The summary statement provides details of the government’s official definitions of pending blockchain regulations. Publicly disclosed justifications may seem relatively harmless or indeed prudent, but such official justifications are an obvious attempt to reduce rather than develop decentralized technologies. Even a basic, preliminary investigation statement highlights what could generously be labeled as controversial logic.
“China should release official standards on blockchain technology next year, with one Xinhua official saying it will“ give the industry some guidance ”on that technology.
Li Ming, director of the Blockchain Research Office at the Ministry of Industry and Information Technology (MIIT), told Xinhua’s economic news daily that work has already begun on setting standards. Lee, however, made it clear that while the standards would provide some guidance to blockchain developers, authorities did not expect official guidance to “quickly advance the development” of the industry. Despite efforts to curb the financial risks associated with cryptocurrencies and the initial supply of coins, the Chinese government is seeking to show its support for blockchain development. China was the world’s largest source of blockchain patents in 2017, while last September the blockchain research center was opened by the Chinese Academy of Information and Communication Technologies, a research institution under MIIT.
The new standards to be developed by the Blockchain Research Office will include guidelines for implementing the blockchain in terms of business, information security and reliability, Li told Xinhua. Despite the exciting potential of the blockchain environment, the technology remains in its infancy. Without clear regulations, security issues caused nearly $ 2.9 billion in losses worldwide between 2011 and 2018, according to the Baimaohui Security Research Center, an Internet security expert who worked with Alibab and Huawei.
According to Baimaohui, $ 1.9 billion has been lost in the last two years alone due to security issues with the blockchain. Not only are leading Chinese technology companies and banks applying for blockchain patents and exploring how technology can improve services and increase public confidence in supply chains, the Chinese Ministry of Public Security is also studying how to apply that technology in terms of data storage. Earlier this week, data from China’s Intellectual Property Office showed that the Ministry of Public Security has filed a patent application for a blockchain system that will securely and transparently store immutable data in the cloud. Such a system could be used and shared by police across the country, allowing for the rapid exchange of data between different agencies. (CGTN) “
To begin with, let us not forget the differentiation of decentralized capacities in relation to centralized services. The regionally authorized service naturally adheres to geographically specific legislation. For example, an international fast food chain may, in some European countries, sell alcoholic beverages without a prescription, while the same operator is not normally allowed to do so in North America. This variation is possible due to the localized use of the service. Having “official” guidelines for decentralized opportunities would mean imagining access to and use of decentralized services as regional or under the same legislation. Maybe not. It is decentralized.
Second, the U.S. Accountability Office (GAO) calculated that the 2008 financial crisis cost $ 12.8 trillion. This further omits later rescues, unemployment, and the widespread harmful consequences suffered by millions.
The causes of the 2008 financial crisis were largely attributed to deregulation, securitization (double diversion and mergers), the sale of mortgages and the increase in Federal Reserve rates to subprime borrowers. In short, actions carried out by the government, the banking and financial industries.
In contrast, one set of activities that will lose less than $ 3 billion over seven years is small. Regardless of the political position, decentralized technologies offer the ability to make an individual’s personal choice independently. It contains a personal loss that results from poor decision making, such as ICO investments. Moreover, it is a conscious participation in which any individual can invest or access a certain amount that is under their direct control. Compare this ceiling to the one-sided scope that governments and corporations can achieve.
Incorporating decentralized technology into the operational guidelines of a regional government can prove nothing more than redundant double-entry accounting methods. Using them by individuals who collectively cannot be under the jurisdiction of any government, at the same time decentralized technological capacities must be equally revealed.