and cryptocurrency that has the power to unify the world as one.

What exactly comprises of the Chinese introduced and empowered BSN, and how does it impact the world?

What is BSN?

Blockchain Service Network (or Blockchain-based Service Network as China calls it), as the name suggests, is an integrated and interconnected information and communication network that levers on the blockchain technology. Let’s break it up to make it clearer;

A blockchain is basically an information recording system that was curated keeping in mind the digital transactional needs of today. Blockchain technology draws on ‘impenetrable, un-hackable’ information systems that are brought together by blocks containing immutable transactional records. A blockchain, thus, provides enhanced security and helps build trust between parties and entities involved in digital transactions.

A service network refers to forming an expansive network of the said service across computer and computing systems.

A blockchain service network in a capsule is an initiative to synchronize networking systems across a country or region to facilitate digital data, information, resources, and goods transfer among enterprises and institutions; and this is the popular Chinese masterstroke that the world has been talking about.

Foundation of BSN in China

First introduced in late 2019, China’s Blockchain Service Network took little time to launch and shoot to popularity in 2020. 

The government’s intention was to bring together leading private companies and public organizations to partner up for the curation of a standardized connectivity network that offers blockchain technology as an accessible and affordable service. 

With these public and private entities signing ‘The Alliance Chain Framework Adaptation Agreement’, the foundation of this scalable and autonomous digital infrastructure was laid. In April 2020, China officially launched the service network for global commercial use. The BSN website got the international project’s wheels turning in June this year.

Features of China’s Blockchain Service Network (BSN) include:

• Smart Contract SDKs
• Gateway APIs Encryption
• Algorithms for Permissioned Frameworks
• Hundreds of Public Chain Nodes Across National and International Cities

Applications Of BSN: How It Opens A World of Opportunities

A national program with worldwide presence and influence, the BSN has more to offer than what it presents.

Opens Doors to Blockchain Technologies For SMEs

A private blockchain network is traditionally a privilege for large corporations that can cash out tens of thousands of dollars to obtain a secured, optimized, and flexible system of digital transactions. Through China’s BSN, small and medium enterprises will gain access to blockchain technologies that will cost them peanuts (relative to private networks). Making blockchain adoption an affordable reality for humble businesses was in fact one of the primary agendas of the Chinese government.

Provides Operational Ease to Developers

The centralized platform for this decentralized transactional service will unlock several blockchain protocols for enterprises. Developers will, therefore, experience the utmost ease of deploying, operating, and administering all types of blockchain distributed applications (DApps) within the offered three categories -- permissioned (restricted chains) services, permissionless (public chains) services, and interchain (flexible communication hub) services.

Upgrades Digital Infrastructure and Creates Digital Silk Road

Through this open-source initiative of BSN forming the backbone, China aims to empower its national digital economy. This will enable businesses and citizens alike to avail of the cloud-based services including smart contracts and ledger transactions on an internet that is smarter and more cohesive than the existing one. Moreover, China has trading partners consolidated worldwide, which will all reap the benefits of cyber sovereignty through this highly efficient digital silk road.

Advances Structural Support to Smart City Initiatives

More far-fetched applications of the BSN that form a part of the national strategy include the embedding of this infrastructure in smart city projects. For instance, a plan is being chalked out to integrate BSN to assist the local government in administrative monitoring such as road and infrastructure health. An ecosystem will be built that allows citizens to register and report details of roads and pavements around by offering remunerative encouragements.

Global Implications Of BSN: What Lies in The Future?

According to Professor Michael Sung, Founder, and Chairman of CarbonBlue Innovations, “The BSN will catalyze the globalized digital economies of the future.”  

Expert estimates suggest the obvious -- through this project, China can achieve its ambitious dream of digital dominance through the global digital infrastructure unification. With over 45% of all existing blockchain projects operational from China and international nodes erected in countries of strategic importance including the U.S, Japan, Australia, Brazil, South Africa, Singapore, and France, Blockchain Service Network brings this dream closer to reality. 

The greatest asset of this project is hands-down the consortium of partners which are all front runners in the cryptocurrency, internet, and digital industries. Right from FISCO, CITA, to Huawei, you name it and the collaboration has it. Since the gateway access will lie in the hands of China, the power collated through the collaborations thus formed has the potential to upturn digital markets and streamline the monetary sphere of global influence towards China.