Chinese Blockchain Revolution Sees 10,000 Newly Added Firms in 2020 Alone

China’s blockchain growth in terms of newly added firms in 2020 has surpassed the total figure seen in 2017. With support from the government, startups dedicated to developing decentralized ledger technology (DLT) are increasing in number with the country looking to dominate the emerging digital landscape.

Current 2020 Figures Topple 2017’s Total

In a tweet by blockchain and crypto data platform LongHash on Friday (August 7, 2020), China’s blockchain sector has seen an impressive growth so far in 2020. Between January and July 2020, 10,075 blockchain-based companies sprung up, which is more than the total figure recorded in 2017.

In the first 7 months of 2020, there are more than 10,000 newly established blockchain companies in China, more than the total number from all of 2017 🔥 pic.twitter.com/TrAfjs0ONJ

— LongHash (@longhashdata) August 7, 2020

The figures by LongHash show that there are 29,340 blockchain firms in operation out of 84,410 registered companies. The Guangdong Province in Southeast China has the highest number of blockchain startups, with 25,371. Yunnan Province in the southwest comes second with 5,174 companies.

Furthermore, close to 50% of blockchain companies in the country register with a small capital, with the maximum being 5,000 yuan ($717). Meanwhile, only a tiny fraction of startups, about 9.18%, register with over 50,000 yuan ($7,175)

With the current number of blockchain-related companies so far surpassing 2017’s total figure, it is possible that 2020 could cross 2018’s total of 18,500, recording a new all-time high (ATH).

China has been making efforts to boost its digital sector and also push for blockchain adoption and innovation. Private and public institutions in the country are developing solutions based on the nascent technology. In 2020, the country approved 224 blockchain projects from major companies, including JD, Walmart, China, and Baidu.

Back in 2019, Chinese President Xi Jinping emphasized the importance of blockchain technology and called for the development of the sector. Shortly after President Xi’s comments on blockchain, the country announced that it would increase annual spending on the industry. The government plans to invest over $2B in blockchain by 2023.

Producing a Skilled Workforce for China’s Expanding Blockchain Scene

China’s drive to become a leader in the blockchain sector led to the launch of the Blockchain Services Network (BSN), with over 100 public nodes in different cities. As reported by CryptoPotato back in May, company heavyweights like Tencent, Baidu, Huawei, among others, formed a national blockchain committee. Tencent separately launched a blockchain project called Tencent Blockchain Accelerator.

While more blockchain-related companies continue to spring up, the blockchain educational sector seems to be behind. A report by a local news outlet stated that the first set of blockchain students schooling at the Chengdu University of Information and Technology would graduate in 2024. Although it is still a long time off, the graduates will form a skilled workforce for China’s growing blockchain sector.

China currently maintains the lead in the blockchain race, but other countries are also competing for the global blockchain supremacy. South Korea has plans to invest $400 million in Blockchain Research and Development (R&D). In July, the government announced plans to carve out a hemp regulatory-free trade zone, with blockchain to track hemp production.

The article was first published on: Aug 8, 2020