Chinese City of Guangzhou to Invest $1.4M Yearly in Public Blockchain

A local government agency in the Chinese city of Guangzhou intends to give sponsorships to two blockchain initiatives every year – a public blockchain initiative that doesn’t have a token will get a maximum support of 10 million yuan (around $1.4 million), and a consortium blockchain effort will get a maximum funding of 3 million yuan (around $425,000).

As per an official report dated October 28, a public blockchain is a reliable system that doesn’t have any centralized node, with every node entering and leaving the network uninhibitedly. Be that as it may, the document doesn’t explain what a public blockchain “without a token” signifies. Ideally, a public blockchain is open for all, which means individuals can acquire tokens.

Qualified candidates for the sponsorships should either run a public blockchain that has over 100 nodes and facilitates over 10,000 transactions or run a consortium blockchain that has more than 30 nodes with 3,000 transactions.

The Guangzhou government also plans to put up a 1 billion yuan (around $142 million) fund to invest resources into blockchain-related organizations, in spite of the fact that subtleties of the fund are yet to be disclosed.

This isn’t the first run a city government in China is supporting a blockchain fund. A year ago, the governments of Nanjing, Hangzhou, and Shenzhen, introduced blockchain funds of $1 billion, $1.6 billion, and $80 million, individually.

A week ago, China’s President Xi Jinping publicly showed support for blockchain innovation and said that the nation should take a leading position in blockchain advancement.