Monday, September 25, 2023
HomeNFTChina Is Reinventing the NFT Market With a Major Twist That Crypto...

China Is Reinventing the NFT Market With a Major Twist That Crypto Connoisseurs May Not Like: State Control

The legislative and technical mechanism known as the Great Firewall has regulated almost every aspect of China’s digital life for decades. Its role was traditionally to control the Internet domestically, but the Chinese state is now trying to curb the impact of international blockchain and crypto, which is having a major impact on the eastern expansion of the NFT market. We are taking further steps.

China offers certain services with cryptocurrencies backed by tokens like Ethereum, which is banned in China, and traditional NFTs. For content makers to find new and lucrative paths for artists and designers.

China’s Blockchain-Based Services Network (BSN) is a state-sponsored blockchain network that has traditionally served as the primary tool for users looking for legally compliant digital services. BSN is Red Date (a Chinese fintech company founded in 2014 and headquartered in Hong Kong), China Mobile (the country’s largest telecommunications service provider), and China Union Pay (the country’s major financial services provider). Its goal is to promote blockchain technology to the non-crypto industry and help build a global infrastructure for that purpose.

Adjacent to it, China is also migrating to digital yuan, and as of January 2022, it is used by one in five Chinese citizens. According to the People’s Bank of China..

This new ecosystem paves the way for what is known as the BSN Distributed Digital Certificate (BSN-DDC) — according to the “essentially Chinese version of the NFT”. Jehan ChuFormer Sotheby’s specialist and its blockchain VC Kenetic has invested in Red Date.

“Although most decentralized entities in China are restricted, DDC is similar to a multi-chain environment and is fully compliant with Chinese law,” Chu said.

Since its inception on January 24, 2022, the BSN-DDC network has integrated a number of “forked” (basically a transition process from the general public chain) open permit blockchain into the DDC network. Did. These include Ethereum, Cosmos and EOS. They provide a version of the blockchain that is set to limit the users who can manage the technology, allowing all participants to be identified in accordance with Chinese law.

The BSN-DDC Initiative has the potential to be exhibited in other applications as well as digital art. Outside of China, NFTs are already in use by companies such as watchmaker Breitling. Breitling develops NFTs as a luxury passport that proves their reliability.

Many of China’s big tech ecosystems are also involved. Companies such as Alibaba, Tencent and JD are building their own platforms that are different from the BSN-DDC network, but similar in the sense that they provide NFTs and digital assets to the Chinese market in accordance with Chinese law. .. Some of these are flipped or resold by users who have purchased in the secondary market. Rampant speculation It has plagued many Western NFT platforms.

One of the key players in this area is Ant Group’s JingTan (Topnod). This is a platform that prevents users from reselling digital collectibles, allowing users to give gifts after holding them for 180 days or more.

Topnod works with the National Museum of China to create digital twins of historic relics, as well as painters, sashimi artists and other cultural artisans. They recently worked with the Shanghai Symphony Orchestra to sell a digital artifact of 10,000 audio collections from the earliest symphony gramophone recorded in China for RMB 19.9 (about $ 3.15).

Tencent’s digital platform, Huanhe, is also making waves in countries known as the more diverse options for all platforms. We also work with artists, car brands, consumer products and charities as well as museums.

For example, earlier this year, Huanhe offered a digital twin for the Dunhuang Cave for RMB 118 ($ 18) per piece. All digital works purchased from Huanhe or otherwise received can be viewed in a virtual 3D warehouse, but Huanhe also prevents secondary market transactions. (Huanhe was involved in a copyright dispute earlier this year after a series of digital ink paintings based on the work of famous Chinese painter Xu Beihong were released on the site.)

NFTCN is another market that is gaining attention in China. Perhaps the closest to OpenSea, NFTCN is open to independent artists who want to sell and collect NFTs. With a built-in gallery displaying collections backed by Ethereum sidechains, it is one of the few platforms in China to enable trading in the secondary market.

Chu said the impact of BSN-DDC on the Chinese art market could be significant, but warns foreign companies entering the market to be wary of China’s infamous censorship law.

“The BSN-DDC opportunity in China cannot be exaggerated,” he said. “This is not a single-chain environment, but a multi-chain environment with a very robust system of interoperable licensed applications. This involves censorship, which is clearly very controversial to the international crypto community. But that’s the reality of the framework that exists when working in China. “

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