China's ambition of bringing Web3 innovations into East Asia and beyond

In an X post, Cameron Winklevoss speculated that the next bull run in crypto could come from the East. Contrary to popular belief, the Chinese government has been focusing a lot of emphasis on blockchain and has launched several initiatives to promote its development and adoption. Chinese Tech giants Huawei and Tencent are even setting themselves to aid the mass adoption of web3 innovations in East Asia and beyond. But the beginning of these lofty dreams starts with this company - Conflux Network. Conflux blockchain is the only crypto company with approval to operate in China after the government banned all crypto products in 2021. But 2023 has seen the rapid growth of Conflux cryptocurrency, CFX (CFX-USD), with the price of cryptocurrency growing almost 1300% at the beginning of 2024.

First blockchain network in China?

Conflux is a public blockchain platform developed in China by a team of researchers from Tsinghua University. It is recognized as the only government-approved blockchain in China and operates alongside the country’s Blockchain Service Network (BSN), a platform designed for enterprise blockchain applications.

Similar to other blockchain networks like Cardano, Solana, and Ethereum, Conflux supports the deployment of smart contracts and decentralized applications. It operates using gas fees, which facilitate transactions on the network and are paid in Conflux’s native cryptocurrency.

A standout feature of Conflux is its ability to enable interoperability between different blockchain networks. This capability allows Conflux to connect with other blockchain platforms, facilitating seamless data and asset transfers across diverse networks.

Conflux receiving endorsement from the Chinese government

One of the advantages that this network has is that it has full endorsement from the Chinese government. One of which was by the Hunan regional government for developing blockchain infrastructure to enhance the region's GovTech initiatives.

This was the second endorsement the network received from the government, with the first being from Shanghai last December. But government endorsement allows the network to gain more than just monetary benefits. Government endorsement in china often also entails the passing of contact, which allows a company to access lucrative public sector contracts. Relationships are often a key to doing business in the country, and official endorsements like Hunan's are notable events with consequences for a company far beyond mere public relations value. The ultimate goal of Conflux's partnership with Human was to share and verify all government administrative data on blockchain infrastructure powered by Conflux.

Conflux's recent partnership with China Telecom

Another advantage that Conflux possesses is its partnership with China's second-largest wireless carrier Chinese Telecom. Together, they will be launching the BSim card that will allow users to access blockchain-based functions such as on-chain data storage, digital identity verification, management of digital assets and more.

According to the company, the BSIM card would be first piloted in Hong kong, which is seeking to build itself into the global hub of the Web 3.0 industry, before it will be introduced to mainland China and overseas market.

Following the launch of the BSIM card, the price of Conflux CFX skyrocketed to US$0.3253 on May 16. The token was trading at US$0.3007.

Collaboration with China's biggest social media app

Another advantage Conflux has is its partnership with Little Red Book (Xiaohongshu), the Chinese version of Instagram. The application has chosen to integrate Conflux network as a permissionless blockchain on the application, allowing users to showcase NFTs minted on Conflux on their profile page in the digital collection called "R-Space".

With more than 200 million active users on this social media app, this collaboration will bring NFT a step closer to mass adoption, where people are actively using Web3 technology on a daily basis within a Web2 system.

China's big dreams of expanding crypto in East Asia and beyond

The Chinese government has recognized blockchain as a strategic technology and has launched numerous initiatives to foster its development and adoption. Among these initiatives are the creation of a digital currency and the establishment of a national blockchain network known as the Blockchain-Based Service Network (BSN). The BSN aims to provide a standardized and secure infrastructure for blockchain applications within China.

Additionally, Beijing has recently established the National Blockchain Technology Innovation Centre, a research division focused on developing software and hardware solutions for blockchain use cases that can enhance the nation's economy.

Chinese tech giants, such as Huawei and Tencent, have also made significant strides in the Web3 space. Huawei Cloud, for instance, has formed partnerships with multiple blockchain companies through its Metaverse and Web3 Alliance project. This initiative seeks to drive the mass adoption of Web3 innovations in East Asia and beyond. Notably, Polygon is among the Web3 firms partnering with Huawei Cloud on this project.