China aims to complete the national data infrastructure based on blockchain by 2029, opening up opportunities for comprehensive digital transformation and a multi-billion USD data market.
On January 6, the National Development and Reform Commission of China (NDRC) and several other agencies announced the 'Guidelines for Building National Data Infrastructure,' identifying blockchain technology as the core foundation for the country's digital transformation strategy.
This guideline outlines a detailed roadmap for building a comprehensive, secure, and efficient data ecosystem based on blockchain technology, expected to be completed by 2029. This is seen as a strategic move by China to harness the economic potential of data while strengthening security and information control.
According to the guidelines, blockchain will play a crucial role in promoting reliable data exchange between industries and sectors, laying the foundation for a nationwide integrated data market. The application of distributed ledger technology (DLT) is expected to ensure transparency, traceability, and prevent data tampering, addressing the challenging issues of trust and security in the context of multiparty data sharing.
The implementation roadmap is divided into several phases. From 2024 to 2026, the government will implement pilot projects in key areas to complete the legal and technical framework for blockchain while testing practical applications. By 2028, these projects will expand into a nationwide integrated blockchain network, connecting data flows among provinces, sectors, and public-private areas. The ultimate goal is to complete blockchain-based data infrastructure nationwide by 2029.
Trusted data space: The key to digital transformation
An important highlight of the guidelines is the establishment of a 'trusted data space.' These are decentralized environments supported by blockchain, allowing businesses, governments, and individuals to exchange data securely, seamlessly, and transparently. The immutable nature of the distributed ledger ensures data integrity and ownership, facilitating provenance verification and regulatory compliance.
These data spaces are expected to play a key role in driving innovation and economic growth. Potential applications span various fields, from cross-border logistics and supply chain management to e-commerce and financial services.
For example, in agriculture, blockchain-based supply chain networks can help trace product origins, minimize fraud, and enhance food quality. In finance, state-approved decentralized financial (DeFi) solutions can provide safe and efficient financial services at lower costs compared to traditional systems.
The guidelines also address building a 'data market' based on blockchain. Tokenizing data assets and dividing ownership will facilitate monetization of data and secure transactions on the blockchain platform. This move promises to unlock new revenue streams and encourage large-scale data sharing, driving the growth of the data economy.
To ensure security and privacy, the guidelines emphasize integrating blockchain with other advanced technologies such as secure multiparty computation, homomorphic encryption, and zero-knowledge proofs. These technologies enable processing and analyzing sensitive data without revealing information, addressing privacy concerns in areas like healthcare and finance. A blockchain-based monitoring system will also be implemented to verify data integrity in real-time, protecting against unauthorized access and cyber threats.