Despite the slowdown in crypto, the market for blockchain technology is booming. China leads the world in blockchain with its 25% share in ongoing projects as of November 2018, according to the Blockdata, a data provider firm based in Beijing. Thanks to the blockchain characteristics that ensure data privacy and safety, the technology is used in a number of industries in the Chinese market. Be it financial services, logistics and supply chain, consumer retail, healthcare services, or manufacturing; one can easily find the stamp of blockchain in the operations of all these industries.
According to Blockdata’s chief editor, Zhang Feixue, the reason behind the popularity of blockchain is its ability to provide decentralized data which can drive up efficiencies in a real-time manner. The blockchain is also a window to the future of digitalization, helping the organizations to push for more digital transactions while saving cost and money associated with physical execution. Highlighting further on benefits of the blockchain, Paul Sin who leads the Blockchain Lab, Asia Pacific region at Deloitte said that cryptographical data protection provided by the blockchain could help the organizations to synchronize the data across companies, industries, even among geographies without worrying about its safety and security.
The blockchain is helping the banking and financial institutions to detect any kind of suspicious activity including the frauds while improving the efficiencies to make funds available to the medium and small organizations which didn’t have access to finances before. This is a real-world example of how blockchain is changing the fortunes of the financial services industry, Sin added.
Global Blockchain Survey
The global blockchain survey conducted by Deloitte last year has thrown some interesting findings. 50% of the respondents surveyed by the company in China affirmed that their organizations are already using the blockchain while this number dropped down only to 14% in the case of the United States of America.
Among the biggest users in China, the financial industry is using the blockchain for some purposes including scrutinization of the assets related to various banks and brokers. Smart government projects and green energy production are the other areas where blockchain has influenced the business practices significantly. Famously known as BAT in China, the three biggest internet giants, Baidu, Alibaba, and Tencent have already announced their own blockchain initiatives for various projects. Take for example Alibaba which has been using blockchain for its business related to healthcare, public welfare, and food since 2016. The company has already filed 90 blockchain patents which makes it number one organization in blockchain patent filing and is followed by IBM with 89 patents, according to the IPR daily, a media outlet providing information on intellectual property rights in China. Tencent ranks eighth in the list while Baidu comes at the fortieth position.
Kang Li who is the assistant director at Blockchain Research Centre of China, Southwestern University, Sichuan Province, said that making the cryptocurrency investment norms easy is the key to develop healthy blockchain practices in the country. The industry is still evolving, and companies are coming up with some different kinds of blockchain applications without having an explicit idea where these applications will be utilized. Therefore, it is required to develop blockchain applications in a sequential manner where need recognition process is followed step by step, Li added.