Blockchain promises digital data integrity. Industry standardization and protocols are still nascent. The high investment required inhibits the private sector. A platform approach may reduce entry costs. Local governments need to facilitate seamless data exchanges across the Greater Bay Area. Chai Hua and Zhang Tianyuan report from Hong Kong.
Industry pundits believe the Guangdong-Hong Kong-Macao Greater Bay Area has the converging need and scale to become a cradle for blockchain development. It is the industrial powerhouse of China, with well-established global export-import conduits. The challenge is for the regions and cities of the Greater Bay Area to interface cross-border blockchain protocols, to boost wider commercial usage.
Chief Executive John Lee Ka-chiu”s maiden policy address vowed to “open up data and encourage public and private organizations to follow suit for innovative industry applications.”
Blockchain technology comprises several types. Public blockchains, which cryptocurrencies are based on, are accessible to anyone with an internet connection. Private blockchains generally serve corporate software solutions.
A hybrid of the two is the consortium blockchain. Organizations with common goals in a particular industry can use the consortium blockchain to improve transparency, accountability, and data exchange.