China Explores Blockchain for Digital Identity as RealDID Gains Approval

Chinese authorities are investigating novel applications of blockchain technology, including establishing a digital identity verification system, despite a comprehensive prohibition on digital currencies.

RealDID, a blockchain-based service designed to authenticate the identities of Chinese citizens, has been approved for release by the Chinese Ministry of Public Security.

Beijing Zhongdun Anxin Technology, China Mobile Communications Group, and the Blockchain Service Network will collaborate with the ministry on this endeavor.

Personal identification services, customized business names, private logins, and information vouchers were among the use cases highlighted in the proposal for blockchain-based digital identity systems.

Citizen autonomy regarding the information they wish to disclose to third parties will be enhanced via the RealDID platform. Utilizing several privacy-centric functionalities, organizations are granted access solely to minimal and essential personal data.

“Anonymity at the front desk and an actual name at the backend” ensure a high level of privacy, which, according to officials, could serve as the foundation for a “national data infrastructure.”

“By facilitating the circulation of national data elements and contributing to the growth of the digital economy, the combination of blockchain infrastructure and digital identity distributed infrastructure is crucial,” the report declared.

It alluded to the possibility of businesses being onboarded to the platform but did not provide details regarding a public debut.

“BSN’s real-name DID service is anticipated to generate more value-adding application scenarios as additional business platforms are added,” the release stated. “It is believed that this will enable the creation of additional application scenarios.”

A conference for industry experts and stakeholders to discuss the technical and regulatory trajectory of the identity verification system has been organized by officials in advance of the proposed launch.

With its central bank digital currency (CBDC) and metaverse initiatives dependent on nascent technology, China has fully supported blockchain.

To safeguard users, the Chinese government is pledging to combat Web3 crimes and promote a unified national blockchain framework that fosters innovation.

The establishment of a blockchain center, which aims to expand the industry’s talent pool and facilitate its expansion, was initiated by the authorities in May.

With the collaboration of universities, research institutes, and industry firms, it is anticipated that the center will, in the coming years, impart blockchain expertise to more than 500,000 individuals.