2017 was arguably the most exciting year for fintech since the invention of the internet, as the incredible rise in Bitcoin and other cryptocurrencies’ values gave way to an unprecedented wave of public and media attention. The jury is still out on whether these cryptocurrencies are anything more than a crazy trend, however the real gem to come out of all this, is undeniably the blockchain technology on which these digital coins rely. Blockchain is being touted as a revolutionary technology which has the capacity to solve problems in a wide range of industries and as the world’s second largest economy, China is an important factor in achieving this.This report will look to answer the following questions, with a specific focus on China:
- What is blockchain?
- Have the real life applications of blockchain finally matched the hype or is the adoption of blockchain still lagging?
- What are the key user cases that are emerging?
- Is it always necessary for users to replace traditional technology with the new blockchain technology?
- What are the factors limiting the development of blockchain?
After having explained the technology’s development in its various stages, this report will focus on identifying and analyzing the key Chinese players in the industry, as well as the investment flow in the country, before moving on to some actual applications in the financial services industry and others.
Despite its undoubted capabilities, as with any new and exciting trend, there are limitations and risks involved. In this report we will go through the negative aspects and problems associated with blockchain. By doing this, we aim to demonstrate how the technology and its environment can improve in order to allow for blockchain to reach its true potential.
One of the negatives is that many businesses have jumped onto the blockchain bandwagon in an effort to appear more appealing to investors. However, this can erode the image of the technology, as many companies are simply using the term without actually applying the technology, thereby misleading investors and fostering a distrustful environment.
Another aspect limiting blockchain’s development is the complexity of creating the technology itself. As it is a new and complex creation, there are currently very few resources and expertise available to properly install and maintain enough blockchain systems.
Having analysed all these points, we will explain how the future of blockchain’s initial stage in China is particularly promising, as both the Chinese government and the big four tech giants (BATJ) are actively supporting and pushing the industry forward.