In a significant step towards promoting Web3 technology and secure data trades, China has launched a blockchain-powered Hangzhou Data Exchange. The announcement came during the 2023 Hangzhou Summit and involved over 300 participating enterprises, including tech giants Alibaba Cloud and Huawei.
According to Chen Chun, the director of the National Laboratory of Blockchain and Data Security, the platform will employ blockchain technology, along with privacy computing to ensure that the data exchanged is both immutable and traceable. It aims to facilitate the "trusted sharing and effective use of data across departments and regions under data security and privacy protection."
Hangzhou's digital economy has been thriving, with a valuation surpassing 500 billion Chinese yuan ($69 billion), contributing nearly 27% to the city's GDP. The launch of this data exchange adds another layer to China's expanding digital ecosystem.
Despite having a stringent policy towards private blockchain enterprises, the Chinese government remains a strong proponent of state-controlled blockchain initiatives. During the 2023 Shanghai Cooperation Organisation Conference, President Xi Jinping emphasized the importance of central bank digital currencies (CBDCs) for enhancing local currency settlements.
While the Hangzhou Data Exchange seems promising, it's worth noting that not all of China's blockchain initiatives have proceeded smoothly. A national nonfungible token (NFT) exchange, CDEX, announced last December, is still under development.
The launch of the Hangzhou Data Exchange is a significant move by China to strengthen its digital economy and blockchain ecosystem. It combines the technical prowess of blockchain with the commercial interests of over 300 enterprises to create a platform that could potentially revolutionize the way data is bought and sold among enterprises.
