China Launches Blockchain-Powered Data Exchange

New Data Exchange Powered by Blockchain Technology Unveiled at Hangzhou Summit

A blockchain-based data exchange has been launched by Chinese government officials during the 2023 Hangzhou Summit. With the participation of more than 300 enterprises, including Alibaba Cloud and Huawei, the Hangzhou Data Exchange aims to facilitate the trading of enterprise information technology data using distributed ledger technology.

Platform Ensures Immutable and Traceable Exchange Trades

According to local news reports on Aug. 23, the Hangzhou Data Exchange will ensure that exchange trades are immutable and traceable. Chen Chun, director of the National Laboratory of Blockchain and Data Security, stated that the exchange utilizes research blockchain, privacy computing, and other technologies to realize trusted sharing and effective use of data under data security and privacy protection.

Huge Growth in Hangzhou's Digital Economy Sector

Hangzhou's digital economy sector has experienced significant growth, surpassing 500 billion Chinese Yuan ($69 billion) in 2022. This accounts for nearly 27% of the city's GDP, highlighting the importance of blockchain and technological developments in the region.

China Supports Government-Controlled Blockchain Efforts

China has been cracking down on private blockchain enterprises throughout the year, but the country remains a staunch supporter of government-controlled blockchain initiatives. During the opening of the 2023 Shanghai Cooperation Organisation Conference (SCO), President Xi Jinping emphasized the important role of central bank digital currencies in expanding the share of local currency settlements of SCO countries. As part of efforts to stimulate domestic spending, over 100 million Yuan ($13.8 million) worth of the digital-Yuan CBDC was recently airdropped to Chinese residents.

Progress on National Nonfungible Tokens Exchange is Slow

Although China has shown support for blockchain technology, not all initiatives have gone smoothly. The country's national nonfungible tokens exchange, CDEX, was expected to be launched by the end of 2022. However, as of the time of publication, the platform remains under development.