China plans to develop blockchain-focused national data infrastructure by 2029

China's government released guidelines for the development of a national data infrastructure, as part of efforts to improve its data exchange and management network.

A document published by the National Development and Reform Commission and two other authorities states that China must explore blockchain technology to make its data exchange and management ecosystems more secured through smart contracts.

Also called the distributed ledger technology (DLT), the blockchain is the underlaying technology used by cryptocurrencies, NFTs, and the metaverse.

According to the document titled National Data Infrastructure Construction Guidelines”, a blockchain-based implementation can safeguard stored data against tampering.

The authorities behind the project believe that the national data infrastructure must be kept up-to-date to support the circulation and storage of information that is important in terms of national security.

In recent years, blockchain networks have emerged as a potential replacement for traditional Web2 servers.

A blockchain does not concentrate large amounts of data at one point, unlike traditional servers. Instead, information saved on blockchain networks is segregated into multiple smaller units of data, and these are spread across the network.

This protects the data against leaks and breaches. In addition, blockchain networks log data permanently and in an unalterable format — which brings a layer of trust and transparency to data storage.

China plans to work on new database solutions that would be supported on blockchain networks, it said in the guidelines.

The updated data management solutions that the Asian nation is betting on will integrate hardware, software, and model algorithms together to be used by the government, industries, and enterprises operating there.