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VeChain, China & the CCPs 2022-23 Web3 Pivot to Encourage Crypto Development: Part II

Feb 09, 2024
byNDAX Labs

Pilot Projects

Multiple pilot projects are being launched in an effort to explore the full potential of blockchain technology within various sectors. The Cyberspace Administration of China (CAC) took pioneering strides by propelling blockchain innovations within 15 zones across 164 entities.

Key areas prioritized for blockchain implementation include:

  • Law enforcement
  • Taxation
  • Government data-sharing services
  • Manufacturing
  • Energy sector
  • Cross-border finance.

CAC collaborates with government agencies, directing regulatory authorities toward promoting the balanced deployment of multi-party collaborative blockchain technology. Its enterprise has steered China on a path gaining significant traction in exploring nonfungible tokens (NFTs) ecosystems despite maintaining hard stances against cryptocurrency adoption.

The CCP's Approach to Technology and Innovation

The Chinese Communist Party's approach to technology and innovation is aggressively forward-thinking. Their focus lies firmly on leveraging technological advancements as a catalyst for economic growth. But this pursuit of progress has a distinct dualism: the CCP encourages innovation on one hand while maintaining significant control at all times.

CCP operates under the premise that access to companies' data is an inherent part of their jurisdiction. Although foreign to Western norms, this practice is common in many Southeast Asian countries where business conditions differ substantially.

As part of their operational prerequisites, they insist on local ownership of shares, employing the local workforce, and perhaps the most difficult aspect for Western companies to swallow - mandatory technology sharing. All enterprises operating in China are keenly aware of this 'hand-in-hand' arrangement with the CCP.

Ultimately, it concurs with the CCP's overarching need for control over every possible aspect of local businesses. It's their quintessential' entry ticket' into doing business within mainland China and forms an indispensable part of their approach towards technological development and innovation.

VeChain's Alignment with China's Objectives

VeChain's offerings line up surprisingly well with China's economic goals. Its high-impact supply chain solutions have proven their value, and they align seamlessly with the tenets of China's Belt and Road Initiative.

This strategic initiative, often referred to as the "New Silk Road," outlines a broad vision for promoting regional interconnectivity across continents through infrastructure development and investments. It spans an astonishingly vast geographical stretch covering Asia, Europe, Africa, and even, much to America’s chagrin, South America and beyond. At its core, it echoes the intent for mutual growth and collaboration across participating nations and industries.

As a holistic strategy, China's Belt Road Initiative toggles several key sectors like logistics, transportation, trade, and infrastructure, to name a few. And it is at this junction where VeChain steps in with its impressive suite of solutions. Its blockchain-enabled services drive transparency into processes that were once black boxes.

By introducing blockchain technology into supply chains, enterprises can access end-to-end visibility of their products' lifecycles. With solutions that are tailored for immediate implementation and designed with user-friendly applications in mind, VET brings benefits that are hard to sidestep.

The primary proposition here is simple. Greater operational efficiency is made possible by fostering trust between involved parties in any exchange. Businesses do not need to invest heavily into closed or centralized logistics tracking systems – they can reach out to VeChain for an open-source alternative underpinned by accuracy and transparency.

Understanding Web3 and its Relevance

Web3, or Internet 3.0, heralds the next phase of the internet evolution. It promises an online world that's not just interactive but intelligent, too. Built on a vision to offer a decentralized and interoperable internet where ultimate control lies within the hands of its users, it fosters system transparency and enhances security.

Much like blockchain does for financial transactions, Web3 aims to foster truly incorruptible data exchange across networks. It foresees an era where users will have full authority over their data with a highly reduced risk of censorship.

Web3 embraces principles of decentralization, openness, privacy, and interconnectivity - all of which are clearly resonating with VeChain's blockchain technology.

Digital Payments

Digital currencies are a fundamental aspect of Web3 design. Web 3.0 aims to promote decentralized digital payments across global platforms, reducing the need for intermediaries and providing more control to individual end-users. With its suite of cryptocurrency services, including VET tokens for enterprises, VeChain finds itself in alignment with these principles as well.

Ownership and Transparency

The principle theme underpinning Web3 is one of giving data ownership back to users, ensuring maximum transparency. VeChain follows similar lines by employing blockchain as an immutable platform where users maintain complete visibility into all transactions.

Immutable Transaction Records

One of the key features that make both Web3 and blockchain favored choices across industries is their promise of immutability. It provides transparency via an unchangeable history of transaction records, keeping a clear trail every time information exchanges hands. It aids in fighting corruption, so forgery could be curbed at larger scales while enhancing the system's trustworthiness overall.

With these shared principles surrounding digitalization, decentralization, and record-keeping transparency, meshing blockchain with Web 3 has intriguing implications for China's current tech landscape.

Tune in next week for the final instalment.

Remember, NDAX is Canada's best resource for all things crypto - your perfect companion in your adventure through this ever-evolving landscape.

Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.