It is often considered that Japan is the country backing cryptocurrency and the country in which cryptocurrency will become the mainstream. It’s neighbours, China, however are often considered to be taking a very authoritarian approach to cryptocurrencies, the reason behind this is uncertain, however is is common knowledge that overall, the stance on cryptocurrency by China is a negative one. When you compare this stance to the likes of Japan then, some questions may be raised as to why China could be leading the crypto-race after all.
What is the crypto-race?
Well, it’s a metaphor for the future of cryptocurrency, as it is a decentralised technology, nobody can win the race as such. It is however, the case that one country will lead the way first, what I am about to talk about certainly puts China back on the podium with regards to this.
According to Forbes China is now first in the world for having the largest number of patents in line, in relation to cryptocurrencies and blockchain technology. In essence, there is more patent pending blockchain technology in China, than anywhere else in the world.
According to Forbes, one example of such technology includes:
“Onething Technologies, the cloud computing arm of Xunlei Limited, a leading cloud-based acceleration technology company in China, recently announced that it launched a high-performance blockchain platform called ThunderChain, which can concurrently conduct millions of transactions per second. ThunderChain is designed to realize confirmation and interaction among homogeneous chains and enable multiple transactions to be executed on different chains in parallel.”
This is a really important revelation as, given the rate at which technology advances, if China manages to hold patents for the majority of the technology, then, in terms of the technological market share, the blockchain revolution will accelerate in that area. More companies will gain an interest in moving to China, inspiring a greater number of startups and of course, inspiring more people to have an involvement in the blockchain industry.
As I have mentioned, the stance taken by China recently is a harsh one, but maybe this is another sign that they are about to lift some of the barriers and restrictions they have in place on cryptocurrency. With high levels of patents in place, it is clear that the people of China want to grow with the blockchain revolution, therefore it is vital that the government reacts to this. There is both money to be made and of course notoriety to be gained.
By hosting the majority of patents, China really do have the ability to build up a monopoly here, overtaking the United States, something that given the currency political sphere, may now seem to be a far more attractive proposal.
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