Major news out of China, This week, China launches its Blockchain-Services-Network (BSN). This works in conjunction with their Digital Ren Min Bi Currency (DCEP) which launched in Mainland China April 25th and launches globally June 25th.
So what is BSN? BSN is the core underlying tech that the Chinese government plans to fully centralize provide inter-connectivity of all the cities, governments and individuals. This will become China's main internet protocol allowing trade of data, value and assets in a transparent and trusted way. This network, being adopted by all of Chinas largest companies and cities will overnight become the largest block chain network in the world. There will be 100 cities nodes at start with 200 added next year and 451 the following year. This system will enable further expansion of Chinas social credit monitoring system, universal identification programs and international trade.
So what does that mean for the existence of decentralized block chains such as Ethereum, Bitcoin, and the like. Well, Unfortunately, it probably wont be good. Will it smash them, probably not but I have often thought that the idea that a nation would adopt Bitcoin, or Ethereum or any other decentralized chain as their own would be.. national suicide. I once saw someone arguing that china would adopt Ethereum as there national block chain because of the Dapps and smart contract system. Well, while Ethereums smart contract system is great, I always thought why couldn't a nation just make one for themselves? And China has, as this system integrates cloud services and smart contracts to provide cheap and efficient services on a global scale.
This could make Ethereum and back water block chain. I have often thought about Ethereum as superior to bitcoin due to the smart contract system but I also am disturbed by its overall gamey feel and lack of future vision. vitalik is a Genius and I love to hear him speak but sometimes I am disturbed by his comments. Such as when he states money is easy to make, in his interview with Lex Friedman https://www.youtube.com/watch?v=3x1b_S6Qp2Q&t=9s. Or when he talked about Patents and block chain. I appreciated his point but in the real world patents do exist, and nations don't like people undermining their currency. I could see him getting into trouble for this.
A huge change is coming, with China's one belt one road initiative and this block chain program being rolled out. China stands to be the victor in the national stage of block chain technology. Digital Ren Men Bi will be far easier to spend than USD across the globe and will get you more for the unit. I could see this causing China's currency to gain considerable strength against the USD and other crypto currencies. Overall the USD will be the looser and as an American its hard and sad to say that but thats what I see coming from this. We have lost on the technology side it appears. But we will see come this summer.
Will this be the platform that digital tokens are created on and traded on. I don't know. I hope they integrate without platforms such as Tezos, and Ethereum and allow payments in BTC, Ripple ect. There really is no reasons not to besides control. We will see. What do you think?