China Plans Blockchain-Powered Data Infrastructure with Full Implementation by 2029

China's Blockchain-Based Data Infrastructure Plans for 2029

China is positioning blockchain as a central element in its digital transformation strategy, aiming to create a robust national data infrastructure by 2029.

With the release of new guidelines by the National Development and Reform Commission (NDRC), blockchain technology is set to play a pivotal role in securing and streamlining data exchange across various sectors and regions.

Blockchain to Secure Data Flow Across Industries

The newly released "National Data Infrastructure Construction Guidelines" highlight the role of blockchain in ensuring that data can be shared securely and transparently.

By using blockchain networks, the government aims to create a trusted system where data can be exchanged without the risk of tampering or fraud.

These efforts are aligned with China's broader goal of building an integrated national data market that will support secure, traceable transactions across industries.

According to the guidelines, blockchain will be used to establish “trusted data spaces,” which will allow multiple parties to share data securely while maintaining privacy and ownership rights.

Translated image of how the "trusted data spaces" work.

These spaces will leverage distributed ledger technology (DLT) to create immutable records, enabling verification of data provenance and ensuring compliance with regulations.

The goal is to address common challenges in data governance and promote trust between businesses, governments, and individuals.

Pilot Projects to Test Blockchain Frameworks by 2026

In its ambitious timeline, China plans to launch several pilot blockchain projects from 2024 to 2026, focusing on testing frameworks and real-world applications in key regions.

These pilot projects will refine blockchain systems, making them ready for national deployment by 2028.

By that year, China expects to have fully integrated blockchain networks supporting large-scale data flow between provinces and sectors.

This phased approach will allow for gradual adaptation, especially as the technology matures and becomes more widely adopted.

As part of the pilot initiatives, blockchain-driven solutions will be tested in sectors like digital finance, green energy, and smart manufacturing.

Translated diagram of the overall architecture for data infrastructure, network, and computing facilities.

Specific applications, such as decentralised supply chain management and financial services, will be at the forefront of these trials.

The use of blockchain in these areas will streamline processes, improve data transparency, and enhance security.

Blockchain-Powered Data Markets and Monetisation

A key feature of the plans is the creation of blockchain-powered data markets, where data assets can be tokenised, allowing for fractional ownership and secure trading.

This concept aims to unlock new revenue streams by incentivising the sharing of data across platforms.

With blockchain, these markets will ensure that data transactions are secure, transparent, and verifiable, making it easier to monetise data while protecting privacy.

By 2026, the government intends to have tested decentralized applications (dApps) on these blockchain networks, particularly focusing on sectors with complex data needs.

In agriculture and manufacturing, for example, blockchain will ensure the traceability of products and reduce the potential for fraud.

In the financial sector, decentralized finance (DeFi) solutions based on state-approved blockchains will offer alternatives to traditional banking, providing secure and cost-effective methods for transactions.

A Push for Advanced Security and Privacy Protection

Security and privacy remain at the forefront of China’s blockchain infrastructure plans.

The guidelines propose integrating blockchain with privacy-enhancing technologies, such as secure multi-party computation, homomorphic encryption, and zero-knowledge proofs.

These technologies will allow sensitive data to be processed and analysed without exposing it, addressing privacy concerns in areas like healthcare and finance.

In addition, the NDRC’s guidelines outline plans to establish blockchain-based monitoring systems that will carry out real-time checks on data integrity, ensuring that unauthorised access and cyber threats are mitigated.

By decentralising control over critical data flows, China hopes to enhance the resilience and security of its national data infrastructure.

A National Investment in Blockchain Innovation

The national blockchain initiative is expected to draw significant investments over the next five years, with some reports suggesting that it could amount to around 400 billion yuan (approximately $54.5 billion) annually.

China held a special press conference to discuss the progress and details of the "Accelerating the Construction of National Data Infrastructure."

Local governments and industries are encouraged to develop blockchain networks and privacy-focused computing platforms, creating a conducive environment for widespread adoption.

This aligns with China's broader vision of driving innovation while maintaining stringent control over data security and privacy.

China’s Approach to Crypto and Blockchain

While China has had a complex relationship with cryptocurrency, the government’s focus remains firmly on blockchain technology.

In 2021, the country banned all crypto-related activities, including mining and trading, although a recent ruling clarified that individuals are still permitted to hold cryptocurrencies.

Despite this, China’s commitment to blockchain remains unwavering, with the technology becoming a key pillar of its national digital economy.

As China continues to explore blockchain applications within the Belt and Road Initiative and among BRICS nations, the country is likely to see increased cooperation on blockchain and data infrastructure in the coming years.

However, the prospects for a change in China’s crypto policies remain uncertain, especially given the country's ongoing stance on crypto-related activities.

A Digital Future Built on Blockchain

China's vision for blockchain-powered national data infrastructure is ambitious, with a projected timeline extending to 2029.

As blockchain technology evolves and pilot projects expand, China aims to create a transparent, secure, and efficient digital ecosystem, positioning itself as a global leader in blockchain integration.

The roadmap laid out by the NDRC marks the beginning of a significant digital transformation that could change how data is managed, shared, and monetised across industries.