2020 spots more than 10,000 new Blockchain firms started in China

Data from LongHash has revealed that more than 10,000 new blockchain firms have been started in China, surpassing the total number in existence in 2017.

By · Aug 10, 2020 . 4min read

Blockchain firms in China
Source : IStock

More than 10,000 new blockchain companies were founded in China this year. This makes it the third-highest year in terms of the number of companies based, behind 2018 and 2019. We still have five months to go, and LongHash, the crypto data platform that is reporting this, believes it is on track to surpass the record.

There are currently 84,410 blockchain companies in the country. Only around 29,000 are operational, however. The Guandong and Yunan Provinces are home to most of these companies. The data shows, however, that the vast majority of companies have a registered capital of only $717, or 5000 Yuan. Very few have registered from than 50,000 Yuan, or $7175.

The fact that entrepreneurs are confident enough to establish new firms at a time when the global economy has slowed down due to the pandemic shows the amount of faith prevailing in the blockchain technology.

The numbers should come as no surprise for those who follow blockchain-related news, especially out of China. The country is launching its digital currency this year. It is already using blockchain to run more than 140 different government services, as we had reported earlier last month. The Chinese Congress also suggested in a meeting back in May that the government should set up a blockchain development fund. The government has already secured $4.7 million in funding for its blockchain trade platform. We had reported last week about how China has established an institute that will focus heavily on blockchain as well.

The Chinese immersion into blockchain has been happening since the first half of this decade. More countries around the world are following the suit, with China leading the way in blockchain adoption.

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