Media: Chinese blockchain platform centralises public networks for local users

From the second half of November through April 2021, the China-based Infrastructure Blockchain Platform (BSN) will integrate 24 public networks. In intra-network transactions, users in China will use the yuan. This follows from a memo that came into CoinDesk’s possession CoinDesk.

BSN will permit only its designated operators to create and manage nodes, where dApps validate transactions on the chain and store data. The platform will block all peer-to-peer transactions if they are not conducted in yuan.

“BSN has made cryptocurrency operations technically impossible. The platform will strictly comply with the relevant laws and will exclude support for any blockchain that violates them,” the memo explains.

Otherwise, public blockchains will retain their properties. Developers will have access to technical frameworks for creating and deploying dApps with various use cases. Through this compromise, the authorities intend to reap the benefits of blockchain’s efficiency and traceability while excluding its decentralisation.

The integration of 24 open blockchains will be the next stage in BSN’s development after the addition of support for six others in August this year. Their decentralised versions are available on the international network (BSN-International).

“Open, decentralised networks will become regulated networks with permission. At present, this is a straightforward and effective way for projects to comply with requirements and work with users in China,” the memo states.

The names of the 24 blockchains are not mentioned. In BSN they will be renamed to terms from China’s agricultural calendar. It is used by local farmers to track changes in the weather. For example, — “First Frost”, “Awakening of Insects”.

China has banned cryptocurrency trading since 2017. They may threaten capital controls and the monetary sovereignty of the national currency, including the being developed digital yuan, authorities say. The analytical firm Chainalysis recently noted, that many residents of China circumvent the restrictions using the popular stablecoin Tether (USDT).

The BSN platform was launched by China’s State Information Center in April. Its aim is to simplify the process of launching blockchain applications and reduce costs. The BSN whitepaper states that the platform aims to become the “Internet of Blockchains”.

Read more about BSN in the article of ForkLog.

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