The 5G market in China has more than 600 million potential users, and trillion dollars will rush into building the infrastructure. The biggest communication chance in ten years is coming to us.
In the 5G era, many technologies, such as big data, AI, IoT and blockchain, will get more chances to accelerate its development. They should cooperate and integrate well to jointly seize the chance and create the next big event.
The blockchain industry is quite similar to the current situation of 5G. It has huge users growth and now abundant capital wants to flow into the industry.
In fact, the fusion of blockchain and 5G is perfect. Their deep cooperation will benefit each other.
“The fusion of blockchain and 5G is perfect”
When we talk about their fusion, first, let’s look at the data, this fundamental element in the new era.
Now we are in the times of digitization. Digitization will influence all the industries. By the end of 2018, the digital economy reached 34.8 percent of China’s GDP.
Now China is moving to data dividend from the former demographic dividend. At this turning point, data is certainly the most important raw material for production in the new era.
Data will be the fundamental element of big business. And the data security and privacy protection will become the focus of many industries.
Combining 5G and blockchain
So what are the advantages of combining 5G and blockchain in China?
Nowadays, China has mature and bountiful internet applications. In fact, China is the leading country in the world when it comes to building internet infrastructure. that provides a solid foundation to build 5G.
With the many internet applications, many problems appear, such as privacy leaks or copyright infringements. These problems make data lose their value and data owners cannot get the proper benefit or income for their data creation or contribution.
“Blockchain can help 5G”
Data protection is quite urgent in the new era. Blockchain can help 5G combine data transmission with high security and privacy protection. On the one hand, 5G needs more data, and on the other hand, there is an urgent need to protect data.
Blockchain, in essence, is an immutable ledger. Its block structure can protect the data well. 5G and IoT (Internet of things) provide plenty of data sources, which makes blockchain live and vivid.
The right market condition
The development of blockchain in China is quite promising. The future of blockchain is large-scale commercial applications. Now the number of China’s enterprises in the blockchain industry ranks high on the world list. There are many blockchain startups.
Some focus on the underlying technology, such as Tianheguoyun. Some focus on the project operation. Some focus on blockchain media, such as 8btc. Some focus on the security regulation, such as Blockchain Detect Center. Others focus on the data collection and search of blockchain industry, such as Blockdata.
These enterprises, organizations, and regulations work hard as they firmly believe that blockchain technology is the chance of this new era and provides more entrepreneurial opportunity.
A new tech wave
Besides these new startups, we have BAT (Baidu, Alibaba, Tencent) and Jingdong. These internet giants also have deployed blockchain. They have successfully launched their financial product and they are popular in China, such as Zhifubao and JD Finance.
With the rapid development of 5G, these giants will launch more popular applications about chats, payments and commerce under this new tech wave. It is time for them to use blockchain to make them stronger in this tech wave.
Blockchain can make them implement instant cross-border payments, financial technology and help them protect their users’ privacy. These are the key points of their business and products.
Therefore, with the energic startups and the vivid internet giants involved in the blockchain industry, China has the quite right market condition for the perfect combination of blockchain and 5G.
Regulations facilitate development
The regulations in China are also friendly to this perfect combination. As I wrote before, on June 6, the Ministry of industry and information technology in China issued 5G commercial licenses.
The companies that received them were to China Telecom, China Mobile, China Unicom and China Broadcasting. This means that the topic of 5G has become a reality and it provides new clues to innovation and entrepreneurship.
In the business circle, if you do not talk about 5G, it seems that you are out. In the primary and secondary markets, 5G innovation with more capital has already launched.
Clear regulations
In the blockchain industry, China also has had clear regulations during the past three years.
In 2017, China began to strictly ban ICOs. In 2018, lots of we-media covering crypto or fundraising were banned and closed down. And in 2019, the release of the Management Regulation of Blockchain Information Service started the all-around supervision of the blockchain industry.
The Chinese government also support the blockchain industry. Under the support of the Chinese government, many blockchain industrial parks were established, such as in Hangzhou, Changsha and Guizhou. Local governments provide these enterprises in the industrial park with office equipment and some funds to facilitate their development.
Under these regulations, China has a healthy environment to develop these techs. Regulations are the great wall of new tech to make them go further.
To conclude
5G brings us a new era. Blockchain makes this new era more valuable and more orderly.
Only strong support from 5G will help blockchain claim its throne. This is a trend not only in China but also a trend in the whole world.
Justina Zheng,
Overseas marketing director at Ulord and crypto enthusiast
Read more from Justina Zheng: Crypto ban does not suppress rapid growth of blockchain in China
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