The City of Shanghai Explores Blockchain for Infrastructure
The government of Shanghai is embarking on research initiatives to explore the potential of blockchain technology in moving the city’s infrastructure to the blockchain. The research will focus on multichain communication, quantum-proof security, and monitoring and censoring illegal on-chain content.
To achieve its blockchain ambitions, Shanghai will first develop essential hardware components such as computer processors and high-bandwidth wireless electronics. It will then create container technology to isolate different applications on multiple chains using advanced encryption and zero-knowledge proofs for security.
Shanghai Blockchain Will Monitor Visible Information
As part of the governance strategy, Shanghai plans to use economic penalties to discourage undesirable behavior by leveraging behavioral analysis. The system will employ on-chain keyword and image filtering to control content and track user access patterns.
Read more: How to Use a Blockchain Explorer to Look Up Transactions.
Prior to implementing these new systems, the government will conduct tests in various scenarios such as government affairs, cross-border trade, supply chains, and even explore the potential of blockchain in the metaverse. Chinese conglomerates Alibaba and Tencent have already developed private networks, while other provinces like Shandong and Sichuan have also expressed their interest in building city-level blockchain infrastructure.
Shanghai’s Efforts Could Speed up Tokenization Developments
This move by Shanghai could potentially accelerate the development of tokenization innovation, putting the US at risk of falling behind. Although some banks have tested tokenized money transfers, there is still significant untapped potential in this technology.
Tether co-founder William Quigley predicts that tokenization businesses will gain momentum in 2024 and 2025. However, he notes that there is currently no standardized method for quickly transferring physical assets to token owners after settling the token transfer on the blockchain.
Learn more about the developing tokenization industry here.
Do you have thoughts on Shanghai’s plans for blockchain infrastructure, its impact on tokenization progress, or anything else? Join the discussion on our Telegram channel or reach out to us on TikTok, Facebook, or Twitter.
By
By
By
By
By