Xiong'an Blockchain Laboratory: Building a Blockchain Innovation Hub for Smart Cities

Recently, the blockchain sector has seen several significant advancements. The internal testing scope of central bank digital currencies has expanded, with Agricultural Bank of China and Bank of China reportedly conducting tests; the national-level Blockchain Service Network (BSN), led by the National Information Center, is also about to launch. Behind these exciting news is the result of long-term efforts by the government and enterprises. It is worth noting that both the sovereign digital currency and the self-controlled blockchain platform have been piloted in Xiong'an New Area.

On March 31, the Blockchain Laboratory of Xiong'an New Area was officially established, marking the local determination to systematically deepen blockchain research and application. In fact, over the past two years, Xiong'an has conducted many explorations in the field of blockchain:

• Launched the Blockchain fund management platform in 2017
• Establish a FinTech laboratory by the end of 2017
• Launched the Blockchain rental platform in early 2018
• In April 2018, the "Millennium Show Forest" project established an "ID card" for each tree through a big data system.
• As of October 2019, the blockchain fund management platform has issued salaries on time to a total of 110,000 people.
• In November 2019, it was announced that a self-owned intellectual property Blockchain underlying platform would be launched.
• In November 2019, the first national case of "Blockchain + Order Financing" was achieved, with a credit of 4 million yuan.

There is no doubt that in the blockchain blueprint led by the Chinese government, Xiong'an occupies an important position in terms of policy support intensity, application scenario richness, institutional participation specifications, and strategic positioning. The newly established laboratory will become an important window for observing the development of blockchain in Xiong'an.

To gain a deeper understanding of the development goals and key exploration areas of the Xiong'an Blockchain, we recently interviewed Li Jun, the deputy director of the Xiong'an Blockchain Laboratory.

Li Jun stated that the main original intentions of establishing the laboratory are as follows: first, to research the blockchain technology, application scenarios, and concepts needed for smart city construction and digital economy development; second, to provide a means and leading role for blockchain innovation in the smart city field. In the future, the laboratory will also export knowledge and technical capabilities.

In terms of participating enterprises, there are already two types of entities: one is large state-owned enterprises and central enterprises undertaking multiple construction tasks in Xiong'an, such as China Electronics Corporation and telecommunications operators; the other includes the four major state-owned banks and some joint-stock banks. In addition, universities such as Beihang University, the Institute of Computing Technology of the Chinese Academy of Sciences, and Beijing Institute of Technology will also participate. Li Jun emphasized that the laboratory has an open attitude toward small and medium-sized enterprises, especially those involved in innovation and entrepreneurship, and the relevant access mechanism is being formulated.

When discussing key exploration directions, Li Jun pointed out that the focus will be on: 1) developing open-source Blockchain suitable for smart city characteristics; 2) building Blockchain as infrastructure; 3) researching operational mechanisms, market standards, and even related theoretical methods. He emphasized that the laboratory's technological research and development will adopt an open-source form to reflect the core concept of Blockchain.

Regarding standard research and testing certification, Li Jun stated that relevant work is ongoing. The laboratory will formulate local standards and specifications based on the construction needs of Xiong'an, and it is expected to expand them into national and even international standards.

In terms of talent introduction, the laboratory will create an open innovation environment and welcomes talents from all sectors to engage in交流合作. Some incoming personnel will receive funding support, while others can bring their own projects to settle in.

Li Jun believes that there are currently few blockchain underlying platforms in China that meet the requirements for independent controllability, especially platforms aimed at smart cities are even scarcer. Xiong'an will build an independent and controllable infrastructure platform that is compatible with other excellent blockchain systems.

Regarding the implementation of blockchain applications, Li Jun stated that this is a long-term trend, but the scale and progress of implementation are difficult to predict. He emphasized that the existing blockchain applications in Xiong'an will be integrated into a system, and future applications will involve more than ten fields and over twenty scenarios, including social governance, public services, and smart transportation.

Finally, Li Jun pointed out that although Blockchain is not explicitly listed in the new infrastructure category, it is closely integrated with 5G, artificial intelligence, and will benefit from it. He believes that if the Blockchain pilot in Xiong'an is successful, Blockchain is expected to develop into an independent industry.