China Introduces Innovative Blockchain System For Citizen Authentication

China’s RealDID Blockchain System

China’s Blockchain-based Service Network (BSN) has announced plans to use blockchain technology to authenticate the identities of its citizens. Hence, the government unveiled the RealDID system to verify the identities of its 1.4 billion population.

RealDID is a ground-breaking initiative led by China’s Ministry of Public Security in collaboration with BSN. While this move can potentially revolutionize identity verification, privacy advocates are concerned.

They believe that the government’s move infringes on user’s digital privacy. The introduction of RealDID will revolutionize user authentication by allowing people to register and access websites anonymously via DID addresses and private keys.

According to the government, this method separates personal data and business transactions, protecting sensitive information from potential breaches. Users can securely establish and manage their identities through the RealDID service.

The recent action by China is part of its national policy to oversee the digital activities of its individuals and companies.

Policing Online Content

China’s major social media platforms, such as Bilibili, WeChat, Douyin, Kuaishou, Sina Weibo, and Xiaohongshu, have requested content creators with 500,000 to 1 million followers to comply with the new rule in October, per reports by state media.

These platforms must now disclose the real names and identities of their financial backers and followers publicly. The state media emphasized that this measure aims to increase credibility and facilitate public oversight of online content.

According to the BSN, this initiative is the world’s pioneer national decentralized identity system. The BSN operates within China and is overseen by China’s National Information Center in collaboration with tech behemoths such as China Mobile and China UnionPay.

Simultaneously, BSN Global, its international arm, operates independently and functions as a separate entity with distinct operational barriers. Implementing these online content guidelines aims to increase accountability and transparency among influential content creators.

Furthermore, it aims to increase the credibility of the information disseminated on these platforms and allow for greater public scrutiny by linking real identities or financial backers to these influencers’ accounts.

US-China Blockchain Security Concerns

Recent reports revealed that a bipartisan bill brewing in the United States seeks to prohibit federal government officials from engaging with China-built blockchains and conducting transactions involving entities such as iFinex, Tether’s parent company. The primary goal of this proposed legislation is to reduce national security risks and protect sensitive data from foreign entities.

However, the United States removed the Institute of Forensic Science, affiliated with China’s Ministry of Public Security, from the trade sanctions list. This decision was made to strengthen counternarcotics collaboration, specifically the trafficking of fentanyl and its derivatives into the United States.

Widespread Concerns And Collaborative Efforts

Despite widespread concern about China’s human rights practices, this move represents an effort to strengthen cooperative efforts on anti-drug measures. In response, China has issued a warning to its chemical manufacturers, advising them not to produce fentanyl precursors.

This directive aligns with the United States’ cooperative approach to combating the import of illicit substances and the spread of these dangerous narcotics. These interrelated actions by the United States and China highlight national security concerns, human rights concerns, and cooperative efforts to combat transnational crimes such as drug trafficking.

This development further strengthens the two nations’ stance on using blockchain technology and cryptocurrencies for illicit purposes, casting a bad light on the burgeoning industry.