The government of the city of Shanghai wants to research new technologies to move the city’s infrastructure to the blockchain. Research initiatives will involve multichain communication, quantum-proof security, and processes to monitor and censor illegal on-chain content.
To fulfill its blockchain ambitions, the city will first develop basic hardware, including computer processors and high-bandwidth wireless electronics. Then, it will develop container technology to sandbox different applications on multiple chains, secured by novel encryption and zero-knowledge proofs.
Shanghai Blockchain Will Monitor Visible Information
On the governance side, Shanghai will use economic penalties to discourage bad behavior it detects through behavioral analysis. The system will use on-chain keyword and image filtering to control content and understand how often users access it.
Before deploying the new systems, the government will test the technology in different scenarios, including government affairs, cross-border trade, and supply chains. Shanghai will also explore the potential of blockchain in the metaverse.
The alpha city first signaled its intention to explore blockchain technology in June. Chinese conglomerates Alibaba and WeChat maker Tencent have already developed private networks, while Shandong and Sichuan province have signaled their own intentions to develop city-level blockchain infrastructure.
Shanghai’s Efforts Could Speed up Tokenization Developments
The move from the Chinese economic hub means that the US could fall behind in the race toward tokenization innovation. While several banks, including Citi, JPMorgan, and DBS, have tested transfers of tokenized money, the technology’s potential remains largely untapped.
Speaking with BeInCrypto recently, Tether co-founder William Quigley, an early investor in blockchain technology, expects tokenization businesses to gather momentum in 2024 and 2025. Tokenization, essentially a way to immutably assign ownership of a digital or physical asset on the blockchain, has not standardized a method to quickly transfer physical items to the token owner after the token transfer has been settled on the blockchain.
Other technologies, like being able to interact with digital twins of physical items in the metaverse, are still technically far away, Quigley added. Meta, the company formerly known as Facebook, abandoned its commercial metaverse plans for a pivot to artificial intelligence.
Learn more about the developing tokenization industry here.
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Top crypto platforms in the US | December 2023
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