Ethereum (ETH) to Integrate With Chinese Blockchain BSN. Why Is This Important?

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Mon, 06/29/2020 - 11:08
Vladislav Sopov
Haseeb Qureshi, managing partner of the Dragonfly Capital investment fund, has released exclusive information about the PRC's plans to advance Chinese blockhain BSN
Cover image via stock.adobe.com
Contents

Mr. Qureshi claims that he has received information about the upcoming integration from multiple sources. The formal announcement about the partnership will be released soon.

Chinese blockchain to integrate public decentralized systems

According to the seasoned investor, the Blockchain Service Network or BSN, which is backed by Chinese state-owned enterprises, is considering integrating with well-known public blockchains. Ethereum (ETH) and Nervos Network (CKB) will pioneer this partnership.

Image via Twitter

Mr. Qureshi admits it's still questionable whether Chinese regulatory officials will acknowledge this integration and support it. Typically, the authorities of the PRC distance themselves from being recognized as interacting with the public network.

Blockchain Service Network is backed by the State Information Center (a government IT think-tank), China Mobile and Union Pay state-owned enterprises.

It acts as a permissioned distributed system for business, research and public administration purposes. Integration with the largest dApp hosting Ethereum (ETH) and the prospective PoW-solution Nervos (CKB) would significantly boost its adoption and performance.

Is this important?

Mr. Qureshi claims that this integration could be a 'big deal'. Firstly, it would greenlight the very concept of public blockchain integration into Chinese state-backed distributed systems.

Moreover, it would facilitate the adoption of crypto-related innovations in China. Interaction with public blockchains can make the existing systems much more decentralized.

It should be noted that the price of the Nervos Network Token (CKB) pumped almost 17% on this tweet. According to Coingecko analytical instruments, the project is now ranked #88 by market capitalization.

As covered by U.Today, the decision of Chinese leader Xi Jinping to launch a 'Blockchain +' initiative resulted in a 'Xi Spike' of crypto market capitalization. On October 25, 2019, every major coin experienced double-digit gains and this was the latest example of a short-term rapid bullish spike.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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