With over 10,000 new blockchain firms emerging in China in 2020, the number of companies developing solutions based on the novel tech appears set to cross the 90,000 mark.
China remains a blockchain hub with Beijing’s anti-crypto stance not extending to companies looking to leverage decentralized ledger technology (DLT). The country’s Blockchain-based Service Network (BSN) is also looking to foster greater public-private partnerships in the sector.
New Chinese Blockchain Firms in 2020 Surpass 2017’s Total
According to figures from crypto market data provider LongHash, China’s blockchain startup scene has grown by 10,075 new firms in 2020 alone. This number exceeds the 8,595 recorded for the whole of 2017.
Taking the current 2020 total as an average over eight months, China could see a new annual high in the number of newly established blockchain firms, beating 2018’s record of 18,500.
Indeed, Chinese blockchain interest in 2020 has been on the rise. Back in late April, BeInCrypto reported that the government approved 224 new blockchain projects from major companies.
China’s blockchain revolution is witnessing the establishment of the BSN in partnership with corporate giants like Huawei and Tencent. These big-name brands are also preparing multi-billion dollar war chests dedicated to DLT and other emerging technologies like artificial intelligence (AI) and machine learning (ML).
Guangdong Province hosts 25,371 startups, which is almost a third of the total number of blockchain firms in China. Guangzhou, the capital of the province, is also among one of the major industrial hubs in the country.
Of the over 84,000 registered blockchain firms, only about 29,300 are operational, according to LongHash figures. Also, 60,729 firms have seen their licenses revoked by authorities, pointing to a high turnover of DLT-based startups.
With China looking to dominate the emerging digital landscape, other major economies have been forced to re-evaluate their blockchain policies. Back in May, South Korea’s government announced plans for a $400 million fund also dedicated to blockchain.