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China State-Backed Blockchain Service Announces Global Expansion

China State-Backed Blockchain Service Announces Global Expansion

Last updated 29th Jun 2022
Disclosure
  • BSN describes itself as a “one-stop shop” to deploy cloud-based blockchain apps
  • Spartan Network will be comprised of several public blockchains that do not use cryptocurrencies

Blockchain-based Service Network (BSN), China’s state-backed blockchain company, announced plans to expand globally, CNBC reported, as Beijing continues to make the technology a key priority.

BSN describes itself as a “one-stop shop” to deploy cloud-based blockchain apps, an otherwise expensive and time-consuming process. It aims to connect blockchains together to help businesses with deployment.

Introducing Spartan Network

One of the founding members of the state-backed blockchain company is Red Date Technology, a startup headquartered in Hong Kong. Its CEO Yifan He told CNBC that the company was planning to launch a project called BSN Spartan Network overseas in August.

As China has cracked down on crypto, BSN’s blockchain networks do not operate with it. However, Chinese President Xi Jinping personally approves of the technology, going so far as to make it a national priority.

A major push for BSN

The expansion will be a major push for BSN. Ultimately, the Spartan Network will be comprised of several public blockchains that do not use cryptocurrencies. When it launched in August, one of them will be a non-crypto version of the Ethereum Mainnet.

According to Yifan He, the blockchain transaction fee will not be paid ether, but in US dollars. He stated:

The purpose of this is to drop the cost to use public chains to very minimal so that more traditional IT [information technology] systems and business systems can use public chains as part of their systems. People will say BSN is from China, it is dangerous. Let me emphasize, BSN Spartan will be open source … we will not access anything from our end. That is why we are working with other major public chain protocols to convince them the mainstream is non-crypto public chains.

He added that BSN’s Spartan Network would be “difficult to push in the first or second year because most people in the blockchain industry only understand crypto.”

China connections present a ‘huge challenge’

Due to its connections to the Chinese government, BSN is likely to face scrutiny abroad. The company is backed by China Mobile, a state-owned telecommunications company, and the State Information Center (SIC).

Daniela Kirova

Daniela Kirova

Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.