China is moving forward with its intention to embrace distributed ledger technology (DLT). According to the local news site Global Times China launched a blockchain-based smart city identification system. 

This is part of the smart city infrastructure project that China is currently pushing through blockchain technology. 

China Deploys Blockchain Technology

As per the report, the new city ID system was launched by three institutes in Shijiazhuang, North China’s Hebei Province. Since Sunday, cities were able to apply for their own ID code. 

The director of the Zhongguancun Industry & Information Research Institute of Two-dimensional Code Technology, Zhang Chao, explained that the system is going to be running on top of blockchain technology. 

Moreover, the whole systems were developed by China and they are going to be distributed and managed by the country. 

Mr. Zhang commented about this:

“The system will be independently distributed and managed by China, with a unified distribution rule, a resolution of distributed storage and tamper-resistant code.”

This new identification code can be connected with other cities and share data among them. At the same time, its city code system is also based on node code in line with international standards. Each city will have a global digital identification number. 

The Vice President of the China Research Society of Urban Development, He Kejia, explained that there was no unified code for industries and departments in today’s development of technology. This was causing problems of data interoperability and application incompatibility. 

The smart city construction in China started back in 2016 considering a larger number of individuals were moving into different cities in the country. 

This created a high demand for urban planning and construction that required the country to move forward and create a new city identification system. With these new developments, there will be a positive impact on city planning. 

Some of the most important areas that require these services include education, medical care, urban, water supply and drainage, sewage treatment and many others. 

A few weeks ago, Chinese President Xi Jinping informed that they should take blockchain as an important breakthrough for independent innovation of technologies including DLT. 

After this announcement, the price of Bitcoin surged by over 40% in just a few hours due to the increased expectations from market participants. 

China strictly controlled and regulated spot trading in the country banning spot exchanges on its territory. In the future, the country could eventually have a more flexible stance on cryptocurrencies.