Greater than 35,000 blockchain corporations are working in mainland China — however it’s believed that a lot of them don’t even use blockchain expertise.
Within the first quarter of 2020, as COVID-19 shut down factories, workplaces and cities throughout the world, 2,383 brand-new “blockchain” corporations sprung up in China.
This brings the whole to 35,010 corporations as of April 1 — over 20,000 in Guangdong province alone — in line with Tianyancha, a enterprise knowledge firm.
However in mid-February knowledge agency LongHash estimated that roughly 70% of the whole variety of blockchain companies registered within the Asian nation at the moment had misplaced their authorized standing or had their licenses revoked.
‘Blockchain’ corporations in title solely
Blockchain is scorching property in China, particularly after President Xi Jinping introduced in October final yr the nation will grow to be a world blockchain energy chief. This will assist clarify why bigger companies label themselves as “blockchain” corporations when in truth they’ve little if something to do with the core expertise.
This push, mixed with how difficult it’s to deliver a official blockchain firm as much as authorities requirements, may go an extended approach to explaining the phenomenon.
Many smaller Chinese language “blockchain” corporations and startups have been discovered to be shell firms. A advertising and marketing tactic in and of itself, these “blockchain” corporations can then be bought or absorbed by a bigger, maybe extra official companies.
At a December 2019 Annual Assembly on Blockchain and Digital Property in Beijing, Bai Liang, Vice Director of Chinese language Institute of Digital Asset, admitted the variety of these corporations was astonishingly excessive:
“The fact is that… 96% of the greater than 30,000 blockchain corporations in China should not really working [using blockchain as their core technology].”
China’s Workplace of Central Our on-line world Affairs Fee (CAC) has reported solely 506 corporations out of the 35,000+ also have a blockchain service submitting quantity.