Smart Cities in China Embraces Blockchain-enabled ID System

Asia Blockchain Review
November 13, 2019

China has launched an identification system powered by blockchain to improve connectivity and data sharing between three “Smart Cities.” The ID system will be independently distributed by China.

Developed by three institutes in the city of Shijiazhuang, the blockchain-based ID system will assign unique, global digital IDs to Smart Cities nationwide. The Smart City project was piloted by China in 2013 before it started the construction in 2016, with a plan to build at least 100 Smart Cities by 2020.

Managed by China with Unified Distribution Rule

One of the developers of the blockchain-based ID system, Zhongguancun Industry & Information Research Institute of Two-dimensional Code Technology, disclosed that the system was self-developed by China and will be “independently distributed and managed by China, with a unified distribution rule, a resolution of distributed storage and tamper-resistant code.”

As of last year, around 500 Smart City pilot projects were launched in China, the highest in the world according to Deloitte.

Analysts say the push to make cities smarter is in line with the country’s advocacy of high-quality development.

Peng Sen, president of the China Society of Economic Reform, told Xinhua that a large-scale and fast urbanization process in China requires more modern, data-based, and intelligent social governance. Blockchain is one of the technologies that can help China keep up with the urbanization rate.

China Aims to Lead Blockchain Development

China became active in blockchain development after President Xi Jinping publicly voiced the government’s support for the technology last month, saying that China should take the leading position in its development.

The country plans to release its first national digital currency after five years of research and development.


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