China is ready to establish its first blockchain security testing center – courtesy of an agreement signed between The National Computer Network Emergency Coordination Center and the economic development zone of Changsha, China News Service reported on October 24, 2018.
Security Testing Center to Be Launched in Changsha
As per the agreement signed, the proposed security testing center will be launched in the city of Changsha, the capital of China’s Hunan province. The blockchain testing center will play a pivotal role in regulating the nascent industry. It will also help in gathering data specifics and extract reports relevant to the blockchain industry in China. Additionally, code review and risk control are also included under the scope of the testing center.
Wu Zheng, Secretary-general of National Committee of Experts on the Internet Financial Security Technology said:
“Whether or not blockchain technology is mature and stable, or the smart contracts being developed are safe are all critical factors that affect the adoption of blockchain technology and its applications.”
It is expected that the economic development zone of Changsha and the emergency coordination center will soon commence recruitment of DLT security companies to work on the initiative.
Per sources close to the matter, the security team has already designed an automated platform for verification of smart contracts to bolster their functionality and security. The platform aims explicitly to fill the loopholes found in many of the existing smart contracts.
The security center is expected to generate thick revenue for the city of Changsha, as a representative of the economic development zone stated that annual output of RMB 500 million (approx. $71 million) within the first five years is highly likely.
China Emerges as a Hotbed for Blockchain
Notably, blockchain technology has been luckier compared to cryptocurrencies in China. Contrary to the sorry state of digital currencies in the country, DLT has piqued considerable interest from government authorities.
Similar to the development in Changsha, the Chinese city of Nanjing announced a massive $1.48 billion fund on July 25, 2018, in a bid to foster rapid development of the existing blockchain projects in the country.
Perhaps the biggest impetus for the homegrown blockchain industry came to the surface very recently, as the Cyberspace Administration of China (CAC) published a draft policy framework on October 19, 2018, aiming to regulate DLT-based services in the country.
If implemented, the blockchain-centric policy will be the first set of regulations aimed explicitly at governing the Chinese blockchain industry.