According to the National Defense Security Research Institute, a suspected deliberate sabotage of submarine cables recently occurred in the northeastern waters of Taiwan, involving a cargo ship SHUNXIN-39 of suspicious origin. This incident has triggered great concern from all walks of life on the safety of submarine cables, especially its potential impact on Taiwan’s blockchain and cryptocurrency users.
SHUNXIN-39 Freighter – Undersea cable sabotaged?
Event background: Behavioral trajectory of a suspicious cargo ship
On January 3, 2025, a cargo ship named SHUNXIN-39 was suspected of deliberately sabotaging submarine cables in the waters northeast of Taiwan. According to its navigation trajectory, the ship has been frequently active in the area since December 2024 and has dragged its anchor at cable break points many times. Experts pointed out that the ship is owned by a Hong Kong company and registered in the African countries Cameroon and Tanzania. It has a dual identity and its appearance is consistent with the illegal activities of the "shadow fleet".
The importance and vulnerability of submarine cables
Submarine cables carry 99% of global cross-border data transmission, including internet connectivity, financial transactions, and defense communications. Taking Taiwan as an example, 95% of data transmission relies on 14 submarine cables. However, these infrastructures are highly vulnerable to attacks and difficult to hold accountable due to the complexity of the underwater environment and inadequate protective measures.
Strategic competition internationally
Similar incidents are not the first of their kind. The destruction of cables by Russian vessels in Norway and the Arctic region has become a typical example, while China's related actions in recent years have also caused regional unrest. These attacks may be part of a 'gray zone' strategy aimed at concealing actions and cutting off the opponent's data transmission capabilities.
Potential impact on blockchain and cryptocurrency users in Taiwan
The direct impact of internet interruptions on the digital economy
Damage to submarine cables may lead to network delays and transaction interruptions, affecting the trading efficiency and costs for cryptocurrency users. The operation of local decentralized finance (DeFi) platforms and blockchain node synchronization will face severe challenges. Additionally, connection issues with local exchanges and cryptocurrency wallets may prevent users from accessing their assets in real-time.
Challenges and insights of decentralized infrastructure: Satellite networks
The incident highlights the dependence of blockchain networks on infrastructure stability and tests the resilience of decentralized technologies. Taiwan's blockchain ecosystem needs to explore more backup solutions, such as using satellite technology for data transmission.
The dual challenge of policy and trust
User trust in cryptocurrencies may be damaged by frequent internet interruptions, leading the government to strengthen regulations to ensure the security of internet infrastructure. At the same time, this also prompts the industry to consider more comprehensive risk hedging strategies.
Could submarine cable safety endanger Taiwan's blockchain ecosystem?
The SHUNXIN-39 incident has alerted Taiwan to the importance of submarine cable safety and the protection of digital infrastructure. For blockchain and cryptocurrency users, this is a test of data security and technological resilience. In the face of global uncertainties, Taiwan should accelerate the promotion of decentralized infrastructure, strengthen international cooperation, and ensure the stable operation and innovative development of the digital economy.
This article 'SHUNXIN-39 cargo ship incident: Will submarine cable safety endanger Taiwan's blockchain ecosystem?' first appeared in Chain News ABMedia.