China’s Blockchain Network (BSN) Splits over a dispute about Public Blockchains

China’s hotly-anticipated nationwide effort to integrate blockchains – the Blockchain Service Network (BSN) – has split into two entities over a disagreement to integrate public blockchains. BSN will now be split into two separate entities:

  • BSN-China: a private consortium led by the State Information Center. This chain will be China’s core chain with support from the Government. BSN-China will consist of nodes that fully comply with local Chinese laws and regulations
  • BSN-International: A public consortium led by Red Date Technologies. This chain will allow international co-operation and integration of crypto protocols such as Ethereum (ETH), EOS (EOS), Nervos (CKB), NEO (NEO), Chainlink (LINK) and Tezos (XTZ)

BSN was originally envisioned as a project that would allow any blockchain, be it public chains (eg. Ethereum (ETH)) or corporate private chains to communicate with each other. Following the original plan, any public blockchain can integrate itself into the BSN, a network that will help cross-chain communication and value transfer.

Centralized Control & Governance

Xi Jinping
President Xi personally addressed the nation on Blockchain Development in 2019

Recently there has been pushback against the use of Public blockchains in China, as it would mean the State would not be able to control these Chains. As a result, the incorporation of public chains into BSN has been a hotly contested subject as the state would not be able to ensure that all aspects of the chain will comply with local laws. In fact, public blockchains are decentralized meaning that they are immune to centralized control and governance. This has lead to the State declining to allow any public blockchains into BSN-China.

It is expected that BSN-China will receive most of the state’s attention and funding. Private projects developed by major tech giants in China, such as Tencent and Baidu are expected to be integrated into BSN-China. This will be the major spearhead develop for China’s nationwide push for blockchain development.

Will Decentralized Protocols be left out?

International efforts to develop and integrate into BSN-International will be expected to continue ahead as planned. Original creators of BSN, Red Date Technologies, will spearhead the development and continue to push the international effort to create a communication network for the entire blockchain ecosystem.


The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur.

I’m Michael Gu, Creator of Boxmining. I’ve been involved in the digital asset and Blockchain space since 2012. Something I immediately noticed was that accurate information is hard to come by in this space. More often than not, we find extremely biased information that exploits the complexity of blockchain to obscure facts. Having been around before bitcoin or blockchain was even “cool” meant that I had to do a lot of discovery myself, and along the way, I had many successes, but also made mistakes. I started Boxmining in 2017 mainly as a passion project, to educate people on digital assets and share my experiences. Being based in Asia, I also found a huge discrepancy between digital asset trends and knowledge gap in the West and China. So I leveraged my knowledge and positioning to bridge that information gap and let people know what is truly happening. This journey has been nothing short of exhilarating for me, starting from when I mined Bitcoin in grad school to appearing on China’s national television as an overseas expert on blockchain technology, and having the honour of interviewing leading crypto entrepreneurs, including Binance CEO Changpeng Zhao and FTX founder Sam Bankman-Fried.

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