The white paper arrives at a particularly interesting time given Hong Kong recently implemented its new regulatory regime for cryptocurrencies, allowing licensed exchanges to serve retail investors, a departure from mainland China\u2019s crackdown on all forms of crypto trading.<\/p>\n

The white paper signals that China is open to incorporating web3 in its future internet in some capacity. Impressively, it mentions Gavin Wood, a co-founder of Ethereum, and how he was the first to expound the concept of web3, a set of inclusive protocols that provide basic modules for application developers, enabling them to build applications in new ways. The paper also references how artist Beeple\u2019s record-breaking Christie\u2019s auction helped bring NFT into the mainstream consciousness.<\/p>\n

As for how web3 might manifest in China in a tangible way, the paper echoes Western technologists in maintaining that web3 enables read-write-own, allowing users to not only consume and create information but also own their data. The paper argues that in the new world where reality and virtuality merge, a new economic system will emerge, and \u201cweb3 will serve as a crucial foundation for identity verification, data authentication, asset trading and regulation in the metaverse.\u201d<\/p>\n

The statement appears a good sign for blockchain adoption in China. In fact, the country\u2019s public and private sectors have been cautiously exploring blockchain across a range of fields that don\u2019t involve cryptocurrencies, which regulators worry can spark speculation and market volatility. Furthermore, instead of censorship-resistant public blockchains, China encourages the use of consortium blockchains that are governed only by selected participants rather than anyone out in the public.<\/p>\n