A global “Made in China” ecosystem
Regulations don’t affect Asian giant’s lead in blockchain tech adoption, thus making it perfect to spread the OBS social commerce token economy model
China to ban mining activities on Mainland territory. It is the news of the week, but not the first of this kind coming from the Asiatic Giant: actually, it is only the last one from a series of systematic events and announcements from the Beijing government. In September 2017, in fact, China also banned ICOs, described as “unregulated market open to fraud”, which led to closing 88 exchange platforms and 85 projects.
There is growing concern about all the white-collar jobs that will disappear with the spread of machine learning and…www.datadriveninvestor.com
Mining has been instead addressed as lacking safe production conditions, a waste of resources and extremely harmful to the environment because of the huge amount of electricity required.
News about regulatory policies like these stress an apparent contradiction with the designated role of blockchain technology in the planned development of the Country.
The blockchain-friendly side of China
Not by chance, many big actors got already involved in the game, as testified by the list that governmental China‘s Cyberspace Administration (CAC) published.
It is a list of (by now) 197 blockchain-based information service providers allowed to go ahead with their operations in China. The list itself is meant to “provide a controllable environment to explore blockchain technology”: big enlisted names go from IT giants Baidu, Alibaba and Tencent to big financial and banking groups (full list here).
In a few words, DLT and currency-free blockchain projects are fully supported
The latter aspect is, in fact, the one we care most in our analysis, which is strictly connected to the last week’s issue about the increasing investments expected on a global scale and specifically in the United States.
OBS and China
As our followers know, OBS is Singapore based, but the OBS protocol first use case is specifically in China, empowering the social commerce platform WhaleMall. The aim is to first develop its potential in the Chinese outstanding e-commerce market, and eventually to cross the borders and expand globally, with specific attention to the Asia Pacific market (because of its growth potential both as a retail market and as a blockchain adoption ecosystem).
The mentioned predictions about US investments do not change the fact that right now China is the World leading Country for blockchain projects.
The last report released by the data service provider “Blockdata” states that in November 263 projects were in progress within the Country, accounting for the 25% globally. Blockchain companies are even more: comprehensively there is 615 of them, 82% of which founded between 2016 and 2018.
The technology is used widely across a wide range of industries in China, like financial services, public services, healthcare, supply chains, smart manufacturing, and logistics.
This variety is what can lead to the creation of a positive ecosystem.
In this outlook, the global predictions, and specifically the ones about the US, more than a leading effort looks like an effort to keep up with the Chinese dominant position, which is hardly questionable at the moment.
According to the IDC stats (the same that reported a massive 77.6% five-year CAGR for the USA), blockchain spending in China for the year 2019 will still be on the considerable figure of $319million.
A figure predicted to reach $1.67 billion by 2022, being “a great opportunity for many companies to transform inefficient processes into efficient and secure ones” as IDC researcher states.
Shaping the new retail
China leading position and the World following is more and more a matrix to be replicated in many fields. In fact, Chinese consumer culture is already crossing the mainland borders, with Western (especially USA) brands trying to adopt the same approach and ability to integrate their campaigns taking into account the e-commerce and — in general — the tech adoption inclination.
The easiest example is: if digital payments are common among Chinese consumer, global brands have no choice but enable them, even if their own country is far away from being “cashless”.
With some industries getting approximately 30% of their clientele from China, it is not only about some foreign brand marketing campaign, but it is the whole retail industry that is influenced by the Chinese direction.
This means that if China retail adopts blockchain based social commerce, than that will push the whole world to convert towards token economy integration.
That is the challenge and the ambition of the OBS revolution.
This is the key role played by the WhaleMall empowerment.
Introducing the token economy system within the Chinese retail industry means laying the foundation for a whole new stage of the retail market.
For which that may end up becoming the strongest, faster contribution to a global blockchain ecosystem.