China To Add Blockchain App Security Standards For The Financial Sector

The ideas of the Chinese government for making advancements in the blockchain sector are really coming together, as the People’s Bank of China issued a distributed ledger technology (DLT) security standard. The so-called JR/T 0184 – 2020 is jointly developed by China’s biggest state-run banks like the Agricultural Bank of China, the Industrial and Commercial Bank of China and Bank of China. China’s central bank gave guidance and oversaw the creation of the specification.

The main goal behind the specification is to provide clear standardization of development and issuance of blockchain-related applications in the financial sector. Local news outlet 8btc reported the final version of the document was issued in early February 2020.

The new guidelines emphasize on enhancing DLT information security, as well as standardized data transmission via blockchain applications. Blockchain-related companies and organizations involved in the development, deployment, and support for DLT apps must comply with the new set of regulations.

The 35-page standardization document gives basic guidelines about both software and hardware requirements, as well as various aspects of the used cryptographic algorithms and consensus protocols. The paper also puts emphasis on the proper usage of smart contracts, intranodal communications, and maintenance guidelines.

The advancements come after Chinese President Xi Jinping gave governmental authorities “the green light” to develop, promote, and execute blockchain-based applications. He even ordered Chinese authorities to speed up the process of blockchain adoption so China could gain vital traction in the emerging DLT business sector.

The standardization is yet another step the Chinese government takes into providing a working base for various industries such as baby product and photovoltaic systems. Drafts for each sector would be reviewed with participants from the corresponding sector. Committees in the industries would create working government standards for improving the workflow across the entire economy range of China. The regulatory frameworks would be updated every five years.

According to the Chinese news portal Tianyancha.com, over 37,000 blockchain-related businesses currently operate in China. A majority of the companies were created in 2019, with almost 13,000 companies filed for blockchain-related patents.

The People’s Bank of China also continues the work on what could be the first major state-run digital currency. PBoC also conducted tests of a new Digital Currency Electronic Payment (DCEP) system, in cooperation with three of China’s biggest telecommunications companies and four government-based commercial banks. The digital representation of the yuan already has 84 pending patents.