The short statement sets out the official definitions of the government of blockchain regulations. Publicly advertised rationales seem harmful or discreet; however, these official justifications are a marked attempt to reduce rather than develop decentralized technologies. A rough preliminary study of the statements also underscores what can be labeled as generous conflicting logic.
“China will publish official standards on blockchain technology next year, and an official told Xinhua that it will provide“ some guidance to the industry ”on the technology.
Li Ming, director of the Blockchain Research Office of the Ministry of Industry and Information Technology (MIIT), told Xinhua Economic Information Daily that work on the standards has already begun. Li, however, made it clear that although the standards will provide some guidance to blockchain developers, the authorities did not expect the official guidelines to “advance the development of the industry quickly”. Despite efforts to reduce the financial risks associated with cryptocurrencies and initial coin offerings, the Chinese government has sought to show support for the development of blockchains. China was the world’s leading source of blockchain patents in 2017, and a blockchain research center was opened last September by the Chinese Academy of Information and Communication Technologies, a research organization affiliated with MIIT.
The new standards being developed by the Blockchain Research Office will include guidelines for the application of blockchain in terms of business, information security and reliability, Li told Xinhua. Despite the exciting potential around the blockchain, the technology remains in its infancy. Without clear regulations, security issues caused losses of nearly $ 2.9 billion worldwide between 2011 and 2018, according to Baimaohui Security Research Center, which specializes in online security working with Alibaba and Huawei.
In the last two years alone, $ 1.9 trillion has been lost due to blockchain security issues, according to Baimaohui. China’s leading technology companies and banks are demanding blockchain patents and researching how technology can improve services and boost people’s trust in supply chains, the Chinese Ministry of Public Security is looking at how to implement technology in terms of data storage. Earlier this week, data from the China Intellectual Property Office showed that the Ministry of Public Security had filed a patent application for the blockchain system, which would store the variable data securely and transparently in the cloud. This system could be used and shared by police across the country, allowing data to be shared quickly between different agencies. (CGTN) “
To begin with, let’s not forget the distinction between decentralized capabilities and centralized services. A regionally authorized service is regulated by geographically specific legislation. For example, an international fast food chain may, in some European countries, sell alcoholic beverages in stores, which the same operator does not normally allow in North America. This change is possible because the use of the service is localized. Having “official” guidelines for decentralized capabilities would be like imagining access or use of decentralized services in the region or under the same legislation. Maybe not. It is decentralized.
Second, the U.S. Government Accounts Office (GAO) estimates that the 2008 financial crisis was worth $ 12.8 trillion. This also spreads the consequences of subsequent bailouts, unemployment and the suffering of millions of people.
The causes of the 2008 financial crisis were largely due to deregulation, securitization (doubling and double bonding), subprime mortgage sales, and the Federal Reserve’s rates to subprime lenders. In short, the actions taken by the government, banks and the financial industry.
Losing less than $ 3 billion in seven years is a minuscule set of activities. Regardless of political stance, decentralized technologies offer the ability to make individual personal choices independently. There are personal losses incurred as a result of making bad decisions, such as ICO investments. It is also conscious participation, where any person who is immediately in control can invest or enter a certain amount. Compare this ceiling with the unilateral measures that governments and corporations can achieve.
The inclusion of decentralized technology in the operational guidelines of a regional government can only demonstrate redundant double-entry accounting methods. Collectively used by people who cannot be in the hands of a single government, at the same time the same decentralized technological capability must also be found.