Because blockchain is still a nascent technology, China’s government is preparing to set up national standards for the technology to ensure the safety of the ecosystem.
Director Li Ming of the Blockchain Research Office said that the plans for a national standard were just announced and that the relevant departments of the Chinese government would also set up a national blockchain along with the Distributed Accounting Technology Standardization Committee.
He added that the standards will encompass several aspects of the technology, including business, application, methods, interoperability, and information security.
“The development of blockchain technology may become an important step for China to grasp the global technological competition. It can be applied in the production chain, management chain, and transaction chain, and it will bring the entire life cycle of restructuring to different areas, so that the ecosystem can be managed and traceable,” said director Yu Kequn of the National Center for IT Security Research.
The Bank of China, the China Construction Bank, and several other financial institutions have already begun the process of introducing blockchain technology to their infrastructures for everything from international trade to e-commerce.
The Chinese National Audit Office also wants in on the action, proposing that it use blockchain technology for its big data audits.
Deng Huan, the head of the White Hat Institute for Security Research, believes that China should take a more conservative approach to blockchain technology, citing the example of cryptocurrencies. He considers that as the market becomes more valuable, it may provide a stronger incentive for hackers to enter the playing field.
“The current most widely used cryptocurrency for blockchain technology is exploited by hackers who take advantage of loopholes and cause huge losses,” he added.
It appears as though Huan believes that the rush to shower everything in “blockchain pink” might make adopters lose sight of important cybersecurity implications. Alongside blockchains are pieces of software that work with that ecosystem. And as with any rushed software, they’re prone to nasty vulnerabilities, if not coded carefully.