top of page
Writer's pictureJamal Saafir

Chinese City Of Shanghai Wants To Run City On Blockchain


According to a report from BeInCrypto, the government of the city of Shanghai is interested in researching developing technologies to guide the city’s infrastructure to the blockchain. Research steps will include multichain communication, quantum-proof security, and processes to oversee and block illegal on-chain content.


To meet its blockchain goals, the city will initially create basic hardware, as well as computer processors and high-bandwidth wireless electronics. Next, it will create container technology to sandbox various applications on multiple chains, protected by novel encryption and zero-knowledge proofs.


Shanghai governance will implement monetary penalties to dissuade unsavory behavior it detects through behavioral analysis. The system will use on-chain keyword and image filtering to regulate content and gain insight on how often users access it.


Before releasing the new systems, the government will test the technology in different situations, including government matters, cross-border trade, and supply chains. Shanghai will also delve into the possibilities of blockchain in the metaverse.


Shanghai first indicated its plans to look into blockchain technology in June. Chinese powerhouses Alibaba and WeChat creator Tencent have already developed private networks, while Shandong and Sichuan province have

indicated their own intentions to form

city-level blockchain infrastructure.


A move like this from the Chinese economic axis could be the precursor to the United States falling behind in the race toward tokenization implementation. While several banks, including Citi, JPMorgan, and DBS, have experimented with transfers of tokenized money, the possibilities of the technology remain greatly unseen.

In a recent conversation with BeInCrypto, Tether co-founder William Quigley, an early investor in blockchain tech, anticipates tokenization businesses gaining acceleration in 2024 and 2025. Tokenization, fundamentally a way to immutably assign ownership of a digital or physical asset on the blockchain, has not normalized a method to quickly transfer physical items to the token owner after the token transfer has been settled on the

blockchain.


Other technological innovations, such as being able to interact with digital twins of physical items in the metaverse, are still technically a ways away, Quigley added. Meta, the company previously known as Facebook, moved away from its commercial metaverse plans to focus on artificial intelligence.




1 view0 comments

Comments


bottom of page