Summary: 2019 Asian Blockchain Development Report By Blockdata
Blockdata, located in China, recently published a 2019 report on blockchain development in Asia. It is very detailed and covers so many important topics we decided to list the key points below.
- The gap between China and USA economy is shrinking rapidly. China grew by 6.6% in 2018 while USA grew by 2.9%. Japan grew by 0.7%.
- Global economy is expected to grow by 3% in 2019 and 2020. East Asia is expected to grow at 5.6% and 5.5% in 2019 and 2020. China will likely fall to 6.3% in 2019.
- China is continuing to promote R&D with increased investment that is helping to narrow the gap with other developed countries. Their R&D was 2.18% of GDP.
- China’s cloud computing use has increased by 218.25%. For every point of cloud amount increase, GDP will increase by 23.09 billion yuan. Government has been apart of this huge growth in cloud computing.
- In 2018, China has 675 million Internet news users, 612 million Internet video users, 576 million Internet music users and 432 million Internet literature users, accounting for more than half of the total Internet users.
- China’s digital economy was up 12.02% in 2018 and rose to 33.22% of GDP.
- Eastern region has taken the lead in growth.
- 60% of all 8000+ blockchain projects were located in Asia.
- Blockchains can help with decentralizing data so it’s not controlled by certain authorities, faster and cheaper cross border payments, more efficient supply chains, verified credit reporting and certification, anti-counterfeiting through traceability from the beginning that cannot be changed or modified, public service, game industry
- On October 31, 2018, the Hong Kong Monetary Authority announced the launch of a new digital network of trade finance, Trade Linkage, which is the first cross-bank blockchain project involving 12 banks, including HSBC, Standard Chartered, Bank of China, Hong Kong, Hang Seng, Star Show Hong Kong, Bank of East Asia and Australia-New Zealand Bank.
- IBM has set up their own food tracking network using blockchain called IBM Food Trust
- Blockchain games have the ability to give control of games assets to users, cross-chain transactions to bring new characters in for example.
- BI Index of cryptocurrency doubled from beginning of 2019
- Bitcoin dominance at around 55%-60% is high and other coins tend to follow its trend.
- Binance has had two successful IEO’s this year with FET and BTT causing other exchanges to begin their own
- China has issued 200+ support policies for blockchain projects
- On November 9, 2018, Zhongguancun Administrative Committee, Beijing Financial Work Bureau and Beijing Science and Technology Commission jointly issued the Beijing Plan for Promoting Financial Science and Technology Development, which includes blockchain (2018-2022).
- Guangdong has the most support policy with numerous incentives for blockchain projects
- The total amount of funds dedicated to blockchain through national industrial funds is $4 billion.
- South Korean Blockchain Governance and Consensus Committee issued guidelines for ICO’s, specifically around dealing with encrypted currencies.
- South Korea believes encrypted currency is the frontier of the fourth industrial revolution.
- Korean commercial banks hold nearly $2 billion in encrypted currency (8% of total assets)
- Blockchain technology investment companies can reduce taxes by 40%. South Korea plans to raise $207 million by 2022 expand blockchain technology in various industries and make it profitable
- Japan has been at the forefront of regulation, banning transactions with privacy coins, tighter restrictions on margin trading, licensed exchanges.
- Thailand created the Thai Digital Assets Act, which includes the Digital Assets Enterprise Act 2018 and the Amendment of the Tax Act 2018, which aims to regulate related taxes.
- Thailand promulgated the Thailand Digital Assets Business Act, which gives dual attributes of digital assets currency and securities.
- The Singapore Financial Regulatory Authority issued the Compliance Guidelines on ICO Projects, which clearly states that the activities of token issuers, institutions managing token transactions, and institutions or individuals providing financial advice on tokens are subject to legal constraints.
- In Russia, blockchain is a national strategy including testing the use of cryptocurrency
- Pakistan wants to work China
- India and Vietnam have a complete ban
- Malaysia, Indonesia, and the Philippines are still exploring the technology
- Tron, NEO, Ontology are the top three in market value of the public chain projects in Asia
- 61% of public chain projects are from China
- 59% have launched their Mainnet
- Cross-chain technology is becoming the next innovation with a proof-of-stake consensus being the favoured one over proof-of-work
- Most DApps are located on ETH, TRON, or EOS
- The DApp market has not experienced much change in active users and trading slightly declining. Retention is low.
- 41% of crypto exchanges are located in Asia
- 17.8% are decentralized exchanges with 0.73% of the trading volume.
- More than 700 wallet projects and 34 million users. 76% are hot wallets.
- Global wallets have grown between 9% and 24% quarterly since 2016.
- Mining is becoming highly concentrated with computer power making is hard to compete.
- Bitmain owns 60% of the market and Canaan at 19.5%.
- In Nov 2018 many miners were forced to shut down because they could not cover costs.