Explore the path of Legitimate NFTs in China
Why OPB is the Best Technology for China’s NFTs
There are few parts of the world economy where blockchain innovation is moving ahead as quickly or as confidently as it is today in Hong Kong and China. Despite the central authorities’ well-known disapproval of cryptocurrencies, which they see as essentially speculative and volatile, the emerging blockchain sector in China has not been stifled; in fact, it has served to channel efforts further into blockchain applications and network construction rather than simply cryptocurrencies.
The outright banning of cryptocurrencies in China has had no negative impacts on the rapidly growing sector. Projects like the BSN Open Permissioned Blockchain (OPB) have evolved to meet the requirements of operating within the Chinese regulatory environment. However, the adoption of Non-Fungible Tokens (NFTs) has been slower in China than elsewhere. Firms and consumers are wary of proceeding, partly because the name is closely associated with cryptocurrencies and partially because public chains cannot be accessed from within China.
Accordingly, the news that a BSN-designed solution to this problem recently has been met with much excitement. This article will summarise what the BSN Distributed Digital Certificate (DDC) Network is and why it will support NFT adoption in various industries within the Chinese market.
What is an NFT?
NFTs rose to prominence in 2021 and are already set to be one of the biggest trends in 2022, changing some part of your social, commercial, or business life in the near future.
To start with a simple explanation, an NFT is a ‘non-fungible token.’ The word ‘fungible’ may not be familiar to everyone, but it’s a basic concept that has always been a key part of how economists think about money. To be ‘fungible’ is to be divisible into smaller pieces. So, just as a $10 can be divided into two $5 notes, anything to be used as money must be fungible. The critical point is that each $1 in circulation is worth exactly the same as every other $1 out there, and this is of course also true for £ and € and ¥ any other major currencies.
What uses do NFTs have?
NFTs are simple digital tokens that can be traded on the blockchain, but unlike cryptocurrencies like Bitcoin or Ether, they cannot be divided into smaller units.
NFTs are being touted as the future method of proving ownership over everything from tickets for events, to houses, sculptures, copyright & patents, and movie rights.
For digital items, the NFT would prevent forgery and replication, thus showing that your digital asset is genuinely one of a kind, and for physical assets like houses the NFT would streamline and simplify the paperwork involved in asserting ownership, again minimizing fraud and the prospect of disputes over ownership.
Can NFTs be used in China?
The answer to this question is complicated. Due to its decentralization, the public chain suppresses the permissioned chain in supporting NFT applications. However, public chains are illegal in China, and there are no prospects that this could change soon due to security concerns about cryptocurrencies. Therefore, while NFTs themselves are not in any way prohibited, there is not a viable infrastructure to support the widespread use of NFTs.
Nonetheless, NFT usage is set the increase dramatically in China over the next five years, and both government and business leaders alike are openly encouraging the application of the technology. Currently, the envisioned use-cases include NFTs for academic certificates; tickets for sporting events, including the upcoming Asian Games held in Hangzhou; copyrights and patents; and eventually official government documents.
Why is OPB is the best underlying technology for DDC?
This is the rationale behind the launch of the BSN-DDC network. DDC refers to ‘Distributed Digital Certificate’ and is simply a rebranding of NFTs for the Chinese market to avoid the inevitable connection drawn between NFTs and cryptocurrencies.
The BSN-DDC is a network deployed on BSN China specifically designed for the many use-cases where NFTs can make such a significant contribution. The BSN-DDC will consist of no fewer than 10 OPBs capable of supporting NFTs, each with its own standard default NFT contract ensuring a user-friendly experience. Furthermore, BSN will provide extensive support and bespoke APIs for end-users to build their NFT applications.
All necessary payments will be processed in fiat currencies through BSN-DDC portals, again minimizing associations with cryptocurrencies and ensuring full regulatory compliance with the stipulations of the Chinese government. Importantly, skepticism about the utility of cryptocurrencies is not unique to China. So this approach will also allow NFT technology to be used in other markets where central authorities are limiting or outright banning the use of cryptocurrencies.
What is the future for NFTs/DDCs in China?
NFTs are the latest innovation to come out of the blockchain world, where advances in technology are rapidly pushing back the frontiers of what was thought possible in sectors as diverse as finance, supply-chain management, data storage and transmission, and sports and entertainment to name just a few sectors.
NFTs have certainly attracted their share of doubt, with some seeing them as just another manifestation of the ‘crypto bubble.’
However, NFTs have uses and functions that set them apart for the more speculative world of cryptocurrencies and mean they represent a genuinely valuable business innovation that firms and consumers need to adjust to.
As such, NFTs’gradual but steady adoption in China is to be expected over the coming years. The BSN DDC Network is currently available in China via ten OPBs, primarily based on well-known public chains. The BSN-DDC Network will enable cross-chain services among all OPBs and one-way transfers from OPBs to the Ethereum mainnet and other public chains so that users from other countries can access NFT assets minted in China. The OPB is the only legal way to access the Chinese market, and the BSN-DDC represents an extraordinary opportunity for global developers.
Here are a series of articles about BSN Open Permissioned Blockchain (OPB) and BSN-DDC Network:
