The stablecoin sector is heating up, which blockchain network in China will prevail?

Major global economies are actively laying out plans in the stablecoin sector, introducing relevant regulatory frameworks to gain an advantage in this new strategic race. However, the issuance of stablecoins relies on public blockchain, which is a key underlying infrastructure.

Recently, there has been a view in the industry that "Our country currently lacks a globally influential public chain, which should be led by central state enterprises", sparking heated discussions. In fact, since blockchain was elevated to a national strategic height in 2016, China has formed a blockchain infrastructure network led by the "national team" to serve the real economy.

From the global connector BSN, the industrial base "Xinghuo·Chain Network", to the technological cornerstone "Chang'an Chain", and then to the public chain "Tili" Shutu Chain (Conflux), these networks together form China's unique Blockchain landscape. As the demand for stablecoins becomes increasingly urgent, which network is most likely to break through the encirclement and become the trusted foundation for China's stablecoin vision aimed at the global market?

To accurately understand China's strategic intentions, it is necessary to redefine the concept of "public chain" in the Chinese context. In China, the "public chain" promoted at the national level is essentially closer to a "public infrastructure" or "trust infrastructure" that is guided by the state, allows multiple parties to participate, but is ultimately controllable.

Currently, several highly influential blockchain networks in the industry include the Blockchain Service Network (BSN), Xinghuo Chain Network, "Chang'an Chain", and the recently highly regarded public chain Conflux, among others. Let's take stock of these networks and analyze which is more likely to become the foundation for China's stablecoin.

Blockchain Service Network (BSN): Multi-framework Adaptation, Focused on Coinless Philosophy

BSN is a blockchain public infrastructure initiated by several national-level institutions and enterprises. It consists of two parts: the BSN private network and the BSN public network. The BSN private network mainly serves enterprises, while the BSN public network is closer to the traditional concepts of public chains and consortium chains.

The BSN public network system is divided into the BSN-DDC basic network (open alliance chain) aimed at China and the BSN Spartan network (a public distributed cloud service network composed of non-coin public chains) aimed at overseas markets.

The DDC network system includes multiple open alliance chains, using network frameworks such as Ethereum and EOS, and is mainly applied in areas like NFT, distributed domain names, DID, and trusted data certification. These networks do not have a token design, and service fees need to be recharged using fiat currency.

The consensus mechanism of the BSN Spartan network is similar to public chains like Ethereum, but it also adopts a coinless design. It currently consists of three sub-chains, based on Ethereum, Cosmos, and PolygonEdge.

The core innovation of BSN lies in its multi-framework adaptation, which can unify the management of dozens of mainstream Blockchain underlying frameworks globally. This standardized adaptation mechanism allows developers to choose different underlying chains "plug and play" without worrying about the complex deployment and operation details, making it a universal "operating system" in the Blockchain world. However, BSN has not yet opened its Token mechanism, which may become a limiting factor in its development in the stablecoin field.

"Spark Chain Network": Supported by the Ministry of Industry and Information Technology, focusing on the industrial sector

"Xinghuo Chain Network" is a national-level blockchain new integrated infrastructure system built under the guidance of the Ministry of Industry and Information Technology, led by the China Academy of Information and Communications Technology, in collaboration with multiple large enterprises and institutions.

Its architecture is divided into two layers: the first layer is the main chain composed of super nodes, used for managing identities, public data, and so on; the second layer is the sub-chain linked by backbone nodes, connecting applications from various industries or regions.

"Xinghuo·Chain Network" is a permissioned public Blockchain network, currently without a token design. It is divided into the domestic network mainnet and the international version ASTRON network. The established nodes include super nodes in Xiamen, Liuzhou, and backbone nodes in Jiaozhou, Hengqin, Suzhou, as well as international nodes in Malaysia and Macau.

The application scenarios of "Spark·Chain Network" are highly focused on the industrial sector, including full lifecycle traceability of high-end manufacturing products, collaborative management of complex supply chains, digital identity authentication and predictive maintenance of industrial equipment, and trustworthy sharing and trading of industrial data.

Chang'an Chain (ChainMaker): Multiple write-in policy planning, participation of state-owned enterprises and internet giants

The "Chang'an Chain" is led by the Chang'an Chain Ecological Alliance, which was initiated by the Microchip Institute under the guidance of the Beijing municipal government. The alliance members include state-owned enterprises such as the State Grid and China Construction Bank, as well as internet giants like Tencent and Baidu, with more than 50 members currently.

The "Chang'an Chain" has been repeatedly included in relevant policy plans of Beijing, highlighting its strategic position. Technically, the "Chang'an Chain" claims that its transaction throughput capacity (TPS) can reach 100,000, meeting the high concurrency demands of large-scale financial and governmental scenarios.

Tree Graph Chain (Conflux): Developed by Tsinghua "Yao Class" team, special position in public blockchain

Unlike the aforementioned networks with obvious characteristics of alliance chains, the Tree Graph Chain is currently the only public chain in mainland China that meets regulatory requirements. It was founded by MIT PhD Long Fan, with Academician Yao Qizhi serving as the chief scientist involved in core algorithm design.

As a complete public chain, the Tree Graph Chain has a governance token CFX, which is a unique "exception" in the strictly regulated environment of cryptocurrencies in mainland China. CFX has been listed and traded on multiple mainstream cryptocurrency exchanges.

Shutu Chain has received multiple reports from official media and has established deep cooperation with several central enterprises. It is currently collaborating with a fintech company to explore the issuance of a stablecoin (AxCNH) pegged to the offshore renminbi to support the cross-border payment needs of countries along the "Belt and Road".

Who is more likely to become the technological foundation of stablecoin?

In addition to the networks mentioned above, there are several alliance chains initiated by state-owned enterprises or tech giants in China, such as State Grid Chain and Unicom Chain, each having advantages and influence in specific fields.

However, in terms of international influence, China currently does not have a blockchain network that fully meets the definition of a public chain. Among the existing infrastructure, the Tree Graph Chain is most likely to grow into an internationally recognized domestic public chain. Its technical characteristics comply with international public chain standards and possess originality and performance advantages. Its official background and clear offshore RMB stablecoin exploration plan give it a first-mover advantage in the stablecoin sector.

The "Chang'an Chain" also has the potential to become the underlying infrastructure for stablecoin issuance. Its research and development institution has signed a strategic cooperation agreement with the Central Bank's Digital Research Institute to jointly promote enterprise-level applications of the digital RMB based on the "Chang'an Chain". The technical characteristics of the "Chang'an Chain" support Token design and meet the technical requirements for stablecoin issuance. Its strong ecosystem of state-owned enterprises has a natural advantage in promoting stablecoin applications among institutions or in specific scenarios.

In addition, as global listed companies begin to incorporate cryptocurrencies into their treasuries and participate in blockchain governance, there is a third option for China's public chain path: participating in the governance of international mainstream public chains. In a decentralized world, the distinction of national borders is often just a difference in the percentage of computing power.