China launches Blockchain research lab

China forms government-backed blockchain lab amidst crypto crackdown
21 September 2017   608

It’s been quite a tough time for the cryptocurrency community due to the whole China-against-Bitcoin thing, as a result of which the top cryptocurrency price has fallen. On top of that, according to undisclosed sources, the Chinese government has officially decided to crack down on all Bitcoin and cryptocurrency trading, not just commercial exchanges. However, this was not the end of the restrictions. Beijing News reported that executives of Chinese Bitcoin trading platforms may not leave the country, per industry insiders. 

Now China launches a research lab with the goal of promoting advances in blockchain technology that do not involve ICOs or cryptocurrency trading, as reported by ethnews.com. Thus, China’s Ministry of Industry and Information Technology has launched the Trusted Blockchain Open Lab to foster developments in the blockchain space.

As reported, lhe lab is operated as part of the China Academy of Information and Communications Technology (CAICT), a research institution within the Ministry. According to the China Economic Review, the CAICT is also building a platform on which blockchain firms and other experts can cooperate in exploring different applications of the technology.

The creation of the lab suggests that the government sees no conflict between the recent crackdown on ICOs and cryptocurrency trading and the exploration of blockchain technology.

The ban should not prevent relevant financial technology companies, industry bodies and other technology firms from continuing their research into blockchain technology.
 

Sun Guofeng
Director of the Institute of Finance of the PBoC

The man also argues that financial technology firms stand to benefit from exploring a wide range of blockchain applications aside from cryptocurrency, but that the degree of abuse and criminal activity in the field makes enhanced government supervision necessary.

Bank of China Filed a Patent to Scale Blockchain Systems

Bank of China has filed a patent application for a process able to scale blockchain systems  
23 February 2018   95

According to a document released by China's State Intellectual Property Office (SIPO) on February 23, the application was invented by Zhao Shuxiang and first submitted on September 28 last year.

The application states that instead of letting a new block store transactions from its previous one, a data compressing system could be used to pack transactions from multiple blocks into what the patent calls a "data block."

For example, when the system receives a request to compress transactions from block 1 to 1,000, it causes a new data block to be formed and temporarily hosted on a different storage system. Then, the system will run the packed data through a hash function with a hash value. After that, the compression system will attach labels in order to identify blocks on the blockchain.

With the use of the described method, the patent claims a reduction in the amount of the data stored in new blocks as transactions mount in a blockchain while ensuring that data from all previous transactions will still be tamper-proof and traceable.

At the moment, the patent in the review process.