China Reveals Its IoT Cryptocurrency of Choice, and It’s Not IOTA
The Chinese market. With 1.4 billion population that shows an active appetite for the latest technology, and with thousands of venture capitals with deep, heavy wallets, it has always been an attractive market. The Chinese market’s demand, geographical significance, and political importance have driven companies — both local and global alike — to aggressively pursue the favor of Chinese clients. Yet with strong, one-party government leadership and its influence always finding enough drive to reach the entirety of China (even to the extent of the entire Chinese land having only 1 timezone), the approval of the government is the key to approval from the private sector, and its clients.
For the Blockchain industry, this has always been an uphill battle.
The Chinese Blockchain and cryptocurrency markets are undeniably the biggest in the world. Most of the top cryptocurrency exchanges in the world are of Chinese origin, many of the traders are Chinese citizens, and it is almost impossible to find a project that was able to succeed without the help of a Chinese VC. Therefore, the incentive to hack into the Chinese market is extremely high.
Yet the Chinese government has always been either reluctant or mysterious about its stance on Blockchain and cryptocurrency. Just 2 years ago, there was an announcement from the Chinese central government to ban all cryptocurrency exchanges in China. In 2019, the general market sentiment was that China is anti-cryptocurrency, and pro-Blockchain. A month ago, the news was reported saying that China could be rolling out its CBDC (Central Bank Digital Currency) without anyone even realizing it. So, at best, the signal from the Chinese government has always been mixed. The creation of BSN Base (Blockchain Services Network) by the Chinese government did give a glimpse of hope that there still was a way for a Blockchain or cryptocurrency project to be formally accepted by the Chinese government.
Enters the IoT (Internet of Things)
In April of 2020, BSN finally spoke of its intents. It was clear. China’s purpose in establishing BSN was to start using Blockchain to implement industrial developments, for its fast-growing global companies and also for its cities that were leaning further towards greener development. Yet there were key aspects mentioned: 5G Communications, Internet of Things, AI, and Big Data. Naturally, it is difficult for 5G to be implemented with Blockchain — due to the fact that 5G data is too big to process over Blockchain, and that telecommunications are probably one of the most centralized services available in the world. That left 3 candidates on the table.
So why is IoT so important? It all comes to data. The Chinese government is extremely efficient when it comes to the maintenance of public facilities and providing for the public demands of these said facilities.
If a government fails to gather quantitative data about its citizens’ activities — such as how many take the subway to commute to work, how many tons of garbage is produced per day, how many visit the park on a daily average — it can never provide for its citizens. In this scenario, the government has two choices when blinded from data: over-provide or under-provide. Over-providing would result in massive financial waste. Under-providing would mean that the citizens will start to lose faith in the government as they start noticing overfilled garbage bins, broken streetlights, and the general lack of vibrance in the public facilities.
IoT allows sensors and machines to record this quantitative data, without extensive human resources. Then, the government can provide efficiently for the citizens and ensure that when its citizens go on about their daily lives, they will notice public order, maintenance, and provisions. These are all linked to how the citizens view their social contract with the government. In the end, it is really about the public image.
IoT is a powerful tool in such a sense.
Begins the IoT Blockchain Race
There are not many IoT Blockchain projects in the world. The reason is quite simple: it’s based on extreme niche knowledge.
While most of the Blockchain projects and cryptocurrencies were created in 2016 and 2017 as a means of getting wealthy through ICOs, even some of the most popular Blockchain projects fail to break away from the classic, flawed cycle of Blockchain developments: looking for problems that can be solved with Blockchain. That explains why there are so many “digital cash” Blockchain projects, and so little projects combining IoT and Blockchain. It takes an IoT specialist to identify a problem within IoT. It takes any individual with moderate intelligence to look for problems in FIAT currencies.
As of current, there are 4 noteworthy IoT Blockchain projects: IOTA (IOTA), IOTEX (IOTX), XENSOR (XSR), and MACHINE EXCHANGE COIN (MXC).
Hence, the 4-horse race to win the heart of China’s BSN has begun. Unfortunately, XENSOR (XSR) was eliminated even prior to the race, as the project was developed by a hardware company that refused to make XSR an open-source solution in order to boost hardware sales. Perhaps it was for the best, as XSR — a late-comer — was often criticized for copying the works of MXC, and as MXC filed a patent for its solutions, putting XSR in a legally dubious situation.
MXC: First IoT Token to Receive BSN Base Approval
In a seemingly surprising result, MACHINE EXCHANGE COIN (MXC) became the first IoT token to receive the BSN Base Approval. For those who rely on the CoinMarketCap ratings to judge Blockchain projects, the decision was one of the strangest. How could a Top 150 project achieve something that their Top 100 competitors could not accomplish?
However, for those who kept a close eye on the recent developments in the Blockchain-IoT industry, the decision did not come as a surprise. Here are some key indicators that showed that if there were one IoT Token to receive the BSN Base approval, it was destined for MXC.
MXC: Built for Partnerships
First, both IOTA and IOTEX were put at a disadvantage, as both emphasize on the protocol.
Imagine that you have $10,000 to spend, and you have a PC. You would like to start using Apple Mac OS, as you like the sleek design and its various perks. You could potentially go through the painstaking process of looking for ways to install Mac OS on a PC, or you could simply buy the latest MacBook. What would you do in this case? Assuming that you are willing to spend some of that $10,000 you would go for the simple method of purchasing the new MacBook.
Now imagine that you are a national government, with intricate internal checks, and billions of dollars to spend. The choice somehow becomes even more clear.
MXC knew that it would be much easier to embed Blockchain protocol on a hardware solution, rather than convincing any client — let alone a government — to start testing for interoperability and ways to implement a new, strange Blockchain protocol. The long-standing partnership between MXC and a German IoT hardware manufacturer, MatchX, has always been the solution that brings Blockchain implementation as simple as “plug it in, turn on the power”.
MXC: A Stronger Name in the Industry
Second, MXC was already a familiar name inside the Chinese government and the private sector.
In March 2019, MXC announced a strategic partnership with the Government of Shanghai Yangpu District. The partnership — one of the rarest moves made by any Chinese government official — promised development of greener Smart City for Shanghai, along with deployment of Blockchain-embedded, open-source IoT network that would serve the thriving IoT companies in Shanghai, and further invite smart technology startups to Shanghai. The partnership carried solid development as MXC visited Shanghai often to conduct tests and to expand the network.
In April 2019, MXC proved that the big Shanghai partnership was not a fluke by signing a partnership with JD — one of the biggest e-commerce companies in China — in front of jealous eyes at the world-famous Hannover Messe. As JD announced MXC as their partner of choice in building smart logistics and supply chain, MXC was no longer a stranger in the Chinese market.
MXC: Consistency in Development
Third, MXC achieved another partnership with the Chinese government, this time with Szechuan.
Yes — all you Rick and Morty fans are now thinking of the legendary Szechuan Sauce. However, this is bigger than a McDonald’s promotion of Mulan.
Through the partnership, the Szechuan province government has provided a generous grant — rumored to be 6 figures — to MXC and invited the Berlin-based IoT token to open their second Chinese and 5th global office in Szechuan. This is a rare occurrence.
For the most part, China has been reluctant in showing favoritism towards any Blockchain system or cryptocurrency. This amplifies the significance of the government of Szechuan deciding to sign a partnership and provide a grant to a Blockchain company. It also shows that MXC’s technology contains enough merit for a provincial government to provide financial support.
Next Moves on the Horizon
As the news for China’s decision to choose MXC as their IoT token of choice began to spread, the cryptocurrency market reacted dramatically. At the time of writing, with MACHINE EXCHANGE COIN (MXC) going towards #% gains within the last 24 hours, it is only a matter of time until MXC surprises everyone again with another massive partnership.
While MXC holders are rejoicing, and other cryptocurrency investors are frantically opening purchasing positions for the IoT token, the MXC team has shown that they are not easily blinded by the praises of investors and the pings of the green candles. The MXC team is now said to be eyeing the next key market — South Korea — with some developments to look forward to, according to their official Twitter.
Therefore, for any Blockchain IoT enthusiasts and cryptocurrency investors, MXC should be the newest addition to their watchlist.
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This article is written for informational purposes only, and should not be taken as investment advice. Cryptocurrency is a volatile asset, and all financial investments should be made upon one’s own research.
