China's road to blockchain: from national security risk to key technology for economic development

Abstract

Blockchain is a technology that has become known above all thanks to cryptocurrencies. The now-famous bitcoins born in 2008 from the mind of Satoshi Nakamoto, considered by most to be a pseudonym of a group of researchers, are the first digital currency that has exploited this technology. However, to fully understand the value of this tool and above all to understand the Chinese strategy in this regard, it should be emphasized that the practical applications of the blockchain go far beyond cryptocurrencies. In fact, the information that can be stored within a blockchain is manifold such as, for example, certificates and licenses of various kinds, smart contracts, and in general transactions and information exchange. In particular, this technology can be applied for areas such as digital identity, the filing of judicial decisions, the tracking of money and public funding, the exchange of tangible and intangible assets such as patents, and also for electronic voting. Some authors argue that the distributed control system of the blockchain could give rise to a governance without a government or even a "global society without a state", putting at risk the very concept of national sovereignty. However, the purpose of this article is not to venture hypotheses on how the state may or may not coexist with the blockchain. Rather, once the potential and risks are understood, the goal is to understand and analyze what China's intentions are for the development and use of this technology.