Chinese “Blockchain” initiative gets out of control as parties reduce from sharing their personal data for free

Chinese blockchain initiative is well under way but local officials meet resistance from concerned parties that are not excited with exchanging their personal data.

Chinese blockchain initiative have stalled

Chinese local authorities have encountered obstacles while trying to integrate their blockchain applications as concerned parties are trying to keep their private data, reports CCTV in Beijing.

The blockchain initiative has become a burning issue in China over the recent years. The researches associated with the distributed ledger technology as well as various developments and their implementations sharply increased after last year in October the Chinese leader Xi Jinping claimed the country should aim at becoming the world blockchain leader.

Currently more than 30 local authority entities are developing blockchain infrastructure and applications. According to CCTV report on 10th June, the country’s main goal is to use the technology for expanding local management opportunities of administration. Nevertheless, many of these projects for local entities were stopped in the last two days as they didn’t manage to get necessary supporting data from local companies, firms and individuals.

Information is not for free. The governmental official of one of local blockchain projects Chzan Dashan told Chinese media there was no clear legal frame for tech projects, and this posed huge problems for communication between governmental bodies and concerned parties. “The information necessary for the whole platform for blockchain management involves data of local banking, insurance, telecommunicating areas. Some of them are ready to provide data, others stand against”, said Dashan.

The vice-president of the Chinese Research Institute of digital assets Jan Man that previously used to express his concerns on the blockchain development, suggests that neither government nor private sector would want to share their data for free. Thus, Man believes that any of the requested information should be bought, and requirement to share it for free will have no results.”

He said, “The main concept of most of the blockchain applications is rather problematic. If we want to introduce blockchain, we should first collect data from various governmental departments and companies. The major benefit of blockchain solutions is that the data they are based on can easily be traced and at the same time impossible to fake. The concept sounds fine but in practice there is hardly any company that would like to pass its private data for free, and then make it transparent and accessible for anyone”.

“The reason for this resistance is that information is the main resource for governments and companies. So blockchain developers should at least pay for it. Still these issues were not taken into account, and this is the biggest mistake made by them”, concluded Man.